Eurostat’s latest report highlights a concerning trend for the Cypriot labour market in 2023: the overqualification rate among workers is significantly above the EU average. Cyprus, known for its highly educated workforce, finds a substantial portion of its talent working in positions that do not fully utilise their qualifications. This phenomenon is especially pronounced among women and non-EU nationals.
Key Findings
In 2023, Cyprus recorded an overqualification rate of 39.3% for non-EU citizens, 43.1% for EU nationals, and 27.5% for Cypriots. These figures represent a notable decrease from 2022 but still place Cyprus among the top EU countries with the highest rates of overqualified workers.
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Gender Disparity
The data reveals a stark gender disparity in overqualification rates. Women are significantly more likely to be overqualified than men across all worker categories. For non-EU women, the overqualification rate was 15.8 percentage points higher than for men. Among EU nationals and Cypriots, the rates were 12.6 and 5 percentage points higher for women, respectively.
Comparative Perspective
Cyprus ranks high alongside Greece, Italy, and Spain in terms of overqualification rates. While the EU’s average overqualification rate for non-EU citizens was 39.4%, Cyprus’ rate stood just below at 39.3%. However, the island nation still faces a challenge in ensuring that its workforce’s skills are effectively matched with job opportunities.
Implications for Policy and Economy
These findings highlight a critical issue for policymakers in Cyprus. Addressing the overqualification problem is essential for optimising the labour market and ensuring that the country can fully leverage its human capital. This situation calls for targeted strategies to create more high-skilled job opportunities and better align education outcomes with market needs.
