Cyprus Aims to Slash Unemployment Below 5%, Says Labour Minister

by THEFUTURE.TEAM

December 2, 2024

The Minister of Labour and Social Insurance, Yannis Panayiotou, has unveiled an ambitious plan to bring Cyprus’s unemployment rate below 5%. Speaking on Friday at the presentation of the Ministry’s 2025 budget to the Finance Parliamentary Committee, the Minister outlined key strategies and increased funding to meet this objective.

Boosted Budget for Economic Growth

To support this target, the Ministry’s 2025 budget will increase by €84 million compared to 2024, reaching a total of €884 million. Minister Panayiotou attributed the rise in the Ministry’s revenues to the expanding Cypriot economy, which has led to higher contributions to the Social Insurance Fund thanks to an increasing workforce.

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“The creation of full employment conditions for the domestic workforce is a challenging goal, but one we believe is achievable,” the Minister remarked.

Exceeding Expectations

The Labour Minister highlighted that the unemployment rate for 2024 is projected to fall below 5.5%, surpassing the initial target of 5.8%. These positive trends underscore the effectiveness of current strategies and provide a strong foundation for achieving even lower unemployment rates in the years ahead.

Focus on Key Demographics

Minister Panayiotou noted that unemployment primarily affects two groups: young people under 30 and adults over 55. To address this, the Ministry is developing targeted programs aimed at integrating these demographics into the workforce.

He also emphasised the long-term benefits of early workforce entry, pointing out that earlier participation strengthens the Social Insurance Fund and secures better pensions for workers.

Looking Ahead

As Cyprus continues to experience economic growth, the Ministry’s renewed focus on reducing unemployment and supporting vulnerable groups is expected to yield significant results. With a clear strategy and increased resources, the government is committed to fostering a robust and inclusive labour market for all.

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Cyprus Business Registrations Surge Despite EU Economic Pressures

by THEFUTURE.TEAM

February 16, 2026

Recent Eurostat data underscores a significant surge in new business registrations in Cyprus during the fourth quarter of 2025, outstripping the modest gains observed across the European Union. While the EU saw a 0.5% rise from the previous quarter, Cyprus posted notably stronger figures, signaling renewed entrepreneurial vigor.

Cyprus Emerges As A Leader In Business Creation

Utilizing 2021 as the benchmark, Cyprus’s business registration index climbed from 114.7 units in Q3 2025 to 118.7 units in Q4 2025, a marked improvement from 95.2 units recorded in Q4 2024. This robust growth not only surpasses the broader EU performance, which reached 112.5 units in the same period, but also highlights a remarkable year-on-year rebound in Cyprus’s market dynamics.

Differentiated Sectoral Trends Across Europe

The latest Eurostat report provides valuable insights into sector-specific developments. The information and communication sector led the charge with a 6.4% increase, followed by the industry sector, which expanded by 4.9%. However, modest contractions were observed in trade, as well as in the construction and transport sectors, each experiencing slight declines. Such mixed developments underscore the varying degrees of economic recovery and stress among different business segments.

Complex Economic Environment With Rising Insolvencies

Despite the positive trend in business registrations, the overall EU environment remains complex. A 2.5% increase in bankruptcy declarations from the previous quarter illustrates the financial pressures facing several sectors. Notably, the accommodation and food services sector saw an 8.6% rise in bankruptcies, while the information and communication sector and transport recorded increases of 7.9% and 5.6%, respectively. This juxtaposition of entrepreneurial activity and financial strain creates a nuanced economic landscape for investors and policymakers alike.

Strategic Implications For Stakeholders

The divergent trends in registrations and bankruptcies present both opportunities and challenges. For investors, the surge in business creation in Cyprus highlights an attractive market for emerging ventures. For policymakers, the need to foster sustainable growth while mitigating financial vulnerabilities is more critical than ever. As economic conditions continue to evolve, both local and EU-wide stakeholders must navigate this complex interplay between opportunity and risk.

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