Cyprus’ job vacancy rate fell to 2.6% in the second quarter of 2026, down from 2.8% in the previous quarter and 3.3% a year earlier, according to data from the Statistical Service, or Cystat.

Vacancies declined by 975, or 7%, from 13,905 in the first quarter. The drop points to softer hiring demand, although several sectors continue to face staffing shortages.

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Hospitality Records Highest Vacancy Rate

Accommodation and food service activities had the highest vacancy rate at 4.6%, reflecting continued demand for workers in one of Cyprus’ most labor-intensive industries.

Transportation and storage and administrative and support services followed at 3.5% each, while construction recorded a 3.1% vacancy rate. Wholesale and retail trade stood at 3%.

Hospitality And Trade Have Most Openings

Accommodation and food service activities also recorded the largest number of vacancies, with 2,827 positions. Wholesale and retail trade followed with 2,286, while construction had 1,330.

Professional, scientific and technical activities recorded 874 vacancies, followed by transportation and storage with 859, manufacturing with 854, and administrative and support services with 789.

Public administration and defense had 665 vacancies, while human health and social work activities recorded 572. Information and communication activities had 441 openings, and financial and insurance activities had 398.

Vacancy Rates Vary Widely Across Sectors

Manufacturing and human health and social work activities each recorded vacancy rates of 2.2%. Publishing, broadcasting and content production, information and communication, and public administration and defense each stood at 2%.

Water supply and waste management and professional, scientific and technical activities recorded 1.9%, while other services stood at 1.8%, financial and insurance activities at 1.7%, and arts, sports and recreation at 1.5%.

Education had a vacancy rate of 0.7%, while electricity supply and real estate activities each stood at 0.6%. Mining and quarrying recorded no vacancies.

What Counts As A Job Vacancy

Cystat defines a job vacancy as a paid position that is newly created, unoccupied or about to become vacant, where an employer is actively seeking an external candidate and intends to fill the role immediately or within a specified period.

More than one in 10 consumers could routinely use AI agents to make online purchases on their behalf by 2030, according to a Mastercard report on the future of commerce.

The report, A Short History of the Future of Shopping and Payments, combines Mastercard research with forecasts from four AI and commerce experts.

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From Recommendations To Purchases

AI agents could handle routine purchases such as groceries, medicines and subscriptions, including negotiating prices for consumers. Smart devices such as watches and rings could also provide personalized product information before and after purchases.

“By 2030, buying a product and the shopping experience will not necessarily be the same thing,” said Magnus Lindkvist. “AI agents will take care of the most everyday purchases, leaving the shopping experience to be more closely associated with discovery, inspiration and enjoyment.”

Younger Consumers Are Moving First

Mastercard’s survey of 26,000 parents and teenagers aged 13 to 18 across 13 countries found that teenagers already use AI in purchasing decisions at roughly twice the rate of their parents.

Some 62% said AI will significantly change how their generation shops. Meanwhile, 31% would trust an AI product recommendation more than one from a friend, while 23% would trust AI more than their parents.

Retailers Will Need To Adapt

As AI agents make purchasing decisions, retailers will need to serve both consumers and software acting on their behalf. Product information, reviews, certifications, origin and sustainability data will need to be easy for AI systems to identify and verify.

Trust will be critical as agents gain authority to complete transactions. Businesses and financial institutions will need clear rules covering identification, consent, authorization and responsibility, Lau said.

Cyprus Tests Agentic Commerce

Mastercard said agentic commerce is already being tested in Cyprus. Earlier this year, it carried out what it described as the country’s first agentic transactions in a regulated environment with Alpha Bank Cyprus, Eurobank Limited and Bank of Cyprus.

Using Mastercard Agent Pay, AI agents completed purchases with consumers’ explicit consent. The trials were designed to maintain security, transparency and consumer control.

The tests offer an early example of infrastructure that could support a shift from AI recommendations to AI agents making purchases directly. Scaling the model will depend on both technology and clear rules governing how agents can act.

A company behind plans for a new cooperative bank in Cyprus has reported an attempted online scam to police after discovering fake websites and social media accounts targeting potential investors.

Fake Channels Target Prospective Investors

The Pancyprian Cooperative Society for Participation and Promotion of Cooperativism said unauthorized websites and profiles were posing as official sources of assistance for people seeking to buy shares in its ongoing offering.

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No individual, company or third party has been authorized to represent the group, mediate transactions or assist prospective members, it said.

Official Platforms Confirmed

Pancyprian Cooperative Society identified pccppc.cy as its only official corporate website. Membership applications and share purchases are handled exclusively through its dedicated share platform.

The warning comes as the company raises capital to establish a new cooperative credit institution in Cyprus. Its prospectus was approved by the Cyprus Securities and Exchange Commission on July 8, while the public offering opened July 22 and is scheduled to run until Nov. 17.

Capital Raise Underway

Up to 42 million new shares are being offered at a nominal value of €1 each, with a minimum online investment of €100.

Prospectus approval does not constitute an endorsement of the shares, and the proposed bank will still require the necessary licenses before beginning operations.

Public Urged To Verify Communications

Potential investors should avoid sharing personal or financial information through unofficial websites or social media accounts, the company said. Any communication should be verified through its official channels before a share purchase is made.

Support is available at 97913011, 97913012, 97913013 and 97913014, while potential investors are advised to use the company’s official channels for enquiries.

A police complaint followed the discovery of fake online material that the company said was designed to mislead and defraud people interested in the share offering.

Cyprus has increased adult participation in education and training over the past decade, but remains below the European Union average, according to Eurostat.

Participation Rises, But Gap Remains

In 2025, 12% of adults in Cyprus aged 25 to 64 had participated in formal or non-formal education and training during the previous four weeks. That was up from 7.5% in 2015, a 4.5 percentage point increase.

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Across the EU, participation reached 13.7% in 2025, compared with 10.1% a decade earlier. Cyprus therefore remained 1.7 percentage points below the bloc average.

Adult Learning Supports Workforce Skills

Education and training help workers update skills, adapt to new technologies and remain competitive as industries change. Employers also face growing demand for workers who can adjust to evolving business models and digital tools.

Eurostat tracks these figures as part of Sustainable Development Goal 4, which covers quality education and lifelong learning, including adult education and digital skills.

Cyprus Follows A Wider EU Trend

Adult learning participation increased across most EU countries over the past decade, despite a temporary decline in 2020 linked to the COVID-19 pandemic and related restrictions.

Sweden had the highest participation rate in 2025 at 38.2%, followed by Denmark at 31.0% and Finland at 28.1%. Greece recorded the lowest rate at 5.2%, followed by Bulgaria at 6.1% and Croatia at 6.5%.

Malta recorded the largest increase since 2015, at 12.3 percentage points, followed by Estonia at 11.9 points, Belgium at 11.1 and Slovenia at 10.9. Only France, Luxembourg and Denmark recorded declines.

Women And City Residents Participate More

Women were more likely than men to participate in adult learning in 2025, at 14.9% compared with 12.4%. Female participation increased by 4.0 percentage points from 2015, compared with 3.2 points for men.

Location also mattered. Participation reached 16.8% among adults living in cities, compared with 12.3% in towns and suburbs and 10.3% in rural areas.

Cyprus Still Has Room To Catch Up

Cyprus’ increase from 7.5% to 12% suggests more adults are continuing their education after entering the workforce. Higher participation can support skills development, employability and productivity as economies adapt to automation and digitalization.

The latest figures show Cyprus has made progress but still trails the EU average, particularly as lifelong learning becomes increasingly important to workforce competitiveness.

Companies that can control rapidly rising artificial intelligence costs may gain an advantage as AI models become increasingly commoditized, according to PwC.

The professional services firm said AI cost-control tools are becoming widespread and standardized, making them necessary to compete but less useful as a differentiator. Disciplined spending could also free capital for additional AI initiatives and create a compounding advantage.

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One global technology company reportedly cut the cost of each AI run by 65% to 80%, allowing it to run three to five times as much AI on the same budget.

Why AI Spending Keeps Rising

Token prices are falling, but total AI spending continues to increase as lower unit costs encourage broader deployment. More workflows can also mean more calls, retries and system dependencies.

“Everyone tries to use AI everywhere, even if it just makes workflows more complex and expensive,” PwC said, noting that access to the same underlying models limits the competitive value of higher spending.

Companies also often lack visibility into token consumption and where waste occurs.

Hidden Costs Add Up

AI expenses can accumulate across planning, tool use, retrieval, reasoning, orchestration, safeguards, logging and review. Indirect infrastructure costs are also often excluded from initial budgets.

Agent-based systems can increase spending further by creating plans, delegating tasks, retrieving information or repeating processes when results fall short.

Model costs vary sharply, with PwC estimating that one million tokens can cost anywhere from pennies to $50. Choosing the cheapest model is not necessarily the best option because weaker systems can create additional work, poor decisions or compliance problems.

Financial Discipline Can Reduce Waste

PwC recommends examining three sources of AI cost overruns: rates, such as supplier price changes; volume, including excessive calls and retries; and mix, meaning the wrong model tier for a task.

Its operating model calls for assessing cost and value before development, redesigning systems to eliminate waste, linking spending to business outcomes and reinvesting savings in additional AI projects.

Companies can reduce costs by limiting unnecessary context, combining tasks into fewer calls, setting spending limits and routing work to the least expensive suitable model. PwC said these controls should be built into AI systems through budget limits, routing rules, workflow thresholds and audit trails.

Human Oversight Still Matters

Automated controls do not replace human oversight. PwC said technology should flag decisions for review and provide the information needed to align actions with business priorities.

In the technology company case study, the approach cut average runtime from 12 hours to four hours while maintaining output quality. PwC recommends tracking the cost of each AI workflow against its business outcome, putting AI spending on the CFO’s agenda and preparing for more outcome-based vendor pricing.

Discipline May Define The Next AI Advantage

PwC said companies should start with their most valuable AI applications, where better cost management and governance can deliver the greatest returns.

“The next round of AI advantage won’t go to whoever runs the most powerful models,” PwC said, noting that many companies will use the same underlying systems.

“Advantage will likely go to whoever runs them with more discipline,” the firm concluded.

Market production in the European Union fell 0.1% in June, as weaker construction and services activity outweighed a modest increase in trade, according to Eurostat.

Monthly Output Turns Lower

Compared with May, total market production declined 0.1% in the EU and 0.2% in the euro area. The figures point to a modest loss of momentum across the market economy at the end of the second quarter.

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The total market production index, or TMPI, combines short-term indicators for industry, construction, services and trade, providing a broader measure of private-sector activity.

Construction And Services Lead Decline

Construction output fell 1% in June, while services production declined 0.2%. Trade provided some support, rising 0.3% during the month.

Industrial production was unchanged from May, indicating that the overall decline was concentrated in construction and services rather than spread across all sectors.

Euro Area Posts Larger Decline

In the euro area, total market production fell 0.2% from May. The slightly sharper decline reflected the same weakness in construction and services, while the overall downturn remained limited.

Annual Growth Remains Positive

Despite the monthly decline, market production remained above year-earlier levels. Compared with June 2025, total market production increased 1% in the EU and 0.7% in the euro area.

The annual gains indicate that the broader market economy continued to expand, although June data showed a softer pace and uneven performance across sectors.

China is promoting open-source artificial intelligence development and international cooperation as Beijing seeks greater influence over how AI is built, deployed and governed.

Chinese AI companies have gained attention for developing open-source models whose underlying code can be accessed and adapted by users. The approach has helped position China as a competitor in the global race to shape AI development and policy.

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Xi Backs Open AI Ecosystem

At a recent summit, Chinese leader Xi Jinping said Beijing would support an initiative on “open-source and inclusive A.I.” and encourage cooperation on developing and applying large language models, according to a readout by state broadcaster CCTV.

The initiative would also include specialized research and training programs for BRICS countries, Xi said, with the goal of building an open AI ecosystem.

BRICS, which includes China, Russia and India among other emerging economies, was founded in 2009 as a platform for countries seeking greater influence in global institutions.

Beijing Seeks Role In AI Governance

Xi also called for a broad, consensus-based global framework for AI governance. The proposal signals that Beijing aims to influence not only AI development but also the rules governing the technology.

His comments come as policymakers and technology executives raise concerns that AI development could outpace efforts to manage its risks.

AI Could Feature In Trump-Xi Talks

Xi is expected to visit the United States this month for talks with President Donald Trump, with AI governance potentially on the agenda.

Governments are increasingly weighing how to support AI innovation while maintaining oversight of a technology advancing faster than existing regulatory frameworks.

Cyprus’ employment rate for people aged 20 to 64 held at 82.3% in the second quarter of 2026, remaining well above the European Union average, according to Eurostat.

Cyprus Stays 5.9 Points Above EU Average

The rate was unchanged from the first quarter and stood 5.9 percentage points above the EU average, which edged up to 76.4% from 76.3%.

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Employment rose in 14 EU countries between the first and second quarters, remained unchanged in four, including Cyprus, and fell in nine.

Portugal And Malta Lead Quarterly Gains

Portugal and Malta recorded the largest quarterly increases, at 0.6 percentage points each. Greece followed with a 0.5-point gain, while Latvia and Slovenia each rose 0.4 points.

Austria recorded the sharpest decline, at 0.4 percentage points. Lithuania and Sweden followed, both down 0.3 points.

EU Labour Market Slack Holds At 11%

Labour market slack, which measures unused labour capacity among people aged 20 to 64, stood at 11% across the EU in the second quarter, unchanged from the previous quarter.

The measure includes unemployed people as well as others with an unmet need for work, providing a broader picture of underused labour capacity than the unemployment rate alone.

Global tax policy is becoming more fragmented as companies navigate overlapping forums, uneven implementation timelines and growing links between tax, trade and industrial policy.

A More Fragmented Policy Environment

“Companies today are operating in a world marked by changing relationships and evolving alliances, where cooperation often takes a backseat to competitiveness,” said Aruna Kalyanam, EY Global and EY Americas Tax Policy Leader.

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EY’s 2026 Tax Policy and Controversy Outlook examines how these shifts could affect corporate tax strategy, compliance and dispute risk. The OECD Inclusive Framework remains central to international tax work, but its current focus is increasingly on administration and implementation, particularly Pillar Two and the global minimum tax rules.

Progress on Pillar One remains stalled, although countries continue to explore whether negotiations can resume. The US has called for a return to first principles, while EY said efforts may increasingly focus on limiting digital services taxes rather than creating a multilateral system for reallocating taxing rights.

UN Develops A Separate Tax Track

The United Nations is developing a Framework Convention on International Tax Cooperation, with results expected in late 2027. The process aims to broaden participation in global tax rulemaking and strengthen developing countries’ role in decisions on cross-border taxation.

Unlike the OECD process, UN decision-making does not require consensus, allowing substantive issues to be settled by majority vote, including a two-thirds threshold for protocols. The negotiations also place greater emphasis on source-based taxation.

Although the UN Committee of Experts on International Cooperation in Tax Matters produces non-binding guidance, EY said its work could increasingly influence treaty practice and the Framework Convention.

Businesses Face A More Complex Burden

Multiple tax negotiations can now proceed simultaneously, creating requirements and timelines that do not always align. EY said companies therefore need to manage policy developments across several forums rather than focus on individual tax rules.

AI is adding another dimension to tax administration, with authorities using it for fraud detection, risk assessment, compliance monitoring and taxpayer services.

“In a fragmented global policy environment, tax leaders need more than technical insight – they need intelligent systems that can connect data, model outcomes and respond at speed,” said Martin Fiore, EY Americas Vice Chair – Tax.

Tax, Trade And Industrial Policy Converge

Tax, trade and industrial policy are increasingly connected, EY said, as tariffs, supply-chain pressures, national security concerns, investment incentives and revenue needs influence decisions together.

“Tariff pressure, supply chain shifts, global tax negotiations and increasing enforcement are so closely linked and require companies to very quickly navigate risk, capture opportunities and make strategic decisions on where to operate,” said Lynlee Brown, Partner, Global Trade, Ernst & Young LLP.

Unilateral Measures Gain Ground

As multilateral negotiations move slowly, governments are increasingly turning to unilateral measures to raise revenue or protect their tax bases.

EY also highlighted smaller alliances such as the Australia-Canada-India Technology and Innovation trilateral partnership, which focuses on critical minerals, emerging technologies and supply-chain resilience. A memorandum of understanding establishing the partnership was signed in March 2026.

What Companies Need To Do

EY said businesses should integrate tax, trade, legal, finance and supply-chain teams when assessing policy risks. Scenario planning can be more useful than predicting a single outcome while negotiations remain unresolved.

Real-time monitoring, reliable data systems and agile governance can help companies respond before policy changes affect operations.

A Patchwork Future For Global Tax Rules

EY expects global tax cooperation to evolve through a mix of agreements, workarounds and negotiated trade-offs rather than a single comprehensive framework. Companies will need to integrate tax, trade and broader business decisions while monitoring developments across different forums.

The result is likely to be a global tax system where cooperation continues, but increasingly through regional arrangements and national initiatives rather than one unified process.

The Digital Cooperation Organisation has launched an international artificial intelligence challenge seeking practical solutions to water-sector problems, opening the programme to innovators from Cyprus and other member states.

Cyprus Innovators Can Apply

As a DCO member, Cyprus is eligible for the Future Makers AI Challenge for Critical Sustainability. Startups, researchers, innovators and technology teams can apply with AI-enabled solutions for water management and sustainability.

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Saudi Arabia’s Ministry of Environment, Water and Agriculture, the Research, Development and Innovation Authority, and King Abdulaziz City for Science and Technology are delivering the initiative with the DCO.

Focus On Water Efficiency And Resilience

Across DCO member states, the challenge targets operational problems that affect water systems. Priority is given to technologies that can improve efficiency while reducing waste, resource use and environmental impact.

Potential solutions include technologies that reduce water losses, lower energy consumption, support reuse and recycling, and strengthen the resilience of the wider water value chain.

From Innovation To Deployment

Future Makers is delivered through NexaBridge, the DCO’s open innovation platform connecting business challenges with technology teams and supporting promising solutions toward commercial deployment.

Selected teams will be able to develop and demonstrate their solutions, while successful participants could have an opportunity to test their technologies under controlled conditions in Saudi Arabia. Solutions could then be adapted for use across other DCO member states.

Opportunity For Cyprus

For Cyprus, the challenge is particularly relevant because limited water resources make efficient supply management a strategic priority. Local participation could provide innovators with a platform to develop and test technologies addressing a key economic and environmental constraint.

Eligible participants include innovators, researchers, startups and technology teams with AI-enabled solutions addressing the identified water-sector priorities. Applicants can also adapt existing expertise to the challenge or seek partnerships with teams from other countries.

Applications Close October 4

The initiative aims to move water-sector innovation from research and development toward practical deployment. Applications for the Future Makers AI Challenge for Critical Sustainability close on October 4, 2026.

Established to promote digital cooperation among member states, the DCO focuses on technology, innovation and digital transformation. Cyprus’s membership gives local businesses and researchers access to cross-border initiatives supporting technology-led solutions.