The Cyprus Chamber of Commerce and Industry (Keve) is encouraging small and medium-sized enterprises to participate in a European Commission survey on occupational safety and health, as well as the protection of workers’ rights across subcontracting chains.

A Consultative Step Toward New EU Employment Rules

The survey is being conducted through the Enterprise Europe Network as part of the European Commission’s preparations for the forthcoming Quality Jobs Act. The initiative aims to help align future employment standards with the evolving needs of the labour market.

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Why The Commission Wants Business Input

According to Keve, the Commission is collecting information on how businesses manage occupational health and safety, protect workers’ rights within subcontracting chains, and assess the costs and benefits of implementing those measures.

Why Participation Matters For SmEs

Keve said participation is important because the findings will help shape future European employment policy and influence standards related to job quality. For SMEs, the exercise offers an opportunity to ensure that new rules reflect operational realities rather than relying solely on top-down assumptions.

Businesses interested in contributing can complete the questionnaire online by July 27, 2026. The chamber noted that no EU Login account is required to take part.

Keve is encouraging eligible businesses to share their experience so that upcoming regulations can better reflect the specific needs of Europe’s SME sector.

Each new round of layoffs seems to deepen the same conclusion: artificial intelligence is not just changing how companies work, but how workers imagine their future. Through May 2026, employers had announced nearly 90,000 job cuts tied to AI, according to reporting from Yahoo Finance. Some projections suggest AI could eliminate as much as 15% of U.S. jobs over the next five years, intensifying concerns among workers, especially younger graduates entering a job market that already feels uncertain.

Yet a new report from Ramp and Revelio Labs adds a more nuanced layer to the debate. Drawing on enterprise AI spending data and workforce records from nearly 22,000 companies, the study suggests that firms investing aggressively in AI are not necessarily reducing staff. In many cases, they are hiring faster.

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High AI Spending, Higher Headcount

The report classifies “high-intensity adopters” as companies spending an average of $30 per employee each month on AI during the first three months of adoption. Among those businesses, headcount increased by 10.2%. Hiring expanded across engineering, sales, administration, customer service, finance, marketing and scientific roles.

The strongest growth was recorded in the information sector, which includes software, internet, media and other technology-related businesses.

AI Investment And Business Expansion

According to the report, AI can lower production costs and improve efficiency across software and technology companies by accelerating coding, debugging, internal tooling, technical documentation and product development.

The study suggests these productivity gains may allow some companies to expand operations while continuing to hire, rather than relying solely on workforce reductions.

Entry-Level Employment Shows Mixed Trends

The findings also differ from some broader labour market research.

Goldman Sachs has estimated that AI eliminated around 16,000 net jobs per month over the past year, with Gen Z workers and entry-level employees experiencing much of the impact. By contrast, Ramp and Revelio Labs found that entry-level headcount increased by 12% among high-intensity AI adopters.

The authors note, however, that the study focuses primarily on fast-growing, knowledge-based companies, many of which are backed by venture capital and were already positioned for expansion. As a result, the report does not conclude that AI itself caused the increase in hiring.

“This paper does not show that AI universally creates jobs, but it does counter claims that AI will lead to broad job losses,” the authors wrote.

Adoption Patterns Differ Across Companies

According to the report, companies with greater access to capital, technical expertise and organisational resources may be better positioned to turn AI investment into business growth.

The authors caution that organisations lacking those advantages could struggle to achieve similar results. “Firms without those channels may fall behind,” they said.

Hotel occupancy in Paphos has weakened significantly this summer, with rates running around 20% below the same period last year, according to Cyprus Hotels Association (Pasyxe) President Thanos Michaelides.

Speaking to the Cyprus News Agency, Michaelides said hotels and other tourist accommodation in Paphos would normally expect occupancy above 90% during the peak summer months of June, July and August. Average occupancy is currently around 70%, leaving a significant shortfall during what is traditionally one of the district’s busiest and most profitable periods.

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Last-Minute Demand Has Helped, But Not Enough

Bookings have improved in recent weeks, driven mainly by last-minute reservations. Michaelides said the increase has helped ease some of the pressure on the sector but has not been enough to restore occupancy to typical seasonal levels.

Hoteliers Turn To Domestic Travel And Promotions

Hotels in Paphos are responding by placing greater emphasis on the domestic market, introducing targeted promotional offers and maintaining a strong focus on service quality to attract both local and international visitors.

Michaelides said he expects those efforts to help sustain demand through the remainder of the summer as the sector continues working to recover from earlier losses.

A Key Test For The Season

The latest figures show that hotel occupancy in Paphos remains well below last year’s levels despite a recent improvement in bookings supported by last-minute demand.

Cyprus’ tourism sector remained under pressure in April 2026, as lower visitor arrivals and weaker spending weighed on revenue, according to figures released by the Statistical Service of Cyprus (Cystat).

Revenue Slides As Tourist Demand Softens

Tourism receipts fell 35.1% year on year to €197.5 million in April, down from €304.2 million in the same month of 2025. For the January-to-April period, total tourism revenue reached an estimated €443 million, compared with €582.5 million a year earlier, representing a decline of 23.9%.

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The figures are based on Cystat’s passenger survey, which measures visitor spending upon departure from Larnaca and Paphos airports.

Fewer Arrivals, Lower Daily Spending

The decline extended beyond overall revenue. Average spending per tourist fell by 10.3% to €651.77 in April 2026, from €726.42 a year earlier. Daily expenditure also decreased, dropping to €80.47 from €94.34.

Visitors stayed slightly longer on average, with the length of stay increasing to 8.1 days from 7.7 days in April 2025. That, however, was not enough to offset lower arrivals and weaker daily spending.

Total tourist arrivals fell to 303,031 in April 2026, compared with 418,730 in the same month last year.

United Kingdom Remains The Largest Market

The United Kingdom remained Cyprus’ largest source market, accounting for 39.2% of total arrivals despite visitor numbers declining to 118,742 from 151,883 in April 2025.

British tourists spent an average of €751.92 per person and €86.43 per day, down from €777.17 and €89.33 respectively. Their average length of stay remained unchanged at 8.7 days.

Poland ranked second, accounting for 8.4% of total arrivals. Visitor numbers fell to 25,371 from 29,009, while average spending declined to €466.78 per person and €81.89 per day, compared with €529.52 and €89.75 a year earlier. The average stay edged down to 5.7 days from 5.9 days.

Germany placed third with an 8% share of arrivals. Tourist numbers declined to 24,178 from 29,613, while average spending eased to €765.30 per person and €85.99 per day, compared with €918.74 and €103.23 in April 2025. The average stay remained unchanged at 8.9 days.

Sharp Declines From Several Key Markets

Israel recorded one of the steepest declines, with arrivals falling to 15,997 from 63,474 in April 2025. Average spending also decreased to €472.15 per person and €102.64 per day, compared with €616.36 and €140.08 a year earlier, while the average stay increased slightly to 4.6 days from 4.4 days.

Arrivals from Greece declined to 14,255 from 16,354. Greek visitors spent an average of €365.16 per person and €41.50 per day, down from €434.38 and €73.62, while their average stay increased to 8.8 days from 5.9 days.

Sweden also recorded lower visitor numbers, with arrivals falling to 10,612 from 13,967. Average spending dropped to €575.36 per person from €825.61, while daily expenditure edged down to €76.71 from €78.63. The average stay shortened to 7.5 days from 10.5 days.

The Netherlands welcomed 7,162 visitors, compared with 8,810 a year earlier, while France recorded 5,855 arrivals, down from 8,113. Austria, Denmark, Switzerland, Finland, Norway, Italy, the United States and Lebanon also registered year-on-year declines in visitor numbers.

Belgium was one of the few markets to record growth, with arrivals increasing to 4,194 from 3,188, although average spending per visitor declined to €602.48 and daily spending to €98.77.

Italian tourists were among the few visitors to increase their spending despite lower arrivals. Average expenditure rose to €643.98 per person from €504.95, while daily spending increased to €111.03 from €91.81. Their average stay also edged up to 5.8 days from 5.5 days.

A Sector Still Searching For Momentum

The latest figures show that lower arrivals and weaker visitor spending continued to weigh on Cyprus’ tourism revenue in April. Although visitors stayed slightly longer on average, the increase was insufficient to offset declines in both arrivals and daily expenditure.

Cyprus’ banking sector recorded higher deposits and lending in May 2026, according to the latest monetary financial institutions data released by the Central Bank of Cyprus (CBC).

Deposits Rebound After April Decline

Total deposits increased by €343.8 million in May, reversing a net decline of €123.1 million recorded in April. The annual growth rate accelerated to 5.1%, up from 4.5% a month earlier. By the end of May, total deposits stood at €58 billion.

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Cyprus residents accounted for most of the monthly increase, with deposits rising by €239 million. Household deposits grew by €171.3 million, while non-financial corporations increased their deposits by €194 million.

Those gains were partly offset by a combined decline of €126.2 million in deposits held by other domestic sectors.

Lending Growth Accelerates

Total loans increased by €260.3 million in May, compared with a €40.5 million rise in April. The annual growth rate also strengthened, reaching 12.6% from 12.0% the previous month. Outstanding loans totalled €28.1 billion at the end of May.

Lending to Cyprus residents rose by €173.7 million during the month. Household borrowing increased by €52.7 million, while loans to non-financial corporations grew by €63 million. Lending to other domestic sectors expanded by €58 million.

Cyprus is facing a widening labour market mismatch, with 63 occupations in shortage and 11 in surplus in 2024, according to the EURES Labour Shortages and Surpluses Report 2025.

The findings highlight continued recruitment challenges across several of the island’s key industries, particularly healthcare, technology and tourism.

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Healthcare And Technology Face The Greatest Shortages

Healthcare occupations recorded some of the most severe shortages, including nurses, midwives, medical imaging technicians, general practitioners, specialist doctors, healthcare assistants and health and care services managers.

Demand also remains high for technology professionals. Employers reported shortages of information and communications technology sales specialists, systems analysts, software and applications developers, as well as web and multimedia developers.

Transport and hospitality occupations were also affected, with waiters and bus drivers among the professions experiencing shortages.

Tourism, Retail And Construction Continue To Feel The Pressure

Moderate shortages were identified across occupations linked to tourism, retail and construction. These include restaurant managers, retail and wholesale managers, accountants, electricians, electronics and mechanical technicians, chefs, shop sales assistants and cashiers.

Construction and industrial trades also remained under pressure. Builders, air conditioning and refrigeration technicians, welders, heavy goods vehicle drivers, cleaners and workers in agriculture, livestock, fisheries and construction-related services were all listed among occupations facing shortages.

Lower-severity shortages were recorded for engineers across several disciplines, hotel receptionists, cooks, carpenters, plumbers, electrical fitters, bakers and kitchen assistants.

Cyprus Reflects A Wider European Trend

Cyprus mirrors a broader labour market imbalance across the European Union, although shortages vary significantly between member states. Bulgaria, Italy and the Netherlands reported shortages across a wide range of occupations, from doctors to welders, with 57% classified as moderate or severe. Latvia, Austria and Finland, by contrast, recorded more labour surpluses, particularly in administrative and creative occupations.

According to the report, 98% of occupations experiencing shortages in at least one member state also recorded surpluses elsewhere in the European Union.

Structural Barriers Continue To Limit Labour Mobility

EURES attributes these imbalances to several structural factors, including limited awareness of job opportunities abroad, difficulties in recognising professional qualifications, language barriers and wage differences between countries.

Healthcare and social care remain among the sectors facing the greatest shortages across Europe, driven by ageing populations and growing demand for healthcare services.

Demand is also increasing for technical occupations linked to the green transition, including electricians, plumbers and roof technicians, as countries continue investing in energy efficiency and infrastructure.

Measures Proposed To Address Labour Gaps

The report recommends strengthening labour mobility across the European Union by simplifying the recognition of professional qualifications and reducing administrative barriers. It also calls for improvements in job quality, greater investment in vocational education and training, and measures to encourage higher labour market participation among women, older workers and migrants.

The findings are based on administrative data submitted by EURES National Coordination Offices for 2024, drawing on information from public employment services and other national sources across the European Union.

European Union member states invested €79 billion in environmental protection assets in 2025, according to Eurostat, reflecting continued spending on infrastructure aimed at reducing environmental impacts and managing natural resources.

The investment represented 0.4% of the EU’s gross domestic product and 1.9% of total investment across the economy.

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Wastewater Treatment Receives The Largest Share

Wastewater treatment attracted the largest share of environmental protection investment, accounting for 37.7% of total spending. Waste management followed with 27.3%, while air and climate protection projects represented 11.2%.

Companies Lead Environmental Investment

Businesses accounted for €49.6 billion, or 62.7%, of total environmental protection investment. Spending focused on specialised technologies and equipment designed to reduce the environmental impact of production processes.

These investments included equipment to reduce air emissions, the construction and maintenance of wastewater treatment facilities, vehicles used for waste transport, and waste collection plants. Companies also invested in land for natural reserves and biodiversity protection.

Public Sector Provides The Remaining Investment

General government and non-profit institutions accounted for the remaining 37.3% of environmental protection investment.

Eurostat’s figures show that wastewater treatment, waste management and air and climate protection accounted for the largest share of environmental protection investment across the European Union in 2025.

The global personal luxury goods market is showing early signs of recovery in the second quarter, even as geopolitical tensions continue to weigh on consumer confidence. According to Bain & Company, stronger-than-expected demand in the United States has helped offset weakness in other major markets.

In its latest annual outlook, Bain said its base-case scenario now forecasts personal luxury sales to grow by between 2% and 4% this year. That compares with a previous projection of 3% to 5%, published in November before the outbreak of the U.S.-Israeli war on Iran reshaped the macroeconomic outlook.

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Valued at €358 billion ($406 billion) in 2025, the global personal luxury goods market has contracted over the past two years. At current exchange rates, sales declined by 2% in 2025, although they increased by 1% at constant exchange rates, highlighting the impact of currency movements on the sector’s overall performance.

Experiences Continue To Outperform Products

Spending on experiences continues to outpace purchases of luxury goods, according to the report, which Bain prepared in partnership with Italian luxury association Altagamma. The findings suggest consumers are becoming more selective, directing discretionary spending toward travel, hospitality and other experience-led services rather than exclusively toward handbags, watches and apparel.

“We see growing uncertainty and turmoil at the macroeconomic and socio-political levels, but the market is there,” Bain partner Francesca Levato told Reuters.

The U.S. Leads While Europe Remains Under Pressure

Stronger-than-expected growth in the United States, supported by domestic brands and younger consumers, is helping offset weaker demand in Europe and the Middle East. China is also showing gradual signs of recovery, with ready-to-wear outperforming leather goods as consumer preferences continue to evolve.

“America is growing more than expected, and China is recovering faster than expected,” Levato said.

Europe, meanwhile, continues to face weaker tourist flows, although Bain reported signs of stabilisation in May.

Luxury Brands Face A Smaller Customer Base

According to Levato, the luxury industry has lost around 70 million consumers since 2022 as brands increased prices and focused more heavily on their highest-spending customers. While that strategy may have supported margins, it also reduced the industry’s consumer base.

“The industry should refuel the growth of the consumer base rather than focus only on the top 1 per cent,” she said.

AI And Resale Continue To Influence Buying Decisions

The report also points to the growing role of artificial intelligence in luxury shopping. Around half of luxury consumers already use AI during the purchasing process, primarily to discover brands and compare products.

Resale is also becoming increasingly influential. Half of luxury shoppers now consult second-hand marketplaces before purchasing new items, reflecting the expanding role of pre-owned goods in consumers’ buying decisions.

Businesses in Cyprus and across global markets are preparing for higher software costs as Microsoft raises prices across much of its corporate subscription portfolio from July 1, 2026.

The changes will affect most business subscription plans, with prices for some products increasing by as much as 33%. For many organisations, the new rates will take effect automatically when existing contracts come up for renewal.

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AI Features Drive Higher Subscription Costs

Industry analysts say the price increases reflect Microsoft’s decision to incorporate more artificial intelligence capabilities and additional security features into its products. As a result, organisations will pay higher subscription fees regardless of whether employees actively use those tools.

Standard workplace packages are expected to increase by between 12% and 16%. The largest adjustment, 33%, applies to Microsoft 365 F1, or Frontline, plans designed for employees in production, retail and field-based roles.

Those workers typically require communication tools and access to essential business applications rather than the full range of AI-powered features included in premium subscriptions. For organisations with large frontline workforces, the higher pricing could significantly increase software licensing costs.

Companies Reassess Licensing Strategies

According to software broker Forscope, Microsoft’s revised pricing is encouraging more organisations to consider hybrid software management models. These combine perpetual licences for core Office applications, often purchased through the secondary market, with lower-cost cloud subscriptions for communication and collaboration.

For many businesses, the objective is to align software spending more closely with employees’ actual requirements instead of paying for premium features that are not widely used.

Cost Comparison Highlights Potential Savings

Forscope compared software costs for a company with 100 users over three years. Maintaining Microsoft Office 365 E3 for all employees is estimated to cost €580,000 over that period. A hybrid model combining Office LTSC Professional Plus 2024 with Office 365 E1 would reduce that figure to an estimated €396,000.

According to Forscope, the hybrid approach could save a 100-user organisation as much as €190,198 over three years while continuing to provide the software needed for day-to-day operations.

Software Spending Comes Under Greater Scrutiny

Microsoft’s latest pricing changes are prompting businesses to review how they allocate technology budgets as subscription costs continue to rise alongside the rollout of AI features.

Organisations with large frontline workforces are expected to feel the greatest impact, since even relatively small increases in licensing costs can translate into significantly higher overall spending. As a result, hybrid licensing models are becoming one option for businesses looking to balance software costs with operational needs.

Energy demand in the European Union’s services sector continued to rise in 2024, reflecting the growing power needs of an increasingly digital and customer-oriented economy. According to Eurostat, final energy consumption reached 4,971 petajoules, up from 4,886 petajoules in 2023.

That marks a year-on-year increase of 1.7%. Over the longer term, energy consumption in the sector has grown by 25% since 1990.

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Services Still Trail Transport, Households And Industry

Despite that growth, services accounted for 13.5% of total final energy consumption across the EU in 2024. Transport remained the largest consumer at 32.3%, followed by households at 26.0% and industry at 24.5%.

Only agriculture, forestry and fishing recorded a smaller share, representing 3.6% of final energy consumption.

Electricity And Natural Gas Continue To Dominate

Electricity and natural gas remained the primary energy sources for the services sector, together accounting for more than three-quarters of total consumption.

More than half of all energy use came from electricity (52.0%), while natural gas accounted for a further 25.4%. Renewables and biofuels contributed 8.7%, heat represented 7.7%, and oil and petroleum products 5.6%. The remaining 0.6% came from other sources, including coal and waste.

Wholesale And Retail Trade Tops Energy Use

Wholesale and retail trade remained the largest energy-consuming services subsector in 2024, using 1,021 petajoules, or 21.2% of the sector’s total consumption.

Human health and social work activities followed with 506 petajoules, representing 10.5%, while accommodation and food service activities consumed 503 petajoules, also equal to 10.5%.

Professional, scientific and technical activities, together with other service activities, accounted for the remaining 492 petajoules, or 10.2%.

A Gradual Shift In Energy Demand

Although services are not the EU’s largest energy-consuming sector, their energy footprint continues to expand. Growing reliance on electrification and digital infrastructure across offices, retail, healthcare and hospitality is steadily increasing electricity demand while reinforcing the importance of energy efficiency and a more diversified energy mix.