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Compensation Disparities in Cyprus Labor Market: A Sector-by-Sector Analysis

A recent release by the Statistics Service sheds light on notable disparities in monthly earnings between native and non-native workers operating within the same economic activities in Cyprus. The analysis confirms that wage variations persist across diverse sectors, influenced by qualifications, gender, and nationality.

Sectoral Discrepancies in Earnings

Among non-native employees, the finance and insurance sector leads with an average monthly wage of €6,172, significantly outpacing the native rate of €4,129. A similar trend is observed in the information and communication field, where non-native workers earn an average of €5,083 compared to €3,197 for their native counterparts. Additional sectors, such as arts, entertainment, and recreation, along with public service agencies, also exhibit higher compensation for non-native employees. For instance, non-natives in the mining and quarrying industry earn about €4,173 monthly, whereas natives receive €3,123; in logistics, non-natives earn €2,767 compared to €2,601 for natives; and in professional, scientific, and technical activities the disparity is €3,521 versus €2,653, respectively.

Native Workers Leading in Key Sectors

Conversely, certain industries favor native workers with higher average monthly wages. In agriculture, forestry, and fishing, native employees earn approximately €1,677, while non-natives receive merely €650. The manufacturing sector also highlights a gap, with natives earning €2,002 compared to €1,628 for non-natives. Moreover, public utilities demonstrate substantial differences: workers in electric, gas, steam, and air conditioning supply earn an average of €3,585 if native, versus €2,259 for non-natives, while those in water supply and waste management report €2,472 for natives and €1,572 for non-natives. Similar patterns are observed in construction, wholesale and retail trade, motor vehicle repair, and accommodation services, where natives consistently earn more.

Balanced Earnings in Education and Public Administration

In sectors such as education and public administration, the wage differences are far less pronounced. Non-native employees in public administration and defense earn slightly more at €3,444, while natives receive €3,278. In the education sector, the monthly earnings for non-natives and natives are comparably close at €2,428 and €2,280 respectively, indicating that these areas exhibit a more balanced compensation structure.

Conclusion

The statistics present a complex picture of the Cypriot labor market. While non-native workers command higher wages in sectors such as finance, insurance, and various professional services, native employees tend to secure better compensation in agriculture, manufacturing, and utilities. This sector-by-sector analysis offers critical insights for policymakers and business strategists aiming to understand and address the underlying factors contributing to these wage disparities.

Central Bank Of Cyprus Balance Sheet Reflects Strong Eurosystem Position

Overview Of Financial Stability

The Central Bank of Cyprus (CBC) has released its latest balance sheet, reaffirming its steadfast role within the Eurosystem. The balance sheet, featuring total assets and liabilities of €29.545 billion, underscores the institution’s stable financial posture at the close of January 2026.

Asset Allocation And Strategic Holdings

Governor Christodoulos Patsalides issued the balance sheet, which details the CBC’s asset composition under the Eurosystem framework. Notably, the bank’s gold and gold receivables amounted to €1.635 billion, providing a significant hedge and stability to its balance sheet. Additional asset categories include claims on non-euro area residents denominated in foreign currency at €1.099 billion, while claims on euro area residents in both foreign and domestic currency add further depth to its portfolio.

The most substantial asset category, intra-Eurosystem claims, reached €19.438 billion, an indication of the CBC’s deep integration with its European counterparts. Furthermore, euro-denominated securities held by euro area residents contributed €6.587 billion. Despite a marked emphasis on these areas, lending to euro area credit institutions in monetary policy operations recorded no activity during the period.

Liability Structure And Monetary Policy Implications

On the liabilities side, banknotes in circulation contributed €3.218 billion. Liabilities to euro area credit institutions associated with monetary policy operations were notably the largest single category, totaling €17.636 billion. Supplementary liabilities included those to other euro area residents, which aggregated to €4.989 billion, with government liabilities playing a predominant role at €4.754 billion.

Other liability items, such as claims related to special drawing rights allocated by the International Monetary Fund at €494.193 million, and provisions of €596.571 million, further articulate the CBC’s exposure. Revaluation accounts stood at €1.643 billion, and overall capital and reserves were confirmed at €333.822 million, completing the picture of a well-capitalized institution.

Conclusive Insights And Strategic Alignment

The detailed breakdown illustrates the CBC’s sizeable intra-Eurosystem exposures, reinforcing its central role within Europe’s monetary landscape. With an asset-liability balance maintained at €29.545 billion, the CBC’s financial position remains robust, indicating a commitment to structural stability and strategic risk management.

This fiscal disclosure not only provides transparency into the CBC’s operations but also serves as a benchmark for comparative analysis among other central banks within the Eurosystem, highlighting the intricate balance between asset liquidity, regulatory oversight, and monetary policy imperatives.

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