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Cyprus Advances In Digital Services But Lags In AI Adoption

by THEFUTURE.TEAM

June 23, 2026

Robust Digital Infrastructure And Evolving Public Services

Cyprus continues to improve its performance in digital public services, connectivity, and business digitalisation, according to the European Commission’s 2026 State of the Digital Decade report.

The country achieved full 5G coverage in 2024 and has extensive gigabit connectivity, including in rural areas. Around three-quarters of small and medium-sized enterprises have reached a basic level of digital intensity, while cloud computing and data analytics are becoming more widely used.

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Challenges In Artificial Intelligence And Digital Inclusion

Despite progress in several areas, the report points to a relatively low adoption of artificial intelligence among businesses. The European Commission also highlighted the need to ensure that digital public services remain accessible to all citizens. While Cyprus has introduced an AI-powered chatbot to support access to government services, further implementation efforts are still required.

Digital Skills Disparities And Health Information Trends

Eurostat data show that 70.1% of Cypriots aged 16 to 74 used online public services in 2025, slightly below the EU average. Differences in digital skills continue to be linked to factors such as age, education, and employment status. Online platforms are also increasingly used for health-related information. According to the data, 81% of Cypriots searched online for health information, while interest in physical and mental health topics was even higher.

Investments And The Road Ahead

Public investment continues to support Cyprus’ digital transition. The national Digital Decade roadmap includes 62 measures with a combined budget of almost €1 billion. Additional funding from recovery and cohesion programmes is also supporting digitalisation projects.

In its assessment, the European Commission noted that the effectiveness of digital services depends not only on the launch of new platforms but also on their accessibility and ease of use for citizens.

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Cyprus Employment Rises 1.7% To 525,167 In Q2 2026

by THEFUTURE.TEAM

September 7, 2026

Cyprus employment increased 1.7% year over year to an estimated 525,167 people in the second quarter of 2026, according to the state statistical service, Cystat. Employees accounted for 472,254 of the total, while 52,913 were self-employed. The increase points to continued labor market growth across both wage employment and independent work.

Trade, Construction And Leisure Lead Employment Growth

Wholesale and retail trade, including motor vehicle and motorcycle repair, recorded some of the strongest employment gains, alongside construction and arts, entertainment and recreation.

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Those sectors are closely linked to domestic economic activity, with trade reflecting consumer demand and construction reflecting investment. Employment growth in leisure-related industries also points to continued activity in consumer-facing services.

Hours Worked Rise Faster Than Employment

Labor input increased faster than headcount. Cystat estimated that employees and other workers put in 246.57 million hours during the second quarter, up 2.2% from a year earlier.

The increase suggests that businesses were not only employing more people but also recording higher total hours worked. Wholesale and retail trade, construction, and arts, entertainment and recreation again recorded the strongest gains.

Labor Market Expansion Remains Broad-Based

The combination of higher employment and hours worked points to continued expansion in Cyprus’ labor market during the second quarter. The pace remains moderate, but gains across several major sectors indicate that labor demand continued to support economic activity.