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.
