Recent data released by Cyprus’ statistical service, Cystat, indicates a moderate easing in the nation’s unemployment rate to 4.1% for the third quarter of 2025, a decline from 4.5% recorded in the comparable period of the previous year. The number of unemployed persons dropped to 21,781 from 23,073, reflecting a positive shift in the overall labor market dynamics.

Increased Labor Force And Gender Participation

The labor force expanded to 530,992 individuals, representing 65.6% of the total population, up slightly from 65.7% of 516,127 individuals in Q3 2024. Notably, participation rates vary by gender, with men maintaining a participation rate of 71.1% compared to 60.4% for women. These figures underscore the importance of targeted initiatives to further balance participation across demographics.

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Robust Employment Figures And Sector Analysis

The total number of employed persons reached 509,211, yielding an overall employment rate of 62.9% – a slight improvement on the 62.7% recorded a year earlier. Detailed dissection of the data reveals that 269,513 men (68.5%) and 239,698 women (57.6%) are actively employed. Among the prime working age cohort (20–64 years), employment surged to 81.6%, with men at 86.6% and women at 76.8%. The aggregate employment performance among individuals aged 55–64 remained steady at approximately 70.9%.

In terms of industry sectors, the services sector continues to dominate employment figures by encompassing 81.4% of jobs, followed by industry at 16.3% and agriculture at 2.3%. These structural shifts suggest an economy that is becoming increasingly service-oriented while maintaining stability in manufacturing and agricultural segments.

Work Arrangements And Employment Contracts

The vast majority of workers are employed full-time, with 91.2% (464,604 individuals) in such roles, compared to 8.8% (44,607 individuals) in part-time positions. Additionally, among employees, a significant 15.5% (71,008 individuals) are on temporary contracts, a minor increase from 14.5% in Q3 2024. The self-employed segment remains relatively stable at 9.8% of the workforce, reflecting a measured entrepreneurial presence within the economy.

Youth Unemployment And Durations Of Joblessness

Among younger demographics, the unemployment rate for individuals aged 15–24 escalated to 13.1% (14.1% for men and 12.1% for women) from 12.1% in the previous year. Conversely, the unemployment rate among those aged 25–64 experienced a decline to 3.6% from 4.0%. Moreover, 63.8% of the unemployed had actively sought work for less than six months, 16.8% had been searching for six to eleven months, while long-term unemployment (exceeding one year) accounted for 19.4%, down from 23.5% a year earlier. This trend highlights the resilience of the labor market in reintegrating job seekers within shorter timeframes.

Conclusion

The latest employment statistics from Cyprus illustrate a cautiously optimistic outlook for the labor market, marked by modest improvements in unemployment rates and a stable expansion of the workforce. As the service-dominated economy continues to thrive, ongoing efforts to address gender disparities and youth unemployment will be critical in sustaining long-term economic growth and stability.