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Cyprus Employment Rises As Unemployment Continues To Decline

Employment Growth And Workforce Expansion

Total employment in Cyprus reached 531,062 people in the fourth quarter of 2025, representing 65.2% of the population, according to data from the Cyprus Statistical Service (Cystat). This compares with 518,053 people, or 64.3%, in the same period of 2024. The number of employed individuals rose to 509,773, lifting the employment rate to 62.6% from 61.4% a year earlier.

Declining Unemployment And Gender Breakdown

Unemployment continued to decline, with the number of unemployed falling to 21,289. The unemployment rate dropped to 4.0%, compared with 4.5% in the fourth quarter of 2024. Male unemployment stood at 3.8%, while female unemployment reached 4.2%. Employment rates rose to 67.6% for men and 57.9% for women, reflecting broad-based improvement across the labor market.

Improved Outcomes For The Core Working-Age Group

Among people aged 20 to 64, the employment rate increased to 81.7%, up from 80.2% a year earlier. Employment gains were also recorded among older workers, with the 55–64 age group rising from 69.9% to 71.7%. The data suggests continued expansion in workforce participation across multiple age groups.

Sectoral Distribution And Employment Patterns

Services remained the largest employer, accounting for 81.3% of total jobs, followed by industry at 16.5% and agriculture at 2.2%, broadly unchanged from the previous year. Part-time employment represented 8.6% of total jobs, or 43,703 positions, compared with 8.8% previously. Full-time employment accounted for 90.2%, totaling 460,003 positions. The share of temporary contracts increased to 14.8% from 13.6%.

Rising Youth Unemployment

Despite overall labor market improvement, youth unemployment increased. The unemployment rate among people aged 15–24 rose to 14.7%, compared with 9.6% a year earlier. At the same time, long-term unemployment declined to 18.3% from 25.4% in the fourth quarter of 2024. Most unemployed individuals, around 66.6%, had been seeking work for less than six months.

Comprehensive Quarterly Analysis

The Labour Force Survey is conducted quarterly by Cystat and covers approximately 3,800 households across urban and rural areas. The data provides a snapshot of labor market trends in Cyprus as employment growth continues alongside shifting dynamics in youth and temporary employment.

Attacks On Data Centers In UAE And Bahrain Highlight Digital Infrastructure Risks

Recent drone attacks linked to Iran have struck data center facilities in the United Arab Emirates and Bahrain, raising concerns about the vulnerability of digital infrastructure in conflict zones. Facilities operating within the cloud network of Amazon Web Services were among the targets. These incidents highlight how modern conflicts increasingly extend beyond traditional military assets to include critical digital infrastructure.

Critical Infrastructure In The Crosshairs

Iranian drones struck two data centers in the United Arab Emirates on Sunday. A separate strike in Bahrain also affected infrastructure connected to regional cloud operations. The attacks occurred amid escalating tensions following U.S. and Israeli strikes on Iranian targets. Analysts say the incidents demonstrate how data centers are becoming strategic assets in geopolitical conflicts. Patrick J. Murphy, executive director of the geopolitical advisory unit at Hilco Global, said the attacks reflect a broader shift in how infrastructure is viewed in modern security planning. In his view, digital assets now carry strategic importance comparable to energy systems and telecommunications networks.

Industry Response And Strategic Repercussions

Companies operating cloud services in the region responded quickly to the disruptions. Organizations relying on Amazon Web Services infrastructure were advised to move workloads to alternative regions where possible. Major technology providers, including Microsoft and Google, have also reviewed contingency procedures following the incidents. The situation has underscored the importance of redundancy and geographic diversification in cloud infrastructure. Government authorities increasingly classify data centers as critical national infrastructure. Policymakers in the United States, the United Kingdom and the European Union have introduced measures aimed at strengthening the protection of digital assets. Security analysts expect the recent attacks to accelerate efforts to integrate cloud infrastructure into national security planning alongside sectors such as energy, water and telecommunications.

Developments And Industry Reactions

The events also come amid wider debates about the relationship between technology companies and national security policy. In a separate development, the U.S. government recently designated technology company Anthropic as a potential supply chain risk. The company’s chief executive, Dario Amodei, has indicated that the designation could face legal challenge. Technology firms with major operations in the Middle East are reassessing risk management strategies. Expanded multi-region data replication and stronger backup systems form part of these measures, according to Scott Tindall of Hogan Lovells. Meanwhile, comments from OpenAI chief executive Sam Altman have reignited discussion about the growing links between technology companies and government defence programmes.

Looking Ahead

The recent drone strikes illustrate the increasing strategic importance of digital infrastructure in global security dynamics. Data centers are gradually being treated as critical assets within geopolitical conflicts. Continued tensions are likely to prompt additional investment by governments and technology companies in strengthening protection of cloud infrastructure and improving operational resilience across global networks.

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