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Cyprus Labor Market Strengthens in Q1 2025: Lower Unemployment and Robust Employment Growth

by THEFUTURE.TEAM
May 29, 2025

Overview of Q1 2025 Trends

In the first quarter of 2025, Cyprus witnessed a favorable labor market shift as reported by the Cyprus Statistical Service (Cystat). The unemployment rate declined to 5.0%, with 26,161 individuals recorded as unemployed, compared to 29,102 in the same quarter last year. This positive movement is indicative of a broader economic adjustment in the region.

Labor Force Expansion and Demographic Insights

The total labor force increased to 519,433—a representation of 64.4% of the national population. Male participation reached 275,358 (69.8%), while female participation stood at 244,075 (59.3%). This marks an uptick from the 505,963 observed in Q1 2024, signaling an expanding pool of active job seekers contributing to the economy.

Employment Metrics and Sector Distribution

Employment figures also improved, with the number of employed persons rising to 493,272, corresponding to an employment rate of 61.2%. For the working-age group (20–64 years), the employment rate ascended to 80.0% from 78.5% in the previous year. Men maintained a stronger presence in the workforce at 85.5%, compared to 74.6% for women.

Sectoral analysis reveals that the services sector remains the dominant employer, engaging 81.1% of the workforce, while industry and agriculture accounted for 16.8% and 2.1% respectively. Full-time positions continued to dominate employment, representing 91.2% of the total, with part-time roles comprising the remaining 8.8%.

Insights on Employment Structure

An in-depth look at the employment structure shows that 90.3% of employed persons are employees, with 87.1% holding permanent positions. The share of self-employed individuals slightly declined to 9.7% from 10.4% the previous year, reflecting subtle shifts in workforce dynamics.

Youth and Later Career Perspectives

For young individuals aged 15–24, the unemployment rate fell sharply to 11.2% from 16.0% in Q1 2024. Meanwhile, those between 25–64 enjoyed a reduction in unemployment to 4.7%. Workers aged 55–64 maintained a stable employment rate around 70%, although gender disparities persisted, with men faring better than women.

Unemployment Duration and Future Outlook

Analysis by duration of unemployment reveals that a majority (61.3%) of job seekers have been unemployed for less than six months. In contrast, 23.5% are classified as long-term unemployed, suggesting areas where targeted policy interventions could further enhance labor market efficiencies.

Overall, the Q1 2025 figures highlight a resilient and gradually improving Cypriot labor market. As employment and participation rates continue to grow, policymakers and business leaders might view these trends as a positive signal of economic stabilization and potential for future expansion.

European Central Bank Report Highlights Stable Inflation and Economic Outlook

by THEFUTURE.TEAM
October 29, 2025

Overview Of Inflation Trends

The latest European Central Bank survey shows a slight decline in median inflation expectations over the next 12 months, decreasing from 2.8% in August to 2.7% in September. Despite this minor adjustment, consumer perceptions of past 12-month inflation have held steady at 3.1% for the eighth consecutive month. Long-term projections for three- and five-year inflation remain stable at 2.5% and 2.2% respectively.

Consumer Expectations Drive Income And Spending Projections

Across the board, expectations for nominal income growth over the upcoming year have remained consistent at 1.1%. However, there is a noticeable shift in spending behavior: while perceived nominal spending growth for the past year slipped slightly to 4.9% from 5.0%, expectations for spending growth over the next 12 months rose to 3.5%. Notably, lower income groups continue to forecast marginally higher spending increases compared to their higher income counterparts.

Stability In Economic And Labour Market Outlook

Economic growth expectations are modestly pessimistic, with respondents forecasting a contraction of -1.2% over the next 12 months. Concurrently, anticipated unemployment levels remain unchanged at 10.7% a year ahead, though the outlook varies by income, with lower income households expecting unemployment rates as high as 12.7%, while higher income groups maintain expectations around 9.4%. Overall, the slight difference between current and future unemployment suggests a broadly stable labor market outlook.

Housing Market And Credit Conditions

The survey also reveals an upswing in expectations related to the housing market. Home price growth expectations have edged higher to 3.5%, and anticipated mortgage interest rates have risen modestly to 4.6%. Similar to other metrics, expectations vary by income, with lower income households expecting higher mortgage rates. In recent months, a marginal decline in reported credit tightening over the past 12 months contrasts with a renewed forecast of tighter credit conditions in the forthcoming year.

Conclusion

The ECB’s latest findings underscore the delicate balance between stable long-term economic forecasts and short-term adjustments in consumer expectations. The slight dips in inflation expectations, alongside stable perceptions of past inflation, delineate a marketplace that is both cautious and measured. As income, spending, and housing market metrics continue to evolve, these indicators provide critical insights for policymakers and investors navigating an increasingly complex economic landscape.

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