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.
Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram
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.
