Cyprus’ labour market is experiencing its most remarkable performance in 15 years, with unprecedented gains in job creation, employment growth, unemployment reduction, and wage increases. The driving force behind this achievement is a combination of targeted government initiatives and a resilient economy, according to Minister of Labour and Social Insurance, Yiannis Panayiotou.

Speaking at a press conference, Panayiotou attributed the success to a strategy focused on strengthening the workforce. “These positive developments lay a strong foundation for the future of the Cypriot economy,” he said.

By The Numbers: Record-Breaking Growth

Data from the Cyprus Statistical Service shows new job openings surged by 15.4% in 2024, adding 14,339 positions — 3.2% of the total workforce. The number of employees grew by 1.4%, rising from 459,196 in 2023 to 465,459 in 2024. The employment rate now stands at an impressive 79.8%, which Panayiotou highlighted as “exceptionally high” for a European country.

The hotel and construction sectors drove much of this growth, reflecting Cyprus’ expanding tourism and infrastructure development.

Unemployment At Record Lows

Unemployment saw a steep decline, with the total number of unemployed dropping by 14.7%, from 29,661 in 2023 to 25,312 in 2024. The unemployment rate fell from 5.8% to 5.0%, a figure Panayiotou described as a sign of “full employment conditions.”

The number of registered unemployed fell by 14.3%, with 1,824 fewer people on the unemployment register. Long-term unemployment (six to twelve months) also declined by 29.7%, from 1,884 to 1,325.

Wage Growth Outpaces Expectations

Workers in Cyprus are earning more, too. Labour costs per hour worked rose by 4.5%, while average monthly earnings climbed by 5.3%, raising the average wage from €2,270 to €2,390.

Panayiotou underscored that wage increases are part of a broader push to create a “fairer and more inclusive economy,” aligned with government efforts to support workers across all sectors.

Strategic Moves For A Dynamic Labour Market

The Ministry of Labour is rolling out a series of employment support initiatives with a total budget of €15 million. These initiatives aim to connect the unemployed with job opportunities, promote youth employment, support older workers, increase women’s participation in the workforce, and create pathways for vulnerable groups.

The record-breaking performance of Cyprus’ labour market signals the growth of a labour force ready to meet the demands of a modern, globally connected economy. For investors, it highlights Cyprus’ stability as a business-friendly environment with a strong supply of skilled labour.