Cyprus Sees Declining Registered Unemployment In December 2025: Easing Pressures Across Key Economic Sectors

by THEFUTURE.TEAM

January 7, 2026

Official data from the Cyprus Statistical Service (Cystat) confirms that registered unemployment in Cyprus fell in December 2025, signalling a measurable easing of pressures across key economic segments.

Overview Of The Decline

On the last day of December, 11,901 individuals were recorded as unemployed at District Labour Offices. Seasonally adjusted figures further underscore this improvement, declining from 10,013 persons in November to 9,916 persons in December 2025. When compared with December 2024, the overall registered unemployment dropped by 481 persons—a 3.9 percent reduction—illustrating the underlying trend of market stabilization.

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Sector Analysis And Trending Improvements

The encouraging statistics are largely attributed to gains in construction; accommodation and food service; trade; and manufacturing, with additional contribution from a reduction in newcomers joining the labour market. For instance, the construction sector reported a decline to 387 unemployed individuals in December 2025—down from 533 in December 2024—highlighting improved market conditions. Although trends varied across sectors, the broader pattern points to a more resilient and adapting economic environment.

Monthly Fluctuations And Detailed Dynamics

Throughout 2025, the raw number of registered unemployed fluctuated significantly—from a peak of 13,147 persons in January to a nadir of 7,099 in October—before rising towards year’s end. Detailed analyses across sectors such as accommodation and food service, wholesale and retail trade, manufacturing, and public administration reveal a blend of declines and moderate increases, collectively painting a nuanced picture of Cyprus’ dynamic labour market.

Conclusion: A Signal Of Economic Resilience

The downward trend in registered unemployment offers a promising signal for the Cypriot economy, underscoring the impact of strategic reforms and industry-specific improvements. While these figures focus on individuals actively seeking full-time employment through official channels, they serve as a benchmark for policymakers and business leaders aiming to maintain momentum in economic recovery and growth.

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Cyprus Hits Historic Tourism Peak As Overtourism Risks Mount

by THEFUTURE.TEAM

February 13, 2026

Record-Breaking Performance In Tourism

Cyprus’ tourism sector achieved unprecedented success in 2025 with record-breaking arrivals and revenues. According to Eurobank analyst Konstantinos Vrachimis, the island’s performance was underpinned by solid real income growth and enhanced market diversification.

Robust Growth In Arrivals And Revenues

Total tourist arrivals reached 4.5 million in 2025, rising 12.2% from 4 million in 2024, with momentum sustained through the final quarter. Tourism receipts for the January–November period climbed to €3.6 billion, marking a 15.3% year-on-year increase that exceeded inflation. The improvement was not driven by volume alone. Average expenditure per visitor increased by 4.6%, while daily spending rose by 9.2%, indicating stronger purchasing power and higher-value tourism activity.

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Economic Impact And Diversification Of Source Markets

The stronger performance translated into tangible gains for the broader services economy, lifting real tourism-related income and overall sector turnover. Demand patterns are also shifting. While the United Kingdom remains Cyprus’ largest source market, its relative share has moderated as arrivals from Israel, Germany, Italy, the Czech Republic, the Netherlands, Austria, and Poland have expanded. This gradual diversification reduces dependency on a single market and strengthens resilience against external shocks.

Enhanced Air Connectivity And Seasonal Dynamics

Air connectivity has improved markedly in 2025, with flight volumes expanding substantially compared to 2019. This expansion is driven by increased airline capacity, enhanced route coverage, and more frequent flights, supporting demand during shoulder seasons and reducing overreliance on peak-month flows. Seasonal patterns remain prominent, with arrivals building through the spring and peaking in summer, thereby bolstering employment, fiscal receipts, and corporate earnings across hospitality, transport, and retail sectors.

Structural Risks And Future Considerations

Despite strong headline figures, structural challenges remain. The European Commission’s EU Tourism Dashboard highlights tourism intensity, seasonality, and market concentration as key risk indicators. Cyprus records a high ratio of overnight stays relative to its resident population, signalling potential overtourism pressures. Continued reliance on a limited group of origin markets also exposes the sector to geopolitical uncertainty and sudden demand swings. Seasonal peaks place additional strain on infrastructure, housing availability, labour supply, and natural resources, particularly water.

Strategic Investment And Market Resilience

Vrachimis concludes that sustained growth will depend on targeted investment, product upgrading, and continued market diversification. Strengthening year-round offerings, improving infrastructure capacity, and promoting higher-value experiences can help balance demand while preserving long-term competitiveness. These measures are essential not only to manage overtourism risks but also to ensure tourism remains a stable pillar of Cyprus’ economic development.

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