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Cyprus Struggles With Overqualification: The Hidden Gap In Its Labor Market

In 2024, Cyprus found itself facing a significant labor market challenge, with the third-highest overqualification rate among EU nations. According to Eurostat, nearly 28.2% of Cypriot workers are employed in roles that don’t fully leverage their tertiary education. Even more striking is the gender disparity: 31.2% of women are affected by overqualification, compared to 24.6% of men, revealing a worrying trend of underutilized talent.

Across the EU, the overqualification rate stands at 21.3%, with Spain and Greece leading the pack. Cyprus follows closely behind, highlighting a mismatch between educational qualifications and available jobs. While Luxembourg and Czechia boast lower overqualification rates, countries like Cyprus are grappling with this inefficiency.

This issue isn’t isolated to Cyprus; across 21 of the EU’s 27 member states, women face higher overqualification rates than men. The most significant disparities are found in Italy, Slovakia, and Malta, suggesting that the issue may be more systemic, with women particularly impacted by labor market challenges.

Cyprus, however, is not just facing a problem of underemployed graduates. It is also witnessing a steady rise in overall employment, with a 79.8% employment rate in 2024 — higher than the EU average of 75.8%. This figure reflects a growing labor force but also underscores the challenge of ensuring that more individuals, especially women, are not overqualified for their roles.

Despite these hurdles, Cyprus is seeing signs of positive economic shifts. The country’s GDP per capita has grown by 22% between 2018 and 2022, reaching €30,400 in 2022, though it still lags behind the EU average. Key sectors such as tourism, technology, healthcare, and renewable energy are expected to fuel further growth, but the country’s labor market will need to adapt to meet the needs of an evolving economy.

With the rise of digitalization and the ongoing demand for tech-savvy professionals, Cyprus is seeing a rapid shift in the types of jobs available. Information and communications technology professionals are in particularly high demand, while sectors like traditional agriculture and retail are facing challenges.

As Cyprus navigates these complexities, the growing reliance on skilled immigration is another factor shaping its workforce. Immigrants now account for over 21% of the country’s active workforce, with the largest portion coming from non-EU countries. This highlights the labor shortages in critical areas, and the continued demand for foreign talent to fill gaps in key sectors.

Cyprus’ labor market in 2024 presents a complex landscape. While the employment rate is rising, the challenge of overqualification remains a pressing issue, especially for women. As the country faces the growing demand for digital skills and tackles evolving economic and demographic pressures, addressing this mismatch between education and employment will be crucial for future growth and stability.

Strained Household Finances: Eurostat Data Reveals Persistent Payment Delays Across Europe and in Cyprus

Improved Financial Resilience Amid Ongoing Strains

Over the past decade, Cypriot households have significantly increased their ability to manage debts—not only bank loans but also rent and utility bills. However, recent Eurostat data indicates that Cyprus continues to lag behind the European average when it comes to covering financial obligations on time.

Household Coping Strategies and the Limits of Payment Flexibility

While many families are managing their fixed expenses with relative ease, one in three Cypriots struggles to cover unexpected costs. This delicate balancing act highlights how routine payments such as mortgage installments, rent, and utility bills are met, but precariously so, with little room for unplanned financial shocks.

Breaking Down Payment Delays Across the European Union

Eurostat reports that nearly 9.2% of the EU population experienced delays with their housing loans, rent, utility bills, or installment payments in 2024. The situation is more acute among vulnerable groups: 17.2% of individuals in single-parent households with dependent children and 16.6% in households with two adults managing three or more dependents faced payment delays. In every EU nation, single-parent households exhibited higher delay rates compared to the overall population.

Cyprus in the Crosshairs: High Rates of Financial Delays

Although Cyprus recorded a notable 19.1 percentage point improvement from 2015 to 2024 in delays related to mortgages, rent, and utility bills, the island nation still ranks among the top five countries with the highest delay rates. As of 2024, 12.5% of the Cypriot population had outstanding housing loans or rent and overdue utility bills. In contrast, Greece tops the list with 42.8%, followed by Bulgaria (18.7%), Romania (15.3%), Spain (14.2%), and other EU members. Notably, 19 out of 27 EU countries reported delay rates below 10%, with Czech Republic (3.4%) and Netherlands (3.9%) leading the pack.

Selective Improvements and Emerging Concerns

Between 2015 and 2024, the overall EU population saw a 2.6 percentage point decline in payment delays. Despite this, certain countries experienced increases: Luxembourg (+3.3 percentage points), Spain (+2.5 percentage points), and Germany (+2.0 percentage points) saw a rise in payment delays, reflecting underlying economic pressures that continue to challenge financial stability.

Economic Insecurity and the Unprepared for Emergencies

Another critical indicator explored by Eurostat is the prevalence of economic insecurity—the proportion of the population unable to handle unexpected financial expenses. In 2024, 30% of the EU population reported being unable to cover unforeseen costs, a modest improvement of 1.2 percentage points from 2023 and a significant 7.4 percentage point drop compared to a decade ago. In Cyprus, while 34.8% still report difficulty handling emergencies, this marks a drastic improvement from 2015, when the figure stood at 60.5%.

A Broader EU Perspective

Importantly, no EU country in 2024 had more than half of its population facing economic insecurity—a notable improvement from 2015, when over 50% of the population in nine countries reported such challenges. These figures underscore both progress and persistent vulnerabilities within European households, urging policymakers to consider targeted measures for enhancing financial resilience.

For further insights and detailed analysis, refer to the original reports on Philenews and Housing Loans.

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