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.
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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.
