Labor Market Overview

Cyprus has witnessed a decrease in unemployment, with rates falling to 4.3 percent in the second quarter of 2025 from 4.6 percent a year earlier, according to the latest figures released by the Cyprus Statistical Service (Cystat). The total number of unemployed individuals decreased from 23,760 to 22,663, with both genders experiencing shifts in their respective counts.

Robust Growth in Labor Force Participation

The labor market saw significant expansion as the labor force increased to 528,981, representing 65.4 percent of the total population, up from 511,423 (65.1 percent) in the previous year. Participation rates revealed gender-specific dynamics, with 71.1 percent of men and 60.0 percent of women engaged in the labor force.

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Employment Figures and Sector Analysis

Overall employment rose to 506,318, equating to an employment rate of 62.6 percent. Men comprised 269,796 workers (68.3 percent), and women accounted for 236,522 (57.2 percent). This marks an increase from 487,663 total employed persons recorded a year earlier. Sector-wise data highlighted that the majority of the workforce was employed in services (81.2 percent), while industry and agriculture accounted for 16.6 percent and 2.2 percent respectively, mirroring trends from the previous quarter.

Insights Into Age Demographics

Employment rates by age underscored improvements among prime working-age individuals. Those between 20 and 64 years reported an 81.7 percent employment rate, rising from 80.1 percent. Specifically, 87 percent of men and 76.5 percent of women in this group were employed. The employment rate for individuals aged 55 to 64 was 71.5 percent, reflecting a modest improvement from 71.1 percent during Q2 2024.

Working Arrangements and Shifts in Employment Structure

The majority of employed individuals (90.6 percent) held full-time positions, while part-time employment accounted for 9.4 percent—an increase from 8.9 percent the previous year. Employees dominated the workforce with 90 percent overall, where permanent positions made up 85.7 percent and temporary roles represented 14.3 percent. Additionally, self-employment remained stable at 10 percent, indicating a consistent segment of the labor market.

Youth Unemployment And Duration Trends

Despite overall positive trends, youth unemployment remains a concern with 14.9 percent of individuals aged 15–24 out of work, marking an increase from 14.2 percent in the comparable quarter of 2024. For the broader age group of 25–64, unemployment eased to 3.7 percent from 4.1 percent. Additionally, a detailed look at the duration of unemployment revealed that 55.9 percent of job seekers had been unemployed for less than six months, 23.0 percent for six to eleven months, and long-term unemployment declined markedly to 21.1 percent from 34.5 percent previously.