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Cyprus Unemployment Declines as Labor Force Expands In Q2 2025

by THEFUTURE.TEAM

August 29, 2025

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.

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Cyprus Ranks Among EU Leaders In Tertiary-Educated ICT Workforce

High Educational Attainment Sets Cyprus Apart

Recent data from Eurostat showed that Cyprus is expected to rank among the leading European countries for tertiary-educated ICT professionals in 2025. According to the figures, 96.4% of ICT professionals in Cyprus are projected to hold tertiary education qualifications, placing the country among the highest-ranked members of the European Union.

Gender Disparity Remains A Critical Challenge

Despite the high level of educational attainment, the ICT workforce in Cyprus continues to show a significant gender imbalance. Men are projected to account for 85.1% of ICT employees in 2025, while women are expected to represent 14.9% of the sector. In 2024, the split stood at 70.9% for men and 29.1% for women. The figures highlighted a widening gender gap within the country’s ICT workforce.

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European Union Trends And Comparative Analysis

Across the European Union, the number of ICT professionals is projected to increase to 3.4 million in 2025 from 3.2 million in 2024, representing annual growth of 5.1%. Men are expected to account for 83.4% of ICT employment across the bloc, equivalent to approximately 2.8 million workers, while women are projected to represent 16.6%.

National Performance Variability In Gender Representation

Countries within the EU show a varied landscape: the highest percentages of male ICT professionals are reported in the Czech Republic (92.9%), Slovenia (89.1%), Latvia (89.0%), Lithuania (88.9%), and Slovakia (88.4%). On the contrary, nations such as Denmark (30.0%), Sweden (29.8%), Romania (28.6%), Bulgaria (25.6%), and Croatia (25.2%) lead in female participation in the ICT arena.

Educational Background Across The European ICT Sector

Eurostat data also showed that most ICT professionals across the EU hold tertiary education qualifications. By 2025, 74.8% of ICT workers in the bloc are projected to have university-level education, while 25.2% are expected to hold secondary or post-secondary qualifications. Denmark recorded the highest share of tertiary-educated ICT professionals at 97.7%, followed by France at 96.6% and Cyprus at 96.4%. Other countries with high levels of tertiary-educated ICT workers included Ireland at 92.3%, Bulgaria at 91.1%, and Croatia at 90.9%. At the lower end of the ranking, Italy recorded 69.2%, while Portugal stood at 58.8%.

Conclusion

The data perfectly encapsulates the dual narrative in the ICT sector: while countries like Cyprus and Denmark achieve remarkable educational standards among ICT workers, persistent gender disparities remind us that diversity remains an ongoing challenge. As the ICT landscape continues to evolve, strategic policy formation and corporate governance will be pivotal in balancing excellence with inclusivity.