The unemployment rate in Cyprus fell to 4.0% in the fourth quarter of 2025, according to data from the Cyprus Statistical Service. This compares with 4.5% in the corresponding quarter of 2024 and 4.1% in Q3 2025, reflecting continued improvement alongside growth in both employment and labour force participation.
Robust Growth In The Workforce
The Labour Force Survey shows that the labour force expanded to 531,062 individuals, representing 65.2% of the population, up from 518,053 individuals (64.3%) a year earlier. Participation rates reached 70.3% for men and 60.4% for women, indicating stronger overall engagement in the labour market.
Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram
Employment Trends And Sector Performance
Total employment rose to 509,773 people, lifting the employment rate to 62.6% from 61.4% in Q4 2024. Employment among men reached 67.6%, while women recorded 57.9%. Within the 20–64 age group, the employment rate increased to 81.7% from 80.2% a year earlier, with rates standing at 86.2% for men and 77.4% for women. Employment among those aged 55–64 also improved, rising to 71.7% compared with 69.9% in the previous year.
Sectoral Composition Of Employment
The services sector remained the dominant employer, accounting for 81.3% of total employment. Industry represented 16.5%, while agriculture accounted for 2.2%, with sector shares largely unchanged from 2024.
Part-Time And Temporary Employment Dynamics
Part-time employment represented 8.6% of the workforce, or 43,703 individuals, slightly down from 8.8% a year earlier. The share remained higher among women (10.4%) than men (6.9%).
Employees accounted for 90.2% of all employed persons, totaling 460,003 individuals. Among them, 14.8% were working under temporary contracts, up from 13.6% in the previous year, indicating a moderate increase in flexible employment arrangements.
Shifting Landscape In Unemployment
The number of unemployed declined to 21,289 from 23,454 in Q4 2024. However, youth unemployment among individuals aged 15–24 increased to 14.7% from 9.6% a year earlier.
At the same time, long-term unemployment continued to ease, falling to 18.3% from 25.4%, while 66.6% of unemployed persons reported searching for work for less than six months.
Outlook
The latest figures point to a labour market that continues to strengthen overall, supported by higher employment and labour force participation. At the same time, rising youth unemployment highlights a segment that may require closer policy attention going forward.
