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Cyprus Unemployment Drops To 4.0% In Q4 2025 As Workforce Participation Rises

by THEFUTURE.TEAM

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.

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.

Cyprus Expected Working Life Reaches 39.5 Years, Above EU Average

by THEFUTURE.TEAM

People in Cyprus are expected to spend 39.5 years in the workforce, around two years longer than the European Union average of 37.5 years, according to the latest Eurostat data for 2025.

The figure places Cyprus among the EU countries with the longest expected working lives.

Cyprus Ranks Above EU Average

Only a handful of member states recorded higher figures than Cyprus. The Netherlands topped the ranking at 44 years, followed by Sweden at 43.4 years, Denmark at 42.6 years, and Estonia at 41.5 years.

At the other end of the ranking were Romania with 32.7 years, Italy with 33.0 years, Bulgaria with 34.6 years and Greece with 35.3 years.

Gender Gap Remains Wider Than EU Average

Men in Cyprus are expected to remain in work for 42.1 years, compared with 36.7 years for women. The gap of 5.4 years exceeds the EU average gender gap of 4.1 years.

Across the bloc, Lithuania, Latvia and Estonia were the only countries where women were expected to spend longer in employment than men. Finland recorded the smallest positive gender gap at 0.7 years.

Italy posted the widest gap at 8.9 years, followed by Romania at 6.9 years, Greece at 6.7 years and Malta at 6.3 years.

Working Lives Continue To Lengthen

Between 2016 and 2025, expected working life in Cyprus increased by 3.5 years, placing the country among the strongest performers in the EU over the period. Men’s expected working life rose by 3.3 years, while women’s increased by 3.6 years.

Across the EU, every member state recorded an increase. Malta posted the largest gain at 4.9 years, followed by Hungary and Ireland at 4.2 years each, and the Netherlands at 4.1 years.

Malta’s increase was driven largely by women, whose expected working life rose by 7.8 years, the biggest increase recorded across the bloc.

By comparison, Romania, Spain, Italy, Germany and Austria recorded gains of two years or less over the same period.

Women’s Working Lives Increase Faster Across Europe

Women’s expected working life increased faster than men’s in most EU countries. Denmark, Romania, Sweden and Greece were the main exceptions.

In Cyprus, gains for men and women were broadly similar, alongside Bulgaria, Belgium and Slovenia.

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