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Cyprus Unemployment Falls To 3.6% As Employment Reaches New High

Cyprus’ unemployment rate fell to 3.6% in the second quarter of 2026 from 4.3% a year earlier, as employment continued to expand, according to the Cyprus Statistical Service (Cystat).

The number of employed people rose 2.9% year on year to 520,763, while the employment rate increased to 63.2% from 62.6%. The labour force also expanded 2.1% to 540,130 people.

Women Drive Employment Growth

Female employment increased 4.4% to 246,895, lifting the female employment rate to 58.3% from 57.2%. Male employment grew 1.5% to 273,868, while the male rate edged up to 68.5% from 68.3%.

Unemployment fell 14.5% to 19,367 people. The male unemployment rate declined to 3.5% from 3.9%, while the female rate fell more sharply to 3.7% from 4.7%.

Services Remain The Main Employer

Services continued to account for the vast majority of jobs, employing 426,231 people, or 81.8% of total employment, compared with 411,204 a year earlier.

Industry employed 84,135 people, although its share fell to 16.2% from 16.6%. Agricultural employment declined to 10,397 from 11,306, reducing its share to 2%.

The concentration in services was particularly strong among women, with the sector accounting for 92.7% of female employment, compared with 72% among men.

Full-Time Employment Strengthens

Full-time employment increased 3.6% to 475,586 people, raising its share of total employment to 91.3% from 90.6%. Part-time employment fell 4.7% to 45,178, reducing its share to 8.7%. The part-time rate among women declined to 9.9% from 12%, while the male rate increased to 7.6% from 7.1%.

Employees accounted for 467,712 jobs, or 89.8% of total employment, while self-employed workers numbered 53,051. Self-employment increased 4.9% year on year.

Temporary Jobs Increase

Permanent employees numbered 394,406, accounting for 84.3% of employee jobs, down from 85.7% a year earlier.

Temporary employment rose 12.1% to 73,306, increasing its share from 14.3% to 15.7%. The increase was particularly strong among men, whose temporary employment reached 28,307.

Youth Unemployment Also Falls

The unemployment rate among people aged 15 to 24 fell to 12.2% from 14.9%, while the number of unemployed young people declined 20.6% to 3,594. Among those aged 25 to 64, unemployment fell to 15,416 from 17,505, bringing the rate down to 3.2% from 3.7%.

Employment among people aged 20 to 64 reached 493,680, with the employment rate rising to 82.8% from 81.7%. For those aged 55 to 64, the rate increased to 72.6% from 71.5%.

Long-Term Unemployment Remains Stable

Most unemployed people had been searching for work for less than six months. Their number reached 12,086, or 62.4% of total unemployment, compared with 55.9% a year earlier.

A further 3,197 people had been unemployed for six to 11 months, while long-term unemployment fell to 4,084 from 4,792. Despite the decline in numbers, long-term unemployed people still accounted for 21.1% of total unemployment.

Overall, the data show continued improvement in Cyprus’ labour market, with unemployment declining while employment and full-time work expanded.

NERDs Replace FIRE As Young Workers Lose Confidence In Retirement

The FIRE movement promised younger workers a path to financial independence and early retirement. Now, a different group is emerging in the UK: NERDs, or the “Never Ever Retiring Demographic.”

Growing pessimism among Gen Z and millennials is driving the shift, with many questioning whether retirement will ever be financially achievable. Some are responding by reducing or abandoning pension contributions altogether.

Young Workers Are Losing Confidence In Retirement

Research from People’s Pension, a major UK workplace pension provider, found that 47% of Gen Z respondents aged 18 to 27 do not engage with their pension. Another 12%, equivalent to about 2.2 million young people, have stopped saving for retirement because they expect to work indefinitely.

Wider financial pressures are contributing to that outlook. High living costs have pushed milestones such as homeownership, marriage, having children and retirement further away for many younger workers, while inflation, layoffs and stagnant wages have added to uncertainty.

Pension Providers Face A Communication Gap

Financial pressure is only part of the problem. Young workers also say pension providers are failing to explain long-term saving in ways that feel relevant to them.

About 36% of respondents said providers do not explain retirement saving effectively. Among them, 27% said companies appear more focused on selling products than educating customers, while 16% cited complicated language and jargon.

A clear generational difference emerges in the responses. Some 29% of Gen Z respondents said providers fail to explain why pension saving matters, compared with 13% of Gen Xers and Baby Boomers. Similarly, 17% of Gen Z said providers do not use channels they engage with, versus 4% among older generations.

Clearer information could influence behavior. About 70% of Gen Z respondents said they would have started saving earlier if they had known that beginning in their 20s could potentially double their retirement pot compared with starting in their 30s. Another 63% said learning about tax relief and employer contributions motivated them to save.

“In a world where financial doom dominates pension conversations, young savers are tuning out,” said Kirsty Ross, proposition director at People’s Pension. “Our research shows they are not disengaged because they don’t care, they are disengaged because the messages aren’t working.”

Young Savers Want Simpler Tools

Progress bars and goal trackers were among the most popular tools respondents said could make pensions more relevant, cited by 31%. Another 26% wanted reassurance that they could start with small amounts, while 23% wanted examples of what people their age are doing.

Clear, bite-sized steps were cited by 22%, while 19% said light-hearted and relatable stories could make pensions more accessible.

People’s Pension has responded with Pension Drop, a campaign using social media influencers, live events and lifestyle personalities to encourage conversations about retirement saving.

“Looking back, I really wish I’d started earlier,” said Iain Stirling, comedian, TV presenter and Pension Drop ambassador. He said contributions made in someone’s 20s or 30s can make a significant difference later, while employer contributions and tax relief can increase the value of smaller payments.

Small Changes Can Improve Long-Term Saving

Stirling urged younger workers to check their pension provider, establish whether they have multiple pension pots and make sure they are contributing enough to receive the full employer match.

He also recommended increasing contributions after a pay rise or bonus, allowing workers to raise long-term savings without making a large immediate change to their spending.

For younger workers facing high living costs and uncertain career prospects, pension saving remains a difficult sell. Clearer information about employer contributions, tax relief and the long-term effect of starting early could help make retirement planning more tangible.

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