Cyprus recorded 11,243 registered unemployed persons at the end of March 2026, according to data from the statistical service Cystat. Seasonally adjusted unemployment also increased compared with the previous month and year.
Increasing Figures In The Labor Market
Seasonally adjusted jobseekers reached 10,090 in March 2026, up from 9,936 in February. Compared with March 2025, unemployment increased by 170 persons, or 1.5%. The data indicate a gradual upward trend in unemployment levels. Recent changes reflect pressures across multiple sectors.
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Sector-Specific Impact And Economic Pressures
Cystat data show increases in unemployment in accommodation and food services, as well as professional, scientific and administrative sectors. These industries are sensitive to changes in demand and external conditions. Tourism-related activity has been affected by geopolitical developments, including tensions involving Iran. Reduced demand is contributing to labor market pressures.
Government Intervention And Industry Support
Marinos Moushiouttas, Minister of Labour, announced a support scheme approved by the Cabinet to address employment risks. The plan includes a 30% wage subsidy for affected businesses. Eligibility applies to companies with turnover declines above 40% or occupancy rates below 60% in April 2026, provided no layoffs occur until the end of May.
Outlook
The support measures aim to stabilize employment in sectors affected by reduced demand. Further labor market trends will depend on economic conditions and external developments.
