Cyprus Unemployment Reaches 11,243 In March, Up 1.5% Year-On-Year

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.

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Cyprus Banks Urged To Focus On Long-Term Resilience As Profits Remain Strong

by THEFUTURE.TEAM

June 26, 2026

The Cypriot banking sector remains in a strong position, supported by solid capital buffers and overall financial stability, according to speakers at the annual general meeting of the Association of Cyprus Banks. At the same time, government officials and regulators stressed that maintaining this position will require continued discipline and long-term planning.

A Strong Sector, But Not A Complacent One

Finance Minister Makis Keravnos used the meeting to highlight concerns over draft laws recently passed by parliament, which, according to the Ministry of Finance, the Central Bank and the Legal Service, may contain constitutional, legal and institutional issues. Those concerns, he noted, led to presidential referrals and remittals to the Supreme Court.

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Keravnos also said the European Central Bank had been consulted on proposed measures concerning the suspension of foreclosures and the restructuring of loans and guarantees, adding that the ECB had expressed its own concerns.

Profitability Should Reflect Real Economy Lending

While acknowledging that the banking sector remains highly profitable, Keravnos said earnings are expected to reach around €1 billion in 2025, lower than in 2024 as interest-rate conditions gradually normalize.

He said he would prefer bank profitability to rely more on lending to businesses operating in productive sectors and less on the widening of European Central Bank interest-rate spreads.

According to the minister, Cyprus’ return to investment-grade status after 11 years has strengthened the country’s appeal to foreign investors, technology companies and startups. He said this should encourage banks to offer financing that better supports businesses while improving the diversification of their loan portfolios.

The Central Bank’s Warning: Strength Today Is Not A Guarantee Tomorrow

Central Bank Governor Christodoulos Patsalides also warned against complacency, saying the sector’s current strength should not be taken for granted.

“The Cypriot banking sector is strong today. But strength that truly matters is not exhausted by a capital ratio, a profit line or a favorable cycle,” he said.

Patsalides added that lasting resilience depends on institutions remaining strong as conditions change, risks become more complex, and competition evolves. In his view, that requires sufficient capital buffers, adaptable infrastructure and management teams prepared for changing market conditions.

Long-Term Resilience Over Short-Term Gains

Patsalides also stressed that banks should focus on long-term resilience rather than short-term performance. Decisions on dividend policy, capital allocation and the use of resources, he said, should take into account continued investment in technology, operational resilience, human capital and long-term adaptability.

He added that banks able to remain competitive over time will be those that invest early in strengthening their capacity to adapt and respond to future challenges.

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