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Cyprus Unemployment Rises 9.7% As Technology And Professional Services Add To Pressure

Registered unemployment in Cyprus increased by 9.7% year on year in October, with notable rises in information and communication, administrative and support services, and professional, scientific and technical activities, according to the Cyprus Statistical Service (Cystat).

A total of 7,790 people were registered as unemployed at district labour offices at the end of October, up by 691 from 7,099 a year earlier. However, the monthly figure declined from 8,366 in September.

Seasonally Adjusted Unemployment Remains Above 2025 Levels

The seasonally adjusted number of registered unemployed edged down to 10,711 in October from 10,741 in September. It nevertheless remained above the 9,731 recorded in October 2025.

The adjusted figure fluctuated throughout the year, rising from 10,096 in January to 10,679 in June before reaching 10,741 in September and easing slightly in October.

Trade And Hospitality Record Highest Numbers

Wholesale and retail trade had the largest number of registered unemployed, at 1,332, compared with 1,324 a year earlier and 1,402 in September.

Accommodation and food services ranked second, with 890 people registered, up from 852 in October 2025. Professional, scientific and technical activities followed with 849, compared with 785 a year earlier.

Public administration and defence, including compulsory social security, recorded 655 unemployed, up from 595 year on year but significantly below September’s 1,050.

Technology And Support Services See Sharpest Annual Increases

Information and communication recorded one of the largest increases, with registered unemployment rising to 565 from 390 a year earlier. Administrative and support services also increased, reaching 466 compared with 362 in October 2025.

Other sectors recording annual increases included manufacturing, at 502 compared with 449; financial and insurance activities, at 399 compared with 358; and education, at 340 compared with 277.

Transportation and storage reached 294, while human health and social work activities recorded 291 registered unemployed.

Unemployment Trends Vary Across Other Sectors

Construction recorded 390 unemployed, slightly below the 392 registered a year earlier. Other service activities rose to 198, while arts, entertainment and recreation increased to 165.

Real estate activities recorded 117 unemployed, compared with 85 in October 2025. Agriculture, forestry and fishing rose slightly to 34, while water supply, sewerage and waste management declined to 18.

Smaller sectors recorded limited changes. Mining and quarrying had six registered unemployed, electricity and gas-related activities five, while activities of households remained unchanged at 10. Extra-territorial organisations and bodies recorded nine.

The number of newcomers registering as unemployed fell to 255 in October, compared with 267 a year earlier and 268 in September.

Cyprus Government Surplus Rises To €1.61 Billion In First Nine Months Of 2026

Cyprus recorded a general government surplus of €1.61 billion in the first nine months of 2026, equal to 4.0% of gross domestic product, as revenue growth outpaced the rise in public spending. Higher receipts from income taxes, social contributions and value-added tax (VAT) drove the improvement, while lower capital expenditure helped restrain spending.

Preliminary figures released Tuesday by the Statistical Service of Cyprus show the surplus rose to €1.17 billion, or 3.0% of GDP, up from € 442.1 million in the same period of 2025.

Total government revenue increased 6.5% to €12.09 billion, while expenditure rose 2.9% to €10.48 billion.

Key Fiscal MeasureJanuary–September 2025January–September 2026
Total revenue€11,353.9 million€12,091.8 million
Total expenditure€10,186.2 million€10,482.1 million
Government surplus€1,167.6 million€1,609.7 million
Surplus as a share of GDP3.0%4.0%

Income Taxes And VAT Lead Revenue Growth

Taxes on income and wealth made the largest contribution to the increase in revenue. Receipts in this category climbed by €442.2 million, or 15.3%, to €3.34 billion, compared with €2.89 billion a year earlier.

Social contributions rose by €235 million, or 6.6%, to €3.78 billion. Taxes on production and imports increased by €251.5 million, or 7.2%, reaching €3.77 billion.

Net VAT receipts, after refunds, totalled €2.64 billion, up €293.1 million, or 12.5%, from €2.35 billion in the first nine months of 2025.

Some Revenue Streams Decline

Not all revenue categories moved higher. Capital transfers fell by €74.6 million to €96.7 million, while current transfers declined by €71.6 million, or 20.5%, to €278.2 million.

Revenue from services slipped 1.0% to €743.5 million. Interest and dividend receipts dropped by €37 million, or 28.6%, to €92.4 million.

Social Benefits And Personnel Costs Increase

On the expenditure side, social benefits rose by €199.6 million, or 4.9%, to €4.27 billion. Compensation of employees—which includes imputed social contributions and public-sector pensions—increased by €108.3 million, or 3.8%, to €2.99 billion.

Intermediate consumption, covering goods and services used in the delivery of public services, rose by €114.3 million, or 11.0%, to €1.16 billion. Interest payments increased by €8.7 million, or 2.6%, to €340.7 million. Current transfers were up €68.7 million, or 10.6%, at €714.7 million.

Lower Capital Spending Limits Expenditure Growth

The overall increase in spending was tempered by a decline in capital expenditure. Capital-account spending fell by €189.9 million, or 16.9%, to €936.2 million from €1.13 billion in the same period last year.

Investment in fixed capital declined by €94.1 million, or 12.1%, to €686.4 million. Other capital transfers fell by €95.8 million, or 27.7%, to €249.8 million. Subsidies also decreased, dropping by €13.9 million, or 15.5%, to €75.8 million.

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