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Employment Growth in Cyprus: Q1 2025 Sees 1.5% Upswing Amid Key Sector Advances

New economic data underscores persistent growth in Cyprus as employment in the first quarter of 2025 rose 1.5% compared to the same period in 2024. The Cyprus Statistical Service (Cystat) confirmed a total workforce of 497,343, including 444,635 employees and 52,708 self-employed professionals, highlighting robust labor market fundamentals.

Detailed Employment Trends

The rising employment figures point to an adaptive labor market that sustains both traditional and innovative roles. This balanced growth reflects strategic economic initiatives in diversifying and strengthening labor practices across the island.

Sectoral Performance Driving Growth

The upswing was most notable in the arts, entertainment and recreation; manufacturing; information and communication; and construction sectors. Not only did these industries register significant employment gains, but actual hours worked also increased by 1.9%, reaching 230,173 thousand. The concentrated performance across these sectors signifies a deliberate rebalancing and modernization of Cyprus’s economic profile.

Improved Unemployment Metrics

Further affirming the positive trend, President Nikos Christodoulides reported a reduction in absolute unemployment figures by 2,025, with a steep 37% drop in youth unemployment, now at 9.9%. Labour Minister Yiannis Panayiotou added that the unemployment rate fell to 3.7% in April—a 27.5% year-on-year decline—thereby positioning Cyprus as having the third lowest unemployment rate within the Eurozone. Notably, May 2025 marked the first time youth unemployment dipped below 1,000, signaling a pivotal shift in the employment landscape.

The convergence of these indicators points to a coordinated effort by policymakers and industry leaders, setting the stage for continued economic resilience and investor confidence in Cyprus.

Cyprus Expected Working Life Reaches 39.5 Years, Above EU Average

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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