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Government Achievements: Employment Surge And Falling Unemployment In Cyprus

The Cypriot government has achieved remarkable success in bolstering employment and reducing unemployment, according to Labour and Social Insurance Minister Yiannis Panayiotou. Over the past two years, employment in Cyprus has soared by 4.3%, reaching an all-time high of 79.8% in 2024, while unemployment has plummeted by 21%, settling at 4.9%.

Impactful Policies And Future Goals

During a comprehensive press conference on April 15, Minister Panayiotou highlighted the government’s dedication to a human-centric policy. Key outcomes include not only increases in employment and skilled workforce development but also a significant boost in average wages. For comparison, the national employment target of 80% by 2030, part of the European Pillar of Social Rights, is anticipated to be achieved as early as 2025.

Furthermore, noteworthy strides have been made in empowering women and youth in the workforce, hitting unprecedented employment figures for these groups. The youth employment rate, now at 87%, represents a historical peak.

Sustainability And Economic Growth

Skill development focusing on green and digital education has been amplified, with training programs expanding almost sevenfold. The surge in average wages—rising to just under €2,500 in 2024 from approximately €2,000 in the previous decade—demonstrates substantial economic growth. Meanwhile, the government has ensured that wage increases surpass inflation, thereby improving living standards.

Additionally, the government’s decision to raise the minimum wage to €1,000 further exemplifies its commitment to economic stability and social cohesion.

As Cyprus continues to shape its future, the government’s policies are undeniably building a solid foundation for a prosperous and sustainable economy.

Modernizing Cyprus SMEs: Investment Initiatives Drive Competitive Excellence

SMEs: The Backbone Of Cyprus’ Economy

Small and medium-sized enterprises (SMEs) remain a central pillar of Cyprus’ economy, supporting employment, innovation and local production networks. Their long-term competitiveness increasingly depends on access to modern technologies, operational upgrades and targeted investment that improves efficiency and productivity.

The Thalia Initiative: A Strategic Investment Framework

The Thalia 2021–2027 Program plays a key role in supporting this transition. The initiative provides financial assistance to both new and established SMEs, particularly in manufacturing and selected economic sectors, helping businesses modernize infrastructure, upgrade technology and improve production capacity. With a total budget of €50 million and co-financing from the European Union, the program aims to strengthen competitiveness while encouraging entrepreneurship and job creation.

Case Study: Pivo Microbrewery’s Production Revolution

Pivo Microbrewery illustrates how targeted investment can accelerate growth. Before receiving funding, co-owner Thanasis Poluneikis identified limited production capacity as a major obstacle to meeting rising demand. The introduction of modern machinery and updated technology has significantly improved production processes. According to Poluneikis, the new equipment has increased precision and consistency in quality control, helping maintain product freshness and standards throughout distribution. The upgrades also allowed the company to expand production and develop new partnerships, supporting broader market reach.

Enhancing Product Offerings: The Vanilla Aroma Bakery Experience

Vanilla Aroma Bakery represents another example of modernization through investment support. Owner Giannis Toumpas used the funding framework to upgrade both the facility layout and production equipment. The improvements have accelerated operations and increased efficiency, enabling the bakery to refine existing products while introducing new offerings. These changes have strengthened customer experience and reinforced the brand’s position in a competitive market where quality and presentation remain key differentiators.

Financial Support As A Catalyst For Growth

These examples highlight the role of the Thalia Initiative as a financing tool that translates investment into measurable business development. By supporting equipment upgrades, technology adoption and infrastructure improvements, the program contributes to the long-term sustainability of SMEs, encourages innovation and supports job creation. The continued modernization of small and medium-sized enterprises is helping build a more resilient and competitive business environment that supports broader economic growth in Cyprus.

Pivo Microbrewery
Pivo Microbrewery modernizes its production line to meet growing demand.
Vanilla Aroma Bakery
Vanilla Aroma Bakery enhances operational efficiency through technological upgrades.
Financial support transforming local SMEs.

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