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Government Achievements: Employment Surge And Falling Unemployment In Cyprus

by News Editor

April 16, 2025

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.

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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.

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Cyprus Government Fortifies Economic Resilience Amid Global Uncertainty

by THEFUTURE.TEAM

December 12, 2025

Government Commitment to Stability and Growth

Cyprus continues to build a strong and resilient economic foundation to support business planning and investment, as emphasized by Deputy Minister to the President Irene Piki. Representing President Nikos Christodoulides at the 12th Keve Business Leader Awards, Piki underscored that in today’s volatile global landscape, a consistent and reliable economy remains the cornerstone for long‐term strategic planning and confidence-building among businesses.

Strengthening Competitive Edge and Attracting Investment

Piki lauded the role of the Cyprus Chamber of Commerce and Industry (Keve) for its dedication to promoting Cyprus as an attractive investment destination and for supporting the expansion of local businesses. Reflecting on President Christodoulides’s recent address at Keve’s annual general assembly, she outlined the government’s vision for a more competitive Cyprus, which includes expanding market access, improving financing channels, and implementing a streamlined, business-friendly regulatory framework—all pivotal as Cyprus prepares for its EU Council presidency.

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Economic Indicators Reflecting Confidence

Despite global uncertainties, Piki highlighted that the Cypriot economy continues to demonstrate resilience: gross domestic product grew by 3.4% in 2024, and forecasts indicate nearly 4% growth in 2025. With inflation remaining among the lowest in the European Union and unemployment dropping below 5%, these indicators affirm steady economic progress. Furthermore, positive ratings from international credit agencies, which have placed Cyprus in the A category with upbeat outlooks, underscore the success of prudent economic policies.

Fiscal Discipline and Strategic Investments

The government’s upcoming 2026 budget, which reinforces fiscal stability with a surplus balance and targets a decline in public debt to 50.9% of GDP, opens the door for strategic policy interventions. Piki noted that investments in energy, digital infrastructure, technology, and green growth are key priorities. Enhanced by the nearing completion of Recovery and Resilience Plan projects, Cyprus is now setting the stage for the next seven-year EU funding framework, ensuring a robust platform for sustained growth with active collaboration from the business community.

Regulatory Reforms and Market Liberalization

Central to the government’s agenda is the imminent tax reform, expected to be finalized on December 22 and implemented on January 1, 2026. This reform is designed to bolster business liquidity and attract new investments. The establishment of the National Enterprise Development Organisation further complements these efforts by offering financing tools and advisory services for small and medium-sized enterprises. Complementing these initiatives, the Cyprus Equity Fund is actively investing in innovative companies, while the Ministry of Energy grant schemes are projected to mobilize €360 million by 2027 to boost competitiveness.

Accelerating Digital Transformation and Energy Reforms

In its pursuit of a modernized business environment, the government is set to introduce a Business Service Centre in central Nicosia in 2025, consolidating licensing procedures to significantly reduce bureaucratic delays. In tandem, the impending launch of a competitive electricity market in October 2025 will empower companies to select their energy suppliers, fostering market competition and fair pricing.

Nurturing Human Capital

Recognizing the importance of talent in driving economic progress, the government is intensifying efforts to attract skilled professionals back to Cyprus. The Minds in Cyprus initiative, a collaboration with Keve and Invest Cyprus, seeks to reverse the talent drain by engaging Cypriots abroad through a series of events scheduled in the United States, United Kingdom, and Greece during 2026.

Commitment to Sustainable Growth

Concluding her address, Deputy Minister Piki congratulated the award recipients for their innovation and resilience, asserting that their achievements are a testament to the dynamism of the Cypriot business community. The government remains steadfast in its commitment to implementing reforms that support a stable, competitive, and sustainable economic future for Cyprus.