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Illegal Employment on the Rise in Cyprus as Undeclared Work Declines

A recent report on the labour market in Cyprus has revealed a worrying increase in illegal employment, even as the rate of undeclared work shows signs of decline. The findings, which were discussed during a parliamentary session, have raised concerns among lawmakers and authorities alike about the ongoing challenges in combating labour exploitation and maintaining fair employment practices.

According to data presented by the Ministry of Labour, the issue of illegal employment—workers being hired without proper work permits or contracts—has escalated in recent months. This rise comes at a time when efforts to reduce undeclared work, where employees are not registered or insured, have seen moderate success. Despite progress in regulating the labour market, illegal employment remains a significant issue, especially in industries such as construction, agriculture, and hospitality.

Understanding the Distinction Between Illegal and Undeclared Employment

Illegal employment refers to the hiring of individuals who are not legally permitted to work, often due to their immigration status or lack of proper documentation. These workers are typically vulnerable to exploitation, receiving lower wages and lacking access to basic protections such as healthcare and social security benefits. In contrast, undeclared work involves the employment of individuals who may be legally allowed to work but are not officially registered, depriving them of insurance coverage and other legal protections.

While authorities have made strides in reducing undeclared work, particularly through stricter inspections and penalties, the rise in illegal employment presents a new challenge. Lawmakers pointed out that illegal employment poses even greater risks, as it not only harms the workers involved but also undermines the integrity of the labour market and contributes to unfair competition among businesses.

Factors Driving Illegal Employment

Several factors contribute to the increase in illegal employment, according to the Ministry of Labour. One key driver is the influx of migrant workers, many of whom lack the necessary documentation to work legally in Cyprus. Without proper channels for legal employment, these individuals often turn to unregulated jobs where they are vulnerable to exploitation.

The growing demand for cheap labour, particularly in sectors like construction and agriculture, also plays a significant role. Employers seeking to cut costs may resort to hiring illegal workers, bypassing the legal requirements for contracts, wages, and benefits. This practice not only puts workers at risk but also creates an uneven playing field, where businesses that comply with legal standards struggle to compete with those exploiting illegal labour.

Efforts to Combat Illegal Employment

In response to these findings, the government has pledged to intensify its efforts to combat illegal employment. This includes increasing inspections, imposing harsher penalties on employers found guilty of hiring illegal workers, and strengthening collaboration with immigration authorities. Additionally, there is a push to create more pathways for legal employment for migrant workers, ensuring they can enter the labour market with proper documentation and protections.

Cyprus University Students Take On Equity Research Challenge With Logicom

University students across Cyprus will compete in the 2026–27 CFA Society Cyprus Research Challenge, analysing listed technology group Logicom Public Ltd as this year’s subject company.

The competition officially launched on October 29 at Eurobank Cyprus’s head office in Nicosia, bringing together university teams, faculty advisers, industry mentors and Logicom representatives.

Putting Investment Analysis Into Practice

Organised by the CFA Institute, the annual competition gives students practical experience in equity research and investment analysis. Participants work in teams to assess a publicly listed company, prepare a research report and present their findings to a panel of industry professionals.

Over the coming months, teams will analyse Logicom’s business model, financial performance and future prospects, supported by faculty advisers and mentors holding the Chartered Financial Analyst (CFA) designation. Their reports must include a buy, sell or hold recommendation.

The local final is scheduled for February 2027, with the winning team going on to represent Cyprus at the regional stage.

Developing Skills And Industry Connections

Beyond financial analysis and company valuation, the challenge helps students develop research writing, teamwork and presentation skills. Working to real-world deadlines and engaging with senior management also gives participants insight into how investment research is conducted in practice.

CFA Society Cyprus says previous participants have often credited the experience with influencing their career choices. For employers, the competition offers an opportunity to connect with emerging talent in the local financial sector.

The programme also introduces students to the CFA Institute Code of Ethics and Standards of Professional Conduct, highlighting the importance of integrity and professional responsibility in investment research.

Supporting Future Finance Professionals

“The Research Challenge is one of the most valuable experiences we can offer students who are considering a career in investment management,” said Stella Mourouzidou-Damtsa, CFA, University Relations and Research Challenge Committee chair at CFA Society Cyprus.

“It takes them beyond the classroom and asks them to think, analyse and present like professional analysts,” she added.

Mourouzidou-Damtsa also thanked Logicom for participating as this year’s subject company and giving students access to its business. She said she looked forward to seeing the insight and creativity each team would bring to the competition.

CFA Society Cyprus is a non-profit member society of the CFA Institute representing investment professionals in Cyprus. It promotes ethical standards, education and professional excellence through events, educational programmes and initiatives supporting the local investment community.

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