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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.

Web Summit 2026 Brings 70,000 Participants From 164 Countries To Lisbon

Around 70,000 people from 164 countries attended this year’s Web Summit in Lisbon, with China sending its largest delegation to the event so far. More than 50 representatives from the country’s artificial intelligence and robotics sectors took part, reflecting China’s growing presence in technologies reshaping manufacturing and services.

Founded in Dublin in 2009, Web Summit moved to Lisbon in 2016 and has since developed into one of Europe’s major technology conferences. The event brings together start-ups, investors and industry leaders, providing a platform for companies to present new technologies and explore business opportunities.

This year’s gathering also highlighted China’s expanding influence in the global technology industry, a trend noted by Web Summit founder Paddy Cosgrave.

Storm Charles Interrupts Conference Programme

The summit’s schedule was disrupted on November 11, when Storm Charles forced organisers to cancel activities for the day. The programme resumed on November 12, allowing the event to conclude as planned.

Despite the interruption, this year’s Web Summit highlighted several key developments shaping the technology sector, including advances in robotics and automation, intensifying international competition and continued demand for platforms connecting businesses with investors.

For Lisbon, the conference remains an important international technology gathering, bringing together companies and decision-makers while showcasing innovations moving towards commercial application.

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