Opens in a new tab

Breaking news

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.

Economist’s 22nd Cyprus Summit To Bring Political And Business Leaders To Nicosia On 9–10 November

Overview

The 22nd Annual Cyprus Summit, organised by Economist Enterprise, will take place on 9–10 November 2026 at The Landmark Nicosia, bringing together political leaders, European policymakers, business executives and international experts to discuss the economic and geopolitical challenges facing Cyprus and the wider eastern Mediterranean.

Under this year’s theme, “A Strategic Gateway for Regional Co-operation,” the two-day conference will examine Cyprus’s position in a changing international environment, with discussions covering investment, energy security, artificial intelligence, financial technology and Europe’s economic competitiveness.

President Nikos Christodoulides is scheduled to deliver the official opening address on Monday, 9 November, focusing on stability and resilience in the eastern Mediterranean and Cyprus’s role in the region.

The programme will also feature senior representatives from European institutions, international organisations and the private sector.

What To Expect

The summit will examine how geopolitical developments, technological change and economic pressures are affecting business and policymaking in Cyprus and across Europe.

The first day, Monday, 9 November, will focus primarily on international relations, investment and energy.

An opening discussion led by John Peet, associate editor of special reports at The Economist, and Joan Hoey, Europe consultant at the Economist Intelligence Unit, will consider the economic and political outlook for Cyprus and the eastern Mediterranean.

A session titled “Investing in Turbulent Times: Make It Simple” will examine how Europe can attract investment, reduce barriers to growth and strengthen its economic resilience.

The programme will also address US-Cyprus relations, diplomatic efforts in the Middle East and Europe’s evolving foreign policy priorities.

Energy will feature prominently, including discussions on regional energy security and the Great Sea Interconnector, the proposed electricity connection between Greece, Cyprus and Israel. Speakers will examine the project’s commercial viability and the geopolitical challenges associated with its development.

On Tuesday, 10 November, attention will turn to issues including the Cyprus problem, healthcare resilience, artificial intelligence, fintech and workforce development.

The session “AI: Driving Growth or Deepening Inequality?” will consider the economic opportunities created by artificial intelligence alongside concerns about employment, unequal access to technology and the distribution of its benefits.

A separate fintech discussion, “Smart Finance: The Fintech Era,” will explore how technological developments are affecting banking and financial services.

The conference will conclude with a discussion on preparing the workforce for an AI-driven economy, including the relationship between education, skills development and future employment needs.

Speaker Line-Up

The programme includes senior political figures, policymakers and business representatives from Cyprus and abroad.

Among the announced participants are:

  • Nikos Christodoulides, President of the Republic of Cyprus
  • HRH Prince El Hassan bin Talal of Jordan, joining remotely
  • Sir Julian King, former European commissioner for the security union
  • Ehud Olmert, former prime minister of Israel
  • Amre Moussa, former secretary-general of the League of Arab States
  • Ioannis Tsakiris, vice-president of the European Investment Bank
  • Constantinos Kombos, Cyprus’s minister of foreign affairs
  • Michael Damianos, Cyprus’s minister of energy, commerce and industry
  • Nicodemos Damianou, Cyprus’s deputy minister of research, innovation and digital policy
  • Evgenios Evgeniou, chairman of Invest Cyprus
  • Stavros Stavrou, president of the Cyprus Chamber of Commerce and Industry
  • Andreas Yiasemides, chief executive and chairman of PwC Cyprus

The business and technology discussions will also feature representatives from financial services and investment, including Lucia Pecchini, secretary-general of the European FinTech Association, Ornit Shinar, managing partner at Sanchi Capital, and executives from ECOMMBX and Capital.com.

Other announced speakers include Athena Michaelidou, Cyprus’s minister of education, sport and youth, and Manuela Geleng, director for jobs and skills at the European Commission’s Directorate-General for Employment, Social Affairs and Inclusion.

Who Should Attend

The summit is particularly relevant to business leaders, investors, entrepreneurs, financial services professionals, policymakers and executives working in sectors affected by regional economic and technological developments.

Its discussions on investment, AI, fintech and energy may be of particular interest to Cyprus-based businesses considering international expansion, technological investment or new financing opportunities.

The conference also offers an opportunity to follow discussions on the policies and international relationships affecting Cyprus’s economic development.

Date And Venue

Dates: Monday, 9 November and Tuesday, 10 November 2026

Venue: The Landmark Nicosia, 98 Archbishop Makarios III Avenue, 1077 Nicosia

Programme:

  • Monday, 9 November: Registration begins at 08:15, followed by the opening sessions at 08:45.
  • Tuesday, 10 November: Registration begins at 08:45, with the conference programme scheduled to conclude at 15:30.

The programme includes keynote addresses, panel discussions and networking lunches.

How To Attend

Those interested in attending can submit an enquiry through the official 22nd Annual Cyprus Summit website.

About The Annual Cyprus Summit

The Annual Cyprus Summit is part of the international conference programme associated with The Economist, bringing together representatives from government, business and international institutions to discuss developments affecting Cyprus and its regional partners.

The 2026 edition is centred on the country’s potential role in strengthening cooperation between Europe and the eastern Mediterranean, with particular attention to geopolitical stability, competitiveness, investment and technological development.

Further information, including the full agenda, is available through Economist Enterprise.

eCredo
Aretilaw firm
The Future Forbes Realty Global Properties
Uol

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter