Cyprus Maintains One Of The Highest Job Vacancy Rates In The European Union
According to recent data released by Eurostat, Cyprus recorded a 3.0 percent job vacancy rate in the third quarter of 2025, positioning it among the top five EU member states with the highest demand for labour. This figure notably exceeds both the euro area and wider EU averages, despite an overall cooling in labour demand across the continent.
Comparative European Performance
The report highlights that while the job vacancy rate in the euro area declined to 2.1 percent in Q3 2025 from 2.3 percent in Q2 2025, and further down from 2.5 percent in the corresponding quarter of 2024, the EU as a whole saw a drop to 2.0 percent from 2.1 percent the previous quarter. This trend is particularly evident across key sectors such as industry, construction, and services.
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Sector And Regional Variations
Industry and construction vacancies accounted for 2.0 percent of all posts in the euro area, while service sectors fared slightly better at 2.3 percent. Across the EU, similar patterns emerged, with industries reporting a vacancy rate of 1.8 percent against 2.1 percent in the service sector. The Netherlands led with a 4.1 percent vacancy rate, followed closely by Belgium at 3.8 percent and Malta at 3.4 percent. Austria and Cyprus followed with rates of 3.2 percent and 3.0 percent, respectively.
Labour Demand Trends In Europe
The data further reveals that only three EU member states registered an increase in vacancy rates compared to the third quarter of 2024. Malta, Lithuania, and Ireland experienced marginal rises, while twenty member states saw declines, reflecting a broad deceleration in labour demand. Notably, Germany and Austria experienced the largest reductions at 0.6 percentage points, with Cyprus and Latvia each decreasing by 0.5 percentage points.
Key Sectors And Economic Impacts
Within both the euro area and the EU, administrative and support service activities—including temporary employment agencies—recorded the highest vacancy rates at 3.3 percent and 3.1 percent, respectively. Construction and professional, scientific, and technical activities followed closely, with significant implications for economic productivity in these sectors. Other areas such as accommodation, food services, and information and communication also faced persistent pressures, underpinning ongoing labour shortages in critical parts of the economy.
Implications For Cyprus
For Cyprus, these insights underscore a persistent strain in key sectors despite a general downturn in vacancy rates across Europe. The nation’s figures highlight critical labour shortages that may impact growth unless addressed through targeted policy and recruitment strategies. As labour dynamics continue to evolve, close monitoring and adaptive strategies will be imperative for navigating the increasingly competitive European market.
