The latest Eurostat data on the increase in unemployment from 5.2% in April 2005 to 6.3% in April 2006 have aroused strong feelings to all political parties. The Finance Ministry, however, tries to laugh away the impression that the parties have, using figures that are deemed unreliable even by CYSTAT. “Unemployment is Cyprus is satisfactory”, it insisted.
The rate of unemployment is the highest in the past few years. The trend is negative not only in comparison with the first three months when unemployment reached 5.6% of the labour force but also with 2005. In the first four months of 2006, unemployment stood at 5.8% against 4% five years ago.
Unlike Cyprus, unemployment in EU25 dropped from 8.9% in April 2005 to 8.3% in April 2006.
In an effort to rebut the criticisms of the social partners, the Ministry issued an announcement that refers to the old way of calculation, which is no longer used by the Statistics’ Service since the figures “might not provide a safe base for the total rate of unemployment”.
The Finance Ministry supports that “the conditions in the labour market are positive, since unemployment remains low and the employment level is high compared to those of the EU”.
DISY: Need to take measures
The government’s announcement was criticized strongly by the opposition parties. Speaking to StockWatch, DISY MP, Maria Kyriakou stated that the government would not solve the unemployment problems by saying that there are no problems. “The young graduates and the unspecialized workers face a serious problem. Unfortunately, no new job posts have been created and many companies transfer their activities abroad. We must give incentives to the local and foreign businesses so that the state mechanism operates properly”, she said.
Criticisms against AKEL for the increase in taxation
Mrs. Kyriakou added that the state mechanism puts obstacles to the activation of foreign companies in Cyprus. “Foreign companies are obliged to pay £50 thousand for stamps only and they usually turn to other EU countries. Cypriots, therefore, lose the opportunity to work in European companies”, she said.
AKEL
Responding to DISY’s criticisms, AKEL Head of Economic Research, Stavros Evagorou said that AKEL has proved that it is close to the Cypriot worker. Mr. Evagorou admitted that unemployment increased but said that it can be moderated with the strengthening of the state investments, the EU training programs and the expansion of the tourist period. “AKEL’s target is to bring workers back to the labour market”, he told StockWatch.
The rate of unemployment is the highest in the past few years. The trend is negative not only in comparison with the first three months when unemployment reached 5.6% of the labour force but also with 2005. In the first four months of 2006, unemployment stood at 5.8% against 4% five years ago.
Unlike Cyprus, unemployment in EU25 dropped from 8.9% in April 2005 to 8.3% in April 2006.
In an effort to rebut the criticisms of the social partners, the Ministry issued an announcement that refers to the old way of calculation, which is no longer used by the Statistics’ Service since the figures “might not provide a safe base for the total rate of unemployment”.
The Finance Ministry supports that “the conditions in the labour market are positive, since unemployment remains low and the employment level is high compared to those of the EU”.
DISY: Need to take measures
The government’s announcement was criticized strongly by the opposition parties. Speaking to StockWatch, DISY MP, Maria Kyriakou stated that the government would not solve the unemployment problems by saying that there are no problems. “The young graduates and the unspecialized workers face a serious problem. Unfortunately, no new job posts have been created and many companies transfer their activities abroad. We must give incentives to the local and foreign businesses so that the state mechanism operates properly”, she said.
Criticisms against AKEL for the increase in taxation
Mrs. Kyriakou added that the state mechanism puts obstacles to the activation of foreign companies in Cyprus. “Foreign companies are obliged to pay £50 thousand for stamps only and they usually turn to other EU countries. Cypriots, therefore, lose the opportunity to work in European companies”, she said.
AKEL
Responding to DISY’s criticisms, AKEL Head of Economic Research, Stavros Evagorou said that AKEL has proved that it is close to the Cypriot worker. Mr. Evagorou admitted that unemployment increased but said that it can be moderated with the strengthening of the state investments, the EU training programs and the expansion of the tourist period. “AKEL’s target is to bring workers back to the labour market”, he told StockWatch.
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