Cyprus on track to achieve full employment

Cyprus’ Minister of Labour and Social Insurance, Yiannis Panayiotou, expressed optimism  on Tuesday that Cyprus will achieve the goal of creating conditions of full employment within the five-year term of the current administration.

Speaking at a press conference about the latest unemployment figures in Cyprus, he pointed out the significant progress made during President Christodoulides' first year in office, with a reduction of 4,055 unemployed individuals.

The Minister emphasized that the unemployment rate in Cyprus has reached its lowest point in the last fifteen years. He noted that the ambitious target of achieving conditions for full employment, defined as an unemployment rate below 5%, is realistic within the administration's five-year term.

"Unemployment has dropped to its lowest rates in the last fifteen years, with a similar decline in long-term unemployment, which had remained consistently high for almost fifteen years," noted Panayiotou. He added that long-term unemployment has now fallen to the lowest number in the past 14 years.

"The ambitious goal of creating conditions for full employment within the next five years is realistic and achievable through the consistent implementation of government policies in the labour sector," the Minister said.

Panayiotou also stressed that making the most of domestic human resources was crucial for the continued reasonable employment of foreign workers, in accordance with labour market needs and legal procedures for appropriately staffing all job positions.

He expressed satisfaction that the statistical data supports optimism for integrating more workers into the productive process and continuing the reduction of the unemployment rate.

According to the Labour Force Survey by the Statistical Service of Cyprus, the unemployment rate for the first quarter of 2024 stands at 6.0%, down 0.8 percentage points from the same quarter in 2023, when it was 6.8%. The Minister noted that the last time the unemployment rate for the first quarter of any year was lower than 6% was in 2009 (4.6%).

The data also revealed that the number of unemployed individuals decreased by 4055. Specifically, in the first quarter of 2024, there were 29,394 unemployed individuals, compared to 33,394 in 2023.

Greater reduction in unemployment among Cypriots

Panayiotou highlighted that, according to the Public Employment Service, Cypriot nationals experienced the largest reduction in unemployment in the first quarter of 2024 compared to the same period in 2023, with a decrease of 16% (1665 individuals). EU citizens saw a 9% reduction (346 individuals), while Third-Country νationals experienced a 5% decrease (80 individuals).

Regarding long-term unemployment, Labour Force Survey statistics show a reduction of 26.2% among the unemployed in the first quarter of 2024, compared to 32.2% in the same quarter of 2023.

The Minister attributed the positive employment outcomes to the methodical implementation of the Government Programme through the application of comprehensive employment policies. Panayiotou highlighted that the policies contributing to increased employment and reduced unemployment are holistic. He added that the continued economic growth is essential to creating more job opportunities.

He noted the positive impact of leveraging opportunities provided by the European Year of Skills, focusing on green and digital skills. He added that the balanced policy of utilizing available domestic human resources alongside the employment of foreign workers also contributed to the positive results.