Employment in Cyprus is growing at a rapid pace, pushing unemployment close to record lows. This is positive for the country’s labor market, as it highlights the strength of the Cypriot economy and creates favorable prospects for growth. At the same time, however, labor shortages in key sectors of the economy remain a serious challenge, holding back growth and emerging as the biggest problem facing businesses.
Cyprus is therefore confronted with a paradox: more jobs and lower unemployment on the one hand, but a growing need for workers on the other. Filling labor shortages has become one of the most important challenges in maintaining the economy’s growth momentum.
According to the Statistical Service’s Labor Force Survey, Cyprus’ labor force reached 540,130 people in the second quarter of 2026, representing 65.6% of the population, 70.9% of men, and 60.5% of women. This compares with 528,981 people, or 65.4%, in the same quarter of 2025.
The number of unemployed people fell to 19,367, bringing the unemployment rate down to 3.6% of the labor force, 3.5% among men, and 3.7% among women. This compares with 22,663 unemployed people and a rate of 4.3% in the same period last year.
