labour gaps — Cyprus is facing significant labour gaps, particularly in the technology and tourism sectors, as outlined in the recent EURES Labour Shortages and Surpluses Report 2025. The report, published on Monday, details that in 2024, the island recorded 63 occupations with labour shortages and 11 with labour surpluses. These persistent gaps span various professions, most severely impacting healthcare and digital technology roles.
Labour gaps: Healthcare Roles in High Demand
The report highlights that among the most affected positions are nurses and midwives, with the demand for these roles far exceeding supply. Specifically, the healthcare sector is under immense pressure, attributable to an ageing population and the rising need for health services. Medical imaging technicians are also in short supply, alongside a variety of other healthcare professionals.
Technology Sector Faces Shortages
Digital technology roles are particularly hard-hit, with high demand for information and communications technology sales professionals, systems analysts, and software and applications developers. Web and multimedia developers are also seeing increased demand, reflecting the growing importance of technology in virtually all sectors of the economy.
Tourism and Related Industries Affected
Moderate shortages extend to roles closely tied to the tourism industry, which is a significant part of Cyprus’ economy. Restaurant managers, retail and wholesale managers, and chefs are among those experiencing challenges in filling positions. The shortage of waiters and bus drivers further complicates the situation, as these roles are integral to maintaining a robust tourism sector.
Broader Implications for Other Industries
The report also identifies shortages in construction and industrial trades, including roles such as builders, air conditioning and refrigeration technicians, and welders. Heavy goods vehicle drivers, cleaners, and workers in agriculture and fisheries are also in short supply. These shortages indicate a broader issue within the labour market in Cyprus, with implications that could hinder economic growth.
Moderate Shortages Across Various Professions
In addition to severe shortages, lower severity gaps were observed in positions like health and care service managers, general and specialist doctors, hotel reception staff, and various skilled trades. The reliance on these roles highlights the interconnected nature of sectors within Cyprus, particularly how tourism impacts demand across multiple industries.
Comparative Analysis Across Europe
At a European level, the report indicates that while labour shortages are prevalent across multiple member states, they are particularly acute in Cyprus, Bulgaria, Italy, and the Netherlands. In these countries, employers struggle to fill a wide range of positions from healthcare to skilled trades. The report notes that 57 per cent of shortages across Europe are classified as moderate or severe, illustrating the urgency of the situation.
Surpluses in Other Member States
Conversely, nations such as Latvia, Austria, and Finland are reporting more frequent labour surpluses, especially in administrative and creative occupations. This uneven distribution of labour across the EU highlights the need for improved cross-border labour mobility, which remains underutilised.
Structural Barriers to Labour Mobility
The EURES report attributes these imbalances to various structural barriers. Limited awareness of job opportunities abroad, challenges in recognising professional qualifications across borders, and language barriers are significant obstacles. Additionally, wage disparities further complicate the situation, making it difficult for employers to attract talent from other EU nations.
Call for Action to Address Shortages
To tackle these pressing issues, the report advocates for enhanced cross-border labour mobility within the EU. Recommendations include simplifying the recognition of qualifications and reducing administrative barriers that currently hinder movement. Improving job quality, investing in vocational training and upskilling programmes, and activating underused labour pools—such as women, older workers, and migrants—are also crucial steps.
Future Outlook for Cyprus’ Labour Market
The findings of the EURES report present a detailed snapshot of the labour market imbalances in Cyprus, with clear implications for its tech-driven and tourism-heavy economy. The increasing demand for technical occupations, particularly in light of the green transition, is likely to intensify pressure on already strained vocational labour markets.
As Cyprus continues to navigate these challenges, addressing labour shortages will be vital for sustaining economic growth and ensuring the continued success of its key industries. The collaborative efforts of government, educational institutions, and the private sector will be essential in aligning skills with market demands.
