Cyprus has seen its unemployment rate fall to 4.1% in the third quarter of 2025, a notable improvement from 4.5% during the same period last year, according to the latest report by the statistical service, Cystat.
This decline in unemployment is accompanied by a reduction in the number of jobless individuals, which now stands at 21,781, down from 23,073 in Q3 2024. The report highlights gender disparities, revealing that the unemployment rate for men is at 3.7%, while for women, it is slightly higher at 4.6%.
Labour Force Dynamics
The total labour force in Cyprus has also seen an increase, reaching 530,992 people, which represents 65.6% of the population. This is a slight rise from 516,127 people or 65.7% a year earlier. Participation rates among men remain steady at 71.1%, while women’s participation has increased to 60.4%.
Employment Figures
Employment figures have also improved, with 509,211 individuals now in work, marking an employment rate of 62.9%, up from 62.7% in Q3 2024. The distribution of employed persons reveals that 269,513 are men (68.5%), and 239,698 are women (57.6%).
Age Group Employment Trends
Focusing on age demographics, employment among individuals aged 20-64 has reached 81.6%, up from 80.7% a year ago. In this group, men show a higher employment rate at 86.6%, compared to women’s rate of 76.8%. Furthermore, employment for those aged 55-64 stands at 70.9%, slightly down from 71% in the previous year.
Sector Employment Breakdown
When examining employment by sector, services dominate, employing 81.4% of workers, followed by industry at 16.3% and agriculture at 2.3%. These figures are relatively stable compared to the previous year, where services accounted for 81.9%, industry 16.2%, and agriculture 1.9%.
Working Arrangements
In terms of working arrangements, a significant majority, 91.2% of workers, hold full-time positions, totalling 464,604 individuals. Only 8.8% are employed part-time, which is a slight increase from 8.7% the previous year. Of the employed population, 90.2% are employees, with 15.5% (71,008 individuals) on temporary contracts, up from 14.5% a year ago. The self-employed make up 9.8% of total employment, with numbers remaining consistent at 49,938 compared to 48,161 in the prior year.
Youth Unemployment Rates
Youth unemployment remains a concern, with joblessness among 15-24-year-olds at 13.1%. This is an increase from 12.1% in Q3 2024, with men experiencing a higher rate of 14.1% compared to 12.1% for women. Conversely, unemployment among those aged 25-64 has improved to 3.6%, down from 4.0% a year earlier.
Duration of Unemployment
Regarding the duration of unemployment, 63.8% of all unemployed individuals have been seeking work for less than six months. In contrast, 16.8% have been unemployed for six to eleven months, while long-term unemployment accounts for 19.4%, a decrease from 23.5% in the same quarter of the previous year. This suggests a positive trend towards shorter unemployment spells in Cyprus.
