The Cyprus labour market remains robust as the EU employment rate for individuals aged 20 to 64 holds steady at 76.2 per cent in the third quarter of 2025, according to Eurostat. This report arrives shortly after data from the state statistical service, Cystat, highlighted Cyprus’s strong performance in employment, despite a slight uptick in registered unemployment this November.
EU Employment Landscape
Eurostat’s findings show that labour market slack stood at 11.0 per cent of the extended labour force in the EU during the same quarter, a figure that has not changed from the previous quarter. This statistic encompasses all individuals who are seeking work but have not yet found employment.
Among EU member states, Malta saw the most significant quarterly rise in employment, with an increase of 1.2 percentage points, followed by Estonia at 0.8 points, and Croatia, Portugal, and Romania each at 0.6 points. Conversely, ten member states experienced declines, with Belgium seeing a decrease of 0.7 points, while Luxembourg and Ireland reported 0.5-point dips.
Cyprus Labour Market Insights
Cystat’s Labour Force Survey for the third quarter of 2025 presents a mixed yet resilient picture of the domestic labour market in Cyprus. The total labour force has grown to 530,992 individuals, representing 65.6 per cent of the population, compared to 516,127 persons or 65.7 per cent in the same quarter of 2024.
The number of employed persons in Cyprus has risen to 509,211, yielding an employment rate of 62.9 per cent—slightly up from the 62.7 per cent recorded a year earlier. Notably, the employment rate for individuals aged 20 to 64 stands at an impressive 81.6 per cent, an increase from 80.7 per cent in the third quarter of 2024.
Breaking this down further, the employment rate for males in this age group reached 86.6 per cent, while for females it was 76.8 per cent, both showing marginal improvements compared to the previous year’s figures. For older workers aged 55 to 64, the employment level was 70.9 per cent, remaining nearly unchanged from 71.0 per cent in 2024.
Sectoral Employment Distribution
Employment in Cyprus remains predominantly concentrated in the services sector, which accounts for 81.4 per cent of total employment. The manufacturing sector follows at 16.3 per cent, with agriculture making up the remaining 2.3 per cent. Part-time employment constitutes 8.8 per cent of total employment, translating to 44,607 individuals, with women being twice as likely as men to engage in part-time work.
Furthermore, Cystat reported that a significant 90.2 per cent of all employed persons are classified as employees, which includes 71,008 individuals on temporary contracts, representing 15.5 per cent of salaried workers.
Unemployment Trends in Cyprus
The Labour Force Survey indicates that as of the third quarter of 2025, there were 21,781 unemployed individuals in Cyprus, resulting in an unemployment rate of 4.1 per cent, down from 4.5 per cent a year earlier. However, the unemployment rate for young people aged 15 to 24 has risen to 13.1 per cent, compared to 12.1 per cent in the previous year.
Short-term unemployment remains prevalent, with 63.8 per cent of unemployed persons having sought work for less than six months, an improvement from 56.3 per cent in 2024. Meanwhile, long-term unemployment has seen a decrease, falling to 19.4 per cent from 23.5 per cent last year.
Recent Increases in Registered Unemployment
In a more recent update, Cystat figures on registered unemployment revealed an increase as of the end of November 2025. The number of registered unemployed stood at 10,924, while seasonally adjusted figures indicated a rise to 10,078, up from 9,723 in October 2025. Despite this, year-on-year comparisons show a decrease of 1.5 per cent due to reductions in sectors such as construction, manufacturing, trade, and financial and insurance activities, as well as fewer newcomers entering the labour market.
