cyprus unemployment — cyprus unemployment — Cyprus has recorded a notable decrease in unemployment, with the rate falling to 4 per cent as of the fourth quarter of 2025. This reduction coincides with a significant rise in total employment, which reached 531,062 individuals, representing 65.2 per cent of the population, according to the latest Labour Force Survey by the Cyprus Statistical Service (Cystat).
In the corresponding quarter of the previous year, total employment stood at 518,053 persons, which accounted for 64.3 per cent of the population. The upward trend in employment is illustrated by the employment rate climbing to 62.6 per cent, compared to 61.4 per cent in the same quarter of 2024.
Cyprus unemployment: Decline in Unemployment Figures
The number of unemployed individuals decreased to 21,289, down from 4.5 per cent in the fourth quarter of 2024. This change reflects a positive shift in the labour market, particularly for men and women. Male unemployment rates stood at 3.8 per cent, while female unemployment rose slightly to 4.2 per cent.
Employment Rate Increases Across Demographics
The employment rate for men reached 67.6 per cent, whereas for women it was recorded at 57.9 per cent. The core working-age group of 20-64 years saw an impressive employment rate increase to 81.7 per cent, up from 80.2 per cent the previous year. Notably, the employment rate for individuals aged 55-64 also strengthened, rising to 71.7 per cent compared to 69.9 per cent a year prior.
Sectoral Employment Distribution
In terms of sectoral employment, the services sector continues to dominate, accounting for 81.3 per cent of total employment, followed by industry at 16.5 per cent and agriculture at 2.2 per cent. The figures from the previous year show a slight shift in the agricultural sector, which had a share of 2.3 per cent.
Part-Time Employment Trends
Part-time roles made up 8.6 per cent of total employment, which corresponds to 43,703 individuals, a slight decrease from 8.8 per cent in the fourth quarter of 2024. Among full-time employees, 90.2 per cent were on permanent contracts, amounting to 460,003 persons. However, temporary contracts increased to 14.8 per cent from 13.6 per cent a year earlier.
Youth Unemployment Concerns
Despite the overall positive trends, youth unemployment has become a pressing issue, rising sharply to 14.7 per cent for those aged 15-24, compared to 9.6 per cent in the same quarter last year. This alarming statistic highlights the ongoing challenges that younger generations face in entering the workforce.
Duration of Unemployment
In terms of duration, Cystat reported that 66.6 per cent of unemployed individuals had been seeking work for less than six months. Meanwhile, 15.1 per cent had been unemployed for between six and eleven months, and 18.3 per cent were classified as long-term unemployed—a decrease from 25.4 per cent in the fourth quarter of 2024.
The Labour Force Survey, which Cystat conducts quarterly, involves a representative sample of 3,800 households across urban and rural areas in Cyprus, providing a comprehensive overview of the labour market trends.
