cyprus unemployment — cyprus unemployment — Cyprus’ unemployment rate remained remarkably low at 4.2 per cent in January 2026, significantly below both the euro area and EU averages. This figure reflects the ongoing strength of the Cypriot labour market, as reported by Eurostat.
On Wednesday, Eurostat disclosed that the euro area’s unemployment rate had dropped to 6.1 per cent, a slight reduction from 6.2 per cent in December 2025 and 6.3 per cent a year earlier in January 2025. Across the entire EU, the unemployment rate also saw a decrease, settling at 5.8 per cent, down from 5.9 per cent the previous month.
Approximately 12.93 million individuals in the EU were unemployed in January 2026, with 10.77 million of those in the euro area. This marked a monthly decline of 185,000 in the EU and 184,000 in the euro area since December 2025, and an annual decrease of 274,000 in the EU and 273,000 in the euro area from January 2025.
For Cyprus, the estimated number of unemployed persons remained stable at around 23,000 in January 2026, unchanged from the same month in 2025 but a slight increase from 22,000 in December 2025. Notably, the unemployment rate in Cyprus had been recorded at 4.5 per cent in January 2025, indicating a positive annual improvement of 0.3 percentage points.
The youth unemployment situation across the EU also showed signs of improvement. In January 2026, the total number of unemployed young people under the age of 25 in the EU was 2.92 million, with 2.35 million in the euro area. The youth unemployment rate was 15.1 per cent in the EU, a decrease from 15.2 per cent in December 2025, while in the euro area, it stood at 14.8 per cent, down from 15.0 per cent.
In terms of gender-specific unemployment rates, women in the EU saw a decline to 6.0 per cent from 6.1 per cent, while men’s unemployment fell to 5.7 per cent from 5.8 per cent. In the euro area, the rates for women and men were 6.3 per cent and 6.0 per cent, respectively, both showing slight improvements.
These figures underscore Cyprus’ strong position within the European labour market, with its unemployment rate significantly lower than the EU average of 5.8 per cent and the euro area rate of 6.1 per cent. Supporting this positive trend, the Cyprus Statistical Service (Cystat) recently announced data regarding registered unemployment for February 2026.
By the end of February 2026, the number of registered unemployed individuals at District Labour Offices was recorded at 12,273. Seasonally adjusted figures indicated that the number of registered unemployed fell to 9,773 from 9,832 in January 2026. Compared to February 2025, this represented a decrease of 488 persons, or 3.8 per cent.
Cystat attributed the improvements in the labour market to increased hiring in sectors such as accommodation and food service, construction, trade, and manufacturing, alongside a decrease in the influx of new jobseekers into the market. The latest labour market data from both Eurostat and Cystat point to a resilient employment landscape in Cyprus at the start of 2026, amid gradual improvements elsewhere in the EU.
