Labour shortages have become a pressing issue in Cyprus, with the EURES Labour Shortages and Surpluses Report 2025 revealing 63 occupations facing gaps and 11 experiencing surpluses in 2024.
- Labour shortages have become a pressing issue in Cyprus, with the EURES Labour Shortages and Surpluses Report 2025 revealing 63 occupations facing gaps and 11 experiencing surpluses in 2024.
Labour shortages: Critical Shortages in Healthcare and Technology
The report, published on Monday, highlights that the most severe labour shortages are concentrated in healthcare and digital technology roles. Notably, the healthcare sector is in dire need of professionals such as nurses and midwives, while the tech industry seeks information and communications technology sales professionals, systems analysts, and software developers.
Wider Implications for Tourism and Retail
Beyond healthcare and technology, moderate shortages have also been observed in professions closely linked to tourism, retail, and construction. Roles like restaurant managers, chefs, electricians, and shop sales assistants are in high demand, illustrating the broader impact of these shortages on the economy.
Construction and Industrial Trades Affected
The report further notes shortages in construction and industrial trades, including builders, air conditioning technicians, welders, and heavy goods vehicle drivers. This pattern underscores the challenges faced by various sectors as they strive to fill essential roles.
Tourism Sector Experiences Decline
Simultaneously, the tourism sector in Cyprus is grappling with a significant decline in hotel occupancy rates. Paphos, a popular tourist destination, has reported occupancy levels around 20 per cent lower than the same period last year, according to Thanos Michaelides, president of the hoteliers association Pasyxe. Normally, hotels in Paphos expect occupancy levels above 90 per cent during peak summer months, but this year they are closer to 70 per cent, indicating a substantial gap in expected tourism activity.
Banking Sector Shows Signs of Recovery
On a more positive note, Cyprus’ banking sector recorded higher deposits and stronger lending in May 2026. The Central Bank of Cyprus reported a net increase of €343.8 million in total deposits, reversing the previous month’s decline. This growth signals a recovery in household savings, with deposits held by residents increasing by €239 million.
Shipping Sector Under Pressure
The shipping industry also faces challenges amid a changing global landscape. Shipping Deputy Minister Marina Hadjimanolis emphasised the importance of strengthening Cyprus’ maritime sector during a recent symposium in Limassol. She highlighted the need for the industry to navigate geopolitical uncertainties and pressures to decarbonise while remaining a key driver of economic growth.
Engagement in Maritime Community
A recent gathering of the Cyprus Marine Club attracted around 200 members and guests, showcasing the active engagement of the maritime community. Captain Eberhard Koch, the club’s president, noted the significance of the strong turnout, reflecting the club’s growth and the addition of new corporate members.
Housing Policies in Focus at EU Meeting
In the realm of housing, Cyprus’ Interior Minister Constantinos Ioannou is currently in Luxembourg to chair a meeting focused on housing policies within the EU. The discussions aim to address the pressing need for effective housing policies that respond to demographic and social changes across member states.
Expansion of Connectivity Solutions
In the technology sector, SES and Tototheo Global have announced an expansion of their collaboration to provide enhanced connectivity solutions for maritime customers worldwide. This agreement aims to deliver reliable connectivity that supports critical vessel operations, reflecting the ongoing transformation in the maritime technology landscape.
Financial Updates from Major Banks
The Bank of Cyprus Holdings Public Limited Company plans to review its financial results for the first half of 2026 on August 03, 2026, and may declare an interim dividend. Meanwhile, Eurobank reported a successful share buyback programme, signalling confidence in its financial performance.
Tourism Revenue Decline Continues
April 2026 saw Cyprus’ tourism revenue fall by 35.1 per cent year-on-year, reaching €197.5 million. This decline is attributed to various factors, including the ongoing conflict in the Middle East, which has significantly impacted travel demand. The Deputy Minister of Tourism, Kostas Koumis, acknowledged the challenging conditions faced by the sector during this period.
Industrial Production Shows Growth
In contrast, Cyprus’ Industrial Production Index rose by 1.4 per cent in April 2026, indicating a positive trend in manufacturing and electricity supply sectors. The cumulative increase of 1.6 per cent for the first four months of 2026 reflects a resilient industrial landscape amid broader economic challenges.
Central Bank Maintains Capital Buffer
The Central Bank of Cyprus has decided to maintain the countercyclical capital buffer rate at 1.5 per cent, deeming it appropriate for the stability of the financial system. This decision is part of the bank’s ongoing efforts to ensure economic resilience.
