Cyprus has seen a significant decline in its unemployment rate, which has fallen to 4 per cent in the first quarter of 2026, down from 5 per cent a year earlier. This positive change indicates a strengthening labour market and a shift towards greater employment opportunities.
According to the Cyprus Statistical Service (Cystat), the total number of unemployed persons has decreased to 21,246, a marked decline from 26,161 in the same period of 2025. This consistent reduction highlights a broader trend of easing joblessness throughout the country.
Both men and women have benefited from this improvement, with the unemployment rate remaining the same for both genders at 4 per cent. As job opportunities increase, the overall employment figures reflect a robust labour market.
Employment figures are also on the rise, with the number of employed persons reaching 510,265, up from 493,272 in the first quarter of the previous year. This translates to an employment rate of 62.1 per cent, compared to 61.2 per cent a year ago, suggesting that more people are successfully finding work.
The labour force has expanded as well, now totalling 531,511 individuals, which constitutes 64.7 per cent of the population. This marks an increase from 519,433 persons and a labour force participation rate of 64.4 per cent in early 2025.
Particularly noteworthy is the employment rate among individuals aged 20 to 64, which has risen to 81.5 per cent from 80 per cent last year. Breaking this down further, the employment rate for men in this age group is at 86 per cent, while for women it stands at 77.3 per cent. Additionally, employment among those aged 55 to 64 has also seen an uptick, climbing to 70.9 per cent compared to 69.9 per cent in the prior year.
Cyprus’s economy continues to heavily rely on the services sector, which accounts for 81.8 per cent of total employment. In contrast, industry comprises 16.3 per cent, and agriculture a mere 1.9 per cent. Part-time jobs make up 8.9 per cent of total employment, showing a slight increase from 8.8 per cent in the first quarter of 2025.
Despite these encouraging trends in the labour market, youth unemployment presents a contrasting picture. The unemployment rate for those aged 15 to 24 has increased to 13.1 per cent, up from 11.2 per cent a year earlier. Young men are particularly affected, with an unemployment rate of 15.8 per cent, while young women stand at 10.5 per cent.
In terms of job search duration, nearly two-thirds of unemployed persons, around 63.9 per cent, have been seeking employment for less than six months. The share of long-term unemployed individuals has decreased to 20.3 per cent, reflecting a decline from 23.5 per cent in the same quarter last year.
