Filenews 26 July 2023 - by Adamos Adamou
It is no longer news that the banking sector is shrinking and the number of employees in the sector is decreasing as a result of the digital transition, but this is now reflected in the data issued by the Statistical Service on unemployment, but also through analyses by the Human Resources Development Authority (HRDA).
An analysis by the HRDA on June unemployment shows that, on an annual basis, i.e. compared to June 2022, the largest percentage change of unemployed was recorded in financial institutions, as the number compared to last year recorded an increase of 64.1% or by 460 persons. This is largely due to the voluntary redundancy plans that operated in the banking sector last year, with hundreds of bank employees leaving.
The decline in the number of employees in the sector is reflected, as we recently wrote in ECB figures. According to them, bank employees in Cyprus fell to 6,722 last year, from 8,946 in 2018, while the number of bank branches in the country fell to 204, from 386 in 2018.
According to the HRDA's analysis, the total number of registered unemployed in June 2023 reached 11,747 people. Compared to June 2022, unemployment recorded a decrease by -585 persons or -4,7%, but compared to May 2023 unemployment showed a large increase, by +1.390 persons or +13,4%.
The average number of registered unemployed for the period January – June 2023 reached 13.490 persons. Compared to the same period of 2022, unemployment increased by +291 persons or +2,2%. The sectors of economic activity with the highest numbers of unemployed in June this year are: car trade and repair (1,761 persons), public administration and defence (1,332 persons) and education (1,274 persons).
Financial institutions (+460 persons; +64.1%)
Motor vehicle trade and repair (-180 persons; -9.3%)
Hotels and restaurants (-156 persons, -12.9%).
Financial institutions also lead the way in terms of the largest percentage change, as we have written. Specifically, the largest percentage changes in unemployment, compared to June 2022, were recorded in the following sectors of economic activity:
Financial institutions (+64.1%, +460 persons)
Administrative and support activities (-22.8%, -110 persons)
Construction (-15.6%, -150 persons).
The increase in unemployment in the financial sector is also reflected in the HRDA's analysis of the average number of unemployed in the first half of the year. The sectors of economic activity with the highest numbers of unemployed in the period January – June 2023 are hotels and restaurants (2,982 people), car trade and repair (2,052 people) and again financial institutions (1,304 people).
The largest numerical changes in unemployment, based on the same analysis, compared to the corresponding period in 2022, were recorded in the following sectors of economic activity: Financial institutions (+554 persons, +74.0%), New entrants (-131 persons, -15.1%) and motor vehicle trade and repair (-121 persons, -5.5%).
Financial institutions also lead the way in terms of the largest percentage change in unemployment, compared to the same period of 2022, based on the same data, i.e. comparing the average of the first half of this year compared to last year.
