LABOUR MARKET IN TRANSITION - INCREASE IN VACANCIES BUT ALSO A SHORTAGE OF SKILLS - Filenews 12/5 by Evagora Prokopiou
A contradictory picture is recorded in the labour market in Cyprus, as on the one hand the registered unemployed increased in March 2026 (For the whole of 2025 they were at historic lows) and on the other vacancies at the end of 2025 remained at high levels, at a time when businesses and employers are finding it increasingly difficult to find staff with the right skills.
According to data from the Statistical Service, the registered unemployed at the end of March amounted to 11.243 people, compared to 11.073 in the corresponding month of 2025, recording an increase of 1,5%. The annual increase is mainly attributed to the sectors of accommodation and food services, professional, scientific and technical activities, as well as administrative and support activities. A fact attributed to the general upheaval of the world economy by the war in the Middle East.
The largest number of registered unemployed was recorded in accommodation and catering activities, with 3,503 people. This was followed by the wholesale and retail trade sector with 1,692 unemployed, while in professional, scientific and technical activities the registered unemployed amounted to 851 people.
At the same time, the data on job vacancies show that the market continues to have a need for human resources. In the fourth quarter of 2025, vacancies amounted to 13,538, showing an increase of 541 positions or 4.2% compared to the corresponding quarter of 2024, when they stood at 12,997.
On a quarterly basis, however, a decrease was recorded, as compared to the third quarter of 2025, vacancies decreased by 1,035, recording a drop of 7.1%. The percentage of vacancies in total employees and vacancies stood at 2,8% in the fourth quarter of 2025, compared to 3% in the previous quarter, while it remained unchanged compared to the fourth quarter of 2024.
The highest vacancy rates were observed in administrative and support activities with 3.9%, in wholesale and retail trade, including repair of motor vehicles and motorcycles, with 3.8%, and in the mining and quarrying sector with 3.6%.
The next day of the labour market is here
This picture captures the deeper changes underway in the labour market. As pointed out in an analysis of new trends, the labour landscape is entering a transitional phase, with businesses being called upon to balance between growth, enhancing productivity, attracting talent and shaping corporate culture, in an environment of increased competition, especially after the activation of foreign companies in Cyprus.
Among the key trends emerging are the consolidation of hybrid work and the "hub-and-spoke" model, the integration of AI into daily work, the increasing emphasis on skills instead of standard degrees, as well as the strengthening of policies related to employee well-being and mental health.
At the same time, businesses are investing more in retraining and upskilling programs, while flexibility in working hours and a greater degree of autonomy are emerging as key criteria for choosing an employer. At the same time, the green transition is creating a new demand for skills related to sustainability, environmental protection and renewable energy.
They are looking for specialized staff and cannot find
The difficulty of adapting to the new requirements is also confirmed by the findings of PwC's 15th Annual CEO Survey, which involved 77 senior executives from Cyprus. According to the survey, the lack of human resources with the right skills is the top concern for 43% of CEOs in Cyprus for the next year. This is followed by geopolitical conflicts with 30%, technological development with 22% and cyberattacks with 21%.
The survey also records difficulty in attracting specialized staff with knowledge of artificial intelligence, with 45% of Cypriot CEOs believing that their company cannot attract employees of such quality. In addition, business leaders express concerns about increased criticism of leadership decisions, greater transparency requirements, and security and responsible use of AI issues.
