Cyprus has experienced an influx of immigrants in recent years, sparking discussions about their overall impact. Recent events have ignited controversy regarding current migration trends and Cyprus’ role in the shifting global population landscape. Recognizing the impact of these shifts through data is critical to understanding where opportunities and challenges lie, and how to address them.

Migration across the world has always been a reaction to a cause. Either seeking refuge from threats to people’s access to human rights and their livelihood, or a result of military invasions. There have been some exceptions, such as millions of Europeans who departed for the Americas during the “age of mass migration”, according to Hatton and Williamson, between 1850 and 1914.

What is interesting to note is the economic impact made on nations due to migrations, and the opportunities and challenges that arise from such events. Whatever the cause, migration creates a gradual yet notable impact on society, communities, and economies, altering labor landscapes and impacting economic growth. 

To begin with, we must first address the population growth of immigrants and asylum seekers, 29,715 applied for in Cyprus in 2022, 94 percent of which were rejected. Additionally, Cyprus has experienced a rapid and sudden spike in refugee population in the past 15 years as well as being ranked third in the EU for foreign-born citizens and migrant arrivals.

Marios Kantaris and Mamas Theodorou of the European Social Policy Network (ESPN) highlight that, “the recovery of the economy from 2016 made Cyprus once more an attractive destination for migrants. In addition to economic migration, the ongoing conflicts in the Middle East have led to a dramatic increase in the number of political asylum seekers and refugees. 

This has led to a crisis that has prompted key EU bodies such as the Directorate General for Migration and Home Affairs, the European Asylum Support Office (EASO), FRONTEX and the EU Med Group to recognize Cyprus as the current leading country for political asylum seekers in the EU.”

These migration flows spur on economic fluctuations, namely in the labor landscape and in the resources made available for public spending. Kantaris and Theodorous’ report displays that “Cypriot taxpayers have been burdened with an additional €178 million for services and infrastructure creation… which is equivalent to approximately 0.83 percent of 2020 GDP… The government had to spend an additional €38 million on food and housing allowances.” 

Simultaneously, a significant point to note, according to the Organization for Economic Cooperation and Development (OECD), they highlighted in their International Migration Outlook report in 2021 that “in all countries, immigrants contribute more in taxes and contributions than governments spend on their social protection, health, and education.”

The excess spending from the state on shelter and food, however, prompted Cyprus to revise its Migration and Asylum strategy which essentially calls for greater collaboration from EU countries to help alleviate stress on government budgets from taxpayers. While not all immigrants receive such benefits, many of them act as the backbone to Cyprus’ economy across various fronts, namely in the labor landscape where they take up jobs that many locals would not elect to do so. 

The European Council on Refugees and Exiles (ECRE) displays refugees and asylum seeker’s access to the labor market, indicating that while their access is limited to some sectors, they are supporting a critical part of Cyprus’ economy.

At the same time, the Ministry of Finance makes note of several economic benefits incurred by welcoming refugees and asylum seekers. Factors such as an increase in consumption of goods have a “positive multiplier effect resulting in positive economic outcome.” 

The Ministry continues to note that local tourism and investments will increase over time, as well as improvement to the labor landscape, highlighting that “refugees can take agriculture, construction, and housekeeping jobs, helping locals contribute further” by creating more time for them to be more creative and take on more complex tasks.

In light of this, Cystat, Cyprus’ statistical service, indicates that in 2021, immigrants made up 28.8 percent, or 180,344 people, of Cyprus’ workforce. The majority of the jobs taken on by immigrants are in agriculture, construction, and services.

Cystat also displays that unemployment rates have been declining since 2014, coming to just 5 percent in 2022, quite possibly resulting from a surge of migrants arriving in Cyprus in the first months of 2022. Immigrants take on roles in the workforce that, as the Ministry of Finance notes, help locals focus on more occupations that involve more creative and intricate responsibilities that yield higher incomes. 

It is evident that immigrants do influence the island’s economy, particularly in the workforce and in public spending. Cyprus’ government’s call for aid in better managing the flow of migration into the island is not a fluke. There is great merit to Cyprus’ call for help, as the rise in refugee and migrant arrivals concern the state in its capacity and sustainability.

It should be noted that migrants and refugees have knowledge and skills that can contribute to the economy and workforce. The Cyprus Refugee Council highlights in their 2021 report, of the 799 surveyed persons, 218 completed business, engineering/technology, or humanities post-secondary degrees, and an additional 255 graduated from university. 

The Organization for Economic Cooperation and Development (OECD) notes that, “migrants arrive with skills and abilities, and so supplement the stock of human capital of the host country.” 

As the Cypriot government adjusts to rising migrant and refugee arrivals, it continues to adjust its Migration and Asylum strategy to retain a balance in terms of the state’s capacity to serve them, as well as locals. 

Cyprus sits at the nexus of continents, and is therefore situated favorably for Europe to direct migration flow and act as a buffer. Migrants offer boons to economies and the labor landscape, which is why it is critical to ensure they have the option of traveling to Cyprus. However, it is equally important to establish the right measures and policies are in place, a mission in which the EU is working diligently to establish safe and humanitarian migration policies.