Cyprus's labour market is undergoing a significant transformation, marked by the rise of freelancers, side hustlers, and informal workers. This shift is reshaping traditional employment structures, influenced by digital platforms, economic pressures, and evolving worker preferences. The informal economy of Cyprus may not appear in official GDP figures, and it rarely makes headlines, yet, it is everywhere, and is quietly reshaping the island’s labor landscape.

Flexible, fast-growing, and largely underregulated, this shadow workforce is filling economic gaps that traditional employers and institutions have been slow to address. It is also raising questions about the future of work, fairness, and what it means to make a living in 2025 and beyond. 

Freelancing has become increasingly prevalent in Cyprus, driven by the desire for flexibility, autonomy, and diverse income streams. According to data from the Cyprus Statistical Service, as of the third quarter of 2024, there were 52,473 self-employed individuals in Cyprus, accounting for approximately 10.3% of the total workforce of 507,323. ​

Digital platforms have played a significant role in facilitating this shift. Websites such as Upwork, Fiverr, and gigexchange.com have enabled Cypriot freelancers to connect with clients both locally and internationally. Popular freelance professions in Cyprus include web development, graphic design, content writing, and virtual assistance, with hourly rates varying based on experience and specialization. ​

Beyond full-time freelancing, many Cypriots are engaging in side hustles to supplement their primary income. This trend is particularly prominent among younger demographics seeking financial independence and skill diversification. Common side hustles include e-commerce ventures, online tutoring, digital marketing services, and participation in the gig economy through platforms like Uber and Bolt. 

The appeal of side hustles lies in their flexibility and the opportunity to explore entrepreneurial endeavors without the commitment of leaving traditional employment. This approach allows individuals to test business ideas, develop new skills, and achieve greater financial stability.

While unemployment in Cyprus remains relatively low, hovering around 6% according to Eurostat data, the real story lies not just in whether people are employed, but how they work. Increasingly, thousands of Cypriots are earning income through avenues that evade traditional categorization. From freelance graphic designers and online tutors to delivery drivers and Airbnb hosts, a growing portion of the workforce operates outside the boundaries of conventional employment contracts.

This phenomenon is also mirrored in economic data, as according to the European Commission, the informal economy in Cyprus accounts for approximately 25% of the country’s GDP—placing it among the highest in the European Union. Notably, much of this activity involves legal but unregistered work: everyday services and transactions that contribute to the economy without formal recognition through standard labor agreements.

The acceleration of this trend can be traced back to the aftermath of the COVID-19 pandemic. Inflationary pressures, the proliferation of digital platforms, and shifting lifestyle priorities have pushed more individuals towards flexible, independent income streams. For many Cypriots today, side hustles and freelance work are not merely a way to make extra cash for financial survival and long-term resilience.

The evolution of Cyprus's labor market toward freelancing and side hustles is intrinsically linked to the country's digital transformation. Advancements in technology, coupled with strategic governmental initiatives, have created an ecosystem where digital platforms empower individuals to engage in flexible work arrangements.

The proliferation of platforms like Upwork, Fiverr, Bolt, Wolt, and local hubs such as freelancers.cy has made it easier than ever for Cypriots to monetize their skills beyond traditional employment. Globally, 33% of freelancers now find work through online freelance platforms, and Cyprus mirrors this global trend.

Moreover, the Cypriot government has actively promoted digital adoption through the "Digital Strategy 2020–2025" for Cyprus, aiming to foster a knowledge-based economy by enhancing digital skills, digital infrastructure, and promoting e-governance initiatives. 

Artificial intelligence and productivity tools have further enabled individuals to work more efficiently—AI adoption among large Cypriot companies tripled from 13% in 2021 to 34.9% in 2024. For freelancers, tools like Grammarly, Canva, Asana, and Trello are no longer luxuries, but vital everyday instruments of trade.

While gig work and freelancing offer flexibility and autonomy, they also come with significant vulnerabilities—chief among them the lack of a robust social safety net. Traditional employees typically benefit from pensions, unemployment insurance, paid sick leave, and healthcare contributions. Gig workers and freelancers, on the other hand, are often left to navigate these necessities on their own.

A 2023 study by the European Foundation for the Improvement of Living and Working Conditions (Eurofound) found that 48% of gig workers across Europe do not have access to social protections through their work. In Cyprus, the situation mirrors this concerning trend. Many freelancers operate without private insurance, pension contributions, or consistent healthcare coverage, exposing them to financial risk in cases of illness, accidents, or old age.

While self-employed individuals in Cyprus can opt into social insurance schemes voluntarily, enrollment remains inconsistent, particularly among those whose freelance income is irregular. The gaps are especially critical among younger gig workers who are least likely to prioritize long-term benefits in favor of short-term income stability.

As the gig economy expands, the need for policies that balance flexibility with security becomes urgent. Without reforms to include gig workers more systematically in national safety nets, a significant segment of the Cypriot workforce risks being left vulnerable.

Beyond economics, the rise of freelancing and side hustles is reshaping cultural definitions of career success and personal security in Cyprus. The traditional model of career progression—securing a full-time job, climbing the corporate ladder, and retiring with a pension—is no longer the primary aspiration for many.

Instead, success today is increasingly measured by autonomy, work-life balance, passion projects, and the ability to pivot careers multiple times over a lifetime. A 2024 survey conducted by PwC Cyprus revealed that 61% of respondents under 35 ranked "flexibility and freedom" as more important than "stability and employer loyalty". 

This cultural shift toward flexibility, entrepreneurship, and multi-stream income is redefining what it means to build a career and "make it" in 2025 and beyond. As Cyprus navigates this transition, the challenge will be to create an environment where innovation and flexibility can thrive, without leaving workers vulnerable or underprotected.