The labour market in 2024 is experiencing its best performance in 15 years in terms of job creation, employment growth, unemployment reduction, and wage increases, Minister of Labour and Social Insurance Yiannis Panayiotou claimed yesterday evening. Speaking at a press conference, Panayiotou highlighted the positive developments and outlined the government’s plans to further strengthen employment.

Citing data from the Cyprus Statistical Service, Panayiotou emphasized the steady growth in employment compared to 2023.

• New jobs increased by 15.4% (14,339 jobs), representing 3.2% of total employees.

• The total number of employees rose by 1.4% (6,263 jobs), with employment reaching 79.8%, an exceptionally high rate by European standards.

• Employment increased from 459,196 to 465,459 over the year.

The Minister noted that job vacancies were highest in the hotel industry and the construction sector, reflecting strong demand in these areas.

Panayiotou reported a notable reduction in unemployment:

• The overall unemployment rate dropped from 5.8% to 5.0%, with the total number of unemployed falling from 29,661 to 25,312.

• The number of registered unemployed decreased by 14.3%, dropping from 12,720 to 10,896.

• Long-term unemployment (six to twelve months) decreased by 29.7%, reducing the number of affected individuals from 1,884 to 1,325.

Panayiotou described the 5.0% unemployment rate as a critical benchmark, signifying that Cyprus is approaching full employment conditions.

Labour costs, measured as wages per hour worked, increased by 4.5%, while average monthly earnings rose by 5.3%. The average monthly wage climbed from €2,270 in 2023 to €2,390 in 2024, further reflecting the labour market’s upward trajectory.

Panayiotou emphasized the government’s focus on inclusive employment growth, ensuring participation from all societal groups. “The Ministry of Labour is methodically implementing plans to link the unemployed to jobs, integrate youth and vulnerable groups into employment, and encourage the retention of older workers and increased participation of women,” he said.

To further support employment, projects with a total budget of €15 million will be gradually implemented starting in January 2025.

Panayiotou expressed confidence in the continued cooperation between workers, employers, and the State, describing it as a catalyst for sustainable economic growth and social cohesion.

“The positive developments and dynamic prospects of the labour market create an important opportunity for the continued growth of the Cypriot economy,” he concluded.