Reduction of unemployed by 4.055 in Cyprus

Unemployment in Cyprus was reduced to the lowest rates of the last fifteen years

anergia2 768x480 1 Unemployment, Cyprus, Rates

Unemployment in Cyprus has been reduced to the lowest rates of the last fifteen years, said the Minister of Labor and Social Insurance Yiannis Panagiotou, noting that during the first year of the administration of President Christodoulidis, there was a reduction of unemployed by 4055 people.

Speaking at a press conference on the unemployment figures in Cyprus, Mr. Panagiotou also expressed his assessment that the goal of creating full employment conditions (below 5% unemployment) is realistic within five years.

"Unemployment has been reduced to the lowest rates of the last fifteen years, while the reduction of the long-term unemployed, who for almost fifteen years were consistently much higher than they are today, is proportional," noted Mr. Panagiotou. As he said, the long-term unemployed fell to the lowest number in the last 14 years.

He pointed out that during the first year of the Administration the unemployed have decreased by 4.000, with the trend of the reduction of the unemployed strengthening and focusing on local workers, the "Cypriot backbone of the Cypriot economy", as he said.

"The ambitious goal we have set for creating full employment conditions within five years is realistic and can be achieved through the consistent implementation of government policy in the labor sector, which will allow our economy to continue to grow by utilizing quality human resources that our country has", said the Minister.

Mr. Panagiotou pointed out that full utilization of the domestic human potential is an important condition for the continuation of the rational utilization of workers from abroad in accordance with the needs of the labor market and the legal procedures for the appropriate staffing of all jobs.

He expressed satisfaction, since the statistics and recorded data allow optimism for the future inclusion of more workers in the production process and the continuation of the reduction of the unemployment rate.

The Minister of Labor cited data from the Human Resources Survey of the Statistical Service and the Public Employment Service of the Ministry of Labor and Social Insurance.

According to the results of the Labor Force Survey, the unemployment rate for the 1st quarter of 2024 is at 6,0%, marking a decrease of 0,8 points compared to the corresponding quarter of 2023, when unemployment was at 6,8%. The Minister noted that an unemployment rate lower than 6% for the 1st quarter of each year was last recorded in 2009 (4,6%). According to the Labor Force Survey, the number of unemployed decreased by 4055 people. Specifically, in the 1st quarter of 2024 the number of unemployed was 29.394, while the corresponding number for 2023 was 33.394 people.

He added that the statistics of the Labor Force Survey are in complete agreement with the data of the Public Employment Service of the Ministry of Labor and Social Insurance, regarding the downward trend observed in unemployment. Specifically, according to the data of the Public Employment Service, the average number of registered unemployed during the first quarter of 2024 was 13.760 people, a number smaller by 2091 people (13,2% decrease) compared to the number of unemployed during the corresponding period of 2023 (15.851 people). The Minister noted that the number of unemployed for 2024 is the lowest in the last 15 years.

Greater reduction in unemployment among Cypriots

Referring to data on the unemployed by nationality, he noted that according to the data of the Public Employment Service, during the first quarter of 2024, compared to the corresponding quarter of 2023, unemployed Cypriots showed the largest decrease, at a rate of 16% (1.665 persons), followed by European Citizens with 9% (346 persons) and Third Country Nationals with 5% (80 persons).

Regarding long-term unemployment, according to the statistics of the Labor Force Survey, there is a decrease to 26,2% (among the unemployed) for the 1st quarter of 2024, while the corresponding percentage for the 1st quarter of 2023 was 32,2 %. According to data from the Public Employment Service, the number of registered long-term unemployed is at its lowest level in fourteen years. Specifically, for the first quarter of 2024, the number fell to 1403 people, while the corresponding number for 2023 was 1470 people.

"The above figures confirm the downward trend of unemployment in Cyprus and the positive results of the effort made to further activate the domestic human potential and ensure the quality of life of the citizens of our country through their inclusion in the labor market," he said the minister.

He added that they expect within the next few weeks the release of the European Statistical Office's updated figures for unemployment in Europe, to weigh specific aspects of the statistics, compared to the EU average, the Eurozone, as well as against the rest member states.

The Government's approach to reducing unemployment is holistic

The Minister attributed the positive results in relation to employment to the methodical implementation of the governance program through the implementation of an integrated employment policy.

Asked which policies contributed decisively to the results in the employment sector, the Minister noted that policies which contribute towards increasing employment and reducing unemployment are holistic. He added that the main condition is the continuation of the development of the economy so that jobs also increase at the same time.

He added that taking advantage of the opportunities provided through the European Year of Skills to focus on green and digital skills has played a positive role. These, he said, allowed more workers to have the knowledge and skills required in the modern labor market.

He also attributed the positive results to the balanced policy implemented to utilize the available domestic human resources in conjunction with the arrival of workers from abroad. He added that they succeeded in streamlining and speeding up the procedures for the arrival of workers from abroad so that companies that have such needs can be properly staffed.

At the same time, he stated that targeted plans for integration into the labor market through the payroll subsidy and plans concerning specific groups of workers are in the process of being implemented.

He also said that the officials of the Ministry of Labor and the Human Resources Development Authority have managed to make internal operations more efficient so that workers registered with the public employment service can be connected to the labor market effectively.

"There is no magic move that is made and brings results", said Mr. Panagiotou, noting that what is needed and what they are doing is the implementation of the employment policy that has been formulated by the Government, the dialogue with the social partners, the strengthening of social cohesion at the same time as the continuation of the country's development path.

Asked whether the increase in employment in the public sector played a role in the overall increase in employment, the Minister said that the actual numbers of employment in the public service do not correspond to the impression that has been formed.

He added that evaluating how many were on the payroll of the public service over time and in previous years does not establish that these are numbers that affect the rate of either unemployment or employment.

He stated that in the public sector there are needs which are taken into account by the Ministry of Finance and balanced decisions are made based on the real needs and the possibilities of public finances.

Source: KYPE