After a period of global uncertainty and economic adjustment, Cyprus is entering 2026 with renewed optimism. The latest labour market figures for the first quarter offer a strong signal that the country’s economy is not only recovering but gaining meaningful momentum. With more people in work, fewer unemployed, and key sectors showing signs of expansion, the tone is set for what could be a transformative year for the world of work in Cyprus.
This a turning point. For jobseekers, it means more doors are opening. For employers, it’s a chance to build teams in a market that is showing energy, confidence, and long-term potential.
Employment on the Up, Unemployment on the Way Down
The latest figures for Q2 2025 have shown that Cyprus has kept its strong momentum, with employment continuing to rise and unemployment edging down once again. According to newly released data, the number of people in work reached 506,318, up from 487,663 in the same quarter last year. This steady increase highlights a labour market that is not only growing but doing so with confidence.
Unemployment also eased during the second quarter, falling to 4.3%, down from 4.6% a year earlier. With 22,663 people recorded as unemployed, Cyprus remains one of the more resilient labour markets in the EU. These improvements reflect a broader trend of economic resilience throughout 2025. Businesses are hiring with more intent, and workers are re-entering or remaining in the labour force with greater consistency. The combination of a growing workforce and falling unemployment speaks volumes about the health of the economy, and the direction it’s heading.
Key Sectors Powering the Growth
So where is this growth happening? Several sectors stand out as key drivers of employment in early 2025. The arts and entertainment industry, which had faced major challenges during the pandemic years, is now bouncing back with impressive strength. Manufacturing, too, has picked up pace, supported by increased domestic and export demand.
Information and communications technology (ICT) continues to shine, with digital transformation and innovation accelerating across both the private and public sectors. Meanwhile, the construction industry remains a cornerstone of job creation, thanks to ongoing infrastructure projects and foreign investment in residential and commercial development.
These industries are not only hiring more staff, but they’re also reporting longer average working hours. That indicates not just expansion, but sustained demand and a deeper need for skilled professionals across various levels.
Young Professionals Making Gains
One of the standout achievements of the current labour market is the significant drop in youth unemployment. Among those aged 15 to 24, joblessness fell from 16% to just over 11%, a welcome improvement that shows more young people are finding meaningful work.
For the 20 to 64 age group, the employment rate climbed to 80%, with male employment at 85.5% and female employment reaching 74.6%. These numbers reveal a labour force that is becoming both broader and more inclusive, as more women and young professionals secure roles across different industries.
It’s clear that opportunities for early career development are increasing, with companies recognising the value of nurturing new talent and building pipelines for future growth.
A Competitive Hiring Landscape
For employers, the current trends create both opportunities and pressure. While the available talent pool is growing, competition for high-calibre candidates is heating up. Attracting the right professionals now demands more than just a salary offer.
Flexibility, clear career progression, workplace culture, and employee wellbeing are no longer optional extras, they’re key differentiators in recruitment and retention strategies. Businesses that adapt to these expectations will be best placed to secure and retain the talent they need to thrive.
GRS is seeing an increase in demand for tailored recruitment solutions, as companies seek not just to fill roles, but to attract professionals who align with their long-term goals and values.
What Should Jobseekers Expect
For candidates, especially recent graduates and those considering a career move, this is an excellent time to explore new opportunities. With sectors such as ICT, construction, and professional services continuing to expand, skilled professionals are in demand.
There’s also growing scope for individuals to upskill or pivot into new roles, particularly as industries embrace new technologies and ways of working. Whether you’re entering the workforce for the first time or looking to take the next step in your career, the current climate in Cyprus offers plenty of room for growth.
At GRS Recruitment, we see the recent labour market performance as a clear sign that Cyprus is on a strong and sustainable path. We expect to see even more growth going forward as the island continues to attract both local and international talent, and we’re proud to play a role in connecting people with meaningful career opportunities.
Whether you’re planning to expand your team or take the next step in your professional journey, now is an ideal time to act. Our experienced team is here to support you with market insight, tailored advice, and a deep understanding of the Cypriot employment landscape.
Get in touch with us today to make the most of this exciting momentum in the local job market.