From 2022 to 2023, the job sector in Cyprus has gone through essential changes. The review in this text will cover major trends in employment, unemployment, and labor force participation, evaluating the ways in which these changes have affected different age and gender demographics in our workforce.
The general trend in employment will be analyzed from the years 2022 to 2023.
From 2022 to 2023, there was an increase in the employed population in Cyprus from 450,541 to 463,178, which presents a positive indication of development in the labor market. A small increase from 60.7% to 61.4% was noted in the employment rate, which suggests general economic resilience.
Employment by Gender
Men: Only a minor increase in employment occurred, going from 237,707 in 2022 to 238,555 in 2023.
Women: In 2023, there was a considerable increase in the number of women employed, moving from 212,834 in 2022 to 224,623, which assisted in lessening the gap in workforce participation for women relative to that of men.
Employment by Age Group
Ages 15-24: There has been a small jump in youth employment levels from 34.4% in 2022 to 36.5% in 2023, along with an increase of nearly 1,600 employed youth.
Ages 25-54: Across this timeframe, this group, which is part of the essential workforce, reported an employment growth from 83.9% to 84.8%.
Ages 55-64: There was an increase in employment rates among those aged 65 or over, from 65.0% to 66.9%, revealing the important role of keeping experienced, older workers in the workforce and reflecting broader trends toward later retirements.
Current Unemployment Trends (2022-2023)
When discussing unemployment, Cyprus presents advances have taken place for various groups. In the period from 2022 to 2023, the entire amount of unemployment went down from 32,750 to 30,078, therefore lowering the overall rate from 6.8% to 6.1%.
Unemployment by Gender
Men: A positive change in male labor market participation showed in the decrease of unemployment among men from 15,328 in 2022 to 13,620 in 2023. The unemployment level for men plummeted from 6.1% to 5.4%.
Women: In the period between 2022 and 2023, unemployment among women saw a less dramatic fall, from 17,422 to 16,458. Even so, the unemployment rate for women is still higher than for men, falling from 7.6% to 6.8% in this period.
Unemployment by Age Group
Ages 15-24: Though the unemployment rate dropped from 18.6% to 16.9% in 2023, there remains a sense of worry about youth unemployment. Although the number of unemployed youths went down from 7,452 to 6,934, this domain continues to contend with major challenges.
Ages 25-64: The unemployment rate for this group fell from 5.9% in the year 2022 to 5.3% in 2023 with major reductions in female unemployment.
NEET (Not in Education, Employment, or Training)
Reducing from 24,862 in 2022 to 23,358 in 2023, the number of classified NEET youth represents a worrisome metric. A large number of youths who are neither employed nor in education or training (NEET), reinforces the requirement for policies that integrate youth into either the labor market or educational opportunities.
Labor Force Participation
Between the years 2022 and 2023, the number of workers in Cyprus rose from 483,290 to 493,256, with a corresponding rise in participation rate from 65.1% to 65.4%. This emulates the overall international trend of labor markets rebounding from the impact of COVID-19, as increasing numbers of people return to their jobs.
Gender Participation Rates
Men: There was a stable increase in men’s participation in the labor force, up from 252,645 to 253,867.
Women: A notable rise in women’s participation was noted, changing from 230,645 to 239,390, which decreased the gender gap among workers.
Age Group Participation
Ages 15-24: There was a leap in the labor force participation rate for youth from 42.3% to 43.9%, indicating that a greater number of young people are finding work or actively looking for it.
Ages 25-54: According to a study from 2023, 89.6% of participants were in the prime-aged workforce.
Ages 55-64: Through this period, a rise from 68.4% to 70.1% demonstrated the continuing trend of older workers postponing retirement.
Key Challenges and Opportunities
Despite the generally optimistic trends, Cyprus confronts a number of challenges. While it is going down, elevated rates of youth unemployment continue to persist. A high NEET rate points to a serious situation of individuals being cut off from the workforce together with being disconnected from academic opportunities. The issues underscore the quick need for targeted actions to confirm that younger groups are appropriately engaged in the labor market.
Conclusion: A Resilient Labor Market, but Challenges Remain.
Starting from 2022 and over to 2023, Cyprus has risen to the labor market challenge with a noticeable increase in employment and an accompanying drop in the unemployment rate for a number of demographic groups. The figures documenting NEETs (Not In Education, Employment, or Training) remain in spite of continuing challenges related to youth employment and gender disparities. To remain competitive in hiring for the next few years, the attention of policymakers needs to focus on labor market integration strategies, especially pertaining to young people and women.
