Cyprus unemployment rate drops to lowest level since 2008

Cyprus experienced a notable improvement in its labour market during the second quarter of 2026. According to the Statistical Service, the unemployment rate fell to 3.6%, the lowest level recorded since the fourth quarter of 2008. The total number of unemployed individuals decreased to 19,367, down from 22,663 in the same period of 2025. Simultaneously, the youth unemployment rate for ages 15-24 dropped to 12.2% from 14.9% last year.

The labour force expanded by 2.1% to 540,130 people, reflecting a participation rate of 65.6%. Employment figures showed a rise of 2.9%, reaching 520,763 employed persons, which pushed the overall employment rate to 63.2% compared to 62.6% in 2025. Among those aged 20-64, the employment rate climbed to 82.8%. Sectorally, services remain the primary employer, accounting for 81.8% of the workforce, followed by industry at 16.2% and agriculture at 2%. Regarding the duration of joblessness, 62.4% of the unemployed have been searching for work for less than six months.

These positive figures represent a continued recovery trend in the Cypriot economy. The data highlights a robust increase in female employment, which grew by 4.4% year-on-year, contributing to a narrowing gap in labour market participation across genders.