Cyprus records job vacancy decline and rising labour costs in Q2 2026

Cyprus experienced a significant decline in job vacancies during the second quarter of 2026, with the total number of open positions falling to 12,930. This represents a 19.5% decrease compared to the same period in 2025, when 16,053 vacancies were recorded, and a 7% reduction from the first quarter of 2026. According to the Statistical Service, the vacancy rate dropped to 2.6%, remaining higher than the EU and euro area averages of 2.0% and 2.1% respectively. Sectors with the highest vacancy rates include accommodation and food services (4.6%), as well as transportation, storage, and administrative support (3.5% each).

Simultaneously, the cost of employing workers increased, with total hourly labour costs rising by 3.8% year-on-year in the second quarter of 2026. This growth was driven by a 3.9% increase in hourly wages and salaries, alongside a 3.6% rise in non-wage costs. The unadjusted labour cost index reached 121.87, marking an acceleration in costs compared to the previous quarter. These figures reflect an ongoing shift in the Cypriot labor market, where despite a narrowing gap with European averages in vacancy rates, employers face higher expenditure per employee hour.