Unemployment in Cyprus rose 7.6 percent year on year in May amid a seasonal slowdown

The Statistical Service of the Republic of Cyprus has published an official report on the state of the labor market for May, recording mixed dynamics in employment. According to the macroeconomic data presented, the island's registered unemployment rate showed a noticeable increase year on year, rising by 7.6 percent compared with the same period last year. Nevertheless, in the short-term monthly perspective, analysts note positive dynamics, reflected in a steady decline in the number of unemployed citizens compared with April's figures.

The main driver of the monthly decline in unemployment was the traditional spring upturn in the labor market, triggered by the start of the active summer tourist season and the large-scale opening of vacancies in the hospitality sector. The food service sector, hotel business, retail trade and transport companies actively recruited staff, which made it possible to significantly reduce the burden on state employment services in the short term. However, the long-term annual increase in the number of unemployed points to the persistence of structural problems in the economy, including process automation, slower growth in the construction sector and the IT industry, as well as a mismatch between job seekers' qualifications and employers' requirements.

Relevant economic experts emphasize that the current May figures require the labor ministry to pay close attention to long-term trends, since the seasonal decline in labor demand in the autumn could worsen the annual rise in unemployment. The ministry plans to expand wage subsidy programs for young people and those who have been unemployed for a long time, as well as strengthen oversight of the informal labor market. A full detailed analytical report with a breakdown by age groups, gender and specific sectors of the economy has been published on the Statistical Service's official portal for public access.