Cyprus is short of nearly 14,000 workers: the economy is growing faster than new staff are appearing

The economy of the Republic of Cyprus continues to grow, but at the same time the country is facing a new problem — employers are finding it increasingly difficult to hire staff. According to fresh data from the Statistical Service of Cyprus (Cystat), in the first quarter of 2026 there were 13,905 unfilled vacancies on the island, and the job vacancy rate reached 2.8%. This means that almost three out of every hundred jobs remain unfilled.

The shortage of staff is felt most sharply in the sectors that have traditionally been the driving forces of the Cypriot economy. Retail topped the list by number of vacant positions, with employers looking for 2,649 employees. This is followed by hotels, restaurants and the tourism sector — 2,189 vacancies, while the construction sector is short of almost 2,000 workers.

It is especially telling that the construction industry is showing one of the highest staff shortage rates — 4.7%. Only the entertainment, sports and recreation sector is higher, where it reached 5.1%. The tourism sector, which is actively preparing for the summer season, is also facing a serious staff shortage — the vacancy rate here stands at 4%.

The paradox is that the shortage of workers is occurring at the same time as unemployment is falling. In the first quarter of 2026, the unemployment rate in Cyprus fell to 4%, compared with 5% a year earlier. Over the year, the number of employed residents on the island increased by around 17,000 people and exceeded 510,000.

However, behind the positive statistics lies another problem. Young people still find it difficult to get their first job. Unemployment among residents aged 15 to 24 remains significantly above the average and exceeds 13%. As a result, employers complain about a lack of staff, while young professionals continue sending out CVs in search of stable employment.

Experts link the staffing shortage to several factors at once. The tourism industry is recovering faster than expected, the construction market continues to develop actively, and more and more international companies in technology, finance and services are opening on the island. At the same time, Cyprus's population is relatively small, so the local labour force is no longer enough to meet business demand.

Interestingly, Cyprus is now among the EU leaders in employment growth. The country is performing better than many larger EU economies, but it is precisely this success that is creating a new challenge: business is growing faster than the new labour force is appearing.

If the trend continues, the authorities will likely become even more active in attracting foreign specialists and expanding labour migration programmes. Otherwise, the staff shortage could become one of the main obstacles to the island's further economic growth.

In figures:

— 13,905 open vacancies;

— 2.8% — vacancy rate;

— 2,649 vacancies in retail;

— 2,189 vacancies in hotels and restaurants;

— 1,997 vacancies in construction;

— 4% — unemployment rate;

— More than 510,000 people are employed in Cyprus.