On Wednesday 3 September, the Cypriot cabinet approved four targeted employment programmes designed to attract citizens who, for various reasons, remain outside the production process. The total budget for these initiatives is €18 million, with 2,110 people set to benefit. Funding will be provided under the European programme 'THALIA 2021-2027'.
The Minister of Labour and Social Welfare, Yiannis Panayiotou, noted that the country's unemployment rate has fallen below 5%, reaching levels not seen since 2008, while the employment rate has exceeded 80% — the best indicator in the history of observations and the fulfilment of the pan-European target set for 2030. He added that the positive dynamics of the Cypriot labour market set the country apart from EU and Eurozone averages, making it one of Europe's leaders in terms of employment.
The new programmes will support the following groups
The new measures target four key categories of citizens: women of all ages; people aged 50 to 65; young people aged 15 to 29; and women, who will be offered jobs with flexible working conditions. This approach is designed to help the most vulnerable groups return to active employment more quickly and increase their competitiveness in the labour market.
Employers participating in the programmes are expected to receive financial incentives for hiring employees from these groups. Participants will also be able to undergo professional training or retraining as part of the Ministry of Labour's support initiatives.
Application process has been digitised
Applications to participate in the programmes will only be accepted online via a new government digital platform. This will speed up the review process and simplify the submission of documents for citizens and employers. The Ministry of Labour plans to publish the detailed participation conditions and application deadlines in the near future.
Economists note that such measures help combat unemployment and stimulate economic growth. According to analysts' estimates, implementing the programme could add up to 0.3% to Cyprus's GDP over the next two years. Flexible employment conditions are particularly important for women with family responsibilities and older workers who wish to return to work.
Prospects for the Cypriot labour market
Given the already achieved results — a record low unemployment rate and a high employment rate — the Cypriot government intends to continue developing programmes that support full employment. At the same time, special attention will be paid to integrating young and older people into economic life, with the aim of minimising structural unemployment.
If the pilot phase is successful, the Ministry of Labour intends to expand the programme to include new categories of citizens and increase the number of jobs created with additional EU funding.