According to data from the Statistical Service of Cyprus (Cystat), the unemployment rate in the second quarter of 2026 fell to 3.6%, compared with 4.3% in the same period of 2025. The labour force increased to 540,130 people, or 65.6% of the population, compared with 528,981 people, or 65.4%, a year earlier. The labour force participation rate stood at 70.9% among men and 60.5% among women.
The number of employed people increased from 506,318 to 520,763, while the overall employment rate rose from 62.6% to 63.2%. Among men, it reached 68.5%, and among women, 58.3%. At the same time, the number of unemployed people fell from 22,663 to 19,367. Unemployment among men stood at 3.5%, while among women it was 3.7%, compared with 3.9% and 4.7%, respectively, a year earlier.
Youth unemployment fell to 12.2%
The most noticeable improvement was recorded among young Cypriots aged 15–24. The unemployment rate in this group fell from 14.9% to 12.2%. In absolute terms, the number of unemployed young people decreased from 4,529 to 3,594.
Among young men, the rate fell from 15.8% to 12%, while among women it declined from 13.9% to 12.4%. In the 25–64 age group, unemployment also decreased, from 3.7% to 3.2%. The number of unemployed people in this category fell from 17,505 to 15,416. At the same time, 62.4% of unemployed people had been looking for work for less than six months, compared with 55.9% a year earlier. Another 16.5% had been unemployed for between six and 11 months, while the share of long-term unemployed stood at 21.1%.
Employment among people aged 20–64 reached 82.8%
Among people aged 20–64, the employment rate increased from 81.7% to 82.8%. For men, the rate stood at 87.8%, while for women it was 78.1%. In the 55–64 age group, employment rose to 72.6%, compared with 71.5% a year earlier.
Most employed people continue to work in the services sector, which accounts for 81.8% of total employment, compared with 81.2% in the second quarter of 2025. Industry accounts for 16.2%, while agriculture represents 2%. The share of part-time workers also declined to 8.7%, or 45,178 people, compared with 9.4% a year earlier.
The number of employees increased
Of the total number of employed people, 467,712, or 89.8%, were employees. At the same time, 73,306 people, or 15.7%, worked under temporary contracts. In the second quarter of 2025, their share was 14.3%.
Overall, the statistics for the second quarter of 2026 show a steady improvement in Cyprus’s labour market: employment is rising, the number of unemployed people is falling, and the most significant progress is being seen among young people. Over the year, youth unemployment fell by 2.7 percentage points.