Limassol businesses are still grappling with staffing shortages, rising costs and red tape, according to the latest business barometer published this week by the Limassol Chamber of Commerce and Industry (Evel).

According to the announcement, it was mentioned that the chronic lack of suitable human resources continues to top the list of concerns.

In nearly every edition of the barometer to date, labour shortages have emerged as the number one obstacle for Limassol-based companies.

In the latest survey, nearly one in five respondents (19.3 per cent) cited this as their main issue.

Although the problem spans across sectors, businesses reported more intense pressure when it comes to hiring specialised personnel.

Many said that the inability to recruit staff with the right skills is holding back growth, modernisation and competitiveness.

As a result, the attraction and retention of talent remains a priority.

Companies also called for more efficient procedures when hiring third-country nationals, along with better alignment of education and training programmes with real labour market needs.

In this context, upskilling and workforce development were identified as essential to productivity and resilience.

At the same time, the barometer also pointed to frustration over public sector inefficiencies.

Delays, bureaucracy and a lack of support from government agencies are making things especially hard for new businesses.

Digital transformation of public services, greater transparency and a genuine “one-stop-shop” approach are seen as critical to removing these barriers—particularly as Limassol positions itself as a growing tech hub.

Operating costs are another major pressure point. A significant number of businesses cited rising costs—linked to raw materials, energy and services—as a serious hurdle.

With global tensions affecting supply chains and pricing, companies say they are working hard to stay competitive.

As a result, the call for targeted support measures, tax relief and increased liquidity for SMEs is growing louder.

Meanwhile, awareness and compliance with ESG (Environmental, Social and Governance) standards remain limited.

Companies rated their average understanding of ESG principles at 5.03 out of 10, slightly up from 4.79 last year.

Still, nearly a third (32.4 per cent) admitted they have taken no action at all, while only 1.8 per cent said they have made very significant progress.

Other findings paint a mixed picture. Over half of businesses (61.5 per cent) plan to hire new staff in the next three months, and 55.3 per cent intend to proceed with new investments.

Sectors expressing the most optimism include technology, supply chain and services.

By contrast, the tourism, construction and manufacturing sectors continue to face the greatest challenges.

Moreover, energy costs continue to weigh heavily, with 44 per cent of respondents saying they are significantly affected.

A lack of infrastructure and traffic congestion were also reported as obstacles, while silence is growing around the impact of bureaucracy on attracting foreign investment.

The 16th edition of the Business Barometer (Spring 2025) is already underway, with the deadline for participation set for Friday, May 16.