Here’s what’s working and what needs fixing

Cyprus leads the European Union in I nformation and communications technology (ICT) job growth between 2014 and 2024, showing impressive expansion in technology employment.

According to recent EU data, Cyprus recorded a striking average annual growth of 9.2 per cent in ICT specialist roles, the highest rate in Europe. This rapid growth has positioned Cyprus as an emerging hub for digital innovation, significantly surpassing the EU’s average ICT employment growth rate.

The positives

One major positive aspect is the remarkable progress in gender equality within ICT roles.

Female employment in Cyprus’s ICT sector increased by approximately 13.7 per cent per year, matching Lithuania’s pace and surpassing most other EU nations. This strong growth signals successful initiatives in promoting gender diversity within traditionally male-dominated tech fields.

Furthermore, Cyprus has demonstrated robust employer-driven training efforts, with approximately 28 per cent of enterprises offering digital skills training programmes, higher than the EU average of 22 per cent. This indicates active corporate involvement in workforce development.

Additionally, Cyprus benefits from a clear digital roadmap, the National Digital Skills Action Plan 2021–2025, aimed at aligning educational outputs with market needs. This strategic approach addresses workforce reskilling and helps bridge the gap between academia and the rapidly evolving tech industry.

The downsides

However, despite the remarkable job growth, Cyprus faces notable challenges.

One significant issue is the gap in basic digital skills among its population. Approximately half of Cypriot adults possess basic digital skills, slightly lower than the EU average of about 56 per cent. This skills shortage limits the potential for widespread digital adoption and constrains the overall talent pool available for advanced ICT roles.

Another critical issue is the insufficient number of ICT graduates emerging from local universities. Only about 2.8 per cent of total graduates are specialising in ICT, compared to the EU average of around 4.2 per cent. This scarcity means Cyprus increasingly relies on foreign talent, raising concerns about long-term sustainability and competitiveness.

Moreover, there remains a mismatch between the skills taught at educational institutions and those demanded by industry. While corporate training partially addresses this, universities still lag in adapting quickly enough to evolving industry requirements. This disconnect continues to perpetuate a dependency on external talent.

Suggestions to fix the flip side

Addressing these challenges requires targeted action, inspired by successful policies from other countries. To improve basic digital skills across the broader population, Cyprus can follow Belgium’s example, using local digital ambassadors to promote skills at a grassroots level.

Estonia’s successful “Tiger Leap” initiative provides another excellent model. By integrating ICT education at all school levels, supplying necessary infrastructure, and training teachers comprehensively, Cyprus could substantially improve its baseline digital literacy.

Aligning education more closely with industry demands is crucial. Germany’s collaborative model, where employers actively co-design university curricula, can guide Cyprus. Establishing formal partnerships between technology firms and academic institutions would ensure that graduates enter the job market with relevant, practical skills. Moreover, adopting apprenticeship programmes where students receive hands-on industry experience, could effectively bridge the skills gap.

Investing in advanced and accessible digital infrastructure is essential for sustaining growth.

Germany’s strategy of providing mobile internet services in rural areas demonstrates how Cyprus could enhance connectivity in underserved communities. Developing comprehensive digital public services, as Estonia has done through its X-Road platform, can further bridge the divide, encouraging widespread digital adoption across the nation.

Finally, strengthening female participation in ICT can further consolidate Cyprus’s leadership.

Introducing targeted scholarships and training opportunities for women, similar to those in Germany and Canada, could significantly boost female representation in the tech sector.

Additionally, showcasing successful female tech leaders and establishing mentorship programmes would help cultivate a supportive ecosystem for women entering or advancing within ICT careers.

Countries such as Estonia, Germany and Belgium highlight the importance of combining comprehensive national policies with local, practical initiatives. Estonia’s success underscores the power of sustained educational investment, Germany demonstrates effective collaboration between academia and industry, and Belgium illustrates the impact of localised engagement in boosting digital skills.

For Cyprus to capitalise fully on its remarkable ICT growth, policymakers need to set measurable goals for digital literacy improvement, significantly fund educational infrastructure and training, and incentivise collaborative industry-academia partnerships.

Companies and educators alike should engage actively in co-designing curricula, providing real-world internship opportunities, and promoting inclusive practices, especially for women and underrepresented groups.

Cyprus’s growth in ICT employment signals enormous potential. By addressing existing gaps and implementing targeted, collaborative measures, the country can transform rapid growth into a sustainable industry.