Cyprus’ Ministry of Labour will roll out or announce 14 employment support grant schemes by the end of 2025, with a combined budget of €88.7 million.

The schemes form part of the ministry’s broader employment strategy for 2026–2028, which focuses on tackling unemployment and helping businesses hire from groups facing barriers to work.

According to the ministry, the plans are co-financed by national resources, the European Social Fund Plus (ESF+), and the Recovery and Resilience Plan, while the Department of Labour is responsible for their design, implementation and monitoring.

Within the framework of the Thaleia 2021–2027 Operational Programme, all 14 schemes are expected to be either completed or launched by the end of next year.

In September, the government moved ahead with four new incentive schemes aimed at helping those who face greater difficulties finding a job.

These include a €4 million plan to employ inactive women under flexible arrangements, expected to create around 470 positions, a €7 million plan for unemployed women, with 820 new jobs, a €4 million plan for people over 50 years old, creating 470 positions, and a €3 million plan targeting young people aged 15 to 29 who are not in education or training, offering 350 flexible jobs.

All four are financed under Thaleia 2021–2027 through the ESF+ and national funds.

At the same time, the Department of Labour continues to manage several ongoing schemes, including the Incentive Scheme for the Employment of Persons with Disabilities, the Scheme for the Employment of Persons with Chronic Diseases, and the Scheme for the Employment of Young People aged 15–29 not in Employment, Education or Training (NEETs).

Other initiatives, such as the Scheme for the Employment of Unemployed Persons and the Rehabilitation Scheme for Former Detainees, further promote equal access to employment and social reintegration.

Details of all subsidy plans, both ongoing and completed, can be found on the Department of Labour’s Schemes for Subsidies portal and the Subsidy Schemes Management System, while co-financed projects under Thaleia 2021–2027 are published on thalia.com.cy.

Meanwhile, Cyprus’ labour market continues to strengthen, with unemployment falling and participation steadily increasing.

The jobless rate dropped to 4.9 per cent in 2024, down from 5.8 per cent in 2023 and 6.3 per cent in 2022, with 24,885 unemployed people recorded last year, almost 4,800 fewer than the previous year.

Employment among people aged 15 and over rose to 486,978, up by 7,054 or 1.5 per cent year-on-year. For those aged 20 to 64, the employment rate reached 79.8 per cent, compared with 79.6 per cent in 2023 and 78.9 per cent in 2022.

As employment continues to rise and unemployment gradually declines, attention has turned to the quality of jobs and wage conditions.

According to the EURES Labour Market Information for Cyprus, the national employment rate stood at 75.2 per cent in early 2024, exceeding the EU average, with male employment at 79.3 per cent and female employment at 71.4 per cent.

The platform highlights continuing shortages in ICT, building trades and cleaning services, while administrative, clerical and teaching professions show relative surplus.

In 2023, the job-vacancy rate reached 2.8 per cent, up from 2.5 per cent in 2022.

EURES also notes that the statutory minimum wage has been €1,000 since January 2024, while the average gross monthly salary in 2023 was €2,224 (about €1,909 net), remaining below the EU average.

Despite steady job growth and falling unemployment, average earnings in Cyprus remain below the EU average, emphasising persistent wage pressures in an otherwise tightening labour market.