Cyprus’ seasonally adjusted unemployment rate stood at 4.2 per cent in January 2026, remaining well below both the euro area and EU averages, according to Eurostat.

Specifically, the statistical office of the European Union on Wednesday reported that the euro area unemployment rate declined to 6.1 per cent in January 2026 from 6.2 per cent in December 2025 and 6.3 per cent in January 2025.

Across the EU, the unemployment rate eased to 5.8 per cent in January 2026, down from 5.9 per cent in December 2025 and 6.0 per cent in January 2025.

Eurostat estimated that approximately 12.93 million people in the EU were unemployed in January 2026, of whom 10.77 million were in the euro area.

Compared with December 2025, unemployment fell by 185,000 people in the EU and by 184,000 in the euro area.

On an annual basis, compared with January 2025, unemployment decreased by 274,000 in the EU and by 273,000 in the euro area.

For Cyprus, the number of unemployed persons in January 2026 was estimated at approximately 23,000, unchanged from January 2025 but slightly higher than the 22,000 recorded in December 2025.

What is more, the unemployment rate in Cyprus had stood at 4.5 per cent in January 2025, indicating an annual improvement of 0.3 percentage points.

Meanwhile, youth unemployment across the EU also showed a marginal improvement in January 2026.

A total of 2.92 million young people under the age of 25 were unemployed in the EU, of whom 2.35 million were in the euro area.

The youth unemployment rate stood at 15.1 per cent in the EU in January 2026, down from 15.2 per cent in December 2025.

In the euro area, youth unemployment was 14.8 per cent, compared with 15.0 per cent the previous month.

Compared with December 2025, youth unemployment decreased by 27,000 in both the EU and the euro area.

On an annual basis, youth unemployment fell by 27,000 in the EU but increased by 12,000 in the euro area.

Elsewhere in the report, data on unemployment by sex showed that in January 2026 the rate for women in the EU declined to 6.0 per cent from 6.1 per cent in December 2025, while the rate for men fell to 5.7 per cent from 5.8 per cent.

In the euro area, the unemployment rate for women eased to 6.3 per cent from 6.4 per cent, and for men to 6.0 per cent from 6.1 per cent.

The figures underline Cyprus’ comparatively strong labour market position within the bloc, with its seasonally adjusted unemployment rate significantly below the EU average of 5.8 per cent and the euro area rate of 6.1 per cent.

Further evidence of improving labour market conditions emerged from a separate announcement from the Cyprus Statistical Service (Cystat) on registered unemployed for February 2026.

According to Cystat, the number of unemployed persons registered at the District Labour Offices on the last day of February 2026 reached 12,273.

Based on seasonally adjusted data reflecting underlying trends, the number of registered unemployed in February 2026 decreased to 9,773, compared with 9,832 in the previous month.

Moreover, in comparison with February 2025, a decrease of 488 persons, or 3.8 per cent, was recorded.

According to Cystat, this improvement in the labour market was primarily driven by increased hiring in the accommodation and food service, construction, trade, and manufacturing sectors, alongside a reduction in the number of new jobseekers entering the market.

Taken together, the latest labour market data from Eurostat and Cystat point to continued resilience in Cyprus’ employment conditions at the start of 2026, even as broader EU unemployment trends show only gradual improvement.