Cyprus is punching above its weight in the European labour market as the latest Eurostat figures reveal a significant surge in the number of people finding work during the opening months of 2026.

Indeed, Cyprus was highlighted as one of the standout performers across the bloc, recording an increase in the employment rate of 0.4 per cent between the final quarter of 2025 and the first quarter of 2026.

This notable rise places Cyprus alongside Belgium, Lithuania, Slovakia, and Sweden, which all achieved identical growth of 0.4 per cent during the same period.

Italy topped the list of countries where employment expanded, registering an increase of 0.5 per cent.

Across the European Union as a whole, the employment rate for individuals aged 20-64 reached 76.3 per cent in the first quarter of 2026, representing a marginal rise from the 76.2 per cent recorded in the fourth quarter of 2025.

While 11 countries across the union saw their employment figures improve, the rate remained stable in six member states.

Conversely, the data revealed a decline in 10 countries, with the most significant decreases noted in Latvia, which saw a drop of 0.8 per cent, and Ireland, which experienced a 0.7 per cent reduction.

Slovenia and Finland also saw their employment rates decrease by 0.3 per cent each, the report added.

Regarding broader labour market conditions, the European Union saw a slight reduction in labour market slack, which encompasses all persons who have an unmet need for employment, including those who are unemployed.

The total labour market slack stood at 10.9 per cent of the extended labour force aged 20-64 in the first quarter of 2026.

This figure marks a slight improvement from the 11 per cent recorded in the fourth quarter of 2025.