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1. Labour market situation in the country

2. Main concepts

Labour market situation in the country

The labour market situation for young people in Cyprus has improved in recent years, although youth unemployment and labour market integration remain important policy concerns. Young people often face challenges when transitioning from education to employment, including limited work experience and mismatches between education outcomes and labour market needs.

According to Eurostat, youth (15-29 years) unemployment rate in Cyprus decreased from 11.8% in 2023 to 10% in 2024, indicating a gradual improvement in youth labour market conditions. Similarly, the proportion of young people not in employment, education, or training (NEET) was recorded at 12.9% in 2024, compared with 13.8% in 2023, as reported by Eurostat and reflected in the ‘Monitoring Report 2023 on the progress of implementation of the Active Labour Market Policies’ (p.4). Long-term youth unemployment has also shown a slight improvement. The share of young people aged 15-29 who were unemployed for 12 months or longer decreased from 2.5% in 2023 to 2.2% in 2024 (Eurostat).

Furthermore, according to the Statistical Service of Cyprus, the number of registered unemployed individuals under the age of 20 decreased from 36 in 2024 to 33 in 2025. Despite this slight improvement, the figures reflect the ongoing challenges faced by very young people when entering the labour market for the first time. In contrast, unemployment among those aged 20-24 shows improved employment prospects, with a more notable decline in the number of registered unemployed, dropping from 424 to 404. In the 25-29 age group, unemployment also decreased, from 1 166 in 2024 to 1 054 in 2025. While this reduction indicates a positive trend, the relatively high number of unemployed individuals in this age group continues to highlight ongoing challenges for young adults seeking stable employment in the labour market. 

Regarding the match between educational qualifications and job requirements, data from Eurostat indicate that 56.8% of young people in Cyprus, aged 15 to 34 with medium or high levels of education report a very high or high correspondence. However, 23% of youth said their employment does not match their level of education, highlighting the persistence of skills mismatches in the labour market.

Main concepts

In Cyprus, the right to work is granted to every young person from the age of 14 onwards. This decision was established in 2001  by the Law on the ‘Protection of Young Persons in the Employment’ dated 2001 (Ο Περί Προστασίας των Νέων κατά την Απασχόληση Νόμος). The working hours and conditions, and the types of work that youth can undertake, are set in this law in order to protect young people’s health, safety, and education. Despite this legal provision, some young people encounter challenges in securing employment, particularly those categorized as not in employment, education, or training (NEETs). The concept of NEETs is widely used as an indicator to monitor young people's participation in the labour market and their integration into society.

Another important concept is the skills mismatch between education and labour market demands. As mentioned in the ‘Monitoring Report 2023 on the progress of implementation of the Active Labour Market Policies’, with the provision of education and training programs tailored to the needs of the labour market, the Public Employment Service of the Department of Labour, which is under the Ministry of Labour and Social Insurance, aims to support the skills mismatch and integrate the unemployed in the labour market.

Also, as part of the ‘National Youth Strategy 2030’ (Εθνική Στρατηγική για τη Νεολαία 2030- Προσχέδιο), to be adopted in 2026, youth entrepreneurship is promoted as an important pathway for youth employment, economic participation and sustainable development.