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Cyprus

3. Employment & Entrepreneurship

3.11 Current debates and reforms

Last update: 27 March 2025
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  1. Forthcoming policy developments
  2. Ongoing debates

Forthcoming policy developments

A number of new policies are expected to be put into practice for reinforcing the support for young people according to the National Reform Programme 2024. Some of the planned activities are the following ones:

  1. Taking measures to tackle labour market challenges (youth unemployment) and social challenges: The main developments in the labour market  since April 2023 include the operation of the four mobile Public Employment Service (PES) units for outreaching the young people not in Education, Employment or Training (NEETs) and providing them with guidance, counselling and employment services that has begun in January 2024, the development of a digital performance management system (PMS) that is expected to be completed by December 2024, the drafting of the public procurement documents for the Coaching Project with target to be offered to at least 5 500 young people NEETs by Q2 2026, the continually improvement of the IT system for monitoring and evaluation of Active Labor Market Policies (ALMPs) and the agreement on the strategic document for the design and implementation of ALMPs between the European Commission and the Ministry of Labour and Social Insurance (MLSI). 

  2. Promoting Investments in the fields of Research, Innovation, Digital Transformation and Entrepreneurship (Budget: € 245 m): Upgrade and creation of new research infrastructures in research centers, universities and companies, implementation of research projects by young researchers, promotion of cooperation between companies and research organizations through specialized grants and promotion of innovation.

  3. An early warning and monitoring system for young people aged 15-29 out of employment, education and training, aiming to achieve better monitoring of employment among young people. 

Moreover, the Department of Higher Education of Ministry of Education, Sport and Youth implements the project “Development of a National Graduate Tracking Mechanism, and Design and Implementation of an Employers’ Skills Survey” for five years (2022-2026) with the aim to address the skills mismatch and monitor the transition from education to employment. The project aims to develop and implement a National Graduate Tracking Mechanism for the first time in Cyprus and at the same time to develop and implement a National Employers' Skill Survey in relation to the skills and qualifications needs of the labour market. The preliminary results of the first cycle of Cyprus' National Graduate Tracking Survey became available in September 2023. 

Ongoing debates

One of the ongoing debates in the field of youth employment is the issue of unpaid internships and specifically the need to formulate a legislative framework that defines internships, remuneration, quality assurance and rights. The topic has been discussed in the Parliamentary Committee of Labour since April 2022 with the participation of representatives of the Ministry of Labour and Social Insurance, Ministry of Education, Youth Board of Cyprus, National Youth Council and other youth organisations.