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Cyprus

3. Employment & Entrepreneurship

3.11 Current debates and reforms

Last update: 30 March 2026
On this page
  1. Forthcoming policy developments
  2. Ongoing debates
On this page
  1. Forthcoming policy developments
  2. Ongoing debates

Forthcoming policy developments

A number of new policies are ongoing for reinforcing the support for young people according to the ‘Cyprus Annual Progress Report 2025’. 

One of the planned and/ or ongoing activities is the improvement of the effectiveness of the Department of Labour and Public Employment Services (PES) and reinforcing support for young people. This investment with a budget of €13.64 million, will be completed by 30 June 2026 and consists of: 

  1. A platform for digitalising the hiring schemes of the Department of Labour.

  2. The Performance Management System for the PES.

  3. The early warning and tracking system is being developed by the Department of Information Technology Services of the Deputy Ministry of Research, Innovation and Digital Policy.

  4. A grant awarded to employers for hiring at least 600 young people not in employment or in education or training (NEETs) has started and 500 applications have been submitted.

  5. Coaching and career guidance for young people not in employment or in education or training (NEETs): the tender documents are under preparation.

Another measure is the provision of employment incentive schemes for young people aged 15 to 29 not in employment, education or training (see section 3.6 Integration of young people in the labour market for more information).

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, Sport and Youth, Youth Board of Cyprus, National Youth Council and other youth organisations.

Moreover, the Labour Minister, during a discussion in the Parliament of Cyprus in March 2026, announced that the upcoming ‘Labour Market Strategy for 2026-2028’ will prioritise youth employment and a ‘National Action Plan for Youth Employment’ can also serve as a broader strategic response to youth unemployment. The upcoming ‘National Youth Strategy 2030’ will also serve as a long-term policy instrument to coordinate youth-related initiatives, including employment, skills development, and entrepreneurship, aligning them with national and EU priorities.