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1. Forecasting system(s)

2. Skills development

Forecasting system(s)

The Human Resource Development Authority (HRDA) (Αρχή Ανάπτυξης Ανθρώπινου Δυναμικού) is the responsible authority for identifying future demands in the labour market. For the systematic employment forecasting and the identification of skills gaps, the HRDA conducts various research studies as described below. 

Since 2000, HRDA implements a 10-year employment forecasts on a regular basis. The forecasts aim to contribute substantially to the planning and implementation of education and training activities through the provision of employment needs forecasts in the Cyprus economy. In 2022, the HRDA released the latest study entitled ‘Forecasts of labor demand and supply in the Cyprus economy 2022-2032’ (Προβλέψεις ζήτησης και προσφοράς εργατικού δυναμικού στην κυπριακή οικονομία 2022-2032). Total employment for the economically active population aged 15-64, in the period 2022-2032, is forecasted to exhibit an upward trend. During this decade, it is forecasted that employment will increase by 52577 persons or 12.1%. It is noted that total employment since 2015 (358202 persons) began to gradually rebound from the significant decrease observed in the period 2011-2015, a consequence of the economic crisis that also affected the Cyprus economy (decrease by 40012 persons or -10.0%). It should also be pointed out that, a very small increase occurred in 2020, despite the negative effects of the COVID-19 pandemic.

Moreover, the HRDA performs on an annual basis the ‘Identification of Employment and Training Needs’ study (Διερεύνηση Αναγκών Απασχόλησης και Κατάρτισης κατά το 2023/ Identification of Employment and Training Needs for 2023), which provides annual estimates for the number of persons required for specific occupations and the needs for specific skills. On the basis of these estimates, suggestions are put forward for the implementation of training programs for the skills development of the economically active population which are also in accordance to the ‘National Reform Programme’ as set annually by the  Directorate General Growth of the Ministry of Finance. 

In addition, in March 2018, the HRDA published a study titled “Identification of green skills in the Cyprus Economy 2017-2027” (Εντοπισμός Αναγκών σε Πράσινες Δεξιότητες στην Κυπριακή Οικονομία 2017-2027). This study provides forecasts for employment and demand for labour in the economic sectors and occupations with participation in the green economy for the period 2017-2027. Additionally, it identifies the green skill needs for specific occupations of the green economy of Cyprus.

Moreover, the Human Resource Development Authority of Cyprus (HRDA) had recognised the promising prospects of the blue economy for economic growth and job creation and proceeded with the publication of the report under the title “Identification of blue skill needs in the Cyprus economy 2016-26 (2/2016)-EN”. According to the study, eight out of 10 employed persons in the blue economy will work in maritime and coastal tourism, reflecting the importance of tourism to the blue economy of Cyprus.

The main output of these forecasts are extended reports, published on the website of the HRDA, aiming to support future actions and trainings for targeted skills development for the economically active population aged 15-64. Detailed forecasts of employment demand for around 300 occupations are provided on the HRDA website. Users may search for information on occupations of interest.

Furthermore, the HRDA participates actively in initiatives and actions that are promoted at European level in the framework of the European network Skillsnet, creating more accurate and relevant skill needs forecasting.

The Ministry of Finance (Υπουργείο Οικονομικών) provides projections for the growth of the economy, which include forecasts of value added, productivity and employment, and submits proposals for the required policy changes.

The Ministry of Education, Sport and Youth and more specifically the Department of Secondary Technical and Vocational Education (STVE) (Διεύθυνση Μέσης Τεχνικής και Επαγγελματικής Εκπαίδευσης και Κατάρτισης) is responsible for the introduction, with the participation of the social partners, of new fields of study and specialisations, the design of curricula and the identification of special skills needed. To carry out these tasks, while considering the developmental needs of the Cyprus economy and the latest scientific and technological advances, the Department of STVE has established close cooperation with all major stakeholders such as Ministries, the Directorate General Growth (Ministry of Finance), the social partners (employers and employees organisations), teachers and their associations, the University of Cyprus (UCY), the Cyprus University of Technology, the Cyprus Pedagogical Institute (CPI) and the HRDA. The findings of the research studies of the HRDA are also taken into account for the design of curricula.

Skills development

Skills anticipation outputs are used by policymakers to develop appropriate policies to support public and private organisations involved in human resource planning in adapting to the country’s skill needs. Other key users of the results from the HRDA skills anticipation studies are public and private organisations, future graduates and their families, school counsellors, general education and VET institutions (universities, colleges, and public and private schools of all levels), employers, trade unions, the Ministry of Education, Sport and Youth, and the Ministry of Labour and Social Insurance.

More specifically, the outcomes of the HRDA forecast are used to support the acquisition of skills by young people in the following formal education programmes, as stated in the ‘National Reform Programme 2024’:

• Secondary Technical and Vocational Education (STVE): Focus on improving the correlation between technical and vocational education and training and labour market needs, ease the transition from education to work, and increase student participation in VET education.

• Evening Schools of Technical and Vocational Education (ESTEE): The Evening Schools operate as second chance schools, offering good quality mainstream VET education to adults who are early school leavers, so that they have the opportunity to re-enter the formal school system, obtain a qualification at upper secondary level, move on to tertiary education if they wish and/or re-enter the labour market as skilled workers. As part of the reform, focus is given to proceeding with curricula review and its modernization, with emphasis on critical thinking and creativity enhancement of students.

• The Post-Secondary Institutes of VET (PSIVET): The programmes offered by PSIVET are especially designed, after consultation with the social partners and stakeholders, to respond to the needs of emerging economic sectors and to be relevant to labour market needs.

The outcomes of the HRDA forecast are not yet used in a systematic way in the non-formal and informal learning field. However, the schemes provided by HRDA support further skills development of young people in other settings rather than formal education.

Specifically, as part of the ‘Recovery and Resilience Plan for Cyprus 2021-2026’, the following schemes are provided: 

• Training programmes for the acquisition of digital skills.

• Training programmes for the acquisition of knowledge and skills related to the green economy.

• Training programmes for acquisition of knowledge and skills related to the blue economy and 

• Training programmes to acquire entrepreneurship knowledge and skills. 

These schemes aim at the acquisition of new and upgrading of existing knowledge and skills of employed persons (public, broader public, private sector employees and the self-employed) or the unemployed, by participating in training programmes implemented by certified vocational training centres (VTCs). 

Also, the ‘Incentive Scheme for the Employment of Young People aged 15 to 29 who are Not in Education, Employment, or Training (NEETs) combined with two-month training’ and the ‘Scheme for the Employment and Training of Tertiary Education Graduates’ (Σχέδιο Στελέχωσης Επιχειρήσεων με Αποφοίτους Τριτοβάθμιας Εκπαίδευσης) provide opportunities to youth to secure a suitable job and acquire work experience and specialised knowledge and skills (see more information in section 3.6 Integration of young people in the labour market).

The information and the findings of these studies are disseminated through press conferences and special lectures for secondary school guidance counsellors in collaboration with the Ministry of Education, Sport & Youth, and for employment counsellors in collaboration with the Public Employment Service. Information is also available online in HRDA’s website.