Labour market at best performance level in 15 years, Labour Minister says

The 2024 labour market is recording the best performance in the last fifteen years in terms of job creation, employment growth, unemployment reduction and wage increases, Minister of Labour and Social Insurance, Yiannis Panayiotou has said.

He was speaking during a 17 December press conference held at the Ministry of Labour and Social Insurance on the positive developments and dynamic prospects of the labour market. Panayiotou also referred to the implementation of plans to strengthen employment.

Referring to CySTAT data, Panayiotou said that comparing the data of 2023 and 2024, the positive developments and the dynamic prospects of the labour market are reflected.

He pointed out that new jobs increased by 15.4% to 14,339, representing 3.2% of the total number of employees, while the number of employees increased by 1.4% to 6,263, with the employment rate now at 79.8% and the total number of employees increasing from 459,196 to 465,459.

Panayiotou said that at the European level the 79.8% employment rate is considered to be too high. He also noted that the biggest increase in job vacancies is in the hotel industry and the construction sector.

He also added that the number of unemployed has decreased by 14.7% and is now down by 4,349, noting that the unemployment rate has been dropped from 5.8% to 5.0%, and the total number of unemployed decreased from 29,661 in 2023 to 25,312 according to the latest figures. In this context, Panayiotou pointed out that 5.0% unemployment is an important benchmark, saying that when unemployment falls to rates below this it means that full employment conditions have formed.

He said that the registered unemployed have decreased by 14.3% and are now less by 1,824, with the total number decreasing from 12,720 to 10,896, and reported that the long-term unemployed who remain registered for a period between six and twelve months have decreased by 29.7% and are now less by 559, with the total number decreasing from 1,884 to 1,325.

In terms of labour costs, which relates to wages per hour worked, Panayiotou said this increased by 4.5% and average monthly earnings increased by 5.3%, with the average monthly wage increasing compared to the same period last year from €2270 to €2390.

The Minister of Labour observed that according to CySTAT, the labour market in 2024 recorded the best performance in the last fifteen years in terms of job creation, employment growth, unemployment reduction and wage increases.

At the same time, Panayiotou said that the Ministry of Labour "is methodically implementing the government's plan to link the unemployed to work, to get young people into work on time, to keep older people in employment, to broaden the participation of women and to strengthen the participation of vulnerable groups in the labour market."

At the same time, the Minister said that as of January, employment support projects are gradually being implemented, with a total budget of €15 million.

Panayiotou underlined that the developments are positive, and the prospects are dynamic for the labour market, expressing confidence that the long-lasting cooperation between workers, employers and the State will be a catalyst for making the most of these important opportunities for the continued growth of the Cypriot economy and the strengthening of the cohesion of the Cypriot society.

(Source: CNA)