Employment rise, unemployment drop are the Government's main achievements, Labour Minister says

The rise in employment by 4.3% in the last two years, reaching 79.8% in 2024, and the unemployment drop by 21%, to 4.9%, are the main achievements of the Government in the labour market sector, Minister of Labour and Social Insurance Yiannis Panayiotou has said.

Panayiotou, during a 15 April press conference on the government’s policy as regards the labour market, said that based on the data, an increase in the minimum wage is expected, and sent the message that the cost-of-living adjustment (COLA) would not be abolished.

The Minister said the Government was implementing a human-centric policy to improve the quality of life of citizens, for the development of the economy and for social cohesion.

During the last two years, he said, employment increased and unemployment decreased, creating the best conditions in recent decades for full employment conditions. He also referred to the significant upgrade of professional skills and the strengthening of vocational training with an emphasis on green and digital skills.

At the same time, Panayiotou said, the increases in average monthly earnings and median wages exceed the rate of inflation and its impact on the cost of living, enhancing workers’ ability to respond to consumer needs and loan obligations.

He stressed that the results of the state policy during the first two years of this government, were “positive” for society and the economy.

According to Panayiotou, comparing with the data of the past 10 and 15 years, in 2024, the highest employment rate ever was recorded - 79.8% - which translates to 4.3% increase over the last two years.

He noted that the national target, which is included in the framework of the European Pillar of Social Rights, is for Cyprus to reach an 80% employment rate by 2030, noting that it was expected to achieve this goal within 2025.

He said that women’s employment has also increased and is recording one of the highest rates achieved ever. Youth employment has also increased, with the employment rate - 87% - also being the highest in recent decades, he added.

With regard to reducing unemployment, Panayiotou said that it is recording the lowest rate in the last 15 years, while that, for the first time since 2009, unemployment is below 5%, at 4.9%.

The Minister noted that youth unemployment has significantly decreased, giving Cyprus a European first.

He also pointed out that training programmes focusing on green and digital skills have almost increased sevenfold in the last two years.

Panayiotou also said that the average wage has increased. He said that from 2010 to 2021, the average salary fluctuated around €2,000 but that over the last two years there was a clear upward trend, according to preliminary data, reaching just below €2,500 in 2024.

The same applies to the median salary, which increased by 11.3% in total, reaching almost €1,900 in 2024, he added.

The Minister noted that although the increased cost of living recorded over the last decade has been reversed, it was important that the increases over the last two years were higher than inflation, which cumulatively reaches 5.2%, while wage increases are much higher.

He also referred to the Government decision to increase the minimum wage to €1,000.

(Source: CNA)