Cyprus recorded 14,573 job vacancies in the third quarter of 2025, a nine percent decrease compared with the same period last year, according to new data released by the Statistical Service. The figure marks a reduction of 1,437 openings from the 16,010 vacancies logged in the third quarter of 2024. The data indicates a gradual cooling after two years of acute labour shortages across key industries.
The quarter-on-quarter trend points in the same direction. Vacancies fell by 1,480 positions, or 9.2 percent, compared with the second quarter of 2025.
The vacancy rate dropped to 3 percent in Q3 2025. It stood at 3.3 percent in Q2 2025 and 3.5 percent in Q3 2024. The decline suggests that while labour demand remains relatively high by historical standards, the extreme tightness seen in 2022–2024 is easing.
Sectoral picture
The highest vacancy rates were found in Mining and Quarrying, which recorded 5.9 percent. High rates were also recorded in Accommodation and Food Service Activities and in Wholesale and Retail Trade, both at 4.1 percent. These sectors traditionally struggle with seasonal labour shortages and high staff turnover. They also face difficulties attracting local workers, which leads to persistent gaps across front-line, technical and service roles.
The hospitality sector continues to reflect deep structural challenges. Tourism capacity has expanded, and the sector relies heavily on temporary labour. Mediterranean competitors are also raising wages to secure talent, which affects Cyprus. Wholesale and retail trade faces the combined pressures of digitalisation and long operating hours. Employers in this sector often report difficulties retaining staff.
What is driving the slowdown
Several factors appear to be behind the nine percent year-on-year drop.
Economic growth has moderated. The strong post-pandemic recovery period of 2022–2023 has given way to a more stable phase in 2024–2025, which naturally reduces the intensity of hiring.
Major construction and infrastructure projects have moved past their peak. These cycles normally generate high labour demand, and their completion contributes to fewer recorded vacancies.
There has also been greater reliance on third-country workers. Expanded migration frameworks allowed businesses to fill chronic shortages in sectors such as food service and retail. This development reduced the number of officially registered vacancies.
Employers have also improved retention strategies. Many businesses adjusted wages and working conditions to keep staff in place ahead of the 2025 tourism season. These changes helped stabilise the workforce and reduced the number of open positions.
A cooling labour market, but not a weak one
The 3 percent vacancy rate remains high compared with the pre-pandemic norm. Before 2020, vacancy rates tended to sit between 1.5 and 2 percent. The current figure shows that Cyprus still has a relatively tight labour market by European standards. It no longer shows the extreme strain recorded in previous years.
The slowdown may ease pressure on employers who struggled to recruit throughout 2022–2024. It also gives policymakers space to reassess labour needs as the economy moves through the digital and green transitions.
Economists caution against interpreting the vacancy decline as an early sign of recession. Domestic consumption remains strong. Unemployment remains historically low. Service exports, including tourism, technology and business services, continue to provide key sources of labour demand.
Several indicators will be important in the coming months. The evolution of vacancy rates in tourism after the 2025 season will determine whether hospitality is entering a more sustainable staffing phase. Hiring trends in retail will also be closely watched. The pace of economic diversification will influence whether shortages emerge in high-skill areas such as technology, finance and energy.
If current trends persist, Cyprus may be shifting into a more balanced labour-market phase. Vacancies remain elevated but no longer outpace available workers as sharply as they did in the previous two years.