Employers in both the public and private sectors are struggling to find the right mix of skills, even as many university graduates are being recruited into positions that do not require their qualifications and many employees are considered overqualified for their jobs.
The findings come from the first CY Employers National Employer Survey, carried out by PwC Cyprus in cooperation with the Directorate of Higher Education, and released by the Ministry of Education.
The survey found employment remained broadly stable between January 2023 and January 2024. In the private sector, 55% of employers reported no change in staffing levels, while 48% of senior public-sector officials reported the same.
On average, respondents reported 2.58 vacancies per organisation in the private sector and 10.4 vacancies per organisation in the public sector.
Recruitment challenges
Hiring priorities differ between sectors.
In the private sector, employers place the greatest emphasis on:
- Work experience (70%)
- Enthusiasm for the job (63%)
- Relevant technical skills (59%)
In the public sector, the main criteria are:
- Formal qualifications (73%)
- Technical skills (67%)
- Work experience (66%)
The hardest roles to fill included professional positions, service and sales occupations, technicians, associate professionals and clerical staff.
In both sectors, the main obstacle to recruitment was a lack of interest in the jobs on offer, cited by 68% of private-sector employers and 50% of public-sector respondents.
Graduates working below their qualifications
The survey highlights a significant mismatch between qualifications and employment.
Among private-sector employers, 34% said they had recruited tertiary-education graduates into positions that did not require a university degree.
In the public sector, the figure rose to 58% of senior officials surveyed.
At the same time, 45% of private-sector employers and 69% of public-sector respondents reported employing staff whose qualifications exceed the requirements of their roles.
Skills shortages expected to continue
Looking ahead, a majority of respondents expect shortages of skills over the next five years.
- 56% of private-sector employers expect skills shortages, with 25% predicting severe shortages.
- 63% of senior public-sector officials expect shortages, with 21% forecasting a high level of difficulty.
The report concludes that Cyprus faces not merely a shortage of educated workers but a broader skills mismatch.
While both sectors employ large numbers of university graduates, employers continue to struggle to find candidates with the right combination of skills while simultaneously recruiting graduates into lower-skilled positions.
Soft skills in shortest supply
The skills most frequently identified as difficult to find and most in need of improvement were transferable or "soft" skills, including:
- Communication
- Teamwork
- Willingness to learn
- Time management
- Initiative
- Problem-solving
- Leadership
The report also notes that recruitment difficulties are often linked not only to skills availability but also to how attractive jobs are perceived to be, and, particularly in the public sector, to employment conditions.
