University graduates are being hired into positions that do not require a degree, even as businesses and public-sector organisations struggle to recruit workers with the skills they need.
That contradiction is highlighted in the first CYEmployers National Employer Skills Survey, conducted by PwC Cyprus in cooperation with the Department of Higher Education of the Ministry of Education.
The survey found that 34% of private-sector employers who had hired recent graduates and 58% of public-sector respondents reported employing degree holders in positions that did not require a university qualification.
At the same time, 71% of private-sector companies with vacancies said they had experienced difficulties filling at least some of them.
The research was based on 1,395 valid responses from private-sector employers and 221 responses from senior public-sector officials.
Recruitment challenges persist
The problem is not limited to a shortage of suitably qualified candidates.
Among private-sector employers reporting recruitment difficulties:
- 68% cited a lack of interest in specific jobs.
- 58% pointed to a limited pool of applicants.
- 53% reported a shortage of candidates with the required skills.
In the public sector:
- 50% cited limited interest in available positions.
- 42% referred to unattractive employment conditions, including pay.
- 39% identified skills shortages.
Recruitment difficulties extend beyond graduate-level professions.
In the private sector, employers facing hiring challenges reported vacancies mainly in:
- Professional and specialist positions (36%).
- Services and sales occupations (25%).
- Technicians and assistant professionals (20%).
In construction and manufacturing, shortages of technicians reached 52% and 50% respectively, with gaps also affecting tradespeople, drivers and machinery operators.
In the public sector, shortages were concentrated among professional, technical and administrative staff.
According to the survey, vacancies affect organisational performance, with 89% of private-sector employers and 95% of public-sector respondents reporting operational impacts.
The most common consequence was increased workloads for existing employees, cited by 80% of private-sector employers and 85% of public-sector respondents.
What graduates are missing
The overall assessment of recent graduates was not negative.
Among employers who recruited graduates from Cypriot higher education institutions, 82% in both sectors considered them at least moderately prepared for work.
Respondents identified strengths in:
- Written Greek-language communication.
- Basic numeracy.
- Practical use of digital tools.
However, employers reported weaknesses in:
- Leadership.
- Complex problem-solving.
- Initiative.
Among the skills most difficult to find in private-sector candidates were:
- Willingness to learn (43%).
- Effective communication (35%).
- Time management (31%).
Overqualification and limited work experience
The mismatch extends beyond new graduates.
The survey found that 45% of private-sector employers and 69% of public-sector respondents believe parts of their workforce possess skills beyond those required for their positions.
At the same time, 76% of private-sector companies offered no internship opportunities to students or recent graduates during the period examined, limiting opportunities to gain work experience during or shortly after studies.
Among employers that did provide internships:
- 30% said they did not pay any interns.
- 31% subsequently hired at least one participant.
Looking to the next five years
Skills shortages are expected to persist.
The survey found that:
- 56% of private-sector employers expect skills shortages over the next five years.
- 63% of public-sector respondents anticipate similar challenges.
In the private sector, concerns focus on transferable skills such as teamwork and communication.
In the public sector, the greatest concern relates to digital skills. Around 60% of employees work in organisations expecting digital skills shortages, rising to 86% across the wider public sector.
Across both sectors, transferable skills emerged as the leading training priority for current employees.
The report recommends:
- Systematic monitoring of labour-market needs.
- Review of educational curricula.
- Greater emphasis on transferable and advanced digital skills.
- More high-quality internship opportunities.
- Targeted workforce training.
- Better use of existing qualifications.
- Reassessment of employment conditions in hard-to-fill positions.
