Despite statistically low overall unemployment, the labour market in the occupied areas reveals a different picture. Behind the numbers lies, first, a reality of entrenched inequalities, employer arbitrariness, widespread undeclared work, and second, an economy excessively dependent on services and cheap foreign labour.
The harshest description of this situation is given to Politis by Turkish Cypriot Dev-İş unionist Koral Aşam, who speaks of a world where construction sites, hotels and retail stores set the pace of life and exploitation. He emphasises that at least half of the jobs operate off the books, with the construction sector showing the highest rates of shadow employment. Through a discussion with him, we gain a more complete and grounded picture of labour relations on the other side of the barricade.
What the numbers say
In 2024, unemployment in the occupied areas stood at 4.9 per cent, according to a survey conducted by the statistical institute. The employment rate reached 50.5 per cent, while the total number of unemployed was 9,552. Male unemployment was 3.3 per cent, whereas female unemployment was more than double, approaching 8 per cent. Among young people aged 15–24, unemployment reached 16.9 per cent.
The total number of employed persons in 2024 was 185,607. Of these, 34.8 per cent were women, 64,611 individuals. Almost nine out of ten (89.3 per cent) worked in the services sector, 87.3 per cent were salaried, 11.2 per cent self-employed or employers, and 1.5 per cent unpaid family helpers. Among men, who make up 65.2 per cent of the workforce, 120,996 individuals, 73.2 per cent work in services, 82.2 per cent are salaried, 17.3 per cent are self-employed or employers, and 0.6 per cent are unpaid family helpers.
Overall, 19.4 per cent of employees, 36,086 people, work in the so-called public sector. At the same time, 8 per cent of workers, 14,805 people, are not registered with any social security system, with men making up 72.2 per cent of this category.
Employment by economic sector is distributed as follows: 4.9 per cent in agriculture (9,046 people), 7.1 per cent in industry, 9.2 per cent in construction, and 78.8 per cent in services. In agriculture, 12.2 per cent of workers, 1,101 individuals, were unpaid family helpers.
Shadow employment
According to Aşam, the harsh reality is that at least half of the jobs are off the books, with the construction industry recording the highest rates of shadow employment. Even where work seems legal, social security contributions are almost always paid at the minimum wage level, condemning workers to meagre pensions. This distorted reality is known to everyone: employers, authorities and even the workers themselves. In a private sector with weak union presence, silence becomes a condition for survival.
The TC unionist notes that foreign workers make up almost half of the registered workforce, mostly from Turkey, but also from African countries, Turkmenistan, Pakistan, Bangladesh and others. They work endless hours for low wages and live in miserable conditions. Violations are rarely reported and even more rarely punished.
Tourism, construction and retail may look different on the outside, but internally they follow the same pattern: minimum wages and hours far from legal standards. Equalising minimum wages for women and men is a symbolic victory, but when wages do not cover basic needs and purchasing power collapses, equality brings no real relief.
Pittance wages
The Aşam further emphasises that public employees are better protected, thanks to strong unions and the existence of an Automatic Cost-of-Living Adjustment (ATA). In contrast, private employees see their real wages shrink each time they are paid.
Rising rent and food prices affect everyone, but acquiring housing in Kyrenia, Famagusta, Nicosia or Morphou has become an unattainable dream without family support.
Collective bargaining is limited to the company level, which in a market of very small businesses, foreign labour and employer hostility effectively nullifies workers’ claims.
Wage policies are not directly dictated by Ankara, Aşam says, but the model imposed is clearly neoliberal, focused on maximum profit at any cost. Competitiveness is measured not by quality but by how many hours someone can work for the least possible pay.
With rising exchange rates, more workers cross the checkpoints to work in the free areas, seeking wages in euros. But exploitation follows them there as well, says the Turkish Cypriot unionist.
Degrees held by workers are often not recognised, especially in education, forcing skilled workers to take jobs far below their qualifications.
Youth disappointment
Aşam reports that young Turkish Cypriots do not see a future in their homeland. Thousands study abroad, but few return. Nepotism in the public sector and exploitation in the private sector push them to build their lives elsewhere. Families, no matter how much they sacrifice, cannot convince them to return, he says.
At the core of all this, he adds, is division and international isolation. Workers, youth and families pay the price every day.
Closing on a hopeful note, Koral Aşam emphasises that despite the bleak data, hope is not lost. Hope lies in reunification, in reasonable policies that reconnect people to the world, and in the belief that tomorrow can be better. Workers do not ask for charity; they demand dignity. They want to fight not to survive in darkness but to build a future in their own land.