A fast rising trend of social inequality in Cyprus is clearly indicated across the numbers of a 2025 Eurostat report, also bringing to the fore a very different welfare state philosophy between our own country and the policies implemented in the Scandinavian north.

Nevertheless, the island does manage to creep over the inequality management European average line, with authorities however sadly lacking in supporting groups that require urgent financial assistance in work productive ages, simply put, before they retire.

While the Swedes and the Finns invest in a protection net which insulates all age groups, as the numbers indicate, Cyprus persists in its pension centred model, which waits for someone to leave work in order to have a decent life. An ‘all eggs in one basket’ approach which further stokes social inequality trends.

Scandinavian countries choose to share state support in a more balanced manner throughout the population, pulling more weight on subsidies towards families, housing support and unemployment benefits, thus making sure they stand behind the citizen at every stage of their lives, bo matter where they find themselves.

And not just securing they get an ok pension when they retire after toiling in the inequalities of the lower middle class.

Denmark is the only country where social benefits are higher than pensions, with both numbers measured as Purchased Power Standard for the sake of statistical analysis and comparisons. The same is true of Sweden and Finland, while Cyprus is almost four times less, with Greece around the same level.

Again, what the numbers of social inequality show is that pension cannot be the only safety net for any family, replacing other powerful welfare benefits that might go a long way towards improving personal and professional life.

In addition, if Cypriots suddenly finds themselves out of work or need state support prior to retirement, the money or the tools available by the relevant services, are extremely limited, as indicated on the Gini inequality index.

Inequality in Finland is at an all time low of 27.2%, with Sweden at 28,2%, while Cyprus is just over the European average line at 31,2%, but worse off than 2024, an indication that despite a pension bump, wealth produced is still highly concentrated in even less hands, leaving vulnerable groups dependent on a low benefit.

Former Eastern bloc are doing much better than us. At 23%, Slovakia has one of the fairest income distribution in Europe, with Czecchia at 24% and Poland following at 24.9%. They are even more balanced than Germany or Sweden.

The unemployment rate in Cyprus stood at 4.2%, compared with 5.8% in the European Union and 6.1% in the Eurozone, placing the country in a stronger position than the overall European average.

However, youth unemployment remains significantly higher, reaching 15% in Cyprus, reflecting a broader challenge seen across many European economies.

Small gender gap in unemployment

Data also show a small difference between male and female unemployment rates in Cyprus.

Unemployment among men stood at 4.0%, while the rate for women was slightly higher at 4.4%, a gap considered relatively limited compared with several other EU countries.

Countries with the lowest and highest unemployment

Among EU member states, the lowest unemployment rates were recorded in:

Poland with 3.1%

Czech Republic with 3.2%

Malta with 3.4%

At the other end of the scale, the highest unemployment levels were recorded in:

Finland with 10.2%

Spain, with 9.8%

Greece with 7.7%

Lower unemployment than in several major European economies

Cyprus recorded lower unemployment than several larger European economies, including:

France, with 7.7%

Portugal with 5.6%

Ireland with 4.7%

Meanwhile, Germany and the Netherlands also maintained relatively low unemployment rates at 4.0%.

Italy recorded a notable improvement, with unemployment falling to 5.1% from 6.6% in January 2025.

Youth unemployment remains high across Europe

Despite improvements in overall labour market indicators, youth unemployment remains high in many EU countries.

In Cyprus it stood at 15%, while higher levels were recorded in:

Spain with 23.5%

Greece with 16%

The figures from District Labour Offices show that registered unemployment reached 7,781 persons at the end of October 2024.

According to seasonally adjusted data, which indicates unemployment trends, the number of registered unemployed in October 2024 decreased to 10,208 persons, compared with 10,265 in the previous month.

The year-on-year decline of 1,451 persons, or 15.7 per cent, was primarily attributed to reduced unemployment in financial and insurance activities, construction, trade, and manufacturing sectors, as well as fewer new entrants to the labour market.

According to the Statistical Service, based on data from the District Labour Offices, the number of registered unemployed persons at the end of August 2024 stood at 12,079.

Considering the seasonally adjusted data, which indicates the unemployment trend, the number of registered unemployed in August 2024 was 11,197, remaining at the same level compared to the previous month.

Compared to August 2023, there was a decrease of 1,177 individuals or 8.9%, primarily attributed to the sectors of financial and insurance activities, construction, trade, and manufacturing, and a reduction in new entrants to the labour market.

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Cyprus’s fiscal policy report projects a general government surplus of 2.9% of GDP for 2024. Despite a positive deviation of one percentage point in the first half-year results, officials are not revising the forecast upwards.

“Any revision of the forecast for the fiscal balance for the whole of 2024 is not deemed appropriate at this stage,” the report stated, pointing to the impact of a 351.3 million euro supplementary budget approved in July and a 1.5% increase in public sector salaries from October.

Economic growth reached 3.4% in the first quarter compared to the same period in 2023, potentially warranting a marginal upward revision of the full-year GDP growth forecast.

Unemployment is expected to improve on the initial 5.8% forecast for 2024, having fallen to 6% in the first quarter from 6.8% a year earlier.

The government is maintaining its 2.5% inflation forecast for the year, with inflation at 2.1% through June. Anti-inflationary measures, including electricity subsidies and fuel tax reductions, are estimated to have a fiscal impact of -0.3%.

Public debt decreased to 22.8 billion euros at the end of June, down from 23.1 billion euros a year earlier. As a percentage of GDP, it fell to 72.3% from 77.6% in the same period. The government expects public debt to further reduce to 22.2 billion euros, or 70.5% of GDP, by the end of 2024.

The Council of Ministers is set to review the first-half economic results today.

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In 2023, only 80.6% of recent graduates in Cyprus were employed, falling short of the EU average of 83.5%.

This ranking places Cyprus ninth from the bottom among EU member states.

While Cyprus has made strides in recent years, the data underscore the need for targeted efforts to improve graduate employment outcomes.

The EU has set a benchmark of increasing employment rates for recent graduates of secondary vocational education to 82% by 2025. Ten member states, including Germany, the Netherlands, and Denmark, have already achieved this goal.

Eurostat analysis reveals that graduates with tertiary education tend to have higher employment rates than those with lower levels of education.

Moreover, the data suggest that apprenticeships and vocational programmes can significantly enhance job prospects for recent graduates.

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While the unemployment rate showed a slight decrease, which is positive, some concerning figures emerged from the data that should set off alarm bells.

Specifically, the data indicates that among young people aged 15-24, the unemployment rate increased marginally to 16.2% of the labour force in this age group.

The relatively high unemployment rate among young people is an issue that has concerned authorities for years, and finding solutions remains a challenge.

Another issue highlighted by the data is the duration of unemployment. According to the figures, 26.2% were long-term unemployed.

While this represents a decrease compared to 2023, it remains at a high level, indicating that a significant number of people are struggling to enter the labour market.

Αγ.Αγ.

According to the Statistical Service, based on data maintained by the District Labour Offices, the number of registered unemployed at the end of April 2024 reached 9,343 individuals. Adjusted for seasonal fluctuations, indicating the unemployment trend, the number of registered unemployed in April 2024 decreased to 10,880 individuals compared to 11,182 the previous month.

Compared to April 2023, there was a decrease of 1,941 individuals or 17.2%, primarily attributed to the sectors of financial and insurance activities, accommodation and food service activities, construction, trade, as well as a reduction in new entrants to the labor market.

Mining companies in the world’s top platinum supplier are shelving expansion projects, closing some operations and letting go of thousands of workers in a bid to preserve cash as metal prices plunge.

Implats said it was resorting to jobs cuts as its cost savings, deferment of capital projects and a voluntary severance scheme had “not sufficiently offset the impact of persistently lower prices” on the business.

Platinum is 7% down so far this year, while palladium is 10% lower since the beginning of the year.

“This has significantly undermined Implats’ financial position, which in turn threatens future job security for the entire workforce,” Implats CEO Nico Muller said in a statement.

Job losses are hot-button issues in the lead-up to a general election on May 29, where polls suggest the African National Congress could lose its parliamentary majority for the first time since the end of apartheid.

(Reuters)

The study, which was seen by Reuters ahead of its release on Friday, showed that unemployment will rise to an average of just under 2.8 million this year, the highest level since 2015.

However, that figure is well below the peak in 2005, when almost 4.9 million people were unemployed and Germany was considered the “sick man of Europe.”

“Last year, the labour market was quite stable, despite the recession,” IW labour market expert Holger Schaefer said. “But this year we are feeling the consequences of the economic crisis more strongly.”

Companies’ employment plans do not indicate any growth for the rest of the year, Schaefer said. “The number of newly registered vacancies fell to its lowest level in five years in March,” he said.

Germany’s unemployment rate is expected to rise to 6% this year, according to IW.

Other leading German economic institutes see the unemployment rate at 5.8% this year, falling to 5.5% next year. They forecast just under 2.7 million unemployed people for 2024 in their spring report for the German government.

RESILIENT LABOUR MARKET

The German economy contracted by 0.3% in 2023. Despite the downturn, the number of people employed rose by 340,000, or 0.7%.

IW experts attribute this jump in employment to labour hoarding, as companies tend to retain skilled workers even if they do not have enough work for them, fearing labour shortages in the future due to demographic changes.

Companies, however, usually can only do this for a short period.

“As the period of weakness extends, it is increasingly likely that staffing levels will have to be adjusted, as permanent declines in productivity will undermine the competitiveness of companies,” Schaefer said.

(Reuters)