Unemployment in the Limassol district has been on a downward trend in recent months and years, remaining below the average for Cyprus and the Eurozone. However, a significant challenge persists due to the shortage of local workers to fill vacant positions.
According to the Statistical Service, the total number of unemployed in Limassol numbered 2,348 at the end of September 2024, down from 3,556 in August and 3,595 in July. Reports suggest that the October figures indicate an even lower number of unemployed.
In the second quarter of 2024, there were 6,940 unemployed people in Limassol, representing an unemployment rate of 4.41%. In the first quarter of 2024, there were 8,048 unemployed (5.08%), while in the fourth quarter of 2023, the number was 8,358 (5.20%). For the first half of 2024, the number of unemployed in Limassol was 7,493, compared to 9,521 during the same period in 2023.
In 2020, the annual average of unemployed people in the Limassol district was 6,704, dropping to 5,886 in 2021, 3,546 in 2022, and 3,191 in 2023. According to the latest Eurostat data, Cyprus had an unemployment rate of 6% in March, which is close to the EU average and remains below the Eurozone average of 6.5%. Currently, unemployment in Cyprus has fallen to 5.4%.
The Director of the Labour Relations Department of the Cyprus Chamber of Commerce & Industry (CCCI), Mr. Emilios Michael, indicated that businesses in Limassol are desperate, as there are no local staff to fill vacancies. He pointed out that the problem first and foremost concerns the tourism sector, especially hotels. He also said that there is a high demand for staff in the retail sector (salesmen, storekeepers) and that professional drivers are in short supply. "In the ready-mix concrete sector, staff are working overtime 25 to 35 hours a week because there are no drivers," he said.
Mr. Emilios Michael noted that the problem is becoming worse as employers of political asylum seekers receive letters from the state to fire them because their application for political asylum was not approved. He stressed that these workers also need to be replaced. According to Mr Michael, the Minister of Labour promised that for those workers who leave, permits will be given to employ staff from third countries.
He also told us that the CCCI's request is to free up the labour market for students from third countries who are legally in Cyprus and studying at universities, so that they can work anywhere, in order to alleviate the problem. He pointed out that students in the rest of Europe are entitled to work wherever they want, while in Cyprus only in certain categories.
As for technology companies and other start-ups, according to the CCCI, there are not even qualified staff in Limassol (in specific specialties). Some of these businesses want to set up in the city, but they cannot because they are not able to find staff, which is an obstacle to Limassol's development. The District Secretary of SEK, Mr. George Odysseos, pointed out that Limassol is facing a serious shortage of local staff to fill job vacancies, creating challenges for the district’s labour market. He highlighted that for many sectors, such as agriculture and industry, it is difficult to find personnel. Commenting on the issue of unregistered unemployed individuals, he noted that if someone wishes to receive unemployment benefits or credit on their cards, they will register as unemployed. "But if someone registered for the first six months, received the benefit, had their cards credited for the remaining six months, and is then sent to jobs by the relevant authorities but does not show up, they are not re-registered as unemployed," he highlighted.
The District Secretary of PEO, Ms. Maria Syngeri, emphasized that the official unemployment figures do not reflect the true unemployment rate, as many unemployed individuals do not renew their registration after their unemployment benefits end. At the same time, she acknowledged the need for workforce coverage in specific sectors but noted that this does not justify the hiring of low-cost labour from third countries.
PEO supports changes in the Employment Strategy for Workers from Third Countries, aiming to establish Collective Labor Agreements for all employees and to remove the Minister's ability to grant work permits against the negative recommendations of the Labor Department.
