The Cypriot labor market finished 2025 on a remarkably strong note, witnessing a significant expansion in both the total number of people in work and the total volume of hours they contributed. According to provisional estimates released by the Cyprus Statistical Service (Cystat) on Friday, March 6, 2026, the final quarter of the year saw employment figures rise by 2% compared to the same period in 2024.
Even more striking was the growth in labor intensity, with the total number of hours worked jumping by 3.3%. Analysts suggest this gap between headcount and hours indicates not just a larger workforce, but a more active one, as businesses ramped up operations during the year-end period.
A Closer Look at the Workforce
By the end of December 2025, the total number of people employed across the island reached 519,116. The vast majority of these individuals are categorized as salaried employees, while a smaller, resilient segment continues to operate independently.
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Salaried Employees: 466,265 persons
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Self-Employed Individuals: 52,851 persons
The total volume of labor for the quarter was estimated at a massive 244.17 million hours, highlighting a robust economic engine that is working longer as well as harder.
Sector Standouts: Where the Growth is Happening
The expansion was not uniform across the economy, instead it was driven by a few high performance sectors that saw simultaneous increases in hiring and hours worked.
The primary drivers of this growth include:
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Wholesale and Retail Trade: Boosting employment through consumer demand and the logistics of motor vehicle and motorcycle repairs.
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Construction: Continuing its role as a pillar of the Cypriot economy, fueled by ongoing infrastructure and residential development.
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Manufacturing: Showing resilient growth as local production capabilities expand.
Economic Implications
The 3.3% rise in hours worked outpacing the 2% rise in persons, suggests that existing employees are working more hours on average, often a precursor to further hiring if the trend sustains. This data aligns with recent reports of a 4.5% jump in GDP for the same quarter, confirming that the island’s economic output is being powered by a highly engaged and expanding workforce.
As the island navigates the early months of 2026, these labor statistics provide a solid foundation for fiscal stability, though policymakers will be watching to see if the increased hours eventually translate into a more permanent recruitment drive in the services and industrial sectors.
Source: news.cyprus-property-buyers.com