Shift in public sector staffing driven by local authority reform

Employment in the broad public sector in Cyprus reached 77,034 in the first quarter of 2025, according to a report released on Monday by the Cyprus Statistical Service (Cystat).

Of this total, 72,072 were employed in general government and 4,962 in companies and enterprises controlled by the government.

Within the general government, which includes central government, non-profit organisations and local authorities, employment stood at 55,243, 11,248 and 5,581 respectively.

Compared to the corresponding quarter of 2024, employment in the broad public sector increased by 1,311 people, a rise of 1.7 per cent.

Central government employment rose by 1,026 persons, an increase of 1.6 per cent, while local authorities saw a significant rise of 1,117 persons or 25.0 per cent.

Employment in government-controlled companies and enterprises fell by 832 people, a decrease of 14.4 per cent.

The increase in local authority employment and the concurrent decrease in government-controlled companies and enterprises was attributed to the establishment of the district self-government organisations (EOA) on July 1, 2024, under whose jurisdiction the activities of water supply boards and sewerage boards were transferred.

Compared to the fourth quarter of 2024, employment in the broad public sector rose by 197 persons or 0.3 per cent.

An increase of 260 persons or 0.4 per cent was recorded in central government employment, while local authorities saw a decline of 59 persons or 1.0 per cent.

Employment in government-controlled companies and enterprises remained close to the levels observed in the fourth quarter of 2024.

Job vacancy rate stable, labour costs climb across sectors

The statistical service also reported that the number of job vacancies in Cyprus during the first quarter of 2025 amounted to 13,524, marking an increase of 295 positions or 2.2 per cent compared with the same quarter in the previous year, when vacancies stood at 13,229.

Compared with the fourth quarter of 2024, vacancies increased by 527, a rise of 4.1 per cent.

The vacancy rate, defined as the number of job vacancies as a proportion of the total number of occupied posts and vacancies, stood at 2.9 per cent in the first quarter of 2025.

This was slightly higher than the 2.8 per cent recorded in the previous quarter but marginally lower than the 3.0 per cent reported in the same quarter of 2024.

The highest vacancy rates in the first quarter of 2025 were observed in the sectors of arts, entertainment and recreation at 6.9 per cent, accommodation and food service activities at 5.2 per cent, and transportation and storage at 4.5 per cent.

Meanwhile, the stastitical service also released its latest hourly labour cost report for the first quarter.

Adjusted for seasonal variations, the hourly labour cost in Cyprus increased by 1.3 per cent compared with the previous quarter.

The component of hourly labour cost related to wages and salaries also increased by 1.3 per cent, while the non-wage component, also seasonally adjusted, rose by 1.5 per cent.