Cyprus has made youth employment a central priority in its updated labor market strategy for the years 2026 to 2028, according to Labour Minister Marinos Mousiouttas. This comes amid ongoing concerns over high youth unemployment, with the rate standing at 15% in December 2025, in line with the EU average but slightly above the eurozone’s 14.8%.

Challenges in the Youth Labour Market

According to Eurostat, youth unemployment in Cyprus has remained stubbornly high, with the rate at 15% as of December 2025. This is in contrast to a year earlier, when the unemployment rate among those aged 15 to 24 was 9.6%. Recent data from the Cyprus statistical service (Cystat) showed that the rate rose to 14.7% in the fourth quarter of 2025, with men and women both facing similar challenges, at 14.8% and 14.7% respectively.

Labour Minister Mousiouttas responded to questions from Green party MP Charalambos Theopemptou regarding the development and implementation of the National Action Plan for Youth Employment, which ended in 2017. He outlined various initiatives, including an early detection mechanism for NEETs—those not in employment, education, or training—who are referred to employment counselors within the first month of registering with the public employment service.

Initiatives and Their Limitations

Among the measures introduced was a targeted outreach program for NEETs aged 15 to 29, which ran from January 2024 to August 2025. Mobile units operated in both urban and rural areas, with 12 specialized employment counselors supported by a coordinator and public employment service staff. These teams aimed to identify and support young people outside the labor market and education system, reducing the risk of social exclusion and improving their chances of employment.

However, the results were limited, with only 542 NEETs identified through the program. As a result, the government decided not to renew it. Despite this, the labor department continues to promote various incentive schemes for young people, including a program for the recruitment of NEETs aged 15 to 29 under flexible working arrangements.

Mousiouttas also highlighted the ongoing development of technical and vocational education, with a current budget of more than €30 million. This follows a 2013 study by the International Labour Organisation, which identified structural problems in Cyprus’ labor market that required long-term solutions.

Future Strategies and Ongoing Reforms

The government has also been working on modernizing the public employment service and the labor department, a project that began in 2014 and is expected to continue until 2027, with a current budget of €17.8 million. Another key focus is the upgrading of lifelong career guidance, leading to the establishment of the National Lifelong Guidance Agency to support closer cooperation between education and employment guidance services.

Mousiouttas emphasized the modernization of apprenticeship and internship systems as part of broader efforts to strengthen technical and vocational education and improve the employability of young people. Changes have been introduced since 2014, aiming to align training programs with labor market needs.

Following the end of the National Youth Strategy for 2017 to 2022, the Youth Board of Cyprus is now preparing the second National Youth Strategy for 2030. This will build on the eight policy areas covered in the previous strategy, including employment, education, and social inclusion, and will involve input from young people and public bodies.

In related developments, Mousiouttas is currently in Brussels to chair the EU Employment, Social Policy, Health and Consumer Affairs Council (EPSCO) on Monday. The meeting will focus on the 2026 European Semester, human capital, and the impact of artificial intelligence on jobs. Among the agenda items is the expected adoption of a new EU recommendation on human capital, aimed at addressing skills shortages and improving coordination between training and education policies.

Additionally, the council will review the preliminary agreement on revising the European Globalisation Adjustment Fund regulation, which aims to provide faster support to workers facing redundancy. The changes are expected to help workers either re-enter the labor market or take on different roles more quickly.

EU employment ministers will also hold a policy debate on ‘From Innovation to Quality Jobs: using AI to strengthen quality employment and workers’ rights.’ The discussion will be led by European Commission executive vice-president Roxana Mînzatu, with participation from Nobel Prize-winning economist Christopher Pissarides.