Cyprus Shines in Eurostat Data with High Employment Rates and ICT Sector Achievement
Recent Eurostat data has placed Cyprus in the spotlight, revealing a dual achievement for the island nation. Not only does Cyprus boast a high employment rate, but it also stands out as a leader in the Information and Communication Technology (ICT) sector. Employment rates across Europe have hit a record high, with 75.4 percent of people aged 20 to 64 entering the labor market, marking the highest level since Eurostat began tracking this data in 2009.
Despite the economic challenges posed by the Covid-19 pandemic, which saw a drop to 72 percent in 2020, the employment landscape has experienced three years of continuous growth. The Netherlands, Sweden, and Estonia lead with the highest employment rates, while Italy, Greece, and Romania are at the lower end of the spectrum.
Cyprus notably ranks 13th among 28 countries, with an employment rate of 78.9 percent, surpassing the EU average. However, alongside this positive trend is the issue of overqualified workers. In the EU, 22 percent of workers are deemed overqualified for their roles, with Spain, Greece, and Cyprus having the highest percentages of such workers.
Gender disparities in overqualification are also evident, with women in 18 out of 27 EU countries having higher rates than men. The gap between male and female employment rates further underscores gender imbalances in the job market.
On a more positive note, Cyprus’s ICT sector is thriving. The country ranks second in the EU for the provision of ICT services, contributing 8.9 percent to its gross value added. This achievement follows Eurostat’s earlier recognition of the ICT sector as a significant growth driver in Cyprus’s GDP over the past decade.
The data underscores Cyprus’s potential as a burgeoning tech hub within Europe and highlights the need for strategies to harness the skills of its workforce effectively. As Cyprus continues to navigate its economic landscape, the balance between high employment rates and the optimal utilization of its overqualified workers remains a key focus for policymakers.
