(Commonwealth_Europe) Cyprus is currently facing a significant shortage of foreign workers, particularly in the construction sector, which has become one of the most affected industries. This shortage is having a detrimental impact on both private construction projects and public infrastructure development. The Federation of Associations of Building Contractors of Cyprus (OSEOK) has urged the government to take immediate action to address the growing labor gap in the country.
In addition to construction, other sectors such as tourism, hospitality, retail, and healthcare are also struggling with a lack of available workers, which is negatively influencing the country’s economy. Despite being in a state of full employment, Cyprus does not have enough workers to meet the increasing demand in these industries.
The root cause of the labor shortage is multifaceted. Cyprus has experienced substantial economic growth in recent years, driven by increased tourism, higher investments, and a growing demand for skilled workers. However, the supply of labor, particularly in certain fields, is not keeping up with this increased demand. In particular, the number of available workers has been steadily declining, which has made it difficult for employers to fill job openings, especially in construction and other essential sectors.
OSEOK has expressed concern about the severity of the situation and the long-term consequences it could have on the country’s infrastructure development. They have highlighted the urgent need for comprehensive strategic planning that not only addresses the immediate labor shortages but also tackles the long-term challenges facing the construction industry. According to OSEOK, one of the most important aspects of this strategy would be accelerating the process for approving international workers, which at the moment can take up to six months. The lengthy waiting period has led to delays in filling critical roles, further exacerbating the shortage.
Additionally, OSEOK has called for Cyprus to reach bilateral agreements with countries that have a skilled labor force, allowing the country to tap into a broader pool of workers. This could help ease the labor shortage in the short term and support industries that are struggling to find skilled employees. Another key aspect of the strategy, according to OSEOK, is to better align education with the needs of the labor market. By ensuring that the next generation of workers is prepared for the demands of modern industries, Cyprus could help mitigate future workforce gaps.
Another proposal put forward by OSEOK is to reconsider the possibility of employing asylum seekers. Many asylum seekers in Cyprus are willing to work and have the potential to fill available positions, but regulatory barriers and restrictions often limit their ability to enter the labor market. By allowing these individuals to work, Cyprus could harness a significant portion of its available workforce, addressing both labor shortages and humanitarian concerns.
The federation has made it clear that it is ready to cooperate with the government to develop a sustainable strategy that will ensure the stability and growth of the construction sector. OSEOK emphasized that resolving the labor shortage will require a collaborative approach, involving not only government bodies but also employers and relevant agencies working together to create practical and effective solutions.
In response to the labor crisis, the Labor Minister of Cyprus, Yiannis Panayiotou, issued a decree in December 2024 aimed at attracting highly qualified workers from non-EU countries. This decree is designed to simplify the process for foreign workers to enter Cyprus, particularly in industries such as information and communication technology, maritime services, and pharmaceutical research. The new rules focus on making it easier for highly skilled professionals from non-EU countries to find employment and live in Cyprus.
Under this new decree, professionals from non-EU countries can apply for a European Blue Card, a residence and work permit that allows highly skilled workers to live and work in any European Union country. This is a significant move to address labor shortages in sectors where skilled professionals are in high demand. Additionally, the decree also opens opportunities for foreign students to engage in part-time work while studying, offering more flexibility for international students to support themselves and contribute to the workforce.
While this new decree is a positive step toward addressing labor shortages, experts have pointed out that more comprehensive solutions are still needed, particularly in sectors like construction, which are facing the most immediate challenges. The combination of a strategic approach to attracting foreign workers, improving the efficiency of the approval process, and better aligning education with market needs may provide the long-term solutions Cyprus needs to ensure the growth and sustainability of its economy.
The labor shortage in Cyprus is a growing concern for many industries, and it will require coordinated action from all sectors of society to resolve. OSEOK and other organizations have called on the government to act swiftly and effectively to address this issue before it undermines the stability of the country’s economy and infrastructure.
