Cyprus faces labour shortages driven by third-country nationals

Cyprus is experiencing significant labour shortages, particularly in the construction, tourism, agriculture, and service sectors. Data from the Deputy Ministry for Migration and International Protection indicates that as of late August 2026, over 60,000 third-country nationals are legally employed in the country, comprising 26,710 in general employment and 33,919 in domestic services.

Citizens from Nepal and India represent the largest groups of foreign workers, accounting for 28.8% and 21.9% of the general employment category, respectively. Other significant groups include nationals from Egypt, Bangladesh, Sri Lanka, and the Philippines. The government has sought to address shortages by establishing bilateral mobility agreements with nations such as Egypt and India, especially following the return of thousands of Syrian workers to their home country since late 2024.

While employers seek more personnel, trade unions SEK and PEO have raised concerns regarding the use of temporary employment agencies. Unions argue that some agencies ‘rent’ personnel to various businesses, a practice they claim undermines collective bargaining agreements and local labour rights. Some members of parliament have even linked certain agency practices to more severe issues such as human trafficking, leading to calls for stricter government inspections.