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Cyprus confronts labour shortages as government clarifies who can legally work

Sep 27, 2026
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Cyprus confronts labour shortages as government clarifies who can legally work
Cyprus is experiencing acute labour shortages in key sectors such as construction, hospitality and food-delivery, leading the government to spell out exactly which non-EU nationals are allowed to work and on what terms. In an interview published on 27 September by the Cyprus Mail, the Deputy Ministry for Migration and International Protection revealed that 26,710 third-country nationals currently hold valid work and residence permits in the general-employment category, while a further 33,919 domestic workers are legally employed on the island. Nepalese (28.8 %) and Indian (21.9 %) citizens make up the largest shares of permit-holders, followed by Egyptians, Bangladeshis, Sri Lankans and Filipinos. Under Cyprus’ labour-migration policy, employers may only recruit non-EU nationals after a labour-market test shows that local or EU labour is unavailable. Approved sectors include agriculture, livestock, manufacturing, wholesale and retail trade, and a wide range of service jobs that have been unable to attract sufficient resident labour. Highly-skilled professionals who work for foreign-interest companies are channelled through separate fast-track schemes, while part-time employment rules apply to non-EU students enrolled at Cypriot universities. The deputy ministry stressed that applicants for international protection may also access limited sectors—such as farming, fisheries and waste management—once nine months have elapsed since they lodged an asylum claim. However, because most cases are decided more quickly than that, asylum seekers rarely reach the employment stage. The ministry confirmed that the sharp fall in new asylum claims (from 24,000 in mid-2024 to fewer than 12,500 today) has not altered Cyprus’ overall migration priorities: preventing irregular arrivals, accelerating returns and safeguarding genuine protection needs. Stakeholders across the economy are watching the situation closely. Construction companies say the departure of many Syrian workers—more than 5,500 have voluntarily returned home since 2024—has created serious bottlenecks just as public-and-private infrastructure projects ramp up. Trade unions, for their part, are calling for tighter regulation of temporary-employment agencies, which they accuse of exploiting foreign workers and undercutting collective agreements. In response, the government is expanding bilateral “structural mobility” agreements with countries such as Egypt and India to supply vetted, legally recruited workers while pledging stepped-up workplace inspections to protect labour standards. For multinational employers and global mobility managers, the message is twofold. First, hiring non-EU nationals in Cyprus is entirely possible, but only in officially approved sectors and through a process that requires coordination with both the Department of Labour and the Migration Department. Second, companies should expect more scrutiny of employment contracts, proof of genuine vacancies and evidence that Cypriot or EU candidates were unavailable. Businesses that plan ahead—allowing several weeks for permit issuance, budgeting for government fees and building compliance checks into their HR workflows—should still be able to meet staffing needs in one of Europe’s fastest-growing service economies.
Source: Cyprus Mail

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