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Cyprus Faces Labor Shortage in the Construction Sector

The construction industry in Cyprus is facing a severe labor shortage, prompting the Federation of Associations of Building Contractors of Cyprus (OSEOK) to call for urgent action. This shortage is affecting both private development projects and public infrastructure, leading to concerns over project delays and economic strain.

Labor Shortage Extends Beyond Construction

While the construction sector is one of the most impacted, labor shortages are also evident in tourism, hospitality, retail, and healthcare. Despite Cyprus experiencing near-full employment, the number of available workers is insufficient to meet market demands. Economic growth, increased tourism, and rising investments have further intensified the need for skilled labor.

OSEOK’s Proposed Solutions

To address the labor crisis, OSEOK has suggested the following measures:
✅ Faster approval of work permits – Current applications take up to six months.
✅ Bilateral agreements – Partnering with countries that have skilled workers.
✅ Education & training alignment – Preparing the next generation for industry demands.
✅ Exploring asylum seeker employment – Utilizing available workforce potential.

The federation emphasizes the importance of collaborative efforts between the government, employers, and relevant agencies to ensure a stable and sustainable construction workforce.

New Labor Decree to Support Workforce Growth

In December 2024, the Labor Minister of Cyprus, Yiannis Panayiotou, introduced a new decree to facilitate the employment of highly skilled foreign professionals in industries such as ICT, maritime, and pharmaceuticals. Additionally, non-EU professionals can apply for the European Blue Card, allowing them to live and work within the EU.

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