Jobless rate seen at 3.7%

The unemployment rate for 2006 is seen at 3.7% from 3.8% in 2005 according to Ministry of Finance forecasts as a result of the higher growth rate of the economy.

The Ministry of Finance notes that the jobless rate in Cyprus has been on the rise during the last five years (2001-05), but says that it is low compared to other countries. In 2000, the jobless rate was 3.4%, which fell to 2.9% by 2001 but since then is on the increase.

During the first seven months of the year, the jobless numbers showed a mild improvement and fell to 13.270 from 13.680 in the same period a year ago.

The EC however, shows Cyprus unemployment rate at 5.9%, which the government expects to decline to 5.4% as hotel industry workers go back to work.