Cyprus registered unemployment falls in 2006

According to the latest registered unemployment data for December, the number of registered unemployed fell by 330 people or 2.5% to 12,824 in the whole of 2006, compared with 16,153 in 2005.

In the big categories, the sharpest drop was seen in the category of hotels and restaurants, where, despite an apparently bad year for tourism, unemployment in this category fell by 483 people or 19.9% to 1,946.

The sector encompassing wholesale and retail trade and repairs fared worse. This already has the highest registered unemployment levels, at 2,274, or 17.7% of all unemployed, and unemployment in this category fell by only 16 people.

Therefore, this comparatively low-skilled sector appears to have been hit harder hit by competition from cheaper foreign labour than hotels and restaurants.

Registered unemployment does not catch all citizens who are unemployed. For example, many young people do not register as unemployed because they have not qualified for benefits and are less likely to use the government system for finding jobs.

The registered unemployment figures also “over-counts” early retirees who are entitled to a short period of unemployed benefits.

Fiona Mullen