Cyprus unemployment drops despite expanding labour force

The number of unemployed persons fell in 2006 despite an increase in the size of the labour force, according to the quarterly Labour Force Survey (LFS).

The total number of unemployed in 2006 fell by 2,488 persons to 17,004, from 19,492 in 2005. The average unemployment rate fell in the same period to 4.5%, from 5.3% in 2005.

In the fourth quarter of 2006, unemployment fell by 3,266 persons to 4.2% of the labour force, compared with 5.2% in the fourth quarter of 2005. 

The LFS unemployment rate is more representative than registered unemployment because it captures all of those looking for work, rather than only those who register to receive benefits. 

The fall in the number of unemployed came in spite of a rise in the total size of the labour force by 8,240 persons, from 367,524 in 2005 to 374,285 in 2006.

This is because employment in the same period also expanded in 2006, by 9,251 persons to 357,282, from 348,031 in 2005.

 

Youth unemployment falls from high

 

While youth unemployment remains high, one encouraging sign was that unemployment in this group also fell.

From an unemployment rate of 13.9% in 2005, youth unemployment fell to 10% in 2006.

This may be assign that after the government’s squeeze on new recruitment, young people are finally looking to the private sector for work.

 

Fiona Mullen