Cyprus Labour Force Survey defies expectations

The Labour Force Survey in Cyprus defied expectations in the fourth quarter, showing both a fall in unemployment and a rise in employment.
In the fourth quarter of 2008, the total number of unemployed fell to 13,351 from 14,051 in the fourth quarter of 2007.
At the same time, the total number of employed rose to 385,686, from 384,852 in the same period of 2007.
The Labour Force Survey is carried out in accordance with EU definitions. By contrast, the registered unemployment number, which has a more narrow definition, showed a rise in unemployment in the same period.
This rise in employment and fall in unemployment according to the LFS figure came about despite the fact that the labour force (people of working age available for work) grew slightly in the same period, from 398,903 to 399,036.
According to the Statistical Service, the unemployment rate in the fourth quarter under LFS definitions was 3.3%, down from 3.5% in the same period of 2007.
For the year as a whole the unemployment rate was 3.7%, down from 3.9% in 2007.
The labour force numbered 397,374 people in 2008 and the employment rate was 61.9%, which is fairly high by EU standards.

Fiona Mullen
www.sapientaeconomics.com