Cyprus unemployment climbs y/y for first time in 17 months

Unemployment rose in Cyprus for the fist time in 17 months in September, according to our analysis of the registered unemployment figures released this week.
Moreover, it was the fastest pace of increase seen in more than two years.
At first sight the figures looked positive. The Statistical Service reported that the number of unemployed people registered at the District Labour Offices on the last day of September 2008 reached 10,319, a drop of 482 compared with the 10,801 recorded in August.
The decrease was mainly recorded in the sector of education and it is attributed to the recruitment of teaching and auxiliary staff in educational institutions.
However, compared with the same month of 2007, unemployment rose by 425 people, or 4.3%.
According to our analysis, this is the first year-on-year increase in unemployment for 17 months: in April 2006, unemployment rose by 0.7% compared with April 2005.
Moreover, it is the first significant increase since July 2006, when unemployment rose by 7.5%.
One of the main reasons for the increase was a surge in new registrations: up by 27.2% compared with September 2007.
There were also increases in wholesale and retail trade and real estate, the latter reflecting a weakening house market.

Fiona Mullen
www.sapientaeconomics.com