But what’s the unemployment rate?
The number of unemployed persons registered at the District Labour Offices rose by 462 year on year in June to reach 12,658.
If the size of the labour force did not change between April and June, then this translates into an unemployment rate of 3.6%, according to our calculations.
However, we can no longer tell you what the official registered unemployment rate is, because it seems that the International Labour Office has banned the Cyprus Statistical Service from saying so.
In its May release, the Statistical Service said that the unemployment rate was not being announced because “according to the International Labour Office the registered unemployed might not provide a safe basis for the total unemployment rate”.
Possible reasons for the data gap
We could not immediately get hold of the responsible Statistical Service officer for comment but there are a few possible reasons why the registered unemployment rate is no longer kosher.
Perhaps this is because the registered unemployment rate, which hovers between 3% and 4% depending on the time of year, is rather lower than the unemployment rate as measured by the ILO-defined Labour Force Survey. This was 5.2% in the fourth quarter of 2005.
The registered unemployment rate only measures those who register, and as far as we understand, once you have been unemployed for six months you can no longer receive benefits, so most people do not continue to register. This would artificially reduce the figures.
In addition, the Statistical Service also announced earlier this year that it no longer counts seasonal workers who are unemployed out of season. This would also artificially reduce the figures.
However, there are two practices that could artificially boost the figure. One of those is the apparently legitimate practice of retirees signing on for six months after they have retired.
The second is the obviously illegitimate practice of quitting your job and signing on for six months while you take a holiday on a large proportion of your previous pay. Other countries have cut this practice by not giving unemployment benefit to someone who leaves a job of their own accord. Maybe the government should think about it too.
The biggest year-on-year increase in registered unemployed in June was recorded in the sector of manufacturing, which increased by 204 people.
Unemployment among transport and communication workers rose by 130, possibly a reflection of restructuring at Cyprus Airways.
On the other hand, a decrease of 264 was recorded in the number of unemployed for public administration and defence: maybe as they moved into fully fledged retirement.
Fiona Mullen
