The association of building contractors Oseok has warned that acute labour shortages in sectors like construction, tourism, and retail were stalling economic growth.
As the supply of skilled and unskilled workers decreased, the impact on private and public projects was becoming increasingly severe, said Oseok. Although there are full employment conditions, Cyprus’ labour force was not meeting market demands, which were boosted by growth and a surge in tourism.
This low supply was particularly acute in the construction sector, in which fewer Greek Cypriots were choosing to work, while the ageing workforce was insufficient to cope with modern construction demands that include knowledge of technology and sustainable practices.
According to the association, these shortages are not restricted to Cypriot workers; the sector has also felt the impact of a decreasing number of foreign workers, such as Syrians, who have been returning home after the fall of the Assad regime.
Meanwhile, Turkish Cypriots, primarily working in Nicosia and Famagusta districts, cannot cover the increased demand in other parts of the country.
The labour shortage, added Oseok, jeopardized the construction industry’s evolution, leading to project delays, increased costs, and reduced competitiveness. It also had an impact outside the construction sites, influencing real estate affordability and slowing the development of essential public infrastructure.
The broader economic implications were significant, as these delays discouraged investment and slowed down economic progress.
To deal with the shortage, Oseok is pushing for a strategic plan that speeds up the approval of applications for foreign workers, establishes transnational labour agreements, and aligns educational programmes with market needs.
Additionally, the association has suggested the employment of asylum seekers as a way of tackling the immediate needs.
According to the association, this coordinated action, bridging government efforts with industry needs, was crucial for addressing the gaps in Cyprus’ labour market and ensuring a sustainable economic future.
It also added that with focused initiatives, Cyprus aims to create a competitive, dynamic workforce that supports economic stability and growth.
