Cyprus Faces Labor Shortage in Construction Sector: Industry Calls for Urgent Solutions

Nicosia, 2025 – Cyprus is experiencing a severe labor shortage in the construction industry, prompting the Federation of Associations of Building Contractors of Cyprus (OSEOK) to call for immediate government action. The crisis is affecting both private construction projects and public infrastructure developments.

According to Schengen.News, the labor shortage extends beyond construction, negatively impacting tourism, hospitality, retail, and healthcare, all of which are critical to Cyprus’s economic growth.

Construction Sector Struggles to Fill Vacancies

Despite record-low unemployment, Cyprus lacks sufficient workers to meet the growing demand driven by economic expansion, rising tourism, and increasing investments.

A Phile News report indicates that while demand for workers has surged, the number of available employees is steadily decreasing.

OSEOK emphasized the need for a comprehensive long-term strategy to address labor shortages in the construction sector.

OSEOK’s Key Proposals to Address Labor Shortages

The Federation of Building Contractors has outlined several strategic measures to stabilize the sector:
- Accelerating the approval process for foreign worker applications. Currently, permits take up to six months to be processed.
- Establishing bilateral agreements with countries that have skilled labor to streamline recruitment.
- Linking education with the labor market to better prepare young professionals for the modern needs of the construction sector.
- Considering the employment of asylum seekers to fill existing labor gaps.

OSEOK emphasized that resolving the workforce crisis requires coordinated action between the government, businesses, and relevant agencies.

New Labor Decree to Attract Foreign Workers

In December 2024, Cyprus’s Labor Minister Yiannis Panayiotou signed a decree to facilitate the hiring of highly skilled workers from non-EU countries.

The decree aims to simplify job access for foreign workers and allow international students to take on part-time jobs.

For highly skilled professionals outside the EU, the government is focusing on critical sectors such as:
- Information and communication technology.
- The maritime sector.
- Pharmaceutical research.

Additionally, professionals can now apply for a European Blue Card, which grants them the right to live and work across the European Union.

With these measures, Cyprus is adapting its labor policies to attract foreign professionals and mitigate workforce shortages in key industries.