Cyprus records highest quarterly employment growth in the EU

Cyprus recorded the strongest quarterly increase in employment in the European Union in the fourth quarter of 2025, with the employment rate for people aged 20 to 64 rising to 82.1 per cent from 81.5 per cent in the third quarter, according to Eurostat data released on Friday. 

That marked an increase of 0.6 percentage points, the biggest among EU member states over the quarter. 

Across the EU, the employment rate edged up to 76.3 per cent in the fourth quarter of 2025, from 76.2 per cent in the previous quarter. 

Cyprus therefore remained well above the EU average and ranked among the bloc’s top performers.  

Only Malta and the Netherlands, both at 83.5 per cent, and Czech Republic at 82.7 per cent, recorded higher employment rates than Cyprus in the final quarter of the year. 

Cyprus was followed by Estonia and Sweden, both at 81.8 per cent, while Germany stood at 81.4 per cent. 

On the contrary, the lowest employment rates in the EU were recorded in Italy at 67.5 per cent, Romania at 68.9 per cent, Greece at 71.6 per cent, Belgium at 72.5 per cent, and Spain at 72.8 per cent. 

Eurostat said Cyprus, along with Austria, Latvia, Greece and Spain, was among the 11 member states where employment rose during the quarter. Austria, Latvia, Greece and Spain each recorded increases of 0.4 percentage points. 

By contrast, the employment rate remained unchanged in Germany, Croatia, Italy, the Netherlands and Slovenia, while it declined in 11 EU countries. 

The sharpest decrease was recorded in Luxembourg, where the employment rate fell from 74 per cent to 72.9 per cent, a drop of 1.1 percentage points.  

It was followed by Denmark, down from 79.9 per cent to 79.3 per cent, and Estonia, down from 82.4 per cent to 81.8 per cent, both posting declines of 0.6 points. Malta also recorded a notable fall, from 84 per cent to 83.5 per cent. 

Elsewhere, Ireland rose from 79.9 per cent to 80.2 per cent, Portugal from 79.8 per cent to 80.1 per cent, Poland from 79 per cent to 79.2 per cent, and Bulgaria from 76.9 per cent to 77 per cent. 

At the same time, Eurostat reported that labour market slack in the EU stood at 11 per cent of the extended labour force aged 20 to 64 in the fourth quarter of 2025, unchanged from the third quarter. 

It said the figure covers all people with an unmet need for employment, including unemployed people.