Cyprus is among the EU member states that recorded some of the highest increases in labour productivity in the fourth quarter of 2025, with a growth rate exceeding 2%, according to the European Employment and Social Outlook Quarterly Review published by the European Commission.
According to the analysis by the Directorate-General for Employment, Social Affairs and Inclusion, labour productivity in the EU increased by 0.8% year-on-year in the fourth quarter of 2025, with the highest increases recorded in Lithuania, Poland, Cyprus and Malta.
The EU employment rate reached a historic high of 76.3%, approaching the 78% target set for 2030. Nine Member States achieved or exceeded their national targets, while the largest improvements were recorded among women aged 55-64.
By contrast, the largest deterioration was observed among women aged 15-24 (-0.4%). Despite increased uncertainty, employment expectations showed signs of stabilisation, with the relevant index increasing by 1.5 percentage points between September 2025 and February 2026, although it remains below the long-term average.
The highest expectations were recorded in Greece, Spain and Bulgaria, while the lowest were observed in Belgium, Austria and Germany.
Unemployment remained at historically low levels, declining to 6.0% in the fourth quarter of 2025 and to 5.9% in February 2026, although slight increases were recorded for young people aged 15-24 and for older men.
The job vacancy rate stabilised at around 2%, reflecting ongoing labour shortages, particularly in construction and in administrative and support service activities.
Inflation stood at 2.1% in February 2026, showing a slight increase compared to January, while flash estimates for March indicate a rise to 2.5%, mainly due to changes in energy costs.
At the same time, real gross disposable household income increased by 1.1% in the third quarter of 2025, with growth mainly supported by rising employee compensation, while reductions in net social benefits limited the overall increase.
(Source: CNA)
