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- Ελληνικά
- Reduction of unemployment of the domestic workforce
- Acceleration of licensing procedures for foreign workers
Held today a very substantial meeting with the Presidents of the Pancyprian Association of Hoteliers (PASYXE) and the Association of Cyprus Tourism Enterprises (STEC) was held today at the Ministry of Labour and Social Insurance, in the presence of our friend the Deputy Minister of Tourism, with the aim of informing him about the progress of the staffing of the labour market, and particularly the staffing of the tourism industry, where we jointly noted the positive results that have been achieved.
The government's plan for the effective staffing of the labour market is being successfully implemented, as established by statistics and confirmed by actual data.
The positive growth rates of the Cypriot economy imply the creation of prospects for additional jobs and the improvement of wages.
We are methodically exploiting the prospects created for the domestic human resources in order to achieve the formation of full employment conditions and the enhancement of wage adequacy, while at the same time responding in a timely manner to the real needs of companies and organizations for the utilization of workers from abroad.
The policy implemented by the Government makes it possible to achieve these objectives in parallel and leads to significant people-centred and developmental results.
Already, according to the data of the Statistical Office, unemployment has been reduced and employment has been strengthened, while an upward trend in wages has been identified. Specifically, in the first quarter of 2024, compared to the same period in 2023, unemployment in our country has decreased from 6.9% to 6.0%, which means that the unemployed have decreased by 4,055 people, while employment for the same periods is increased.
The downward trend in unemployment is also confirmed by data from the Ministry of Labour, as the registered unemployed have decreased by 13.2% and have been reduced to 13,760 people, from 15,851 people in the same period last year. The Statistics Office also finds that for the first quarter of 2024, hourly labour costs increased by 4.9%, with wages recording an increase of 4.5%, reflecting the positive evolution of the economy with a growth rate higher than initial estimates.
However, the domestic workforce is de facto not enough to cover all the additional labour needs, so it is also necessary to use workers from abroad, in accordance with all legal and foreseen procedures.
Over time, the process of licensing employers to employ foreign workers has been complex and time-consuming, with frequent debates between social partners on the actual extent of the needs and employment opportunities for foreign workers and domestic human resources respectively.
We are pleased to note that the implementation of the government policy has yielded tangible results, as the situation has normalized, the response has improved, the labor market has been staffed, and in the coming period it is expected that with the use of technology the process will be further upgraded.
At the same time, the agreement of the social partners to better cooperate with each other was an important step that facilitated the collective effort made by all, as transparency and understanding Also, the time it now takes to activate each work permit is now around one month, whereas previously it took twice as long.
This acceleration has resulted in the completion of the processing of more than 85% of the total requests submitted by the end of May 2024.
It is reported that a total of 4,146 new permits had been issued by the end of May, confirming the Ministry of Labor's estimates of additional new work permit needs of between 4,000-6,000 foreign workers. For the tourism industry in particular, the examination completion rate by the end of May exceeds 95%, meaning that the possibility of full staffing ahead of the summer season is assured.
In addition, I would like to point out that the Immigration Employment Service of the Labour Department has, among other things, been reorganized and strengthened, the work of simplification and standardization of the internal procedures of the competent services has been completed with the support of an international consulting firm, an IT contractor has already been awarded the development of an electronic platform for the submission and management of applications submitted, and bilateral agreements with third countries on labour market staffing have already started to be concluded. Thus, it is estimated that by the end of 2024 the full upgrade will be completed and even greater acceleration will have been achieved.
I would like to thank the social partners for their cooperation and in particular I would like to thank the staff of the Public Service, the Director of the Labour Department, the Head of the Immigration Employment Service and their partners, who have worked and cooperated to significantly improve the speed and quality of the services provided by the State to citizens.
I would like to thank the social partners for their cooperation and in particular I would like to thank the staff of the Public Service, the Director of the Labour Department, the Head of the Immigration Employment Service and their partners, who have worked and cooperated to significantly improve the speed and quality of services provided by the State to citizens.
As the Government, we continue to methodically implement the President's Governance Programme and work constructively with our social partners for the development of the economy and the cohesion of society.
(NZ/AF)
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