Cyprus Seeks More Foreign Workers to Address Construction Sector Shortages

Key Highlights

• The Federation of Associations of Building Contractors of Cyprus (OSEOK) has urged immediate action to address labor shortages.
• The construction industry is among the hardest hit sectors.
• OSEOK stresses the importance of a strategic plan to tackle the labor gap.

Cyprus Faces Growing Demand for Foreign Workers in Construction

The construction sector in Cyprus is experiencing a severe labor shortage, prompting OSEOK to call for urgent solutions. As one of the most affected industries, the lack of workers is impacting both private construction projects and public infrastructure development, according to Schengen.News.

Beyond construction, labor shortages are also affecting key sectors like tourism, hospitality, retail, and healthcare, putting strain on the country’s economy. Despite full employment conditions, there are not enough local workers to meet market demands, as highlighted by Phile News.

Economic expansion, rising tourism demand, and increased investments have contributed to the need for more workers. However, the available workforce is declining, creating further challenges.

OSEOK Calls for Strategic Measures to Address Labor Shortages

To combat the labor crisis, OSEOK emphasizes the necessity of a well-defined plan that addresses both immediate and long-term workforce needs. The proposed measures include:

• Speeding up the approval process for hiring international workers, as current applications take up to six months.
• Establishing bilateral agreements with countries that have a skilled workforce.
• Aligning education with labor market demands to train the next generation of construction workers.
• Considering employment opportunities for asylum seekers to utilize the existing workforce.

OSEOK has expressed its commitment to working alongside the government and relevant agencies to create a sustainable strategy that stabilizes and strengthens the construction sector. The federation insists that addressing labor shortages requires collaborative efforts between policymakers, employers, and industry stakeholders.

Cyprus Introduces New Labor Decree to Strengthen Workforce

In December 2024, Cyprus' Labor Minister, Yiannis Panayiotou, introduced a new decree aimed at facilitating the entry of highly skilled workers from non-EU countries. The measure also simplifies the process for foreign workers to secure jobs and allows international students to work part-time.

For highly skilled professionals, the decree specifically targets fields such as information technology, maritime services, and pharmaceutical research. These professionals can apply for a European Blue Card, granting them the right to live and work across the European Union.

By implementing these policies, Cyprus aims to alleviate labor shortages and sustain its economic growth while ensuring that industries, particularly construction, remain operational and competitive.