Cyprus' Construction Industry Faces Urgent Labour Shortage, OSEOK Calls for Action

The Federation of Associations of Building Contractors of Cyprus (OSEOK) has raised concerns over the severe labour shortage impacting the construction industry, urging authorities to implement immediate solutions. As one of the most affected sectors, the industry is facing challenges that hinder both private projects and public infrastructure development.

Labour Shortage Crisis in Cyprus’ Construction Industry

The demand for skilled labour in Cyprus has surged, yet the supply of workers is dwindling. OSEOK has emphasized that this growing problem requires strategic planning to mitigate its effects and ensure the continued growth of the industry.

OSEOK’s Proposed Solutions:

• Faster Approval Process for International Workers: Currently, applications for foreign workers take up to six months for approval, causing significant delays.
• Bilateral Agreements with Skilled Workforce Nations: Cyprus could benefit from agreements with countries that have a surplus of skilled labour.
• Stronger Link Between Education & Labour Market: Aligning educational programs with industry demands will help train a new generation of workers for modern construction needs.
• Utilization of Asylum Seekers: Exploring the employment of asylum seekers as a way to supplement the available workforce.

OSEOK has reiterated its commitment to working with the government, employers, and industry stakeholders to create a sustainable long-term strategy that ensures the stability and growth of the construction sector.

New Labour Decree to Address Workforce Shortage

In December 2024, Cyprus' Labour Minister, Yiannis Panayiotou, issued a new labour decree designed to ease the process of hiring highly skilled foreign workers from non-EU countries.

Key Aspects of the Decree:

• Facilitating Job Access for Foreign Workers: Making it easier for international professionals to secure employment in Cyprus.
• Allowing Foreign Students to Work Part-Time: This move aims to integrate students into the workforce while they study.
• Targeting Specific Sectors: The decree prioritizes industries such as information technology, maritime, and pharmaceutical research.
• European Blue Card Eligibility: Highly skilled professionals from non-EU countries can apply for the European Blue Card, allowing them to live and work in any EU nation.

Economic Impact of Labour Shortages in Cyprus

The construction industry is not the only sector suffering from a worker shortage. Other key industries, including tourism, hospitality, retail, and healthcare, have also been affected. Despite full employment conditions, businesses are struggling to meet workforce demands due to economic growth, increased tourism, and higher investment levels.

A Coordinated Approach Needed for Sustainable Growth

OSEOK has stressed the importance of a unified effort between government entities and industry leaders to secure the future of Cyprus’ workforce. Without immediate intervention, the labour shortage could hamper economic development, delaying key infrastructure projects and reducing the competitiveness of Cyprus' industries on a global scale.

As the government and business sector work together, the coming months will be crucial in determining the long-term stability of the Cypriot labour market.