Demande directe (CEACR) - adoptée 2025, publiée 114ème session CIT (2026)

Convention (n° 122) sur la politique de l'emploi, 1964 - Chypre (Ratification: 1966)

Articles 1 and 2 of the Convention. Implementation of an active employment policy. Labour trends. The Committee notes the information provided by the Government, including employment measures adopted during the reporting period and data from the Labour Force Survey for the 2018–23 period. It notes that the employment rate (age group 20–64) has been steadily increasing from 73.9 per cent in 2018 to 78.9 per cent in 2023 (83.6 per cent for men and 74.6 per cent for women) and that the unemployment rate has decreased from 8.4 per cent in 2018 to 6.1 per cent in 2023 (with unemployment for women at 6.2 per cent and men at 6.0 per cent). According to Labour Force Survey results for the first quarter of 2025, unemployment continued its downward trend to 5.0 per cent (5.8 per cent for women and 4.5 per cent for men). In response to its previous comments, the Committee notes the various Employment Subsidy Schemes administered by the Department of Labour, targeting different groups of unemployed persons. It notes in this regard the new Entrepreneurship Scheme under the Cohesion Policy Programme “THALIA 2021–27”, whose aim is to develop, support and encourage entrepreneurship. The first call of the scheme was announced in May 2021, with a second call expected. The Committee further notes that the THALIA Programme aims to create a robust and competitive economy through smart, digital and green investments, under conditions of full employment and social cohesion. One programme priority focuses on employment, education and training, with the modernization of the Public Employment Services (PES) being a planned action. The Government indicates that, between 2018 and 2023, the Department of Labour hired 30 temporary Employment Counsellors, mainly individuals from vulnerable groups, to improve PES services. In this regard, the Committee notes that the Staff Working Document of the European Commission’s 2024 Country Report for Cyprus records “some progress” on completing reforms to increase the effectiveness of the public employment services.

The Committee welcomes the focus of the “THALIA 2021–27” programme on the green and digital transitions. However, it notes with concern the European Commission’s 2024 assessment of only “some progress” in modernizing the Public Employment Service (PES). Given that an effective PES is essential for addressing the skills shortages linked to these transitions, the Committee requests the Government to provide specific information on the measures being taken to accelerate the PES reform and enhance its capacity for effective skills matching. It also requests the Government to explain how Labour Force Survey data on employment gaps (such as the 9-point gap for women) is concretely used to design and target active labour market policies.

Education and training policies and programmes. The Committee notes the Government’s indication that the Human Resource Development Authority (HRDA) operates a variety of schemes addressing the needs of the employed, the unemployed and the economically inactive, cooperates closely with PES; and that, as of January 2024, procedures for almost all HRDA schemes have been simplified, and subsidies increased. It notes participation in training activities during 2021–23, with the total trainees reaching 41,524 in 2021, 53,231 in 2022, and 58,272 in 2023. The Committee welcomes the detailed information on training programmes implemented, including programmes to acquire digital skills, and notes the Government’s indication that the proportion of women participants in training activities ranges from 43 to 46 per cent, showing an increase over 2021–23. The Committee notes with interest the evaluation results indicating that, inter alia, for 2018–21, 92.8 per cent of participants in the tertiary education graduates’ education and training scheme were employed, on average, eight months after completion; and for 2019–21, 87.0 per cent of long-term unemployed trainees were employed ten months after programme completion.

The Committee welcomes the very positive impact data provided for the HRDA training schemes, which show high employment outcomes (92.8 per cent and 87.0 per cent). In light of this proven effectiveness, and in the context of the significant labour and skills shortages identified by the European Commission, the Committee requests the Government to provide information on measures taken to scale up these successful programmes. Government is to also provide information on how the HRDA and the PES are coordinating to ensure these training schemes are aligned with the new skills demands of the “THALIA 2021–27” programme’s smart and green investment priorities.

Specific categories of workers. The Committee welcomes the detailed information provided by the Government on the Subsidy Schemes completed in previous years and the ongoing targeted Subsidy Schemes, including: (i) the Subsidy Scheme for Work Restoration of Detainees (2020–27), which offers a maximum grant of €20,640 over 24 months for unemployed persons released from prison, and has received 79 applications; (ii) the Subsidy Scheme for the Employment of People with Disabilities (2021–27), which provides a maximum grant of €22,360, and has received 66 applications; and (iii) the Subsidy Scheme for the Employment of Persons with Chronic Diseases (2021–27), which provides a maximum grant of €22,360, and has so far received 131 applications. The Committee further notes the Scheme for providing incentives for the employment of the unemployed by providing flexible forms of work through teleworking (2021–2027), which offers a maximum grant of €8,600, has a total budget of €3,870,000 for 450 people, and had received 154 applications by 30 July 2024. The Committee notes the establishment of these important targeted subsidy schemes. However, it notes the extremely low number of applications (e.g., 79 for ex-detainees, 66 for persons with disabilities, and 131 for persons with chronic diseases). This low uptake suggests that the schemes may be facing significant barriers to access. The Committee requests the Government to provide an analysis of the reasons for this low participation and to report on the concrete measures being taken to improve the outreach, accessibility, and effectiveness of these schemes for the vulnerable persons they are intended to support. The Committee further requests the Government to continue to provide updated information, disaggregated by age, sex and target group, on the impact of employment measures implemented to promote sustainable and lasting employment opportunities for vulnerable groups of workers, including persons with disabilities.

Women’s employment. The Committee notes the measures reported to promote the active participation of women in the labour market, including that, in the PES matching process, Employment Officers do not allow for gender discrimination or discrimination based on marital status, family situation or family responsibilities. It further notes the Government’s indication that the Ministry of Education, Sport and Youth is promoting an extension of the age range for the provision of compulsory free pre-primary education, and the introduction, in September 2022, of the Subsidy of Tuition of Children up to four years old, which offers monetary support to families with subsidies in the range of €50 to €350 per month, covering up to 80 per cent of the monthly tuition and meal costs. One of the objectives of this subsidy scheme is to encourage and increase participation in accessible, affordable and high-quality early childhood education and care. The Government reports that by the end of the academic year 2022–23, 349 childcare providers had concluded service agreements, 7,792 children had benefited, and up to €12 million in subsidies had been provided to childcare providers. For the academic year 2023–24, the number of childcare providers increased to 357 and the number of eligible children increased to 10,596, and with the scheme’s budget estimated to reach €16 million. Since the scheme’s introduction, more than 50 per cent of the total number of possible beneficiaries have used it.

The Committee welcomes the new “Subsidy of Tuition of Children” scheme as a significant measure to address barriers to female employment. It requests the Government to provide a specific assessment of the impact of this scheme on the labour force participation rate of women with young children. The Government is also requested to provide updated information on other measures taken to reduce the persistent 9-point employment gap between men and women and to address the specific barriers faced by women with disabilities.

Youth employment. The Committee notes the Scheme for the employment of young unemployed people aged 15 to 29 who are not in education, employment, or training (NEET) combined with a two-month training component (2021–27), under which the maximum grant ceiling is set at €8,600 per participant, with an additional amount of €1,000 corresponding to the two-month training, with a target of employing 815 people (435 applications had been received by 30 July 2024). The Government indicates that four mobile units staffed with 12 Employment Counsellors, to reach young people who are NEET, operate in all districts of the country and that the PES is developing a digital system (Early Warning System) for young persons who are NEET. It adds that the PES is drafting public procurement documents for a project that will provide coaching and career guidance for the labour market orientation and integration of 5,500 young persons who are NEET. The Committee notes the Scheme for the Employment and Training of Tertiary Education Graduates, which aims to provide opportunities for tertiary education graduates under the age of 30 to secure suitable employment and acquire work experience, specialized knowledge and skills, while strengthening enterprises and organizations through the employment and training of qualified persons. According to ILOSTAT, the Committee notes that the share of young people who are NEET in Cyprus was 10.6 per cent in 2024 (compared to 4.9 per cent for the overall unemployment rate).

The Committee notes that the youth NEET rate (10.6 per cent in 2024) remains more than double the general unemployment rate. This indicates that existing measures are not sufficiently reaching this group. The Committee requests the Government to provide an analysis of the structural barriers keeping these young people (NEETs) out of the labour market. It further requests information on the concrete results of the new mobile units and the progress of the “Early Warning System”, and how these tools are being used to effectively re-engage the 5,500 young persons targeted by the new coaching project.

Article 3. Consultation with the social partners. The Committee notes the Government’s indication of a long-standing tradition of cooperation among the vocational education and training authorities, including the Ministry of Education, Sports and Youth, and the HRDA, as well as with the employment authority, the Ministry of Labour and Social Insurance. The Government further indicates that the HRDA ensures that approved and subsidized training programmes are implemented in accordance with quality specifications and that these programmes respond to economic priorities, which the HRDA sets as guidelines in cooperation with the competent government services and the social partners.

The Committee notes the Government’s general statements on its “long-standing tradition” of cooperation. It recalls that Article 3 requires effective consultation on specific policies, not just cooperation on training implementation. The Committee requests the Government to provide specific information on the consultations held with employers’ and workers’ organizations regarding the key structural reforms, in particular: (1) the modernization of the Public Employment Service (PES); (2) the design and implementation of the “THALIA 2021–27” programme; and (3) the development of the new youth NEETs strategy. The Government is also requested to provide examples of how the social partners’ advice has influenced the final design of these policies.