Cyprus hourly labour costs rise 3.7 per cent in first quarter of 2026

Nicosia, Cyprus. Cyprus recorded a 3.7 per cent year-on-year increase in hourly labour costs in the first quarter of 2026, above the euro area average, while its job vacancy rate remained unchanged at 2.8 per cent, according to Eurostat.

Labour costs exceed euro area average

The increase in Cyprus was higher than the 3.2 per cent rise recorded across the euro area and slightly above the 3.6 per cent increase registered in the European Union as a whole.

According to Eurostat, hourly labour costs consist of two main components: wages and salaries, and non-wage costs.

Across the entire Cypriot economy, hourly wage costs increased by 3.8 per cent compared with the first quarter of 2025.

In the euro area, hourly wages and salaries rose by 3.4 per cent while non-wage costs increased by 2.9 per cent. Across the EU, wages and salaries climbed by 3.7 per cent and the non-wage component rose by 3.2 per cent.

Job vacancy rate remains steady

Cyprus maintained a job vacancy rate of 2.8 per cent during the first quarter of 2026, unchanged from the final quarter of 2025.

The rate was marginally lower than the 2.9 per cent recorded during the first quarter of 2025.

Across the broader euro area, the job vacancy rate reached 2.3 per cent in the first quarter of 2026, up from 2.2 per cent in the final quarter of 2025.

That figure was slightly lower than the 2.4 per cent recorded during the same period in 2025.