Cyprus’ ability to remain competitive in an increasingly digital and skills-driven economy depends on reforms in education, financial literacy and labour market alignment, speakers said during a series of panel discussions at the 4th Cyprus Youth Tech Fest in Limassol on Saturday.
Across discussions involving regulators, educators, business representatives and international partners, participants highlighted mismatches between education outcomes and labour market needs, warning that without coordinated policy action Cyprus risks falling behind in attracting and retaining high-value talent.
Among others, the debates focused on: the relevance of skills taught in schools and universities, financial literacy as a labour-market competency, the relationship between academia and industry, and access barriers facing young people seeking advanced education pathways.
Opening the discussions, Sean Alimov, founder of the Youth Tech Fest, said the initiative was designed to address structural challenges facing young people entering the workforce. “The whole point of our mission is to empower young people with skills, with intelligence and abilities to be a productive member of our society,” he said.
Employers cite skills mismatch
Participants from business sectors including technology, shipping, finance and mobility said that while Cyprus produces academically capable graduates, employers increasingly struggle to find candidates with the combination of technical competence, adaptability and accountability required in modern workplaces.
Speakers stressed that the issue was not a lack of graduates, but a misalignment between education systems and labour-market expectations. Employers reported that new entrants often lacked communication skills, problem-solving capacity and readiness to take responsibility for outcomes.
The shift towards digitalisation, automation and sustainability has increased demand for interdisciplinary skills, particularly in sectors traditionally considered low-tech. Representatives from DP World and Petrolina said the industry now requires expertise in digital systems, environmental compliance and data-driven decision-making, rather than manual or narrowly defined roles.
Similar concerns were raised by Dinos Lefkaritis Jr of Petrolina, who said the pace of technological change requires workers capable of continuous learning rather than static qualifications.
Financial literacy framed as economic risk
The panel on financial literacy warned that limited understanding of basic financial concepts among young people represents not only a personal risk, but a broader economic vulnerability.
Speakers noted that even high-income professionals often lack knowledge of budgeting, inflation, risk and long-term financial planning. Alimov cited a personal example to illustrate the point. “I work for an engineering company where a husband and wife were earning easily over €150,000 a year, and every month they would come to me asking to borrow money,” he said. “They were very talented engineers, but they had zero clue about their financial affairs.”
Regulators warned that the rapid expansion of digital payments and online financial services has increased exposure to scams and fraudulent schemes, particularly among younger users.
Elena Karkoti, Officer A at the Cyprus Securities and Exchange Commission (CySEC), said children and teenagers are already active participants in digital financial ecosystems, often without understanding the associated risks.
“Money is already digital,” Karkoti said. “They are growing up with apps and subscriptions and online games with their own digital money and digital wallets. They are already using it — so if we don’t educate them, they will keep using it without understanding.”
She warned that young people are increasingly targeted by scams through online games, social media advertising and unregulated influencers promoting investment schemes. Without early education, she said, many struggle to identify fraudulent offers or understand the importance of protecting personal financial data.
Karkoti said schools play a critical role in addressing these risks. “When you have a financial course at school, it is accessible to all kids — it doesn’t matter their background — all kids have access to this knowledge,” she said.
She added that delaying financial education until individuals already control money is ineffective. “If we wait until the kids have money to teach them how to manage and protect it, we are too late,” she said.
Education reform and internationalisation
Discussions on the future of education focused on the need for more flexible and internationally connected learning models, with speakers arguing that geographic borders are becoming less relevant in digital labour markets.
Participants highlighted Cyprus’ growing role as a hub for UK transnational education, with British university programmes operating on the island and offering students alternatives to full overseas study.
The focus, speakers said, should be on expanding choice, enabling blended learning models and strengthening institutional partnerships rather than simply increasing enrolment numbers.
Gender participation in STEM education was also discussed. While Cyprus has comparatively high female participation in STEM degrees, speakers noted that many women subsequently exit the private sector, often citing work-life balance concerns and limited career progression.
Panellists said addressing this trend requires structural changes in workplace culture, stronger mentoring networks and greater visibility of female role models in technology and innovation sectors.
Access barriers and confidence gaps
A separate panel on access to higher education, organised by the education-equity NGO Project Access, highlighted confidence and information gaps as major barriers preventing capable students from pursuing competitive university pathways.
Mentors and speakers involved in the initiative said many students self-select out of top institutions due to lack of confidence, unclear application requirements and parental pressure to pursue perceived “safe” career options.
They described university application processes as complex and intimidating, particularly for students without family members who have navigated similar pathways. Without structured guidance, speakers said, talented students risk being excluded from environments that could significantly enhance their skills and long-term career prospects.
From a labour-market perspective, panellists warned that such barriers reduce the depth and diversity of the skills pipeline, ultimately affecting national competitiveness.
UK–Cyprus education links
The UK pavilion at the festival highlighted ongoing education and skills cooperation between Cyprus and the United Kingdom, despite Brexit.
Speaking to in-cyprus on the sidelines of the festival, British High Commissioner Michael Tatham acknowledged that Brexit has reduced the number of Cypriot students studying in the UK due to higher tuition fees for EU nationals. “The number of Cypriot students going to the United Kingdom to study has fallen because tuition fees have increased,” he said.
However, Tatham pointed to scholarship schemes offered by some UK universities and recent policy developments aimed at maintaining youth mobility.
The UK is set to rejoin the Erasmus Plus programme, which Tatham said would enable “more youth exchanges, and not just university students, but also schools, sports clubs and so on”. He added that negotiations are ongoing on a broader youth experience agreement between the UK and the EU.
Tatham said UK–Cyprus cooperation increasingly focuses on skills development, innovation and digital education rather than student numbers alone, with partnerships involving universities, businesses and cultural institutions.
Competitiveness as a policy challenge
Across panels, speakers converged on the view that Cyprus’ competitiveness challenge is systemic rather than sector-specific.
Participants said education reform, financial regulation and labour-market policy must be aligned to send consistent signals about which skills are valued and how they are acquired.
Financial literacy, digital competence, adaptability and problem-solving were repeatedly cited as essential capabilities, rather than optional extras.
Alimov said the discussions reflected growing uncertainty among young people about career pathways. “What are young people supposed to do in Cyprus when they grow up?” he asked, pointing to the need for clearer links between education, emerging industries and employment opportunities.
Speakers warned that without coordinated action, Cyprus risks producing graduates whose skills do not match market demand, while employers continue to struggle to fill high-value roles.
Read more: