Unemployment in Cyprus drops but cost of benefits still high

The unemployment rate in Cyprus may continue to be low but the cost of offered benefits remains more or less as high as last year’s, Philenews reported on Thursday.

In June this year unemployment was reduced to 4.8% compared to 7.3% in June 2022, according to Eurostat.

However, figures published by the Social Security Service show that some €30 million (exactly €30,206,356) was spent on unemployment benefits over the first four months of 2023.

In other words, almost as much as was spent in the same period in 2022 which was exactly €30,011,634.

As for the whole of last year, the amount spent on unemployment benefits increased to €72.5 million compared to €54.2 million in 2021 and €110 million in 2020.

The significant year-on-year increase last year appears to be largely due to the end of the coronavirus pandemic which also marked the end of support to employees and businesses.

As well as on the lifting of the ban on staff redundancies that applied to those businesses receiving support.

As a result, the amount spent on surpluses last year also showed a significant annual increase.