The Ministry of Labour and social partners are set to prioritise updating the employment strategy for third-country workers, following recent developments in the labour market.
Sources indicate that after yesterday’s Labour Advisory Body meeting, this issue emerged as the most likely to progress swiftly, with the Ministry of Labour’s apparent support.
The Technical Committee of the Labour Body is expected to convene in the coming days to address this specific matter.
During yesterday’s meeting, the Director of the Labour Department provided a comprehensive labour market review, presenting current statistics and analysis.
Two figures stood out: the employment rate reached 79.8%, nearly touching 80%, whilst unemployment fell to 5%, with registered unemployed declining to 10,896.
However, employers and trade unions interpreted these figures differently.
Employers emphasise that economic growth rates have effectively eliminated unemployment, arguing that the market needs immediate foreign workforce influx to sustain development.
Trade unions, whilst acknowledging positive economic progress, contend that wages have not kept pace with growth, highlighting concerns about job quality.
Labour Minister Yiannis Panayiotou stated that 2024 saw significant progress towards full employment conditions, identifying pension reform and cost of living allowance as key objectives for 2025.
OEB Director General Michalis Antoniou told philenews that the employment rate, approaching 80%, has reached historic levels, with unemployment effectively non-existent. He noted similar figures were last seen in 1989, when foreign labour recruitment became necessary.
KEBE’s Labour Relations Director Emilios Michael emphasised that both employment and unemployment rates indicate full employment conditions, with significant labour shortages across all economic sectors.
Trade union perspectives differ, with SEK General Secretary Andreas Matsas stating that economic improvement should be reflected in wages to ensure social justice.
PEO General Secretary Sotiroula Charalambous raised ongoing concerns about the 12% penalty issue and hourly cost of living allowance, indicating these matters remain open for discussion.
