Unemployment is expected to peak at around 19% in 2014, registering a slowdown in its growth rate as a result of lower economic contraction than originally estimated, according to figures released Wednesday by the Ministry of Finance.
The Ministry sees some signs for a better performance in 2014, associated with sound confidence sentiment and lower uncertainty in the financial sector.
For 2014, the revised Troika projection for growth is to decline by 4.8% while employment growth is estimated to shrink by less than 4.4%.
Unemployment on average in 2013 stands around 16% of the total labour force, according to Ministry’s data, whereas the 2nd Troikas revision estimated 16,7%.
Employment decelerated in 2013(Q3) by less than 6% with signs for even lower reduction in the next quarters. Lower unemployment is driven by lower than expected recession, labour supply reduction of domestic and foreign labour and downward adjustment of wages.
Non Cypriots’ employment was reduced by nearly 10% and Cypriots’ employment reduced by 1,3% compared with 2012 average.
Youth unemployment remains high at 38.8%. Long run unemployment was 6,4% in the third quarter of 2013, compared to 3,9% at the same period of 2012.
