Cyprus and Egypt expand labor agreement to address workforce shortages

Cyprus is experiencing a significant shortage of labor due to economic growth and decreasing unemployment. To address this, Minister of Labour Marinos Mousiouttas visited Cairo to renegotiate a Memorandum of Understanding originally signed in June 2024. The initial agreement failed to attract sufficient interest from Cypriot employers, prompting the government to revise the framework. The expanded agreement now includes additional sectors such as tourism, construction, IT, and recycling. Local industries face shortages in both specialized roles and traditional labor sectors, including agriculture and retail. The government aims to balance economic development needs with the proper regulation of employment terms, such as wages and social security. The initiative reflects a broader European trend of relying on foreign workforce recruitment to sustain economic growth.