In a new post in its Economic Notes series, the Central Bank of Cyprus examines how positive labor market developments reflect continued economic growth, supported by strong demand for services and investment. Demographic trends and skills shortages nevertheless constrain labor supply. Sustaining the labor market’s resilience requires continuing and expanding policies that increase labor force participation, strengthen skills and improve productivity.
Central Bank of Cyprus assesses labor market strength and constraints on labor supply
The Central Bank of Cyprus reviews labor market developments, linking their strength to economic growth supported by demand for services and investment. The assessment identifies demographic pressures and skills shortages as constraints on labor supply and highlights the need to continue and expand policies supporting participation, skills and productivity.