The financial crisis experienced in Cyprus following the events of March 2013 had a knock-on effect on the employment sector. More than a year on from the onset of the crisis, Cyprus’ leading recruitment agency, GRS Recruitment, has provided a detailed insight into the current recruitment situation and trends on the island.

“2014 has been a tough year for Cyprus’ economy,” the report begins. Justifiably so; after becoming the fifth country in the Eurozone to be bailed out in March 2013, Cyprus spiralled into debt, which had a rippling effect on its employment sector.

By October 2013, it continues, unemployment rates peaked to 16.9%, as many businesses were forced to cut employee salaries, downsize or even terminate operations.

Unemployment has gradually decelerated, however, with the latest statistics from August 2014 demonstrating a 1.5% drop to 15.4% of the population unemployed. Although business services have suffered at the hands of the economic downturn, they have not suffered to the extent that analysts initially predicted, due – in part – to the unyielding strength and resilience that certain sectors continue to possess within Cyprus.

“Cyprus a magnet for forex companies”

In spite of the current challenging environment, many job vacancies across the island continue to be filled.

“The foreign exchange sector,” GRS Recruitment comments, “is particularly flourishing and forex is currently the largest recruitment sector overall, with 27% of GRS’ job vacancies being filled in forex.”

The forex industry has experienced unprecedented growth in Cyprus over the last decade. In 2010, 10% of all available vacancies were recruited in the forex sector and as the industry grew, more and more vacancies were filled.

Gradually this figure rose to 11.2% in 2011 and 33.45% in 2012, peaking to 49% in 2013.

“Professional services employees play strong role in recruitment”

According to GRS, another resilient sector that contributes heavily to Cyprus’ economy and a dominant area of recruiting activity is the professional services sector.

In 2014, GRS filled 25% of vacancies in the professional service sector, compared with just 16% in 2013 due to the impact of the financial crisis. In previous years this figure remained high at 31% in 2010, 34% in 2011 and 27% in 2012.

“Cyprus remains an attractive location for offshore company formation and company registrations in Cyprus are still on the rise,” the report continues. Indeed, Cyprus is a highly tax-effective location for establishing business, with one of the lowest corporate tax rates in Europe (12.5%) as well as countless double taxation agreements and tax exemptions. Throughout the past 10 months, the number of company registrations in Cyprus has increased on a month by month basis, with reports showing that 919 applications for company registration were made in September 2014 compared with 798 in September 2013.

As more companies continue to become registered in Cyprus, the demand for administration through auditing, accounting, legal and corporate services increases significantly.

“The professional services sector is a key growth area that has played a leading role in shaping Cyprus’ economic growth for the past two decades,” commented GRS co-founder and director, Donna Stephenson.

This sector continues to drive growth in Cyprus and provide plenty of employment opportunities island-wide, Stephenson explained.

Provided that Cyprus remains an attractive location for company formation and companies continue to establish entitles here, professional services requirements will continue to be in high demand, which will in turn create more job opportunities and have a positive impact on hiring trends.

“Other growth areas show promising signs”

Other significant areas in the region that are showing promising signs of growth include the oil and gas sector, GRS affirms. Although oil and gas exploration in Cyprus is in its infancy, rapid changes in the market are presenting heightened employment opportunities, and a number of major oil and gas companies have already established base in Cyprus.

GRS is already placing individuals into placements within this sector and is a key player in meeting a complete range of Cyprus recruitment needs – including the requirement of temporary workers, according to its statement.

Earlier this year, it continues, the company was issued with Cyprus’ first temporary worker license and is now in a unique position to provide temporary employees to its Cyprus-based clients.

Speaking on the matter, Steve Slocombe, GRS Co-Founder and Director commented: “The flexibility now offered through temporary recruitment options to clients both in the oil and gas sector and the economy as a whole gives employers a wider scope of options when considering hiring personnel, whether for a temporary increase in workload, specific projects, to cover sickness or maternity or simply so that new staff don’t appear on your payroll.

“Using temporary employees enables employers to essentially ‘try before you buy’ which in uncertain economic times gives absolute flexibility in the planning and costing of hiring new personnel”.

“Long-term outlook looks promising”

Despite the impact of the recent crisis on the country’s economy, GRS concludes, there is plenty of optimism and hope for prosperity in years to come.

“With a healthy business environment, a strong professional services sector and the recent discovery of natural gas, Cyprus’ resilient economy demonstrates the prospect of a positive long-term outlook for the employment sector.”

 

Source: Goldnews – Forex and Professional Services Lead Employment in Cyprus

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