Ever closer to the minimum wage due to a drop in unemployment

Unemployment has now dropped to the levels that the government has set in order to implement a national minimum wage and that in spite of the pandemic issues.

The drop in unemployment was also confirmed by the Statistical Service which announced the number of the registered unemployed in Nicosia. According to the data from the District Employment Offices, the number of unemployed at the end of August dropped to 16,281 in comparison to 18,950 in July and 33,649 in August last year.

Now based on the data as amended for seasonal fluctuations, which point to the unemployment trends, the number of registered unemployed in August 2021 dropped to 19,669 in comparison to 21,613 the previous month. In comparison to August 2020, there was a drop of 17,368 people or 51.6%, mainly due to the accommodation and food and beverage services (a drop of 6,122), commerce (2,977 less) and processing (1,031). Unemployment’s downward trend was also recorded in the data publicised by Eurostat on Wednesday.

According to the data in question, the unemployment rate in Cyprus for July was reduced to 5.2% in comparison to 8.2% in June and 7,9% in July last year. It is worth noting that early in the year and more specifically on January 13, following a meeting of the cabinet, deputy government spokesman at the time Panayiotis Sentonas stated that the government had confirmed its position and will to launch a social dialogue on implementing the national minimum wage when conditions of full employment are achieved; that is, he added, when unemployment settles around 5%.

In any case, the national minimum wage issue is high on the agenda of Labour Αdvisory Body that will be held on Wednesday and not Tuesday as initially announced; relevant studies will be presented to social actors and decisions should be expected.