Cyprus faces construction labour shortages as Egypt recruitment scheme stalls
Construction companies in Cyprus have yet to apply to recruit Egyptian workers under a government-to-government agreement, despite mounting labour shortages in the country’s building industry, the Labour Ministry has said.
The ministry’s comments challenge claims by construction employers that government delays are responsible for the failure to bring in workers under the scheme.
A ministry spokesman told the Cyprus Mail that companies must first express an interest, identify how many workers they need and submit employment terms and collective agreements for approval.
The ministry said the verification process takes no more than six weeks, adding that it had so far received no applications from construction firms seeking to recruit Egyptian workers.
A source familiar with discussions between employers and the ministry suggested that some large construction companies were reluctant to offer the wages required under collective agreements.
Under an agreement renewed until the end of 2027, minimum monthly pay for a 38-hour working week stands at €486.48 for builders and steelworkers, and €412.49 for general labourers.
Industry warns of growing labour shortages
Construction employers say the industry is struggling to recruit enough workers, with some contractors reporting waiting periods of up to eight months to hire foreign labour.
The Employers and Industrialists Federation (OEV) has called on the government to simplify and digitise recruitment procedures, arguing that the construction sector needs a reliable supply of workers to support investment and complete projects on schedule.
Employers also want the government to reconsider limits on the proportion of non-EU workers companies can employ. The current ceiling is 30% of a workforce, rising to 50% for companies covered by collective agreements.
Trade unions oppose increasing the quotas, warning that greater reliance on workers from outside the European Union could put downward pressure on wages and working conditions.
The Building Contractors Association (Oseok) estimates that the industry needs around 5,000 additional workers to replace those who have left. Shortages affect several skilled trades, including steel fixing, specialist construction work and stone masonry.
Contractors have also reported losing workers to opportunities in their home countries. Some Turkish Cypriot workers are choosing construction jobs in northern Cyprus, where a building boom is offering higher daily wages.
The industry has also been affected by the return of some Syrian workers to their country, although others remain in Cyprus and have moved into subcontracting.
Egypt agreement has yet to deliver workers
Cyprus and Egypt signed a memorandum of understanding in June 2024 to regulate the entry and residence of Egyptian workers and establish a joint committee to oversee recruitment.
However, Labour Minister Marinos Mousiouttas acknowledged that no workers had arrived under the agreement so far.
He urged employers and government officials to make use of the scheme, warning that Cyprus risked remaining exposed to labour shortages. He also stressed that the problem extended beyond the availability of Egyptian workers.
Contractors say recruiting from Egypt involves considerably more paperwork and longer procedures than hiring workers from EU member states such as Romania and Bulgaria.
The property developers’ association has meanwhile warned that labour shortages could obstruct efforts to increase housing supply and delay the completion of construction projects.
The employers’ federation is due to hold a further meeting with industry representatives on November 14.
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