2023 Labor Force Survey: Unemployment Rate at 5.1%, Youth Unemployment at 14.9%

Labor Force Participation and Employment Rates

According to the survey, the total population aged 15 and over in the TRNC is 306,908. Of this, 50.9% participate in the labor force, with 148,211 individuals currently employed, bringing the overall employment rate to 48.3%. The unemployment rate remains at 5.1%.

A gender-based analysis shows that labor force participation among men stands at 61.9%, compared to 38.3% for women. The employment rate among men is 58.9%, while for women, it is 36.1%. The unemployment rate is slightly higher among women (5.8%) than men (4.8%).

Youth Unemployment Remains High

Unemployment among the 15-24 age group is nearly three times the general rate, reaching 14.9%. Among young women, this figure rises to 17.5%, while for young men, it stands at 12.9%, highlighting the persistent challenge of youth unemployment in the country.

Inactive Population and Labor Market Challenges

A total of 150,599 individuals are classified as economically inactive. The majority of this group consists of students, housewives, and retirees. Notably, 6,644 individuals stated they were not actively seeking employment but were willing to start working if given the opportunity. Of these, 957 reported having lost hope of finding a job.

Sectoral Distribution: Dominance of the Services Sector

Employment is distributed across four key sectors:

• Agriculture: 3.0% (4,413 individuals)
• Industry: 9.5% (14,057 individuals)
• Construction: 11.5% (16,973 individuals)
• Services: 76.1% (112,768 individuals)

While the vast majority (90.4%) of employed women work in the services sector, men are more evenly distributed across different industries.

Persistent Informal Employment

The survey also highlights ongoing issues with informal employment. While 88% of workers are registered with the Social Security Department, 7.6% remain unregistered. Among those working without social security coverage, 72.2% are men.

Unemployment Rates by District

Unemployment rates vary across different regions:

• Lowest unemployment rate: 2.5% in Nicosia
• Highest unemployment rate: 7.2% in Famagusta
• Kyrenia: 6.4%
• İskele: 4.7%
• Güzelyurt: 4.9%
• Lefke: 6.9%

Gender Disparities in Employment

Women’s labor force participation remains significantly lower than men’s, with the majority employed in the services sector (90.4%). Of all employed women:

• 89.3% are salaried employees,
• 9.3% are self-employed or employers,
• 1.4% work as unpaid family workers.

For men:

• 68.5% work in the services sector,
• 82% are salaried employees,
• 17.6% are self-employed or employers,
• 0.4% work as unpaid family workers.

Comparison with Europe

According to Trading Economics, youth unemployment remains a significant issue in Europe as well. Spain and Romania lead with a staggering 25.3% youth unemployment rate, while Sweden, Albania, and Serbia also report rates exceeding 20%.

Conclusion and Analysis

The 2023 labor force data underscores the TRNC’s continued reliance on the services sector and the pressing issue of youth unemployment. The low labor force participation rate among women, the persistence of informal employment, and regional disparities in joblessness remain key challenges for the labor market.

The findings from the TRNC Statistics Institute provide crucial insights into the country’s employment landscape, serving as a valuable guide for shaping future economic policies.