Figures released by the Statistical Service of Cyprus on Monday have revealed a complex employment landscape within the island nation's public sector. While an overall expansion was noted over the past year, a significant contraction was observed in the most recent quarter. The data, which pertains to the third quarter of 2025, indicates a year-on-year increase of 1.8%. However, this was juxtaposed with a substantial quarter-on-quarter decline of 3.7%, presenting a nuanced picture of public administration staffing.
In the third quarter of 2025, the total number of individuals employed across the broader public sector reached 74,431. This comprehensive figure is meticulously dissected into various governmental and quasi-governmental entities. The General Government sphere, encompassing central government, non-profit organisations, and local authorities, accounted for the majority with 69,346 employees. Central government operations alone employed 52,879 individuals, while non-profit organisations and local authorities engaged 10,429 and 6,038 personnel respectively. Furthermore, government-controlled companies and enterprises provided employment for an additional 5,085 individuals.
The year-on-year comparison, contrasting the third quarter of 2025 with the same period in 2024, highlights a net addition of 1,294 public sector jobs. This positive trajectory was primarily driven by robust growth within central government, which saw its workforce increase by 643 individuals, representing a 1% rise. Local authorities demonstrated even more pronounced expansion, adding 550 positions, a notable 10% surge. Provincial self-government bodies were a significant contributor to this local authority growth, reporting an impressive 40.9% increase and onboarding 347 new workers. Government-controlled enterprises also contributed to the overall expansion, augmenting their ranks by 101 employees, a 2% increment.
However, the narrative shifts dramatically when examining the quarter-on-quarter changes, comparing the third quarter of 2025 with the preceding second quarter. A considerable decrease of 2,883 positions, or 3.7%, was observed in total public sector employment. This downturn was predominantly driven by a substantial reduction within the central government, which shed 3,085 jobs, a 4.6% contraction. The Statistical Service attributed this decline primarily to a retrenchment in the number of fixed-term employees within the Education Service, a key component of central government operations. In contrast, local authorities continued their upward trend, adding 156 jobs, a 2.7% increase.
The data thus indicates a dual dynamic: a sustained, albeit moderate, expansion in the public sector over the twelve months leading up to the third quarter of 2025. Conversely, the sharp quarterly decline points towards seasonal adjustments, particularly within the education sector, or a strategic recalibration of fixed-term contracts. This nuanced pattern underscores the complexities of managing a public sector workforce, influenced by both long-term strategic goals and short-term operational exigencies. Policymakers and economic observers will likely scrutinise these figures further.