Construction worker shortage. Agreement with Egypt still ineffective

A shortage of construction workers is hampering the expansion of housing in Cyprus. The industry estimates it needs around 5,000 additional workers. However, not a single worker has arrived under the intergovernmental agreement with Egypt, admitted Labor Minister Marinos Mousiouttas.

The ministry is already receiving applications from large companies seeking specific specialists, primarily in the construction industry. However, simply finding candidates abroad won't solve all the problems in a sector that's grappling with an exodus of experienced workers and rising labor costs.

The lack of construction workers is hampering new investments.

Staff shortages are one of the challenges hampering the implementation of residential projects. The developer association points out that obtaining permits isn't enough—people are also needed to complete the work within a reasonable timeframe.

This has implications for the entire housing market. Prepared projects will not increase the supply of apartments until they are built and commissioned. Therefore, according to the industry organization, housing policy must take into account the actual construction capabilities of companies.

According to the organization of construction contractors OSEOK, the sector needs approximately 5,000 additional employeesThis is an industry estimate, not the number of people expected to arrive under the agreement with Egypt.

There is an agreement, but there are still no arrivals

Labor Minister Marinos Mousiouttas addressed the matter on Thursday, October 29, following a meeting of the Labor Advisory Council. He confirmed that, for various reasons, no one has yet arrived under the agreement.

A memorandum of understanding regarding the employment of Egyptian workers was signed in June 2024. It stipulates the rules for their arrival and stay, as well as cooperation between both countries in implementing the program.

The scope of cooperation was later expanded. In addition to agriculture and livestock farming, it also includes construction, tourism, IT, and retail.

The minister appealed for the mechanism to be implemented in practice. He also noted that solving the construction industry's staffing problems does not depend solely on arrivals from Egypt.

Companies report specific needs

The employers' federation OEB and the Cyprus Chamber of Commerce and Industry KEBE submitted applications from large companies to the ministry. The companies are seeking individuals with specific qualifications, primarily for construction work.

The Cypriot administration is cooperating with the Egyptian side to identify suitable candidates. According to the minister, applications submitted under the agreement will be considered with priority.

However, no date has been announced for the first arrivals or the number of people who could begin work in the coming months. Therefore, at this stage, it is impossible to predict when the program will produce tangible results on construction sites.

Experienced employees are leaving the sector

The industry cites several reasons for the labor shortage. Some Syrian workers returned to the country following the change in the political situation. Meanwhile, some Turkish Cypriots are choosing employment in the occupied north, where construction developments are increasing demand for their skills.

However, full data to determine the scale of each of these phenomena has not been presented. These are descriptions of the situation provided by market representatives and the media.

The way work is organized is also changing. Some experienced workers are starting out as subcontractors, and payment for specific tasks is replacing daily wages. With limited availability of skilled workers, contractors are finding it more difficult to assemble teams and budget costs.

More permits are not enough

For those waiting for a new apartment, the most important factor is the project's completion date. More efficient permitting can help developers, but it won't replace the availability of construction crews and subcontractors.

Recruiting from Egypt could address some of the shortfalls. However, for now, the agreement remains an underutilized tool, and companies continue to have to manage work with limited staff availability.