A large number of workers from member states of the EU are employed in specific sectors of the economy, while unemployment among Cypriots is increased and prolonged, a report by an independent demographics institute, concludes.
The report stresses that as Cyprus is faced with an unprecedented economic crisis, negative growth rates, unemployment rate exceeding 16% and migration of unemployed young people, “it is at least inconceivable to continue employing foreign workers, particularly in sectors of the economy with thousands of jobless Cypriots”.
Around 200 thousand workers form EU member states and third countries work in Cyprus and an unspecified large number of illegal workers increase the workforce against Cypriot citizens, Chairman of the Institute of Demographics and Migration Policies, former DISY leader, Yiannakis Matsis told a press conference, on Friday.
Presenting the report, Vice Chairman of the Institute Andreas Morphitis described the “vicious circle” of economic recession – unemployment – employment of foreigners – young people migration.
Figures cited in the report showed that in July 2014 the total number of foreign workers, from the EU and third countries, was 99,972, while the number of Cypriot registered unemployed was 46,727. In July 2013 foreign workers were 103,278, while jobless Cypriots were 48,001.
Morphitis invoked a European Court of Justice ruling that EU member states must have the possibility of refusing social benefits to economically inactive EU citizens. The study said that during the first half of the previous year 4,142 EU citizens received the unemployment benefit from the Social Insurance Fund.
The report included a series of proposals, among which a comprehensive study by the Government over the employment of foreign workers, based on the conditions prevailing in the economy and the labour market.
“The Government is very sensitive on the issue of unemployment” Labour Minister Zeta Emilianides, told the press conference.
She said that 5,000 households, all Cypriots, are receiving the Guaranteed Minimum Income, introduced last year, in the framework of the welfare reform, pointing out that eligible for GMI are only EU citizens with an at least five-year permanent stay on the island.
She added that the Ministry has just concluded a bill on undeclared work, that foresees high administrative fines and even suspension of the business activity, in some cases.
Emilianides said that Cyprus is implementing limitations on employing Croatian citizens.