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11 DEC 2023
Data insights

Skills anticipation in Cyprus (2023 Update)

Summary

Overview of the Cypriot approach

Skills anticipation activities in Cyprus are highly centralised, with activity concentrated in the Human Resource Development Authority (Αρχή Ανάπτυξης Ανθρώπινου Δυναμικού, HRDA), a semi-governmental organisation which holds overall responsibility for skills anticipation.

Skills anticipation for the most part relies on studies by the HRDA to predict future labour market needs. Skills anticipation in Cyprus is largely comprised of the HRDA’s forecasts of employment demand in economic sectors and occupations which cover the whole labour market. As of 2022, the forecasts cover also some very basic data about skills supply (by gender and educational level) but not important indicators (e.g.. the stock of unemployed people, new entrants to the labour market, outflows from the educational system, and net migration)[i].

There are five main actors in skills anticipation in the country. The first four are government departments and the fifth is a semi-governmental organisation.

  1. The Ministry of Finance (Υπουργείο Οικονομικών) which collects and analyses information on the state of the national economy and proposes actions and legislative measures;
  2. The Ministry of Education, Sport and Youth (Υπουργείο Παιδείας, Αθλητισμού, και Νεολαίας, MoESY) which works on the development and implementation of educational policy;
  3. The Ministry of Labour and Social Insurance (Υπουργείο Εργασίας και Κοινωνικών Ασφαλίσεων, MLSI) which has responsibility for introducing employment and social policy measures;
  4. The Public Employment Service (Δημόσια Υπηρεσία Απασχόλησης, PES); and
  5. The HRDA, which focuses on the provision of vocational training and is primarily responsible for forecasting labour market needs.

There is strong stakeholder involvement via the Board of Directors of the HRDA, which includes representatives from ministries, employer and trade union associations.

The target audience for skills intelligence consists of policymakers, public and private organisations, training providers, jobseekers, employees, and employers who are able to access information online. Skills intelligence is distributed by the HRDA, MoESY, MLSI, and the Cyprus Youth Board (Οργανισμός Νεολαίας Κύπρου).

Description

Cyprus has long experience of providing forecasts of skills needs. Skills anticipation activities in Cyprus include:

  • Analysis of long-term employment trends and forecasting;
  • Annual research studies on the identification of employment and training needs with the involvement of the social partners; and
  • Studies on skills needs in specific sectors (e.g. in the blue economy, green economy, natural gas, nursing).

The main formal mechanism in place for the assessment of skill needs is operated by the Human Resource Development Authority (HRDA), the mission of which is to create the prerequisites for planned and systematic training and development of the human potential of Cyprus at all levels and in all areas. The Ministry of Finance provides projections for the growth of the economy, which include forecasts of value added, productivity and employment. The aforementioned projections are utilised by the HRDA to produce detailed employment forecasts, disaggregated by economic sector and occupation and include estimates of both expansion and replacement demand.


Furthermore, the Ministry of Education, Sports and Youth (MoESY) has responsibility (enshrined in legislation) for the identification of educational and special skill needs.

Aims

The aim of skills anticipation in Cyprus is the identification of skills gaps and the planning and implementation of education and training activities. Skills anticipation outputs cover all sectors of the Cypriot economy and labour market, and all relevant occupations.

Legal framework

There is no specific regulation governing skills anticipation in the country. It is of interest to highlight that the law governing the operations of HRDA (‘Part IΙ: Establishment and Powers of the Authority of the HRDA’) sets as one the Authority’s main responsibilities the collection, analysis, and distribution of information about the development of human capital (including statistical data and forecasts). The HRDA was founded by the 21 Law of 1974 under the name of Cyprus Industrial Training Authority. 1 of November 1999 entered into force on Human Resource Development Law no. 125 (I) of 1999.

Governance

The HRDA, which reports to the government through the Minister of Labour and Social Insurance (MLSI), is governed by a 13-member Board of Directors comprising five government, four employer, and four trade union representatives.[ii] The two main government actors in skills anticipation, MoESY and MLSI, are represented on the Board.

The role of stakeholders

Stakeholders are mostly involved in the use of skills intelligence. The main stakeholders in the process of skills anticipation are:

  • Public and private organisations involved in human resource planning, such as:
    • The Public Employment Service (Δημόσια Υπηρεσία Απασχόλησης, PES);
    • MoESY;
    • Social partners (such as employers’ organisations and trade unions).
  • Representatives of education and training institutions (including universities, colleges, VET providers);
  • The Directorate General for Development (Γενική Διεύθυνση Ανάπτυξης), which has responsibility for European Funds and Programmes (such as the European Investment and Structural Funds, the EU Competitive Programmes, the RRF, and the grants provided by countries in the European Economic Area and Switzerland); and development and horizontal issues, such as research, technological development and innovation, lifelong learning.

As mentioned above, HRDA is governed by a 13-member Board of Directors comprising five government, four employer, and four trade union representatives. All stakeholders arguably therefore have a clear overview of the operation, functions and results of skills anticipation studies that take place in the country within the strategic plan and goals of the HRDA, but their role in the design of the skills anticipation measures is consultative only.

Target groups

In Cyprus, skills intelligence stemming from the HRDA’s studies is published and accessible online[iii] and presented to a targeted audience via events and lectures with the aim of communicating and disseminating information.

Funding and resources

There are no specific funds in the HRDA’s budget for skills anticipation. Skills anticipation studies are funded from the HRDA’s overall annual budget.[iv]

Methods and tools

Skills assessment

The System of Vocational Qualifications is designed for the assessment and certification of the competence of a person, to carry out a specific job in real or/and simulated working conditions. The Vocational Qualifications Standards (VQS) define the framework for the training and development of the individual. The SVQ constitutes an integral part of the Cyprus Qualifications Framework (CyQF), which is linked to the European Qualifications Framework (EQF). The SVQ provides the opportunity for interested persons to obtain a certificate in one or more professional qualifications depending on the qualifications and/or experience they have.[v]

Skills forecasts

  • The HRDA produces 10-year employment forecasts every two to three years. The latest set of employment forecasts for Cyprus, completed in 2022, covered the period 2022-32. The study provides forecasts for employment needs in economic sectors (3 broad sectors, 21 main sectors and 52 sectors) and in 309 occupations (173 high level occupations, 130 middle level occupations and 6 low level occupations) covering the whole spectrum of the Cyprus labour market for the period 2022-2032.
  • The skills forecasting methodology has been developed by the HRDA based on its extensive experience in forecasting, as well as on similar methodologies which have been developed in Europe and the USA. To produce the employment forecasts, the country’s strategic objectives, as expressed in various governmental programming documents, are considered. Therefore, specific assumptions and working scenarios about the future are developed based on these documents.
  • The HRDA also produces annual research studies for the identification of employment and training needs, with the involvement of the social partners. These studies provide annual estimates for the number of persons required in specific occupations and the need for specific skills. The aforementioned identification is based on labour market research, using data collected via questionnaires sent to social partners and other stakeholders including employers, trade unions and the public employment services through the District Labour Offices. Based on these estimates, suggestions are put forward for the implementation of training programmes.

The HRDA studies on employment forecasts are an important tool for planning HRDA’s activities. Based on these research studies and following consultations with stakeholders, every two years the HRDA identifies the themes/focus areas for the continuing training programmes it subsidises. The findings of the research studies are also considered by the HRDA in selecting the standards of vocational qualifications that are being developed. Although the employment forecasts for the period 2020-30 were almost finalised and ready to be published, due to the drastic changes and effects of the Covid-19 pandemic on the economy and the labour market, it was decided to revise the forecasts. Due to the continuation of the COVID-19 crisis, the study with revised forecasts, which was planned to be completed by December 2021, was published on February 2022. [vi]

The latest reports available on HRDA website concern reports building on skills forecast:

Skills foresight

Foresight activities, involving experts’ workshops / meetings / panels are reportedly organised by the PES[viii].

Other skills anticipation exercises

In addition to the forecasts, the HRDA also conducts qualitative and quantitative studies on specific sectors (e.g. the blue economy, the green economy, natural gas, and nursing). These studies examine and analyse a specific sector in order to identify their skill needs, taking into consideration forecasts of employment demand. Graduate tracking is also rising in the policy agenda. A national monitoring system of IVET and CVET graduates to inform the upgrading of the VET system was one of the goals of the 2015-20 strategic plan for technical and vocational education and training. The monitoring system was co-funded by a European Social Fund (ESF) project “Improvement of the quality, attractiveness and efficiency of VET in Cyprus and new modern apprenticeship 2014-20”. The department of Secondary Technical and Vocational Education and Training of Ministry of Education has launched an electronic platform (‘Communication Network with Employers for Technical Occupations’ platform/ Δίκτυο Επικοινωνίας με Εργοδότες για Τεχνικά Επαγγέλματα – ΔΕΕΤΕ) for collecting data relevant to the career progression of initial and continuing VET graduates. The platform, co-funded by ESF, has been operational since April 2019. The platform is open to secondary and higher VET graduates, aiming to facilitate the communication between VET graduates and potential employers.

VET graduates create a personal profile with an online resume, including information on their qualifications, knowledge and skills and their geographical area of interest. They can also search for employment opportunities, communicate with other network members and have access to the announcement board of the platform.

Employers create a corporate profile on the platform indicating job openings and the qualifications required. They may also search through the registered graduate profiles, based on pre-set criteria, for available qualified graduates[ix].

In 2021, the number of learners/graduates who have registered has increased to 200 and is expected to increase further. Only learners/graduates from higher VET public schools have registered on the platform. The department of STVET is in the process of upgrading the platform to include learners/graduates of secondary technical and vocational education. The upgrading of the platform will also include the possibility of extracting statistical data on employment or further graduate studies per specialisation.[x]

Qualitative research and forecasts are taken up by the PES, as well analysis of skills supply and current skill needs at an annual or ad hoc basis.  The PES identifies skills needs and skill mismatches through direct communication with employers (meetings and other forms of direct communication) [xi].

Dissemination and use

Use of skills anticipation in policy

The HRDA outputs are disseminated in a number of ways:

  • The HRDA organises press conferences for the presentation of its forecasts and other studies;
  • Special lectures are organised for secondary school guidance counsellors in collaboration with the MoESY, and for employment counsellors in collaboration with the Public Employment Services (PES);
  • Findings of the forecast studies are disseminated to the public through the media such as articles in newspapers and participation in relevant radio and television programmes;
  • Detailed forecasts of employment demand for around 300 occupations are provided on the HRDA website. Users may search for information on occupations of interest. 

Skills intelligence accumulated by the PES are made available in the form of general reports/summaries or analyses focused on a set of issues or target groups[xii]. The identified skill requirements and bottlenecks shape/redefine ALMPs and Upskilling and reskilling programmes. Skills intelligence is also shared with PES staff and experts such as career counsellors through dedicated channels of communication (e.g. conferences)[xiii].  

Studies are also sent to government officials, the social partners (employers’ organisations and trade unions), education and training providers, organisations involved in human resource planning, careers counsellors, etc. Policymakers use these forecasts to develop appropriate policy responses for adapting to projected future change.

  • In some cases, MoESY (via its department of Secondary Technical and Vocational Education, STVE) has used the HRDA’s studies for the design of new curricula at the secondary level.
  • Skills anticipation outputs are also taken into consideration by the HRDA for choosing which Standards of Vocational Qualifications are to be developed. The System of Vocational Qualifications, which is the responsibility of the HRDA, is based on agreed standards developed by technical Sectoral Committees of Vocational Qualifications.  These committees consist of representatives of the social partners (government, employers’ organisations and trade unions) and other professionals.
  • The results of HRDA’s forecasts are also used by the Directorate General for Development in planning Programmes, which are funded by the EU. For the programming period 2021-2027, the Directorate General used the HRDA studies for the planning of the Programme “THALIA: Foundations of Change, Prosperity, Equality and Development”.

Target groups’ uses of skills anticipation outputs

Skills anticipation outputs are used by policymakers to develop appropriate policies to support public and private organisations involved in human resource planning in adapting to the country’s skill needs.  

Other key users of the results from the HRDA skills anticipation studies are public and private organisations, future graduates and their families, school counsellors, general education and VET institutions (universities, colleges, and public and private schools of all levels), employers, trade unions, MoESY, and MLWSI.

Please cite this document as:  Cedefop. (2023). Skills anticipation in Cyprus. Skills intelligence: data insights. URL [accessed DATE]

Bibliography

Endnotes

[iv] The HRDA is financed by the human resource development levy collected from all employers on the private and semi-governmental sector (0.5% of payroll).

[v] Cedefop’s Matching skills database -2023 update

[viii] European Commission. (2022).

[xi] European Commission. (2022).

[xii] Ibid.

[xiii] Ibid.