Business body links Cyprus population decline to future labour shortages

The Cyprus Chamber of Commerce and Industry (Keve) on Thursday called for stronger support for families, particularly larger families, after meeting with the Pancyprian Organisation of Large Families to discuss Cyprus’ worsening demographic outlook and its economic consequences. The meeting involved an extensive exchange of views on the demographic problem facing Cyprus, with the two sides examining the social and economic implications of falling births, an ageing population and a deteriorating balance between births and deaths. “The demographic issue is one of the biggest challenges that our country will have to address over the coming decades,” Keve said. The chamber said the continued decline in births, ageing of the population and deterioration in the birth balance were creating significant challenges for both the sustainability of the welfare state and the future growth of the economy. Representatives of the Pancyprian Organisation of Large Families briefed Keve on the issues affecting families with several children, which they said had intensified in recent years. They also presented specific proposals for measures and policies that could contribute to addressing the challenges faced by large families. Particular attention was given to the child benefit, which the organisation highlighted as particularly important because eligibility is linked to access to a range of other allowances, benefits and support schemes. “The criteria for granting the child benefit acquire particular importance for large families,” Keve said, given the benefit’s connection to other forms of state support. Keve stressed that support for families should also be viewed through an economic lens, rather than solely as a matter of social policy. “Supporting the family, and particularly the large family, is an important investment in the future of Cyprus,” the chamber said. It added that creating conditions that make it easier for young couples to have more children without facing disproportionate financial or professional pressures was essential to tackling the demographic problem. “Creating favourable conditions that will allow young couples to have more children, without being disproportionately burdened financially or professionally, is a basic prerequisite for addressing the demographic crisis,” Keve said. The chamber also placed particular emphasis on the relationship between demographics and the labour market, warning that population trends could increasingly affect businesses and the wider economy. “The shrinking of the active population and the growing shortages of human resources in many sectors of the economy make the demographic issue not only a social but also a development issue,” Keve said. The chamber said improving demographic indicators and increasing the number of children per family would be crucial to maintaining a strong and competitive economy in the future. “The improvement of demographic indicators and the increase in the number of children per family are factors of decisive importance for maintaining a strong and competitive economy in the future,” it said. Keve also recognised the role of the Pancyprian Organisation of Large Families in promoting policies to support families. The chamber said it was willing, within its institutional role as a representative of the business community, to contribute to initiatives that could provide additional support to larger families. Keve expressed its willingness to help develop and promote voluntary initiatives by businesses for the benefit of families with several children. “The business community can contribute to the development and promotion of voluntary initiatives by businesses for the benefit of large families,” Keve said. The emphasis on voluntary business initiatives adds a further dimension to the discussion, potentially giving employers a role in easing some of the financial and professional pressures associated with raising larger families. Keve and the Pancyprian Organisation of Large Families agreed to maintain an open channel of communication and cooperation. The two organisations said they would seek to promote initiatives that could make a meaningful contribution to addressing the demographic challenge facing Cyprus.