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Rising construction costs and delays spark calls for immediate labour reforms

Cyprus Mail · 2026-07-13

AI SUMMARY

• What happened: The Scientific and Technical Chamber of Cyprus (Etek) has called for immediate labour reforms to address severe shortages in the construction sector, which are causing project delays and rising costs. • Why it matters: The labour crisis is hindering the timely completion of construction projects, impacting affordable housing availability, and affecting broader economic development in Cyprus. • What to watch next: Etek is advocating for expedited measures to streamline the hiring process for foreign workers and improve workplace safety, with ongoing discussions with government officials indicating potential policy changes.

**Rising Construction Costs and Delays Spark Calls for Immediate Labour Reforms**

Cyprus' construction sector is facing significant challenges due to acute labour shortages, prompting the Scientific and Technical Chamber of Cyprus (Etek) to advocate for immediate reforms. During a recent meeting with Labour Minister Marinos Mousiouttas, Etek highlighted the critical need for measures to address these shortages, which are contributing to project delays, escalating building costs, and complications in delivering affordable housing.

Etek's announcement following the meeting underscored the pressing nature of the labour crisis in the construction industry. The chamber identified a particular lack of skilled tradespeople, foremen, and site supervisors, with steel fixers and formwork carpenters being among the most affected roles. This shortage is not only hindering the timely completion of construction projects but is also impacting broader economic development and the energy upgrading of buildings.

The construction sector is vital for Cyprus' economy, and Etek's concerns reflect a growing urgency to resolve these labour issues. The chamber has called for the government to expedite the implementation of measures that are currently under consideration to address staffing needs within the industry. Among the proposed solutions is the digitalisation and acceleration of the process for examining applications to employ foreign workers. Etek believes that streamlining this process could significantly enhance the efficiency of meeting labour demand.

In addition to labour shortages, the meeting also addressed workplace health and safety, which Etek emphasized should be viewed as a core aspect of quality and professionalism in the construction industry. The chamber proposed stronger collaboration with the Labour Ministry and the Department of Labour Inspection to enhance safety measures and promote preventive practices on construction sites.

Etek also discussed the importance of practical training for newly qualified engineers in fields such as architecture, civil engineering, and electrical engineering. The chamber highlighted the positive impact of a training programme financed by the European Social Fund, which has aided the integration of young engineers into the labour market. Etek is advocating for the timely renewal of this programme for the upcoming programming period to ensure continued support for new graduates.

Another significant topic raised during the meeting was the current licensing process for tower cranes. Etek described the existing system as dysfunctional and proposed the development of a more rational licensing framework in collaboration with the Interior Ministry and the Cyprus Association of Building Contractors (Oseok). The chamber believes that reforming this process will alleviate some of the bureaucratic burdens currently faced by construction firms.

As the construction industry grapples with these challenges, Etek’s calls for reform reflect a broader recognition of the need for systemic changes to ensure the sector's sustainability and growth. The chamber's proactive approach aims to not only address immediate labour shortages but also to enhance the overall quality and safety standards within the industry.

The ongoing discussions between Etek and government officials signal a potential shift towards more responsive and effective labour policies that could benefit both the construction sector and the wider economy. As Cyprus continues to develop, the resolution of these issues will be crucial for maintaining the momentum of construction projects and ensuring the availability of affordable housing for its residents.

Source: Cyprus Mail
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