A Cyprus labour crisis is emerging not from AI replacing workers, but from jobs lacking enough people to fill them. In 2025, 44.2 per cent of Cypriots used generative AI, with usage reaching 76.5 per cent among younger people, yet only 9 per cent of Cypriot businesses used AI, compared with 20 per cent across the EU and 42 per cent in Denmark, according to Eurostat data. Cyprus now has more people aged 65 and over than children below 15, with a fertility rate of 1.4 children per woman. Unemployment stood at 4 per cent in the first quarter of 2026, but employers sought to fill almost 14,000 positions, particularly in construction, retail, tourism and food services. The Human Resource Development Authority (Anad) expects Cyprus to need around 11,700 recruits every year until 2032, with more than half replacing people permanently leaving work. International evidence shows no imminent employment apocalypse: on Thursday, July 23, Adecco chief executive Denis Machuel told Reuters that some companies used AI to justify cuts caused by weak performance or restructuring. Employment across the OECD remains close to record levels, while Adecco’s whitepaper estimates 1.9 million AI-related jobs were created between 2022 and 2025. Australia’s first dedicated AI employment assessment, published on July 8, found no broad upheaval, with software development employment expanding strongly despite