This report deals with youth unemployment which has been rapidly rising in the Republic of Cyprus in the last decade and now stands above the figure in the northern part of Cyprus. Moreover, youth unemployment in the Republic of Cyprus stands significantly above the EU and Euro area average. While youth unemployment has always been chronically high in the northern part of Cyprus, it has been declining in the last three years reaching a level slightly below the Euro Area. The main findings of the report are that, the big proportion of higher education graduates and the strength of the institution of the family in both sides at the same time reinforce and control the social impact of the problem. The same applies for the individual-oriented programmes such as the ones in force at EU and national levels, which cannot provide medium or long-term solutions. The problem is structural and connected to the broader deterioration of labour market conditions. Active labour market policies need to be implemented alongside a comprehensive regulatory framework that strengthens collective bargaining in combination with public and private investment.