A new report by the Caribbean Development Bank (CDB) has revealed significant and persistent disparities in the region’s labour markets, particularly affecting women, youth, indigenous peoples, and persons with disabilities, effecting a call for swift action.

The study, titled ‘Labour Market Differentials in the Caribbean’, underscores the need for inclusive policies among CDB client countries to dismantle structural barriers and foster equitable economic growth.

The report outlined widespread inequalities in wages, labour force participation, education, and access to employment. It also emphasised the need for developing inclusive policies that not only promote equal opportunity but also directly address the entrenched disadvantages faced by marginalised groups.

A key finding of the report is the persistent gender wage gap, which continues to disproportionately affect women, particularly those heading households.

“Gender wage gaps have serious implications for women in employment. They result in financial disadvantage, contribute to career demotivation, and most significantly, reduce bargaining power in the workplace — undermining the principles of decent work,” the report noted.

The study also highlighted labour force participation (LFP) as a major area of disparity. This, as data from several countries show that men consistently participate in the labour market at higher rates than women. In Jamaica, for instance, male LFP increased from 73.1 per cent pre-COVID to 75.8 per cent by 2023. Female participation, however, rose only slightly from 58.5 per cent to 61.4 per cent during the same period.

The report attributed much of this gap to the disproportionate caregiving responsibilities borne by women — especially during the pandemic — which forced many out of the workforce or strained their mental health as they struggled to balance work and family.

Despite women having higher tertiary education completion rates across the region, this has not translated into equal employment opportunities for that group, further underscoring systemic gender inequality in Caribbean societies.

Youth are another group disproportionately affected by labour market challenges. The report notes that youth unemployment rates tend to rise more rapidly and recover more slowly than the overall labour market, signalling heightened vulnerability.

“There is a significant demand-side challenge for youth employment,” the report stated. “Even young people with higher educational attainment face high unemployment due to a lack of available jobs.”

The study, also exposing gaps in national legislation, said that although many countries have laws intended to address workplace disparities, enforcement and comprehensiveness remain issues. As an example, Antigua and Barbuda, Jamaica, St Vincent and the Grenadines, and Trinidad and Tobago, the study said, do not legally mandate equal pay for work of equal value. In Jamaica and St Vincent and the Grenadines, legal frameworks still restrict women’s participation in certain industrial sectors.

“St Vincent and the Grenadines, in particular, lacks comprehensive anti-discrimination laws in employment based on gender, leaving women vulnerable to unequal treatment and limited economic mobility,” the report said.

Acting director of economics at the CDB Christine Dawson, in stressing the importance and timing of the findings, said the Caribbean now has a tremendous opportunity to redefine its workforce paradigms, especially as economies rebound from the pandemic.

“We must act decisively to level the playing field and unlock the full potential of all contributors to the labour force. Policymakers must, in light of this report, deliberately examine and seek to dismantle the systemic barriers facing the region’s vulnerable groups,” she said.

Echoing similar sentiment, L O’Reilly Lewis, acting director of projects at the CDB, reaffirmed the bank’s commitment to inclusive development, noting that the gaps identified in the report underscores the need for more client countries to have inclusive labour policies, targeted education and training, and data-driven decision-making.

“This study serves as a call to action for policymakers, stakeholders, and communities to address entrenched inequalities,” he added.

In furthering its call for action, the CDB urged all stakeholders — including governments, civil society, the private sector, and development partners — to engage with the report’s findings and collaborate on the design and implementation of strategies that promote equity, resilience, and shared prosperity in the region’s labour market.