Key Points:

Jamaica’s unemployment hit 3.3 per cent in April, driven by women and youth.

Services and government jobs fuelled most of the 24,200 new positions.

Underemployment and youth NEET numbers remain high despite job growth.

JAMAICA’S unemployment rate tumbled to a historic low of 3.3 per cent in April, as women joined the workforce at nearly twice the pace of men and youth unemployment suffered a dramatic collapse, propelled by robust gains in tourism and the public sector.

Yet, beneath the surface of this impressive headline, labour underutilisation remains, with one in 15 workers still experiencing underemployment or seeking more hours than currently available.

Record-Breaking Job Creation

The latest data from the Statistical Institute of Jamaica reveal that the Caribbean’s second-largest economy added 24,200 jobs in the year to April, with the employed labour force swelling to nearly 1.45 million people. The largest increase occurred in the ‘Services and Sales Worker’ occupational group, reflecting Jamaica’s heavy reliance on hospitality and tourism, which has boomed in the wake of loosening pandemic restrictions and surging international arrivals.

Employment growth was broad-based but particularly marked among those of prime working age (25 to 54 years), accounting for nearly half the net increase, or 11,700 new workers. Female employment surged by 16,800, outpacing a 7,300 gain among men, reinforcing a trend toward greater gender parity in paid work, which experts say could yield long-term dividends for economic resilience and household welfare.

Women Lead the Labour Force Surge

Female participation in the labour force soared, responsible for nearly 94 per cent of the annual increase. The total female labour force reached 705,200, narrowing the gap with their male counterparts, whose number stood at 789,200. The female employment ratio — the share of women in work relative to the total female working-age population—climbed to 61.5 per cent, while the corresponding figure for men was 72.7 per cent.

The pace of female job creation was most visible in the services and sales sector, which employed 346,000 persons, expanding by 21,200 jobs over the year. Women benefited disproportionately, claiming 13,800 of those jobs compared to 7,500 for men, evidence of shifting social norms and a service-heavy recovery. Meanwhile, the industry with the largest overall gains was ‘Public Administration and Defence; Compulsory Social Security’, which added 8,000 positions, split evenly between men and women. The real estate and business services sector also saw brisk expansion, particularly for men.

Youth Unemployment Drops

Youth unemployment — a long-standing concern for Jamaica — declined sharply, falling by 33 per cent compared with a year earlier. The total number of young jobseekers shrank by 9,800 to 19,600, with an especially steep drop among young men. The youth unemployment rate fell to 10.1 per cent, down from 14.8 per cent in April 2024, highlighting the positive impact of strong post-pandemic recoveries in accommodation, food service and related industries.

Yet, significant challenges persist for youth disengagement. The number of persons not in employment, education, or training (NEET) — a key indicator of vulnerable young people — remained stubbornly high at 86,600, corresponding to a NEET rate of 17.7 per cent. This signals ongoing barriers to productive engagement among young Jamaicans and underscores the imperative for enhanced education-to-work pathways and skills development programmes.

Underemployment and Hidden

While the headline unemployment rate points to a taut labour market, broader indicators of underutilisation suggest there remains significant hidden slack. The combined rate of time-related underemployment and unemployment fell to 4.8 per cent. Similarly, the composite measure of labour underutilisation — which also includes the potential labour force — stood at 6.5 per cent. This means nearly one in 15 workers either lacks sufficient hours or is willing to work but is not actively seeking employment, reflecting undercurrents of informal or precarious employment that blunt the good-news narrative.

Still, underemployment fell modestly, with 22,300 workers classified as time-related underemployed, down by 2,500 from a year ago. Male underemployment was slightly lower than among females, reflecting differences in sectoral employment patterns and job quality.

Labour Force Participation

Overall labour force participation edged higher to 69.3 per cent, up from 68.8 per cent, as more Jamaicans were drawn into active economic life. Male participation remained significantly higher at 74.5 per cent, but the gap narrowed as female participation climbed to 64.3 per cent — an improvement in gender balance that has positive implications for the country’s demographic dividend.

The share of the population aged 15 or over engaged in the workforce stayed steady at 78.9 per cent, indicating a robust pool of working-age adults. The employment-to-population ratio reached 67.0 per cent, signalling that a record share of Jamaicans now holds jobs, underpinning growth in income, consumption, and economic confidence.

Fewer Outside the Labour Force

The number of persons outside the labour force fell by 11,300 to 661,400. Notably, 10,700 fewer women were counted as inactive, marking progress in widening the economic base and leveraging the potential of the country’s human capital. The number of working-age individuals no longer classed as inactive points to ongoing improvements in workforce engagement, particularly for women and those of prime working age.

Women and youth power Jamaica’s record low 3.3% unemployment rate, yet precarious work traps 1 in 15 workers across the Caribbean’s no 2 economy.