JAMAICA’s unemployment rate fell to 3.6 per cent in January, but the drop came as fewer people were working and more stopped looking for jobs.

Figures presented by the executive director of the Statistical Institute of Jamaica (Statin) Leesha Delatie-Budair, during the agency’s quarterly briefing, showed that the labour force declined by 32,900 persons to 1,441,000 over the January 4-11, 2026, survey period. Total employment stood at 1,389,400, reflecting 30,100 fewer persons employed compared to January 2025. While 51,500 persons were classified as unemployed — defined as individuals who are available to work and actively seeking employment — the reduction in the unemployment rate was largely influenced by the shrinking labour force. Deputy director-general and director of the surveys division, Natalee Simpson, cautioned against placing too much emphasis on the marginal change in the unemployment rate.

“So when you look at the difference between the 3.6 and the 3.7, it is really not statistically significant… it is more about a contraction of the labour force than it is the size of the unemployed,” Simpson said during Statin’s quarterly press briefing.

The data also showed a notable increase in the number of persons classified as outside the labour force, rising by 32,900 to 714,800, a 4.8 per cent increase. Individuals in this category are neither employed nor actively seeking work.

“You are not considered to be in the labour force if you are not working and not unemployed… that means you are not actively seeking and willing to work,” Simpson clarified.

Among those exiting the labour force, young people aged 15–24 accounted for a significant share, with more males (14,800) leaving compared to females (11,200). The labour market shifts were more pronounced in the five parishes most affected by Hurricane Melissa: St Elizabeth, Westmoreland, St James, Hanover and Trelawny, where Statin deployed an abridged version of its Labour Force Survey. In those parishes, employment declined by more than 39,500 persons, while the number of unemployed individuals increased by 39 per cent to 11,400 from 8,200. The number of persons outside the labour force rose sharply by 20.5 per cent to 192,100.

“Because we did not field the full questionnaire, the detail around the reasons for being outside the labour force was not captured in this particular labour survey,” Delatie-Budair explained.

In typical periods, youth may exit the labour force to return to school, but officials indicated that broader factors may be at play in this instance. By industry, the largest declines were recorded in accommodation and food services, real estate and other business activities. By occupation, services and sales workers experienced the most significant reductions. While the unemployment rate remains the most closely watched labour market indicator, Statin emphasised that it should be interpreted alongside other measures, particularly labour force participation, to provide a more accurate picture of labour market conditions.

The Statistical Institute of Jamaica (Statin) recently released new labour force data showing declines in both employment and labour force participation.

SIMPSON… when you look at the difference between the 3.6 and the 3.7, it is really not statistically significant.

Fewer Jamaicans were working in January, with employment declining alongside an increase in persons leaving the labour force, Statin data show..

Leesha Delatie-Budair, executive director of the Statistical Institute of Jamaica (Statin), presented the latest labour force data showing a decline in unemployment alongside a shrinking workforce.