WILLEMSTAD – While employment figures in Curaçao continue to improve, a closer look at job quality suggests the island’s workforce faces challenges similar to those highlighted across the wider Caribbean region. Recent research from the International Labour Organization (ILO) shows that global gains in employment have not translated into proportionate improvements in decent work — a trend mirrored in Curaçao’s labour market and throughout Caribbean economies.
Employment Up, But Quality Not Keeping Pace
Official labour statistics for Curaçao point to a robust recovery after the pandemic, with the unemployment rate falling from 13.1% in 2022 to 7.8% in 2024, and youth unemployment dropping sharply from approximately 30% to 16.3%. These trends signal stronger participation in the labour force and increased opportunities for jobseekers.
However, employment rates alone can mask deeper issues. The ILO’s recent report underscores that many jobs created in economies recovering from COVID-19 and other shocks remain insecure, low-paid, or lacking in social protection — concerns that resonate locally. In Curaçao, a tourism-driven economy, many jobs remain concentrated in seasonal sectors, with part-time contracts, limited benefits and fluctuating work hours.
Caribbean Context: Common Challenges Across Island Economies
Across the Caribbean, small economies with heavy reliance on tourism and services are confronting similar dynamics:
- In Barbados and Jamaica, employment levels rebounded post-pandemic, but wage growth has struggled to keep pace with inflation and cost of living increases, particularly among young workers and women.
- Trinidad and Tobago, with a stronger energy sector, shows higher average wages but also greater segmentation between formal and informal employment, leaving gaps in pension coverage and job security.
- The Bahamas and Antigua and Barbuda face persistent underemployment in hospitality sectors, where many workers are classified as part-time or earn below living wage levels.
These patterns align with the ILO’s finding that job quality — including adequate income, stable contracts, workplace protections, and social security — has not kept pace with economic growth in many small economies.
Decent Work Index: Where Curaçao Stands
Based on available indicators and regional comparisons, Curaçao faces several structural challenges:
- Contract Stability: A significant share of tourism-related employment remains short-term or seasonal.
- Social Protections: Access to pensions, health coverage and paid leave varies widely by employer and sector.
- Wage Growth: In many sectors, wage increases lag behind cost-of-living adjustments, especially in service industries and among younger workers.
- Informality: A notable portion of the workforce is in informal or semi-formal arrangements, which reduces access to legal workers’ rights.
Economists argue that these quality gaps may not immediately show up in headline statistics like unemployment rates, but they directly influence living standards and long-term economic resilience.
Policy Implications: What Needs to Change
To bridge the gap between employment and decent work — a key tenet of the Sustainable Development Goals and ILO benchmarks — Curaçao may need to:
- Enhance Social Protections: Extend mandatory social security coverage to part-time and informal sectors.
- Promote Stable Contracts: Encourage employers to transition seasonal roles into year-round positions where feasible.
- Focus Training on Career Pathways: Invest in skills development that connects workers to higher-value, non-seasonal jobs.
- Align Wage Policy with Living Costs: Regular review of minimum wage levels and sectoral wage floors.
Regional Cooperation Could Help, Too
Given the shared structural issues across Caribbean labor markets, analysts suggest that regional cooperation on labor standards, data sharing and policy innovations could help Caribbean governments learn from each other’s experiences in raising job quality.
Looking Ahead
Curaçao’s improving employment rates are encouraging — but as the ILO report makes clear, good jobs are more than simply jobs. Focusing on quality — stability, protections and fair income — is essential not just for economic growth but for social well-being. As the island looks toward sustainable recovery and growth, aligning employment gains with decent work standards remains a key priority.