Labour market signals

Recent labour market indicators point to a significant structural transformation underway in Guyana’s economy, marked by falling unemployment, rising earnings, and broad-based sectoral growth. Data released by the Bureau of Statistics and outlined by President Dr Irfaan Ali reinforces the view that the country has moved beyond short-term recovery into a phase of sustained economic expansion, underpinned by diversification and active labour demand.
A reduction in unemployment from 12.8 per cent in 2020 to 6.8 per cent in 2024 reflects an economy capable of absorbing labour at scale, generating opportunities across multiple regions and industries. The balance of unemployment rates across the regions further suggests that growth has not been confined to a single geographic corridor and has taken root nationally. This broad distribution is a critical indicator of inclusive development and economic resilience.
Equally notable is the improvement in labour market outcomes for women as a decline in female unemployment from 14.4 per cent to 9 per cent over the same period signals progress in addressing long-standing participation gaps. Expanding access to employment for women strengthens household income, improves social outcomes, and contributes to long-term productivity gains. Such shifts are often among the clearest markers of a maturing labour market.
An increase of more than 104,000 employed persons between 2020 and 2024 points to a rapidly-expanding labour force responding to rising job availability. This expansion reflects confidence in economic prospects and a shift from labour market discouragement to participation. Growth in employment on this scale typically accompanies sustained private and public investment, supported by macroeconomic stability.
Wage growth across a wide range of sectors further highlights the structural nature of the expansion as earnings increases ranging from 50 per cent to over 100 per cent in areas such as agriculture, manufacturing, construction, information and communication, professional services, health, and creative industries indicate that growth is not concentrated in a single pillar. Instead, multiple sectors are experiencing productivity gains and increased demand for skilled and semi-skilled labour. Such patterns are consistent with an economy undergoing diversification rather than one reliant on a narrow base.
Of particular importance is the observation that rising wages have not been accompanied by destabilising inflationary pressures. In a global environment where many economies have struggled to balance wage growth with price stability, this outcome suggests prudent economic management and effective policy coordination. Stable inflation alongside rising incomes enhances purchasing power and supports domestic demand, reinforcing the growth cycle.
The evolving employment profile also reflects policy choices aimed at diversification and the emergence of new jobs across agriculture, energy, construction, services, logistics, finance, education, health, and creative industries points to a recalibration of the economic structure. Diversification reduces vulnerability to external shocks, spreads risk, and creates pathways for innovation and skills development. It also broadens the tax base, strengthening fiscal sustainability.
At the same time, the success of the development agenda has introduced new challenges as labour shortages in key sectors now pose a constraint on the pace of expansion. Assessments conducted by local and international institutions indicate that existing labour supply is insufficient to meet projected demand in the medium and long term. This reality is not uncommon in fast-growing economies and often serves as a catalyst for further investment in training, education, and workforce mobility.
The projected demand for tens of thousands of additional workers underscores the importance of forward-looking labour and migration policies, as well as accelerated skills development. Demand is expected not only in traditional growth areas such as construction and manufacturing, but also in hospitality, tourism, specialised services, agricultural systems, health, and emerging green and climate-resilient industries. These sectors align closely with national development priorities and global economic trends.
Taken together, these indicators present a picture of an economy transitioning into a more complex and diversified phase of development. The narrative is no longer defined by a single sector or temporary surge, but by structural change in employment, earnings, and productivity. Managing this transition will require continued attention to workforce development, inclusivity, and competitiveness.
The task ahead lies in consolidating these gains, addressing labour constraints, and ensuring that growth remains resilient in the years to come.