Curaçao’s Labor Market and Income Landscape: Progress but Gaps Persist
Recent reports from the Central Bureau of Statistics—the 2024 Labor Force Survey and the 2023 Income and Income Distribution Census—paint a nuanced picture of Curaçao’s socio-economic trajectory. On one hand, the island is seeing significant improvements in employment and income growth; on the other, challenges around inequality and economic inactivity remain pressing.
A Strong Labour Recovery
One of the most encouraging developments is the dramatic drop in the unemployment rate from 13.1% in 2022 to 7.8% in 2024. This marks a 40.5% decrease in just two years, largely driven by the island’s rebounding tourism sector. As visitor numbers and overnight stays surged, surpassing pre-pandemic levels, so too did jobs in hospitality, real estate, and construction. Employment grew by over 5,000 people, reflecting a 7.8% increase, while youth unemployment nearly halved from 29.8% to 16.3%.
Unemployment Rate (%)
Income Gains and Inequality
Parallel to labor market improvements, household and personal incomes have also risen. The median personal gross income rose by 24.6% between 2011 and 2023, significantly outpacing the 6.5% rise in the average income. This suggests income gains were more concentrated among lower- and middle-income earners, a positive sign for equity.
Distribution of Personal Gross Monthly Income among Population Age 15 and Above (%)
However, structural challenges persist. Despite income gains, income inequality has worsened, as reflected by a rising Gini coefficient. A third of all households still live below the poverty line, and one in five working individuals earns below the minimum wage. Vulnerable groups, including single-parent households, the elderly, and people in less developed zones like Scharloo and Fortuna, remain disproportionately affected.
Moreover, while the labor force expanded, the economically inactive population also grew, rising by over 7,400 individuals. This includes students, retirees, and discouraged workers who are not actively seeking employment, highlighting a key area for policy focus.
Moving Forward
To ensure sustained progress, Curaçao must translate labor and income gains into broad-based, inclusive economic development. This includes investing in vocational training, reducing informal employment, and implementing targeted policies to raise incomes in low-wage sectors. Efforts to increase labor force participation will also be crucial.
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