Unemployment Rises in Belize While Businesses Cry for Workers

Belize’s labor market is facing a peculiar paradox: unemployment is on the rise, yet industries across the board are struggling to find and keep workers.

This apparent contradiction is fueled by a surge in the BPO sector, which is attracting talent away from other industries, according to the Statistical Institute of Belize (SIB).

The SIB’s latest survey paints a concerning picture. The national unemployment rate has nearly doubled in just 11 months, jumping from 2.8% to 4%. This translates to a significant portion of the workforce actively seeking jobs.

“Finding qualified talent is becoming increasingly challenging,” Diana Castillo, Director General of SIB, told a local radio station Love FM. “Even we at SIB, let alone other private companies, are facing difficulties recruiting and retaining employees.”

Belize’s total workforce is only around 190,000, including both public and private sectors. Labor participation sits below 60%, suggesting that a significant portion of the population, including young graduates, are not actively seeking work.

However, the SIB survey indicates that many would be open to taking on jobs if offered.

While the BPO sector thrives, with an estimated 8,000+ employees across 28 companies, traditional industries like agriculture and tourism are facing severe labor shortages.

“Businesses are hiring more persons [who] have more options in terms of where they want to work and so naturally they will gravitate away from the lower paying jobs if they can get higher paying jobs,” Castillo added.

This suggests that the BPO boom is creating a talent vacuum, draining skilled workers away from other crucial sectors, such as tourism.