Labour Force Shrinks by 13,000. What’s Really Behind It?

Belize’s labour force has shrunk by more than 13,000 people over the past year, yet the country’s unemployment rate has fallen, according to the latest Labour Force Survey from the Statistical Institute of Belize (SIB).

The latest Labour Force Survey from the Statistical Institute of Belize shows the jobless rate fell from 2.1% to 1.9%. But the labour force itself shrank significantly. The shift is largely due to thousands of Belizeans leaving the labour force altogether rather than finding jobs.

SIB Census and Survey Manager Christian Orellano said the biggest declines were among adults aged 25 and over, driven by two main groups. Women between 25 and 34 stepped back due to family responsibilities, while those aged 55 and over exited because of retirement.

SIB Director General Diana Castillo explained the decline in labour force participation, saying, “For unemployed persons, that also decreased, and so you have both the numerator and denominator from that calculation decreasing, and it just so happens that the number at the top decreased at a bigger rate than the number at the bottom.”

Is Belize’s lower unemployment rate a sign of a stronger job market, or simply evidence that thousands have stopped looking for work altogether? We’ll have a full breakdown in tonight’s 6 o’clock newscast.