Belize Unemployment Falls to 1.9 Percent; 35% classified as ‘Informally Employed’

Belize’s unemployment rate dropped to 1.9 percent in September 2025; however, the exceptionally low figure signals deeper structural shifts within the labour market rather than a uniformly strong employment landscape.

Preliminary data from the Labour Force Survey show that only 3,421 persons met the criteria for unemployment, a rate that falls below what many labour economists regard as “full employment,” typically between 3 and 5 percent. Such a level reduces measured joblessness but often conceals underlying labour-market vulnerabilities.

The survey indicates that nearly 178,442 persons were employed, yet a substantial share operated within conditions that diverge from stable, formal work. Informal employment accounted for 64,129 workers, representing 35.9 percent of the employed population. Most of these individuals either worked without registration or outside the social security system, with the largest clusters in wholesale and retail trade as well as community and personal services. The high concentration of informal workers suggests that the broader employment landscape includes many whose income security and job protections remain limited.

Underemploy-ment, while statistically low at 2,465 persons or 1.4 percent of the employed population, further illustrates the mixed conditions behind the headline rate. These individuals worked fewer than 35 hours per week and were available to increase their labour supply. Their average monthly income remained well below the national employed average, reflecting a segment of the labour force that is technically counted as employed but still faces constraints in attaining adequate hours or earnings.

Labour-force participation continues to shape these outcomes. The participation rate reached 58.1 percent, with notable gender disparities and more than 130,000 persons outside the labour force for reasons ranging from household responsibilities to school attendance. This large non-participating group significantly influences the measured unemployment rate, as individuals not actively seeking work are excluded from unemployment calculations.

Taken together, the latest labour-market indicators present a complex picture. While unemployment is historically low, substantial informal work, pockets of underemployment, and lower participation rates point to conditions that warrant closer monitoring to understand the true state of labour demand and employment quality in Belize.