The latest National Occupation Survey (ENO) exposes a concerning trend: 50.1% of Cubans aged 15 and older are not participating in the labor force, meaning they are neither working nor actively looking for jobs. This information, shared on Monday by the National Office of Statistics and Information (ONEI) through a thread on social media platform X, highlights that only 49.9% of this population is part of the workforce, which includes both employed and unemployed individuals actively seeking employment.
Out of over 8.4 million Cubans of working age, 4.13 million are employed, while a mere 69,333 are classified as unemployed—those who are job hunting and available to work. This reflects a lack of vigor in Cuba's formal labor market, a significant issue in the country today. Additionally, ONEI indicates an aging workforce, with 52.1% of those employed being 45 years or older. This trend is accompanied by a high educational attainment, with 76.5% holding a technical, pre-university, or higher education level.
Five provinces account for 51.1% of employment: Havana (18.4%), Santiago de Cuba (9.8%), Holguín (8.2%), Granma (7.4%), and Villa Clara (7.3%). Meanwhile, informal employment constitutes 20.1% of all employed individuals, predominantly male at 77.2%. In absolute terms, there are 831,063 informal workers, with 749,094 in the non-state sector and 81,969 in the state sector. Within the non-state sector, 58.5% of informal workers are self-employed, a figure that rises to 70.1% when including those hired by other private entities or households.
The report also underscores that women make up 63.5% of those not in the labor force, with a higher concentration in urban areas. According to EFE news agency, Cuba has one of the lowest employment rates in Latin America and the Caribbean, at 49.1%, compared to a regional average of 58.9%, as reported by the International Labour Organization (ILO). This situation is exacerbated by a rapidly aging workforce and increasing youth migration, leading to a shortage of active labor.
Furthermore, between 2021 and 2024, the real average wage adjusted for inflation plummeted by 33.5%, according to economist Pedro Monreal. This decline further diminishes incentives for joining the formal employment sector on the island.
Understanding Cuba's Labor Force Challenges
What percentage of Cubans are not participating in the labor force?
According to the latest survey, 50.1% of Cubans aged 15 and older are neither working nor actively seeking employment.
Which provinces in Cuba have the highest employment rates?
Havana, Santiago de Cuba, Holguín, Granma, and Villa Clara are the provinces with the highest employment rates, collectively making up 51.1% of jobs.
How does Cuba's employment rate compare to the rest of Latin America and the Caribbean?
Cuba's employment rate is 49.1%, which is significantly lower than the regional average of 58.9% for Latin America and the Caribbean.
What impact has inflation had on wages in Cuba?
Between 2021 and 2024, inflation-adjusted real wages in Cuba have decreased by 33.5%, contributing to a lack of motivation to join the formal workforce.