Despite being touted by the communist regime as an alternative to state employment, Cuba's private sector is grappling with a severe shortage of workers, as salaries are being severely eroded by inflation.
An in-depth report by Amado Viera in Havana Times highlights this issue in the provinces of Camagüey and Ciego de Ávila, areas that once had an abundance of job seekers.
The Case of Dichín Restaurant
A prime example is the Dichín restaurant in Camagüey, which reopened under private management on October 10, aiming to reclaim its status as a culinary landmark for Chinese cuisine in the city. Just three days later, its owners were already placing ads seeking waitstaff, kitchen helpers, and chefs, offering a daily wage of 900 pesos, slightly over $1.10 at the informal exchange rate, which recently surpassed the historic 800 pesos per dollar mark.
Feedback on Facebook was overwhelmingly negative. "No self-respecting chef would accept such a pittance. Maybe someone desperate or a newly graduated student from the Culinary Association might consider it. Otherwise, I see the owners themselves having to deal with the cooking," quipped a user identified as "Anonymous Participant."
Broader Impact Across Businesses
This predicament is not unique to Dichín. The Nü House bar-restaurant, also in Camagüey, similarly advertised for a pizza chef and kitchen assistants. A former employee, speaking anonymously, summed up the situation: "They know they've fallen behind in wages. Helpers earn 1,250 pesos per shift, and pizza chefs between 2,000 and 3,000. These salaries haven't changed in months and stopped being competitive long ago. Without raises, they've increased menu prices: most dishes now cost double what they did a year ago."
A meal for two at Nü House rarely costs less than 20,000 pesos, nearly seven times the legal monthly minimum wage of 3,210 pesos, which translates to less than four dollars at the informal exchange rate.
Struggles in Low-Skilled Jobs
The labor shortage extends even to low-skilled positions. Leandro, who owns a print shop in Camagüey, laments "constantly having to train new employees who leave shortly after." Iván Ortiz, who runs a roofing construction crew, has turned down projects due to workforce instability, stating simply, "People don't want to work," as he told Havana Times.
An informal survey of 25 private workers in both provinces revealed that only three had permanent contracts, wage increases did not exceed 20% over twelve months, and more than half juggled two or more jobs.
Economist Omar Everleny Pérez estimated in April that maintaining a two-person household in Cuba required 61,710 pesos monthly for basic needs. By September, he updated the food cost alone to 47,135 pesos for two people in Havana, up nearly 60% from the previous year.
Between 2025 and 2026, the basic basket rose by 26.7%, and food prices soared over 37%, far outpacing the private sector's wage increases. The average state salary in August was 7,354 pesos, less than ten dollars at the current exchange rate.
The new Labor Code, effective since September 25, aims to eliminate informal employment and equalize labor rights, yet it fails to address the core issue: wages.
On Saturday, Miguel Díaz-Canel claimed that the 176 Economic and Social Transformations aim to "reduce inequalities" and protect the most vulnerable, a narrative starkly contradicted by the situation documented in Camagüey and Ciego de Ávila.
FAQs on Cuba's Labor Market Challenges
Why are Cuban private businesses struggling to find workers?
Cuban private businesses face worker shortages due to inflation drastically reducing the real value of wages, making them unattractive compared to the cost of living.
How has inflation affected wages in Cuba?
Inflation in Cuba has significantly outpaced wage increases, with food and basic goods prices rising much faster than any salary adjustments, eroding purchasing power.
What measures has the Cuban government taken to address labor market issues?
The Cuban government introduced a new Labor Code to eliminate informal employment and equalize labor rights, but it has not tackled the fundamental issue of inadequate wages.