Unemployment rate drops to historic low of 6.8 per cent – Guyana Labour Force Survey

The unemployment rate has dropped to a historic low of 6.8 per cent according to the Guyana Labour Force Survey by the Bureau of Statistics, which has reported improvements in Guyana’s labour market.

The story begins in the first quarter of 2020, with a total unemployment rate of 12.8 per cent.

At this stage, a clear divide was already visible: women (14.4 per cent) and rural residents (13.1 per cent) were more impacted than their male and urban counterparts.

By the first quarter of 2021, the situation reached its most critical point, with total unemployment peaking at 15.6 per cent.

This era was defined by a staggering rise in unemployment for women, which jumped nearly five percentage points to 19.1 per cent.

The report noted that during this time, almost one in five women in the workforce was without a job, highlighting a period of intense economic strain.

It went on to highlight that throughout the middle of 2021 (the second and third quarters), the recovery was slow and uneven.

While men saw their unemployment rate fluctuate and then settle at 12.0 per cent, by third quarter, women remained stuck in the high teens, ending at 18.4 per cent.

Rural areas consistently struggled more than urban centres, maintaining a jobless rate of 14.8 per cent compared to the urban 13.8 per cent by the third quarter.

Notwithstanding that, the most dramatic chapter of the story occurs between late 2021 and the end of 2024.

During this period, the economy underwent a massive correction, and the total unemployment rate dropped to a historic low of 6.8 per cent.

According to the survey, “this is a significant improvement from the 14.5 per cent rate recorded in the third quarter of 2021.

According to the survey, men reached a low of 5.1 per cent, nearly a third of their 2021 peak, while women saw the most significant absolute improvement, falling from a high of 19.1 per cent to 9.3 per cent,

For the first time in the data set, the gap between rural (6.6 per cent) and urban (7.1 per cent) essentially closed, with rural areas showing a slightly stronger employment rate.

Meanwhile, the youth unemployment rate was recorded at 12.1 per cent, a substantial improvement from the 31.9 per cent recorded in the third quarter of 2021.

The report noted that the majority of the labour workforce is employed in wholesale & retail trade, construction, agriculture, forestry and fishing, public administration and defence and manufacturing.

The survey also noted that more adults are now participating in the job market compared to 2021. 

In late 2024. More than half of working-age adults were either employed or actively seeking employment

“In the fourth quarter of 2024, the Labour force participation rate was recorded at 56.5 percent. This represents an increase over the third quarter of 2021, which recorded a rate of 49.6 percent,” it read.