#DominicanRepublic 🇩🇴 #BDS_Article: The Dominican Labor Market Keeps Getting Stronger

Between January and March, a total of 176,581 net new jobs were created —a clear indicator of sustained economic recovery and growing business confidence in the country. This employment growth not only improves the quality of life for thousands of Dominican families but also enhances the nation’s productive capacity in the face of global challenges.

This upturn brought the total number of employed individuals —across both the formal and informal sectors— to 5,117,548, marking a historic record. It is the first time that this level of employment has been reached since the survey began. This figure is particularly relevant as it implies that the national productive structure is operating at an unprecedented level in terms of job creation, which, in turn, positively impacts domestic consumption, tax revenues, and social security contributions.

The employment rate reached 62.8% in this first quarter of 2025, representing the highest level ever recorded for this indicator. This figure reflects not only an increase in the number of employed people but also a broader inclusion of the working-age population within the labor market. In other words, more Dominican men and women are finding opportunities to enter the workforce, thereby contributing to inclusive and sustainable economic growth.

One of the most notable aspects of the Dominican Republic Central Bank's report is that employment growth has been primarily driven by the formal sector. Compared to the same period in the previous year, 188,658 new formally registered workers with access to social security were accounted for, while the number of informally employed individuals declined by 12,077. This represents a significant structural shift, as employment growth in the region has traditionally been associated with the informal sector.

As a result of this performance, the informality rate dropped to 53.4%, its lowest level in the entire historical series. This achievement is not coincidental; it reflects coordinated efforts between the public and private sectors to promote labor formalization. Initiatives led by the Ministry of Labor —such as job fairs, labor education campaigns, and support programs for micro and small enterprises— have been instrumental in creating conditions that encourage the transition toward jobs offering greater social protection and stability.

Finally, the Central Bank’s report underscores a clear trend of strengthening in the Dominican labor market: total employment continues to rise, unemployment continues to decline, and labor force participation is consolidating at more robust levels. These results indicate that the Dominican economy is on a positive, resilient path with strong potential for continued progress. The challenge now lies in maintaining and deepening these improvements by committing to sustained public policies, supporting formalization efforts, and fostering the creation of quality employment.

Javier Suárez

Partner, BDS Asesores