Youth unemployment in Dominica

Youth unemployment in Dominica remains a pressing socio-economic issue. Young people aged 15 to 24 face significant barriers to the workforce, reflecting systemic inefficiencies in education and training, limited job creation, and susceptibility to economic shocks. While the national unemployment rate has improved over time, progress for youth has lagged.

Historical and Recent Trends of Youth Unemployment in Dominica

In 1997, youth unemployment in Dominica reached a critical high of 40.6%, underscoring the severity of the problem. By the end of the decade, in 1999, it had declined slightly to 34.8%, likely due to informal economic activity and temporary migration.

By 2022, data still showed a worrying trend, with youth unemployment at 34.7% under a broader definition that includes individuals marginally attached to the labour force. Gender disparity continues to be an issue: 38.2% of young women were unemployed, compared with 31% of young men. In addition, 21.3% of youth aged 15 to 24 were categorized as NEET (Neither in Education, Employment nor Training) pointing to deep disconnection from economic opportunities.

In 2024, unemployment across all age groups declined to 13.04%. However, youth still comprise the demographic with the highest incidence of joblessness. Although the overall labour force ranged between 54,080 (strict definition) and 60,930 (relaxed definition) in 2022, the high numbers of formally unemployed youth highlight a major policy gap.

Contributing Factors

A combination of systemic and external factors influence youth unemployment:

• The education system does not always align with current labor demands, particularly in technical and vocational skill areas. Graduates often lack practical job readiness, leading to poor alignment between qualifications and available roles.
• Natural disasters, such as Hurricane Maria in 2017, which caused damages of EC$3.69 billion, over 226% of GDP, wiped out job opportunities in agriculture and tourism. The COVID‑19 pandemic further disrupted livelihoods, with many young people losing short-term or informal work opportunities.
• Economic contraction following these events means that fewer entry-level or apprentice-style positions are available. At the same time, many young people cannot afford to attend post-secondary programs due to cost or lack of support.

Government Response and Training Initiatives

The National Employment Programme (NEP), launched in 2013, aims to bridge this gap by offering temporary placements and training. It primarily targets youth and the unemployed. As of March 2023:

• NEP had placed over 4,300 participants, supported with EC$29 million in funding.
• During the pandemic, monthly outlays exceeded EC$5.8 million, facilitating public sector jobs, internships, and business mentorship.

While the NEP provides valuable short-term skill-building, evaluations highlight that many roles remain temporary. A 2024 IMF review suggested reshaping NEP into a revolving, skills-driven model better aligned with labour market needs.

Another key initiative is Skills for Youth Employment (SkYE), launched in 2019 and funded by the UK. The programme delivers certified vocational courses in high-growth sectors such as hospitality, construction, ICT, renewable energy, and agro-processing. By early 2023, 372 young participants had earned accredited credentials, with several trainers also certified locally, expanding Dominica’s technical training capacity.

Structural and Gender Challenges

Gender differences in youth unemployment are stark. In 2022, more young women (38.2%) were unemployed compared to young men (31%). This reflects broader inequalities, including fewer part-time job options and childcare responsibilities that limit labour market participation for women.

Rural youth face additional barriers due to transportation issues and fewer job opportunities outside urban centers. High rates of informal work, 41.8% overall, suggest many young people take on insecure, low-paying jobs without benefits or stability.

Pathways Forward and Policy Direction

To reduce youth unemployment, Dominica is focusing on:

• Aligning TVET and apprenticeship training with industry needs.
• Expanding entrepreneurship funding and mentorship, especially for youth and returning nationals.
• Promoting growth in sectors such as green energy, agro-processing, eco-tourism, and digital services to provide climate-resilient and sustainable employment.
• Reforming NEP into a revolving programme that offers skill-building and pathways to long-term roles.

Supporting Youth Employment

To support youth transitions into stable employment, a combination of targeted strategies is required:

1. Improve apprenticeship and TVET pathways aligned with high-growth sectors.
2. Integrate entrepreneurship support with training and access to micro-financing.
3. Enhance labour market data collection to track NEET youth, informal employment, and training completion.
4. Strengthen private-sector engagement to create internship and mentorship opportunities.

These initiatives must be combined with policy frameworks and funding mechanisms that support effective training and job placement.

Key Focus Areas for Action

• NEP and SkYE programmes
• TVET alignment and entrepreneurship support

Dominica’s youth unemployment rate, hovering in the mid‑30s for decades, reflects structural challenges that cannot be fixed by short-term solutions alone. However, new emphasis on skills training, growing economic sectors, and enhanced program design offers a shot at better outcomes. Sustained attention, flexible policy design, and strong implementation will be vital in enabling Dominican youth to contribute economically and build stable futures.