Barbados stands to benefit from CARICOM labour, says Central Bank Governor

Central Bank Governor Dr Kevin Greenidge says Barbados stands to gain from the full implementation of free movement across CARICOM, noting what he believes is a need for more workers to sustain economic growth and support major development projects.

Speaking on Friday during the Central Bank’s mid-year economic review, Greenidge said the country’s small labour pool and record-low unemployment make additional workers a net positive for the economy.

“Economics 101 tells us that the main factors of economic growth are capital and labour, and our labour force is already small,” he said.

“Bodies do work. And so, with the unemployment rate at the lowest level it can be — 6.3 per cent — there could only be positive benefits from the influx of labour, because we have enough work opportunities. We want to grow the economy beyond where it is now, and beyond our three per cent trajectory. Labour is going to be very important.”

Greenidge stressed that both the number and the quality of workers will matter, noting that “There are two components to labour.”

“There’s actually the body — that is, the person — and then the quality of that labour, which is training, which we will see when it comes to the productivity of that labour,” he said.

“So not only training Barbadians and those on the ground in terms of improving productivity and employing technology, but also having persons to be able to do it.”

The Central Bank report noted that unemployment fell to 6.3 per cent in the first quarter of 2025, down from 6.9 per cent a year earlier, with job gains in construction, administrative and support services, and wholesale and retail trade.

The labour force also expanded by 3 600 people as fewer workers retired compared to the same period last year.

However, jobless claims rose by 11 per cent during the first half of 2025 due to temporary hotel renovations, though claims remain below pre-pandemic levels.

“Especially when it comes to things like construction work and expansion, I only see positive benefits from opening up,” Greenidge added, pointing to housing projects, infrastructure upgrades, and renewable energy developments that will require additional skilled and semi-skilled workers.

(SM)