Pathways Forward

In the Caribbean, low rates of work-force participation, high levels of unemployment, and dependency on employment in low-paying and informal sectors are barriers to economic progress. To identify and implement solutions that measurably improve job skills training, employment opportunities, and livelihood outcomes across the Caribbean, Mercy Corps’ U.S. Department of State-funded Strengthening Caribbean Economic Growth (SCEG) program conducted two complementary assessments across Antigua and Barbuda, Barbados, the Bahamas, Dominica, the Dominican Republic, Grenada, Jamaica, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Five Grenadines, Suriname, and Trinidad and Tobago. The market constraints analysis and knowledge, attitudes, and practices (KAP) assessment identified key constraints and opportunities facing individuals seeking employment and micro, small, and medium enterprises (MSMEs) across the region.

Key Findings

• Small-island Economies are affected by the need for imports, high transportation costs, government debt, and high emigration rates, particularly of highly educated individuals.
• Tourism remains a key source of GDP and employment for women and youth, though often low-paid and unstable, while also offering opportunities for local business growth and better jobs.
• Labor force participation in the Caribbean averages 64%. High rates of youth who are neither employed nor in formal education (NEET rate) reflect the challenges of accessing employment.
• Skill Gaps: The gaps between business needs and the skills of potential employees are reflected in the misalignment of preparation and training offered by educational institutions, as well as the high rates of emigration of skilled adults.
• Structural challenges for businesses include limited access to finance, customs and trade regulations, and an undereducated workforce. These challenges restrict the development of new products and services and slow progress in digital technology and internet use.
• Business Development Services and Resilience: Entrepreneurs struggle with limited business knowledge and lack of mentorship. Demand for support in planning, digitalization, and risk management is high, but supply remains scarce.

Recommendations

Some specific areas where there are opportunities for positive impact with smaller scale investments are:

• Labor force participation and skills gaps: Strengthening in-demand skills—especially in ICT—through technical and soft skills training, mentorship, apprenticeships, and job placement support is essential.
• Business development and resilience: Enhancing planning, risk management, training, and peer support is critical for entrepreneurs and businesses to grow and create jobs.
• Digital economy: Improving connectivity and boosting the digital capacity of local enterprises opens new markets, products, jobs, and growth.
• Financial access: Expanding credit alternatives and financial tools supports business development and economic growth.