The October-December 2024 quarter marked a milestone in the Dominican labor market. In the last quarter of the year, the record figure of 5,050,930 workers was reached, according to data provided by the Ministry of Economy, Planning, and Development (MEPyD).

This figure represents an increase of 97,988 new jobs compared to the same period in 2023. The employment rate reached its highest level at 62.3%.

Although still high, the informality rate decreased to 54.8%, the lowest ever recorded. Excluding the domestic services sector—which has an informality rate of 94.5%—the sectors with the highest percentage of informal workers were: Trade (26.8%), Other Services (25.9%), Construction (14.9%), and Agriculture & Livestock (13.4%).

The Dominican economy grew by 5% in 2024, driven by the Services sector (5.5%), with all tourism-related subsectors playing a significant role.

As of January 2025, accumulated inflation stood at 3.32%, within the Central Bank’s target range of 4% ± 1.

Tourism remains the main driver of the Dominican economy, beginning the year with 1.2 million visitors in its first month—an 8.6% increase compared to the same month in 2024. Projections estimate that the country will welcome 12 million tourists in 2025.

The Dominican Republic faces challenges related to labor informality, demand-driven skills development, and wage equity. Private employment services can serve as an effective tool to enhance formalization, flexibility, and security. The ratification of ILO Convention 181 on private employment agencies would enable the country to develop strategies that integrate public employment services, boosting employability, inclusion, and competitiveness.

Photo of Robin Canfield in Unsplash