Mauritius labor market shows slowing job growth and skills shortages

The Mauritian labor market is experiencing a period of transformation characterized by a positive but contrasting dynamic. According to Statistics Mauritius data for the first quarter of 2026, there were approximately 553,700 people in employment, representing a net increase of 6,100 jobs compared to the first quarter of 2025. The unemployment rate also saw a slight decrease from 6% to 5.7% year-on-year.

Despite these positive annual trends, recent quarterly data indicates a slowdown. Between the end of 2025 and the beginning of 2026, the market lost 7,200 jobs, and the unemployment rate rose from 5.4% to 5.7%. Experts note that while the market is holding, the pace of job creation is decelerating compared to the 9,000 net jobs created during the previous 12-month period.

Key challenges facing the economy include a persistent shortage of skills, seasonal adjustments, and high youth unemployment. Business leaders describe the current state as “prudently favorable” but highlight a paradox where a low unemployment rate coexists with 33,300 unemployed individuals.