Youth unemployment rises to 9.3%
The youth unemployment rate more than tripled in the space of 12 months, according to data released on Monday by the Department of Statistics.
As of May 2025, the unemployment rate for 16 to 24-year-olds leapt to 9.3 per cent, up from 2.4 per cent a year earlier, according to the Labour Force Survey.
The Labour Force Survey also documented a 20 per cent year-over-plunge in median income for the estimated 2,045 people in the youngest working age category to $35,853, compared to $44,980 in May 2024.
Also evident in the survey was a spike in the number of older workers. Bermuda had an estimated 4,475 workers aged 65 and over in May 2025, up from 3,704 a year earlier — an increase of more than 20 per cent.
Potential reasons for the increase could include baby-boomers choosing to continue working after hitting the traditional retirement age of 65, or retirees returning to the workforce.
Bermuda’s overall unemployment rate rose to 1.7 per cent from 1.6 per cent, year over year, while the unemployment rate among Bermudians rose to 2.1 per cent, up from 1.6 per cent.
Underemployment — described by the survey as people who have a job but are available and willing to work “more adequately”, in terms of hours, skills or income — also climbed. The survey found 8.4 per cent of the working population was underemployed, up from 5.2 per cent a year earlier.
Median income from a main job across the workforce increased by 6 per cent, from $73,157 in May 2024 to $77,573 a year later. The average number of hours worked in a week edged up from 41.3 hours to 41.4 hours.
The survey also indicated women are earning more than men — a trend that has been evident in the annual survey since 2022.
Median income from the main job for women was $80,269 compared with $75,279 for men, a difference of 6.6 per cent. Both genders saw an increase from the May 2024 survey, when women’s median income was $74,092, compared with $72,259 for men.
Rising youth unemployment reflected by the survey is a trend seen in many countries. In the United States, March employment statistics showed that 8.5 per cent of 16 to 24-year-olds were unemployed. In January, the United Nations reported that youth unemployment in Latin America and the Caribbean was 11.9 per cent, nearly three times the adult rate.
Economists highlight structural changes in the labour market that have been particularly challenging for young workers. These include a “low-hiring, low-firing” environment driven by employers’ caution in an uncertain economy, and the impact of artificial intelligence and automation, particularly on the kind of entry-level work that would traditionally have been done by young recruits.
According to the World Economic Forum’s Future of Jobs Report, 41 per cent of organisations expect to reduce their workforce before 2030 owing to automation, while 70 per cent plan to hire people with new skills.
The Labour Force Survey was based on a sample size of 1,497 households, of which 1,090 submitted completed responses in May 2025. The margin of error was plus or minus 2.5 per cent, with a confidence level of 95 per cent.
• To read the full survey, see Related Media
You must be Registered or to post comment or to vote.
