Foreign Labour Surge Props Up Local Job Market as Unemployment Hits 5.4%

The Mauritian labour market is showing signs of a significant structural shift, as a sharp increase in foreign workers coincides with a drop in the national unemployment rate to 5.4 per cent.

Latest figures from Statistics Mauritius for the fourth quarter of 2025 reveal that while local employment is rising, the economy is increasingly reliant on overseas labour.

The number of legal foreign workers in the country has surged to 61,076 as of October 2025—a dramatic rise from approximately 45,300 in March of the same year and 37,768 in late 2023.

Positive Indicators Mask Fragility

On the surface, the economic indicators remain “green.” Total employment reached 560,900 in Q4 2025, an increase of 10,500 jobs over the year.

This growth was predominantly driven by women, who accounted for 9,300 of those new positions.

The unemployment rate has consequently edged down from 5.7 per cent a year ago to its current 5.4 per cent.

However, the data highlights a persistent gender gap: the jobless rate for men sits at 4 per cent, compared to 7.1 per cent for women.

The Youth and Education Gap

Despite the falling headline figures, 31,800 people remain out of work. The profile of the unemployed suggests significant structural hurdles:

• Education: 50 per cent (15,900 people) do not hold a School Certificate.
• Youth: 10,800 young people (aged 16–24) are jobless, representing 34 per cent of the total unemployed. The youth unemployment rate remains high at 16.8 per cent.
• Experience: 30 per cent of those seeking work are looking for their first job.

An Economy Under “Foreign Infusion”

The rapid influx of foreign labour is drawn mainly from India, Nepal, Madagascar, and Bangladesh. Notably, the number of Malagasy workers has doubled in just two years.

While many work under Work Permits, 13,398 hold Occupation Permits, with Indian (3,531) and French (2,175) nationals leading this category.

These professionals are concentrated in media, hospitality, and financial services.

Trade unionist Radhakrishna Sadien warns that an ageing population makes foreign labour “inevitable,” but points to a worrying “mismatch” between local aspirations and market needs.

He noted that manual trades struggle to attract Mauritians, while a perceived lack of meritocracy is driving local talent to seek opportunities abroad.

Cautious Dynamism

In the private sector, HR entrepreneur Emmanuel Maujean describes a “dynamic” recruitment environment but notes that geopolitical uncertainty is making firms more hesitant.

“Companies are taking more time; risk is necessary, but it is measured,” Maujean observed, suggesting that while the market is moving, workers should weigh the risks before changing roles.

As the government grapples with 2,800 households where no one is employed and a rising informal “black market” for labour, calls are growing for better economic planning and training to ensure the local workforce can meet the demands of a changing economy.

Source: l’Express