Cape Verde Unemployment Hits 4.9% as Job Market Expands
Cape Verde’s labor market saw a significant boost in the latter half of 2025, as the national unemployment rate plunged to 4.9%. According to data released by the National Statistics Institute (INE) on Monday, this represents a 2.4 percentage point drop from the same period in 2024.
The total number of unemployed individuals was estimated at 11,043, marking a sharp 29.7% decrease compared to the previous year. This tightening of the labor market comes alongside a growing active population, which rose by 4.4% to reach 226,360 people. The national activity rate also improved, climbing two percentage points to 60.4%.
Demographic and Regional Shifts
The job market showed near-parity between genders, with male unemployment sitting at 4.8% and female unemployment at 4.9%. Geographically, the recovery was felt most strongly in urban centers, where unemployment fell from 7% to 4.8%. Rural areas also saw improvements, dropping from 8.4% to 5.4%.
However, challenges remain for the nation’s youth. While the overall numbers are positive, the unemployment rate for those aged 15 to 24 remains high at 15.9%. Furthermore, roughly 19.9% of citizens aged 15 to 35—totaling 34,077 people—fall into the “NEET” category (not in employment, education, or training).
Regional Highlights:
- Highest Unemployment: São Filipe (11.6%), São Vicente (8.3%), and Tarrafal de São Nicolau (7%).
- Lowest Unemployment: Ribeira Grande (0.9%), Santa Catarina do Fogo (1.4%), and Boa Vista (2.2%).
Services Sector Dominates Employment
The tertiary sector, dominated by services, remains the backbone of the Cape Verdean economy, providing 70.6% of all jobs (over 152,000 positions). The secondary sector accounted for 21.7% of employment, while the primary sector, including agriculture and fishing, represented just 7.6%.
Specific industries leading the charge include commerce and auto repair (16.3%), followed by construction (11.8%), public administration (10.8%), and the tourism-heavy accommodation and food services sector (10.6%).
The Informal Economy and Methodology
Despite the falling unemployment rate, the quality of employment remains a point of concern. The INE estimates that 96,508 people—nearly 45% of the total workforce—are engaged in informal labor, often lacking the protections and benefits of the formal sector.
These findings are part of the Continuous Multi-Objective Survey (IMC), which surveyed 9,918 households across all municipalities between November and December 2025.
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Image: Pexels – Nico Marín
