In Belize, a surge in the BPO sector is causing a labor market paradox. Despite rising unemployment, there is reportedly a struggle to find and retain workers in the nation’s industries. The Statistical Institute of Belize (SIB) has noted an increase in the national unemployment rate from 2.8% to 4% in 11 months.

The trend is attributed to the BPO sector attracting talent away from other industries such as agriculture and tourism. Presently, the BPO sector features over 8,000 employees distributed across 28 companies. Diana Castillo, the Director General of SIB, confirmed this employment shift. She said that businesses able to offer higher wages are drawing workers away from lower-paying positions, contributing to labor shortages in some fields.

The rise in the BPO sector is also affecting institutions like the SIB itself, where recruiting and retaining employees has become a challenge due to alternative and higher-paying job options in the market. The report has led to concerns about a potential talent vacuum in Belize’s labor market, particularly in essential sectors such as tourism.