Recruitment specialists confirm the scenario of an unemployment rate of less than 6%

The Minister of Finance affirmed this week that the unemployment rate will fall below 6% by 2024. According to recruitment specialists, we are heading towards such a scenario. Because there is great momentum in the economy. Furthermore, they believe that the objective of reaching full employment is achievable if the conditions are met.

Employability and improvement of the economic climate

The unemployment rate will fall below 6% this year. This is what Renganaden Padayachy, the Minister of Finance, told the press this week. Recruitment and human resources specialists believe this forecast is realistic. “It seems to me that we are moving in the direction desired by the Minister of Finance,” explains Thierry Goder, Chief Executive Officer at Alentaris. “The unemployment rate was estimated at 6.1% at the end of 2023. With the expansion of businesses and recruitment in the civil service and construction, the rate may fall slightly below 6% this year,” says, for its leaves, Ravish Pothegadoo, director of Talent on Tap.

Adilla Diouman-Mosafeer, director of Talent Lab, also makes her comment. She explains that the unemployment rate is calculated from the percentage of the population who are actively looking for work, but who cannot find any. “These unemployed people are registered at the Employment Office. If we base ourselves strictly on this definition, the unemployment rate will be less than 6%,” she explains.

Several signs indicate this positive trend. First of all, continues Thierry Goder, an increase in investment in various sectors of the economy could create new job opportunities as well as an increase in recruitment in the public sector. “In addition, the government's efforts to promote entrepreneurship and support small and medium-sized businesses could also contribute to job creation. Furthermore, if stable growth is observed in key industries like tourism, ICT and the financial sector, this could lead to increased demand for labor, which would help keep the unemployment rate at a low level. low level,” indicates Thierry Goder. Finally, he adds, a general improvement in the economic climate and business and consumer confidence indicators could also support this positive employment trend.

These signs which attest to the good dynamics of the job market

… Thierry Goder, Chief Executive Officer at Alentaris

• Economic diversification: “We have succeeded in diversifying our economy beyond sugar and textiles, by turning to sectors such as tourism, finance, ICT, and the outsourcing of services. This diversification creates new job opportunities in various fields. »
• Foreign investment: “Mauritius has become a hub for foreign investment, attracting international businesses thanks to its favorable regulatory framework, tax incentives and skilled workforce. These investments create direct and indirect jobs. »
• Training and education: “The Mauritian government has placed emphasis on education and vocational training to meet the needs of the labor market. Training programs are put in place to develop the necessary skills in growing sectors, which promotes the employability of Mauritians, although I think we can do better. »
• Infrastructure: “Improving infrastructure, particularly in the areas of transportation and information technology, facilitates business growth and promotes job creation in various sectors. »
• The government strategy: “The Mauritian government is implementing policies aimed at stimulating economic growth and promoting employment, particularly through initiatives to develop small and medium-sized businesses and promote entrepreneurship. »
• The regional hub: “As a regional financial and commercial center, Mauritius is attracting more and more companies wishing to expand their activities in the Indian Ocean region, creating new employment opportunities…all these factors combined contribute to a dynamism in the employment market in Mauritius, offering Mauritians and foreign residents a wide range of professional opportunities. »

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Full employment is achievable

Full employment is defined as a situation where the unemployment rate is around 3%. Can we hope to achieve a situation of full employment? For Thierry Goder, the goal of full employment represents a BIG challenge, but it is achievable. “Although the country has traditionally maintained unemployment rates of 6%, reaching as low as 3% will require sustained efforts and targeted policies,” he argues. To hope to achieve a situation of full employment, several elements must be taken into account. Thierry Goder lists them.

Economic diversification

Mauritius relies heavily on certain sectors, such as tourism, textiles and agriculture. Diversifying the economy by developing sectors with higher added value (pharmaceutical sector, artificial intelligence, biotechnology, etc.) can create new job opportunities.

Training and education

Investing in education and skills training is essential to providing workers with the skills needed to meet the changing needs of the labor market, particularly in the areas of technology and innovation.

Encouragement of entrepreneurship

Supporting local entrepreneurs can boost job creation and encourage innovation. Policies favorable to small and medium-sized businesses can be put in place to facilitate private sector growth.

Full employment policies

Government policies such as hiring incentives, job reintegration programs for the long-term unemployed, and measures to reduce barriers to youth employment can help boost employment.

Flexible labor market

It is important to maintain a balance between protecting workers' rights and the flexibility needed to promote job creation. Labor market reforms can be considered to encourage hiring and investment. “In summary, although achieving full employment in Mauritius may require significant efforts and structural reforms, it remains an achievable goal with a strategic vision and policies adapted to the country's specific economic and social challenges” , concludes Thierry Goder.

… Ravish Pothegadoo, director of Talent on Tap

• Positions of power: “There is a lot of recruitment in sectors such as the Civil Service and parastatal bodies, and in the private sector (financial services, ICT, BPO and hospitality). »
• More businesses: “There is an expansion of business in Mauritius, particularly in ICT-BPO and especially the financial sector. »
• More self-employed: “There are more 'self-employed' thanks to social networks. You only have to see the boom in terms of product sales on Facebook, not requiring expenses such as renting an office or a display window for products including for catering and catering and making cakes, etc. We are also seeing a growing number of consultants (people with a lot of experience in a specific sector who no longer wish to be employed by a company). Which suits SMEs who do not have the budget to recruit these people full time. »
• These other reasons: “Given inflation, and the current cost of living, more people per household, including young people, now have to work. Likewise, with the increasing number of divorces, we note that some people – who would not normally be on the job market – have taken up employment, but it is on a very small scale. Note that more than 75% of people leaving the unemployed pool this year are women. »These challenges to take into consideration