WILLEMSTAD – The Central Bank of Curaçao and Sint Maarten will place labor market dynamics high on its research agenda for 2026 to 2028, with special attention to youth unemployment, skills mismatches, migration and the informal economy.
According to the CBCS Research Agenda 2026–2028, efficient and resilient labor markets are essential for long-term economic stability. For small open economies such as Curaçao and Sint Maarten, weaknesses in employment, productivity and workforce development continue to limit economic performance.
The CBCS notes that there is growing concern about persistent youth unemployment and the gap between what the education system produces and what the labor market needs. This mismatch can make it harder for young people to find stable employment, while employers continue to report difficulty finding workers with the right skills.
The bank also wants to study the role of migration, including both the importation of labor and the emigration of skilled workers. These trends are important for Curaçao, where certain sectors depend on foreign workers, while the island also faces the loss of educated professionals who seek opportunities abroad.
Another major concern is the informal sector. The CBCS warns that informality weakens the tax base, contributes to inefficient use of resources and reduces the country’s potential output. The bank says future research should examine the size of the informal sector and how informal employment can be brought into the formal economy.
The agenda also proposes a shift in the way labor policy is discussed. Instead of focusing only on permanent versus flexible employment, the CBCS suggests that Curaçao and Sint Maarten should also examine the difference between flexible and informal employment. Well-regulated flexible contracts could help bring more workers into the formal economy, but only if those arrangements are genuine and properly enforced.
The research could have major policy implications. Questions about minimum wage, wage dynamics, productivity, education, migration and labor participation all influence Curaçao’s long-term growth prospects.
For Curaçao, the agenda points to a broader challenge: economic growth will not be sustainable if the labor market cannot supply the skills required by new and existing industries. The CBCS is therefore expected to use its research to support better policy decisions on education, workforce development and formal employment.