Social inclusion remains a significant challenge in the Caribbean region. Many Caribbean countries experience relatively high levels of poverty, and important inequalities exist across socio-economic groups, territories, and genders. Labour markets are characterised by relatively high informality, resulting in low levels of social protection and high vulnerability across some segments of the population. Moreover, access to quality public services for all is also a pending challenge in most Caribbean economies.
Caribbean Development Dynamics 2025
Abstract
Social conditions have significantly improved in most Caribbean countries in recent decades. However, important challenges remain, particularly in relation to poverty and food insecurity, which are high for certain groups and countries. Vulnerabilities and inequalities persist among specific socioeconomic groups, territories, and genders, for instance in terms of modest levels of social protection coverage, which are directly linked to the prevalence of labour informality. Improving the quality of key public services and strengthening social protection systems will be fundamental for enhancing social inclusion in the region. Furthermore, limited data availability to measure social conditions highlights a critical area requiring attention to support evidence-based social policies.
This chapter analyses social conditions in Caribbean countries and is structured into four sections. The first section examines poverty, inequality and food insecurity as key areas requiring improvements to strengthen social inclusion. The second sections analyses labour market dynamics, highlighting the need to foster formalisation across the region. The third section focuses on social protection and healthcare systems, and on the need to improve coverage and efficiency to reduce vulnerabilities among certain groups. Finally, the fourth section analyses education systems in the region, examining progress and pending challenges related to access, retention, learning outcomes and the need to improve the quality of education.
Poverty and inequality are a persistent challenge in the Caribbean, but there are major disparities across countries. The share of the total population living under the national poverty line ranges from 11% to 58.5%, according to available data (Figure 2.1). The extreme poverty rate is close to 3%, substantially lower than in the average for Latin America and the Caribbean (LAC) (OECD et al., 2023[1]; OECD et al., 2024[2]). Due to data limitations, it is difficult to identify clear trends in the evolution of poverty over time, except for a few countries. In a decade, poverty has dropped in the Dominican Republic by 12.5 percentage points, reaching 20.4% of the population in 2022; in Grenada by 12.7 percentage points, reaching 25% of the population in 2018; by 6.6 percentage points in Jamaica, reaching 11% in 2019; and by 3.8 percentage points in Saint Lucia, reaching 25% in 2016. Conversely, poverty has increased substantially in Barbados – by 6.4 percentage points in six years.
Average poverty figures in the Caribbean should be analysed with caution. First, poverty and income inequalities are difficult to track due to low coverage of household income or living conditions surveys in the region (ECLAC, 2023[3]). Some countries, including Barbados, Jamaica, the Dominican Republic, Suriname, and Trinidad and Tobago, have developed more up-to-date and granular statistics through living conditions or household surveys. However, many Caribbean economies still rely on outdated data. This hampers the ability to accurately assess poverty levels and the effectiveness of policies aimed at reducing poverty. Strengthening statistical systems is a priority (see Chapter 5).
Headcounts poverty, percentages of total population
Note: The average for the Caribbean refers to the simple mean of the latest available years of reference for the whole sample of countries. The recent average for the region refers to simple mean for the sub-sample of countries with years of reference dating not earlier than 2016. The previous period is 2010 for Barbados, 2014 for the Dominican Republic, 2008 for Grenada, 2010 for Jamaica and 2006 for Saint Lucia.
Second, poverty is a multi-dimensional phenomenon, as is social inclusion in a broader sense. To fully understand the evolution of poverty and social inclusion, it is necessary to consider factors beyond income. Labour conditions, access to health care, education and other basic public services, and broader socio-economic inequalities all contribute to the overall picture of social inclusion.
Multi-dimensional socio-economic conditions have improved, although the pandemic left an impact
Over the last three decades, the Caribbean has experienced an upward trend in the Human Development Index (HDI), similar to the Latin American region (Figure 2.2, Panel A).1 However, important and lasting gaps remain if compared to the level of human development of, for example, OECD countries.
After a period of strong growth throughout the 1990s and early 2000s, progress in human development slowed down in the region afterwards, with a negative impact of the 2008 global financial crisis and the COVID-19 crisis. All the determinants of the HDI have improved since 1990. In 2022, the average Caribbean person could expect to live 72.6 years (an increase of 4.2 years since 1990), the average child could expect to study 14.1 years (an increase of 2.9 years) and the mean gross national income (GNI) per capita stood at 17 280 constant 2021 international USD (66% increase).
These advances are similar to those observed in Latin America (Figure 2.2, Panels A and B). In 2022, the average Latin American could expect to live 73.5 years (an increase of 5.5 years since 1990), the average child could expect to study 14.3 years (an increase of 3.8 years) and the mean GNI per capita stood at 14 300 constant 2021 international USD (70% increase) (UNDP, 2024[6]).
Socio-economic multi-dimensional conditions are quite diverse across the Caribbean. In 2022, the HDI ranged from 0.55 in Haiti to 0.84 in Saint Kitts and Nevis (Figure 2.2, Panel B). The latter is ranked globally among those with a very high HDI (51st), together with Antigua and Barbuda (54th), the Bahamas (57th), Trinidad and Tobago (60th), and Barbados (62nd). Seven Caribbean countries are categorised as having a high HDI: Dominica, the Dominican Republic, Grenada, Guyana, Jamaica, Saint Lucia, and Saint Vincent and the Grenadines. Meanwhile, Haiti and Suriname are among the medium HDI countries.
Note: Data refer to simple averages for Caribbean and Latin American countries.
Source: Authors’ estimates based on the Human Development Data of the United Nation Development Programme, https://hdr.undp.org/data-center/documentation-and-downloads.
The pace of improvement in HDI has been different across Caribbean countries. In six countries, the average yearly growth rates of the HDI have been close to or lower than 0.2%. Guyana, the Dominican Republic, Trinidad and Tobago, and Saint Kitts and Nevis have experienced yearly rates of growth close to or higher than 0.5%. Meanwhile, at 0.5% on average per year, the improvement of the HDI in the Caribbean region has been slightly more modest than in Latin America (0.6%).
Inequalities and food insecurity remain high
Inequality is high in the Caribbean region, as it is in LAC (OECD et al., 2024[2]), largely above levels in OECD countries. In the latest year for which surveys of living conditions are available, the average of Gini coefficients in the Caribbean was 0.4 (the higher the value, the more unequal the distribution). This ranged between 0.48 in Antigua and Barbuda and 0.32 in Barbados, compared to a simple average of 0.45 in LAC (ECLAC, 2023[3]).
Food insecurity is high across the region (Figure 2.3). The share of people living in moderate or severe food insecurity in the Caribbean represented 37% on average in 2022 (33% in Latin America), ranging from 20% in the Bahamas, Grenada and Saint Lucia to around 50% in the Dominican Republic and Jamaica, and more than 80% in Haiti. The Caribbean is unique in having a generally high cost of food compared to other regions. Around 57% of the Caribbean population does not have access to a healthy diet due to its high cost (FAO, 2023[7]).The average cost of a healthy diet in Caribbean countries was estimated at USD 4.4 per person per day in 2021 in purchasing power parity terms. This is 42% higher than the OECD average. Although many Caribbean economies produce and export agricultural products, between 80% and 90% of all food consumed in the region is imported, mostly from outside the region itself. In fact, intraregional food trade accounts for only 16.6% of total food imports (IICA, 2018[8]; Turnbull, 2021[9]).
Several structural factors present a challenge to reducing food prices. While Caribbean countries aim to increase food production and diversification, domestic production volumes and productivity remain low. The cost and transport time related to intraregional food trade are high (see Chapter 6). The small size of markets reduces the options for achieving economies of scale, leading to higher per-unit production, logistics and transportation costs.
Note: The indicator measures the percentage of individuals in the population that have experienced food insecurity at moderate or severe levels during the reference period. The severity of food insecurity, defined as a latent trait, is measured on the Food Insecurity Experience Scale, a measurement standard started in 2014 by the Food and Agriculture Organization of the United Nations (FAO) in more than 140 countries worldwide. Data are collected using the Food Insecurity Experience Scale survey module (FIES-SM) developed by FAO, or other experience-based food security scale questionnaires. Food insecurity at moderate levels of severity is typically associated with the inability to regularly eat healthy, balanced diets. Severe levels of food insecurity, on the other hand, imply a high probability of reduced food intake and therefore can lead to more severe forms of undernutrition, including hunger.
Source: Authors’ calculations based on the United Nations SDG Indicators Database, https://unstats.un.org/sdgs/dataportal/database.
Employment opportunities are limited in Caribbean countries
Employment levels are relatively low in the Caribbean. In 2022, almost six out of ten in the working-age population (57.5%) were employed (Figure 2.4). This is slightly lower than the Latin America average (58.2%) and still 0.3 percentage points below the pre-pandemic level of 2019 (58.5%). Heterogeneity in employment levels is high across the region. In 2022, the employment rate ranged from 65% in the Bahamas and Jamaica to less than 53% in Saint Vincent and the Grenadines, and Trinidad and Tobago. In 2022, the unemployment rate was 9.8% for the region, after reaching a peak of 10.8% in 2020. This was well above the average of Latin America (7%), which experienced a more sustained recovery after the peak of the COVID‑19 pandemic in 2020 (10.3%).
Percentage of the population in each group
Source: Authors’ estimates based on data from (ECLAC, 2024[10]) and (ILO, 2024[11]).
Caribbean labour markets are highly concentrated in services, reflecting the specialisation of economies linked directly or indirectly to tourism and financial services (see Chapter 1). In 2022, the share of employment in services was higher in the Caribbean (69.5%) than in Latin America (62.8%). Employment in agriculture and in industry was 13% and 17.5% of total employment, respectively, compared to 17% and 20.1% in Latin America (ILO, 2024[11]).
Women and youth have poorer employment prospects
The gender gap in employment has narrowed, but women are still more likely to be out of the labour market than men. In 2022, one out of two working-age women (50.1%) were employed compared to more than six out of ten men (65.1%). Still, the gender gap in employment rates shifted from 22.5 to 15 percentage points between 2000 and 2022, indicating a better integration of women into labour markets in recent years, as well as a quicker post-pandemic recovery of levels of employment for women than for men (Figure 2.4). This is above the employment rate for women in Latin America (47.2%), while Latin American men are much more likely to be employed (70%).
Women are also more at risk of being unemployed. In 2022, the female unemployment rate was 10.9%, two percentage points higher than the one for men. The gender gap in unemployment has only slightly improved over time. In the early 2000s, it stood at 3.7 percentage points.
In 2022, the youth employment rate was 33.4%, after reaching the record low level of 30% in 2020. Youth are much less likely to be employed in the Caribbean than in Latin America, where the employment rate for this group was 39.6% in 2022 (ILO, 2024[11]).
Both young men and women are at high risk of not finding a job, but the latter are particularly vulnerable. The rate of unemployment for young women in 2022 was 25.6% compared to 21.6% for men. The poor prospects for Caribbean youth in the labour market are also reflected in the large share of those not engaged in education, employment or training (NEET). In 2020, at the peak of the pandemic, young people in NEET represented 31% of the population aged 15-24 compared to 19% in Latin America (Figure 2.5). Women were more likely than men to be neither employed nor in education. The gender gap in NEET rates was more than two percentage points in the same year.
As a percentage of the population aged 15-24, in each group
Source: Authors’ calculations based on data from (ECLAC, 2024[10]) and (ILO, 2024[11]).
Informality in the Caribbean remains high and particularly affects young and older workers
Labour informality is widespread in the Caribbean, as it is in Latin America. On average, using the latest years and countries for which comparable data are available, one worker in two held an informal job in the region (Figure 2.6, Panel A). This was lower than the rate of informality across Latin America (57%).
Informality affects particularly younger and older workers (Figure 2.6, Panel B). In Caribbean countries, the informality rate of workers aged 15-24 is above the average rate of all workers, with the notable exceptions of Jamaica and the Bahamas. The same is true for the rate of informality for older workers aged 65 or plus, with only Trinidad and Tobago being the exception.
Source: Authors’ elaboration based on the OECD KIIbIH database (OECD, 2024[12]). Authors’ calculations based on The Household Expenditure Survey (HES) 2013 for the Bahamas, the Barbados Survey of Living Conditions (BSLC) 2016, on the OECD KIIbIH database (OECD, 2024[12]) for the Dominican Republic, the Jamaica Survey of Living Conditions (JSLC) 2019, the Suriname Survey of Living Conditions (SSLC) 2022, and the Trinidad and Tobago Survey of Living Conditions (TT-SLC) 2014.
Almost 60% of the Caribbean population lives in households depending solely or partially on informal work
Informality negatively affects people’s lives in multiple ways. Beyond being associated with low wages and poor occupational conditions for workers, it is also a major driver of low income and low living standards for households and their members. The formal or informal status of working members within a household has important implications for dependents and for the design of social policies.
In Caribbean countries for which data are available, around six out of ten people lived in a household depending solely or partially on informal work (Figure 2.7). More than a third (34.1%) of the population lives in completely informal households (i.e. households where all workers are informal), while 25.5% live in mixed households and around 40% live in completely formal ones.
There is heterogeneity within the region, and the prevalence of informal work does not completely correlate with income per capita. For instance, in the Dominican Republic and Suriname, both upper middle-income countries, the share of people living in completely informal households is 42.3% and 25.8%, respectively.
The most vulnerable dependents of Caribbean households – children and elders – rely heavily, or exclusively, on the income of family members working in the informal economy. More than 6 out of 10 children under the age of 15, and 6 out of 10 people older than 65 lived in completely informal or mixed households. This is slightly less than the LAC average, where more than 65% of these age groups depended totally or partially on the income of informal workers. This situation highlights the partial or complete absence of social safety nets for large shares of the population.
Percentage of the population
Note: Household types are defined according to the formality status of a household’s principal earners. If all the earners are formal or informal, the household is defined as completely formal or informal, respectively. If at least one earner is informal, while the other is formal, the household is defined as mixed.
Source: Authors’ calculations based on The Household Expenditure Survey (HES) 2013 for the Bahamas, the Barbados Survey of Living Conditions (BSLC) 2016, on the OECD KIIbIH database (OECD, 2024[12]) for the Dominican Republic, the Jamaica Survey of Living Conditions (JSLC) 2019, the Suriname Survey of Living Conditions (SSLC) 2022, and the Trinidad and Tobago Survey of Living Conditions (TT-SLC) 2014.
Informality is closely linked to households’ economic conditions
Informality is deeply entangled with poverty. On average, 17.9% of informal workers in the Caribbean lived under the national poverty line in the latest period for which data are available, while 8.4% of formal workers were poor (Figure 2.8).
Percentages of workers in each group
Source: Authors’ calculations based on The Household Expenditure Survey (HES) 2013 for the Bahamas, the Barbados Survey of Living Conditions (BSLC) 2016, on the OECD KIIbIH database (OECD, 2024[12]) for the Dominican Republic, the Jamaica Survey of Living Conditions (JSLC) 2019, the Suriname Survey of Living Conditions (SSLC) 2022, and the Trinidad and Tobago Survey of Living Conditions (TT-SLC) 2014.
On average, across the Caribbean, 50% of people in the first quintile of the overall welfare distribution lived in completely informal households (72.3% in Latin America). The remainder lived in mixed (21.7%) and formal households (Figure 2.9). Conversely, in the fifth quintile, most people lived in formal households (52.4%), while the rest of the population was almost equally likely to live in mixed (21.4%) or informal households (26.1%).
Regional averages hide considerable variability across countries. In the Dominican Republic, the share of people living in informal households in the first quintile was close to or higher than 70%, whereas in Suriname and the Bahamas those shares were significantly lower.
Note: Household types are defined according to the formality status of a household’s principal earners. If all the earners are respectively formal or informal, the household is defined as completely formal or informal. If at least one earner is informal while the other is formal, the household is defined as mixed. The welfare distribution refers to the distribution of either household per capita income or consumption.
Source: Authors’ calculations based on The Household Expenditure Survey (HES) 2013 for the Bahamas, the Barbados Survey of Living Conditions (BSLC) 2016, on the OECD KIIbIH database (OECD, 2024[12]) for the Dominican Republic, the Jamaica Survey of Living Conditions (JSLC) 2019, the Suriname Survey of Living Conditions (SSLC) 2022, and the Trinidad and Tobago Survey of Living Conditions (TT-SLC) 2014.
In the Caribbean region, as in other parts of the world, the pandemic and a uncertain global context have exacerbated social and environmental problems. This situation continues to put pressure on fiscal policy to respond with sustainable, inclusive programmes. Public social spending – comprising spending on social protection, education, health, housing and community services, recreation, culture and religion, and environmental protection – has returned to levels attained before the COVID-19 pandemic in the six Caribbean countries for which comparable data are available. Relative to GDP, social spending in the Caribbean dropped to 11.1% from the peak of 13.8% in 2021 during the pandemic. Latin America experienced a similar drop during the same period – from 13.7% of GDP to 11.5% (Figure 2.10) (ECLAC, 2023[3]).
Social protection systems are far from universal in the Caribbean. However, they show better outcomes in terms of coverage and adequacy compared to Latin American countries (IDB, 2021[13]).
Percentage of GDP
Note: Data for the Caribbean refer to the arithmetic mean of the following Caribbean countries: the Bahamas, Barbados, the Dominican Republic, Guyana, Jamaica, and Trinidad and Tobago. The fiscal calendar of some Caribbean countries differs from that of Latin American countries: the Bahamas (July–June), Barbados, Jamaica (April–March), and Trinidad and Tobago (October–September). The published reference period corresponds to the calendar year of the closing month. Data for Latin America refer to the arithmetic mean of the following countries: Argentina, Brazil, Chile, Colombia, Costa Rica, the Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Plurinational State of Bolivia (hereafter “Bolivia”) and Uruguay. Coverage in Bolivia corresponds to central administration and that of Peru to general government. Data for Panama and Bolivia refer to 2021.
Source: Authors’ elaborations based on (ECLAC, 2023[3]).
Public expenditures on pensions were close to 4.7% of GDP around 2018 (Figure 2.11). Almost three-quarters of these expenditures (3.4% of GDP) were provided through contributory insurance programmes. The remainder (1.3% of GDP) was provided from social assistance programmes to those not meeting the contribution requirements and thus not qualifying for social insurance pensions.
Three of the countries for which estimates are available – Guyana, Trinidad and Tobago, and Barbados – are well above the region’s average, with the latter spending more than 8% of GDP in pensions. On the other hand, in the other three – Jamaica, the Bahamas and Suriname – public expenditures on pensions as a percentage of GDP are close to or well below the average.
The active coverage rate of the population (i.e. the share of people who contribute to the pension system) was 63% in the Caribbean around 2018. This was almost 20 percentage points higher than the average of Latin American countries around the same year (Arena De Mesa, 2019[14]; IDB, 2021[13]; OECD et al., 2024[2]). However, this hides important differences across Caribbean countries. Barbados has the highest ratio of contributors as a percentage of the labour force (79%), followed by Trinidad and Tobago (77.5%), the Bahamas (72%), Guyana (63.1%), Jamaica (53.7%), and Suriname (45.1%). Men are just slightly more likely to contribute to the pension system (51.8% of contributors are men) than women in Caribbean countries. This suggests that gender disparity in active coverage is not significant.
Note: Social insurance schemes include contributory pensions paid to private and public employed persons who have contributed and reached the minimum requirements needed to qualify for a pension. Social assistance programmes included social pensions for all people not having reached the minimum contribution requirements, as well as disability and survivors’ pensions. Data exclude administrative costs. Data for the Bahamas refer to 2017, for Barbados to 2019, for Guyana to 2016-17, for Jamaica to 2018, for Suriname to 2017, and for Trinidad and Tobago to 2017.
Source: Authors’ calculations based on (IDB, 2021[13]).
All member states of the Organisation of Eastern Caribbean States (OECS) have limited social protection systems. The OECS lacks permanent unemployment schemes, and existing social assistance programmes are fragmented and not well co-ordinated, often funded by donors and multilateral organisations, such as the Pan American Health Organization (PAHO) and the World Bank. Streamlining existing programmes can reduce fragmentation and improve efficiency in social protection. A framework for developing social programmes can be organised at a regional level to facilitate adoption across the different member states. In addition to establishing the OECS Economic Union, the Revised Treaty of Basseterre also envisaged the development and adoption of a harmonised common policy framework for human and social development (OECS, 2020[15]).
Social protection systems must be adapted to an ageing population and a growing exposure to climate threats
Caribbean countries have a predominance of young population, yet they are undergoing an important demographic transition. In 2022, 20-24 year-olds were the largest age group in the Caribbean, and in 2050, the share of the population older than 55 years is forecasted to be 31.5% versus 18.8% in 2021 (Figure 2.12). This demographic transition is characterised by a shift from high to lower levels of fertility and mortality, and a considerable increase in life expectancy. Between 1950 and 2021, the total fertility rate in the region dropped from 5.71 to 1.85 live births per woman and is expected to drop to 1.71 live births in 2050. Meanwhile, life expectancy rose from 51.2 to 71.6 years, and is predicted to be 81.9 years in 2050. These two main factors caused the age structure of the population to change significantly. The median age rose from 18.8 years in 1950 to 30.9 in 2021 and is expected to reach 43.2 in 2050 (United Nations, 2022[16]).
Labour and social protection policies must take into account the implications of a changing population structure and the accelerating pace of population ageing. The old-age dependency ratio (i.e. the number of people over 65 years relative to the working-age population) is a crucial aspect to consider. In the Caribbean, this ratio was 9.8% in 2021 and is expected to be 20.2% in 2050 (United Nations, 2022[16]). This involves that many Caribbean countries will be completing their demographic bonus in the coming years, hence the importance of promoting access to decent, formal jobs with adequate pay and social protection coverage.
Percentage of total population
Note: Medium scenario projection: in projecting future levels of fertility and mortality, probabilistic methods were used to reflect the uncertainty of the projections based on the historical variability of changes in each variable. The method considers the past experience of each country, while also reflecting uncertainty about future changes based on past experience of other countries under similar conditions. The projection corresponds to the median of several thousand distinct trajectories of each demographic component derived using the probabilistic model of the variability in changes over time. Prediction intervals reflect the spread in the distribution of outcomes across the projected trajectories and thus provide an assessment of the uncertainty inherent in the projection.
Source: Authors’ calculations based on data from (United Nations, 2022[16]), https://population.un.org/wpp/ .
Social protection is also a crucial tool for addressing environmental risks. This is particularly relevant in the Caribbean, a region highly prone to regular natural hazards (see Chapter 3). Those shocks severely affect people's lives and livelihoods, undermining development and poverty reduction efforts. Effective social protection systems and adaptive social protection schemes are essential for providing timely and appropriate assistance, especially to those living in poverty and to populations that are highly vulnerable to natural hazards.
A shock-responsive social protection system should ensure continuity during widespread shocks, absorb additional demand for benefits and services, and mitigate negative impacts, particularly for the poor and vulnerable (Beazley, Ciardi and Bailey, 2020[17]). Efforts are underway to strengthen these systems, including policy loans from international financial institutions aimed at making social protection more adaptive (WFP, 2021[18]).
Ministries responsible for social protection are essential for managing emergency operations, conducting assessments and implementing assistance. It is important to continue strengthening the capacity of social protection systems in the Caribbean to identify beneficiaries, manage data, deliver aid and provide services. At the regional level, organisations like CARICOM and OECS are spearheading initiatives to ensure social protection benefits and equal treatment across states. They do this through agreements and strategies like CARICOM’s Agreement on Social Security (CARICOM, 1996[19]) and Protocol on Contingent Rights (CARICOM, 2018[20]) and the OECS Development Strategy (OECD, 2018[21]) (Chapter 6).
Healthcare systems should be improved to address persistent health challenges
Public expenditures and compulsory insurance-financed health expenditures are generally lower than in Latin American countries. In 2021, among the 14 Caribbean countries for which comparable data are available, the average expenditure per capita in the region was USD 644 in purchasing power parities (PPP), representing 3.5% of the GDP, compared to USD 830 in Latin America (4.9% of GDP). In per capita terms, only Trinidad and Tobago (USD 839), Saint Kitts and Nevis (USD 1 031), and the Bahamas (USD 1 031) spent more than the Latin American average. Meanwhile, relative to GDP, the situation is more heterogeneous, also due to the very different stages of economic development of Caribbean countries (Figure 2.13).
OECS region has high out-of-pocket costs for patients. The increasing prevalence of Non-Communicable Diseases (NCDs) contributes to high out-of-pocket expenditure. On average, out-of-pocket expenditure accounted for 39% of total health spending in the OECS region in 2019, almost twice the WHO-suggested limit of 20% and nearly three times the OECD average of 13.9%. This indicates the low overall health spending, with underfunded health systems which provide insufficient care. However, out-of-pocket expenditure has been on a slow downward trend over the past decade, and public-to-private expenditure ratios are increasing in the region (OECD, 2022[22]).
Source: Authors’ calculations based on data from (ECLAC, 2023[3]).
Health status in the Caribbean is highly heterogeneous, with several countries showing worse results than Latin America. For instance, life expectancy at birth was 75.1 years for the LAC average in 2021, and some Caribbean countries performed above that average, including Barbados (80 years), Antigua and Barbuda (77), and Saint Lucia (76). In contrast, life expectancy at birth was particularly low for Haiti (64), Guyana (70), Suriname (72), Grenada (72), and Saint Vincent and the Grenadines (73). Similarly, in 2020, infant mortality rates were close to or below 20 for 1 000 live births in most Caribbean countries, while in 2000, it was 24 for 1 000, improving less than in Latin America, where infant mortality was 14 in 2020 and 26 in 2000 (Figure 2.14).
Caribbean countries face extreme environmental and climate conditions that affect health status. Climate-resilient health systems, along with other social determinants of health, play an important role in mitigating the impacts of climate change on population health and well-being. Climate-informed health-related early warning systems are essential tools for anticipating and preparing for climate hazards affecting health. However, only Saint Kitts and Nevis has an early warning system for heat-related illness (OECD/The World Bank, 2023[23]).
Source: Authors’ calculations based on (OECD/The World Bank, 2023[23]).
Public expenditure in education in some Caribbean countries remains modest
In 2022, average public spending on education in the Caribbean stood at 3.9% of GDP, 0.9 percentage points lower than the Latin American average (Figure 2.15). This average has not improved significantly in the last decade. Only Jamaica and Saint Vincent and the Grenadines showed levels of public spending on education as a share of GDP higher than the Latin American average and close to the OECD average of 5.1% of GDP (OECD, 2023[24]).
Note: Data for Dominica refer to 2020; for Guyana, Haiti, and Saint Vincent and the Grenadines to 2018; for Trinidad and Tobago to 2021.
Source: Authors’ estimates based on data of the UNESCO Institute for Statistics, https://data.uis.unesco.org/.
As in Latin America, most spending on public education in the Caribbean was allocated to teachers’ salaries. For instance, in 2019, spending on teachers’ salaries represented more than half of total public education spending in Jamaica (66.9% of the total) and Barbados (55.8%), higher than the OECD average (53.7%). The share was lower in Trinidad and Tobago (40%) (Arias et al., 2024[25]).
Educational attainment has improved, but dropout rates are still high for many in upper secondary
Educational attainment has positively progressed in the Caribbean. On average, in 2022, Caribbean people aged 25 or more had spent more time in education (9.6 years) than their Latin American peers (8.9), although the Caribbean experienced a lower progression between 2002 and 2022 (1.5 additional years of education), than Latin America (1.9 years) (Figure 2.16). Educational attainment, however, is heterogeneous across Caribbean countries. Barbados and the Bahamas have the largest proportion of 25-65 year-olds who have attained at least secondary education (87% and 82% of the total population, respectively) (Thailinger et al., 2023[26]). Barbados has the highest proportion of adults 25‑65 years old with a post-secondary or university degree, followed again by the Bahamas (39% and 31%). Meanwhile, in Trinidad and Tobago, Jamaica and Guyana, this proportion stands at 23%, 18% and 9%, respectively.
Note: Data for Suriname refer to 2004 instead of 2002. Mean years of schooling are defined as the average number of years of education received by people aged 25 and older, converted from education attainment levels using official durations of each level.
Source: Authors’ estimates based on data of the UNESCO Institute for Statistics, https://data.uis.unesco.org/.
One of the reasons behind progress in educational attainment is the improvement in completion rates, particularly in primary education. In the early 2020s, completion rates for primary school were close to 99% in Barbados, the Dominican Republic, Guyana, Jamaica, Saint Lucia, and Trinidad and Tobago. In 2013, countries’ completion rates close to 99% were only recorded in Barbados, Jamaica and Saint Lucia (UIS, 2024[27]). However, in many countries of the region, young people entering upper secondary education have unsatisfactory completion outcomes due to high dropout rates (UIS, 2024[27]). In the early 2020s, the completion rate in upper secondary education was 66.7% across the region, albeit slightly increasing over a decade (61%% in 2013).
Moreover, in 2022 (the latest year available), the share of young people out of school at upper secondary school age varied from 40% in Suriname to close to 5% in Barbados, Antigua and Barbuda, and Saint Vincent and the Grenadines (Figure 2.17). Out-of-school rates are ten or more percentage points higher than the Caribbean average (23%) in the Dominican Republic, Trinidad and Tobago, the Bahamas, and Guyana. The Caribbean average out-of-school rate (23%) was only slightly lower than the Latin American average (24.7%). Girls (22%) are less likely to be out of upper secondary school than boys (24%) (Figure 2.17). This is especially the case in Grenada (an 11.1 percentage-point difference in favour of girls in out-of-school rates), the Dominican Republic (6.4), Guyana (5.6), and Suriname (4.3). Conversely, Dominica is the only country where boys attend upper secondary school significantly more than girls (a 6.6 percentage-point difference).
Regarding tertiary education, the Caribbean has one of the lowest rates of enrolment (less than 25%) (Beckles and Richards-Kennedy, 2021[28]). Tertiary enrolment rates in the Eastern Caribbean are lower than in the rest of the sub-region. Only 15% of upper secondary graduates in the Eastern Caribbean are enrolled in tertiary education, and less than 10% of adults successfully attain a tertiary degree. Gender disparities and unequal access to tertiary education for the most vulnerable are also unresolved (OECS Secretariat, 2012[29]).
Note: Data for Antigua and Barbuda refer to 2019, for the Bahamas, Guyana, and Saint Kitts and Nevis to 2021, for Grenada to 2016, for Guyana to 2021 and for Suriname to 2015.
Source: Authors’ estimates based on data of the UNESCO Institute for Statistics, https://data.uis.unesco.org/.
Learning outcomes are modest in most Caribbean countries, and internationally comparable assessments can inform policies aimed at improving the quality of education
Despite broad improvements in access and participation in the education system (i.e. the quantity of education), learning outcomes (i.e. the quality of education) are modest in most Caribbean countries. Based on available data from the OECD Programme for International Student Assessment (PISA), the two Caribbean countries participating in this assessment – the Dominican Republic and Jamaica – stood at the lower end of the overall cross-country distribution in 2022. Compared to Latin American countries covered by PISA, Jamaica performs slightly above the average in the three tests (mathematics, science and reading). The Dominican Republic was among the least successful performers in the Latin American region, although it has made clear improvements since the previous PISA round (2018) (OECD, 2023[30]).
The Caribbean Secondary Examination Certificate (CSEC), taken at the end of secondary school in English-speaking Caribbean countries, has relatively low passing rates. Moreover, performance in the CSEC exams has deteriorated since 2015, with a significant drop in the percentage of students passing key subjects (OECD, 2022[22]).
Learning outcomes tend to be higher for girls than for boys in the Caribbean, although these results depend largely on the type of subject. Girls outperform boys in most subjects, especially reading in English and literature (De Lisle, 2022[31]). However, boys sometimes outperform girls in subjects like mathematics and physics (Ellis, 2018[32]; Figueroa, 2000[33]). Despite the advantages in school attendance and educational outcomes, young women in the Caribbean usually perform worse in the labour market (see sections above). This can be the result of an education mismatch in the field of study compared to labour demand, discriminatory practices or the uneven burden of non-paid work (such as caring- or household-related activities) on women (Thailinger et al., 2023[26]).
Evaluating learning outcomes, possibly through internationally comparable assessments, is one of the main challenges in the region. At the national level, the administration of a nationally representative learning assessment of reading and mathematics performances at the end of the primary cycle of education is well developed in countries like Antigua and Barbuda, Barbados, Dominica, the Dominican Republic, Guyana, Jamaica, and Trinidad and Tobago, while at the end of lower secondary education, those assessments are generally lacking (UIS, 2024[27]). International tests like PISA can help in putting Caribbean learning outcomes in perspective by comparing them with best performing education systems globally.
This chapter has emphasised the importance of further advancing social inclusion in the Caribbean. While countries in the region are characterised by the diversity and heterogeneity across them, Box 2.1 includes some common challenges and overarching considerations that can guide national, regional and international policy action in the region in the medium term.
Addressing the persistent challenges of poverty, food insecurity and inequality
Continue efforts to reduce poverty, taking into consideration the multiple dimensions it entails and enhancing the effectiveness of targeted actions to support vulnerable groups.
Adopt an ambitious strategy to tackle the challenge of high food insecurity, encompassing issues like agricultural productivity and resilience and reducing dependence on imports.
Improving data availability to support evidence-based social policies.
Fostering a labour formalisation agenda and strengthening social protection systems
Advance a comprehensive labour formalisation agenda, including efforts to improve skills, facilitate the transition from school to formal jobs, formalise MSMEs, and drive production transformation to create new formal jobs.
Integrate the household dimension into efforts to improve coverage and effectiveness of social protection systems, with a view to i) targeting social assistance measures at households where all members are informal; ii) strengthening the coverage of social protection to dependents in households where there is at least one formal worker.
Strengthening healthcare and education systems
Increase spending in healthcare, reducing the burden on citizens, who face high out-of-pocket costs, and address the increasing prevalence of non-communicable diseases.
Implement measures to improve access and retention in the education systems, as well as to improve learning outcomes, notably by investing in teachers’ training and participating in international assessments.
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← 1. The HDI comprises three main areas of human well-being, which are evaluated through specific statistical indicators. “A long and healthy life” is measured through life expectancy at birth. “Being knowledgeable” is measured by the mean years of schooling for adults aged 25 years and more, as well as the expected number of years of schooling for children of school-entering age. “Having a decent standard of living” is measured by gross national income per capita (GNI). The HDI uses the logarithm of income to reflect the diminishing importance of income with increasing GNI (UNDP, 2024[6]).