Historic rebound: Labor formality in the Dominican Republic reaches record levels
The Vice Minister of the Presidency, Luis Madera, presented a positive assessment of the evolution of the labor market in the country. During the “LA Agenda Semanal” meeting at the National Palace, the official highlighted that current public policies have managed to transform the employment structure, raising the formality rate to its highest point in recent decades.
At the end of 2025, the formality level stood at 45.9%, significantly exceeding the 41.9% recorded in 2021, a year marked by the effects of the health crisis. This growth implies that more than 200,000 workers have joined the social security system, guaranteeing their access to health services and retirement contributions.
The key role of MSMEs and the private sector
The private sector has been a fundamental driver in this advancement. Formality in this area rose from 34.7% in 2021 to 39.1% in 2025, with expectations of maintaining sustained growth throughout 2026. This progress is directly attributed to the strengthening of micro, small, and medium-sized enterprises (MSMEs).
- Business growth: The number of companies with 1 to 50 employees increased from 86,570 in 2019 to 107,571 today.
- MSME employment: The number of people employed in formal companies in this sector went from 675,300 in 2020 to 921,400 today.
Positive impact on women and youth
The data presented by Alofoke Deportes highlights significant improvements in the labor market integration of women and youth:
Of the 2.2 million employed women, more than half have social security and pension contributions, which reflects the impact of their higher academic training and human capital.
Luis Madera, Vice Minister of the Presidency
In the case of women, the employment rate exceeded 50% for the first time, reaching 51.1%. Meanwhile, youth employment has shown a notable recovery, with a reduction in the unemployment rate from 15.7% in 2019 to 12.4% in 2025. An encouraging piece of data is that young people are accessing formal jobs from their first work experience, which guarantees greater long-term stability.
Towards the 50% goal
Despite the achievements reached, the Dominican government recognizes that the path toward the 50% formality goal requires continuous efforts. Luis Madera emphasized that, although current figures set a historic precedent, the commitment is to continue promoting policies that ensure quality jobs for all citizens, prioritizing the sustainability of national economic growth.
