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The Barbadian labour market has recovered to its pre-COVID levels after being severely impacted by the pandemic. The impact of the pandemic on employment was particularly acute due to the economy’s direct and indirect dependence on tourism. Recent labour market developments point to a renewed buoyancy in job prospects, as the length of job searches and prime-age employment levels improved leading to the unemployment rate falling to its lowest level in over a decade. However, significant structural challenges remain, including a falling labour force participation rate due to an increase in female retirements, as well as the dominance of public sector employment growth in the overall labour market recovery since 2019.