Labor market in Cabo Verde

The national labor market covers people aged 15 and over who work, seek work or are available for work. The National Institute of Statistics monitors it through official labor-force data. Formal employment normally includes a contract, wages, social insurance registration with the National Institute of Social Security (INPS) and paid leave. Informal work includes unpaid family work, self-employment or employers in informal units, and work without INPS coverage or paid annual and sick leave. Cabo Verde has an established formal and informal labor market, but no reliable current national percentage of informal employment should be assumed. The 2023 national informal-sector measure concerned non-agricultural production units without organized accounting. The figures vary by reference period. Annual unemployment was 8.0% in 2024 and 6.2% in 2025. In the second half of 2025, 226,360 people were economically active, the activity rate was 60.4%, 215,317 people were employed, the employment rate was 57.4%, and 11,043 were unemployed, corresponding to 4.9% unemployment. Labor underutilization was still 23.3%, showing that unemployment alone does not capture insufficient access to work or working hours. Access differs by gender, age and location. In 2024, the activity rate was 64.6% for men and 52.1% for women; employment was 59.5% for men and 47.8% for women. Unemployment was 7.9% for men and 8.2% for women. Unemployment reached 20.1% among people aged 15 to 24 and 12.6% among those aged 15 to 35. In the first half of 2025, 20.4% of people aged 15 to 35 were not in employment, education or training, commonly called NEET; the rate was 23.8% for women and 19.9% for men. The islands and municipalities show substantial differences. In 2024, activity was highest in Sal at 78.6% and Boa Vista at 77.2%. Employment was highest in Sal at 75.4% and Boa Vista at 73.9%, followed by Praia at 58.3% and São Vicente at 57.5%. Unemployment was highest in São Domingos at 16.3%, Santa Cruz at 13.3% and São Lourenço dos Órgãos at 12.2%. It was lowest in Ribeira Grande at 3.2%, Sal at 4.1% and Boa Vista at 4.2%. Urban unemployment was 7.7%, compared with 9.4% in rural areas. Education levels also differ between these areas: the reported tertiary-education share was 73.9% in urban areas and 52.8% in rural areas, while primary education accounted for 25.3% in rural areas. Services employed 139,071 people, or 69.9% of recorded jobs, in comparison with 44,751 in the secondary sector and 15,092 in the primary sector. Tourism recorded 1,248,052 guests and 6,120,204 overnight stays in 2025. Non-residents made up 95.5% of guests. Sal received 57.7% of arrivals, Boa Vista 24.4%, Santiago 8.1% and São Vicente 4.4%. Cabo Verde had about 18,600 active companies and 94,470 employees in 2024, with employment increasing by 4.8%. This concentration creates opportunities but also makes many regions dependent on travel connections and tourism demand. The Institute for Employment and Vocational Training (IEFP) provides active labor-market measures, initial and continuing training, entrepreneurship support, professional internships and employment matching. Job seekers can use the PEPE online service or visit a Centro de Emprego e Formação Profissional (CEFP). IEFP registration requires a minimum age of 18. CEFP centers operate in places including Boa Vista, Fogo, Sal, Santiago, Santo Antão, São Nicolau and São Vicente. Professional internships are available for people aged 18 to 35 with a higher-education qualification or IEFP-certified vocational training. There is no central guarantee of a job. Some occupations require a professional card under Decree-Law 49/2025. From 2025, the statutory minimum monthly pay was CVE 17,000 in the private sector and CVE 19,000 in the public sector. Resolution 4/2026 sets a target of CVE 25,000 from 2027. Average monthly wages reported for INPS-insured workers in 2023 were CVE 46,256 overall, CVE 50,763 in the general regime, CVE 65,876 in the public sector, CVE 21,263 in micro and small companies, CVE 22,109 for self-employed workers and CVE 14,130 for domestic workers. These averages cover insured workers and do not describe the entire labor market. In the general regime, the reported average was CVE 44,421 for women and CVE 55,748 for men. The Labor Code provides the main framework for employment. Employees on open-ended contracts receive 22 paid working days per year. Overtime is generally limited to two hours per day and 160 hours per year; written consent can permit up to 300 hours annually, with a surcharge of at least 35%. Employers must register with INPS within 15 days after starting activity and register insured workers within 30 days. The Directorate-General for Labour and the labor inspectorate supervise compliance. Migration affects both sides of the labor market. Remittances represented 12.3% of gross domestic product in 2024, while net migration was minus 1,284 people in 2025. Foreign workers need legal residence, and employers must have the employment contract approved by the Directorate-General for Labour under the applicable migration guidance. Foreign workers retain rights to a contract, timely pay, leave and INPS coverage. A 2026 labor-migration and ethical-recruitment directive coordinates this area. Employment was the main migration motive reported by 59.4% of foreign-born people. Real gross domestic product grew by 6.3% in 2025, with services contributing strongly to growth. Tourism remains the main driver, while expensive or unreliable inter-island air and sea connections restrict diversification and the spread of jobs. Broader tourism distribution, stronger fisheries and agricultural value chains, digital matching and better qualification links are central labor-market challenges.