Dominican Republic Scores Above Regional Average on Job Quality and Formality

The Dominican Republic scored above the Latin American average in job quality and employment formality, according to the Inter-American Development Bank’s (IDB) 2026 Better Jobs Index, cited by Labor Minister Eddy Olivares Ortega during a regional policy meeting in Panama.

The country received an overall score of 60.6 for 2024, compared with the regional average of 58.0. Its job-quality score reached 45.3, exceeding the regional figure of 40.6, while its employment-formality score stood at 33.5, compared with 30.8 for Latin America.

Job quality improves, according to IDB figures

Olivares presented the results during the Regional Policy Dialogue on Labor Formalization, where government officials and specialists discussed approaches to expanding formal employment and improving working conditions across Latin America and the Caribbean.

According to the figures cited by the minister, the Dominican Republic’s job-quality score rose by 7.5 points between 2022 and 2024, increasing from 37.8 to 45.3.

The IDB’s Better Jobs Index evaluates labor markets through measures that include employment and labor-force participation, as well as job quality indicators such as formality and whether earnings are sufficient to meet basic living needs. The bank’s 2026 country-data report covers 18 countries in Latin America and the Caribbean, with data through 2024.

Informality rate declines in national labor data

Olivares also cited figures from the National Continuous Labor Force Survey (ENCFT), which indicate that the Dominican Republic’s labor informality rate fell from 55.5% in 2024 to 54.1% in 2025. It then reached 53.8% in the second quarter of 2026, according to the figures he presented.

National figures cited by the minister also showed that the share of formal employment increased from 41.9% in 2021 to 45.9% at the end of 2025, a rise of four percentage points.

These indicators measure related but different aspects of the labor market. A lower informality rate suggests that a smaller share of workers are employed informally, while a higher formal-employment share reflects growth in jobs classified as formal. Neither figure alone establishes whether wages, productivity or working conditions have improved for every worker.

Formal jobs linked to social protection and productivity

“Employment growth must be accompanied by quality and formality,” Olivares said, emphasizing access to social security, pensions, labor protections and improved living conditions.

The minister said further progress would require improvements in both business productivity and workers’ skills. That challenge involves not only creating jobs but also helping businesses operate more productively and enabling workers to access employment with stronger protections and more stable conditions.

The IDB’s regional analysis likewise identifies informality and job quality as persistent labor-market challenges. Although the region’s overall Better Jobs Index reached 58.0 in 2024, the bank reported that informality remained widespread across Latin America.

For the Dominican Republic, the latest figures point to progress relative to the regional average, while the reported informality rate shows that a substantial portion of employment remains outside formal arrangements. The pace of further improvement will depend on whether gains in job creation are accompanied by formal contracts, social protection, adequate earnings and stronger productivity.