Island’s labor participation rate rises

Labor and Human Resources Secretary María del Pilar Vélez Casanova

Slight uptick in unemployment rate largely tied to seasonal factors, labor secretary says

By THE STAR STAFF

Puerto Rico’s labor market continued to strengthen in June, with the island’s labor force participation rate climbing to 45.2%, according to the latest Household Survey and Nonfarm Payroll Employment Report from the Department of Labor and Human Resources (DTRH by its initials in Spanish).

The figure marks a 0.9‑point increase from May and a 0.5‑point rise compared with June 2025.

The labor force reached 1,236,000 people, an increase of 4,000 from the previous month and 3,000 more than a year earlier. Meanwhile, the number of employed individuals was estimated at 1,164,000, reflecting a month‑to‑month gain of 1,000.

DTRH Secretary María del Pilar Vélez Casanova noted that a slight uptick in the unemployment rate is largely tied to seasonal factors. The seasonally adjusted unemployment rate stood at 5.8%, two‑tenths of a point higher than in May.

“More young people between the ages of 16 and 34 entered the labor force in June,” Vélez Casanova said. “The variation we’re seeing aligns with normal month‑to‑month movements and reflects seasonal dynamics typical of this time of year. Even so, the indicators show a broader labor force and greater participation, which is a positive sign for the economy and demonstrates the progress made under Governor Jenniffer González Colón’s public‑policy efforts to encourage workforce participation.”

She added that seasonal patterns -- such as academic schedules, temporary hiring, and shifts in employment across industries -- often influence labor indicators during specific periods of the year.

“What matters most is that more people are participating in the labor market and the workforce continues to grow,” Vélez Casanova said. “These are positive indicators that show confidence in the economy and in the employment opportunities available in Puerto Rico.”

Seasonally adjusted nonfarm payroll employment reached 955,000 jobs in June, an increase of 2,500 compared with May and 1,000 more than in June 2025.

Month‑to‑month job gains were concentrated in government (+5,000) and other services (+200). Declines were reported in education and health services (‑1,400); trade, transportation and utilities (‑500); finance (‑300); professional and business services (‑300); and mining, logging and construction (‑200). Employment in information and recreation and accommodation remained unchanged.

Compared with June 2025, payroll employment rose by 1,000 jobs. Year‑over‑year gains were seen in recreation and accommodation (+5,800); education and health services (+1,300); finance (+500); and mining, logging and construction (+100). Declines occurred in government (‑4,000); professional and business services (‑1,600); information (‑500); other services (‑400); manufacturing (‑100); and trade, transportation and utilities (‑100).