Malé City’s labor market experienced a complex picture in the first quarter of 2025, according to the latest Labour Force Survey from the Maldives Bureau of Statistics. While overall employment increased and unemployment decreased, significant gender disparities and a rise in labor underutilization persist, highlighting a need for further analysis and potential policy adjustments.
The working-age population in Malé totaled 187,390 in Q1 2025, comprising 127,696 Maldivians (68 percent) and 59,694 foreigners (32 percent). Of this population, 142,431 individuals were part of the labor force. Employment saw a modest increase of 584 individuals compared to the previous quarter, reaching 140,255, representing 74.8 percent of the working-age population. This growth was primarily driven by increased participation from foreign men, while Maldivian men experienced a decrease in employment.
Unemployment experienced a significant drop, falling by 34 percent to 2,176 individuals. The vast majority of the unemployed were Maldivians, with a slightly higher number of women than men. The overall unemployment rate decreased to 1.5 percent, a 0.8 percentage point drop. However, the unemployment rate among Maldivians remained higher at 2.5 percent, with Maldivian women facing an unemployment rate of 3.2 percent compared to 1.9 percent for Maldivian men.
Despite the positive unemployment figures, concerns remain regarding labor underutilization. The survey identified 2,783 individuals in time-related underemployment, accounting for 2 percent of those employed. More notably, the potential labor force—individuals not actively seeking work but available for employment—increased by 11 percent to 7,622. This, combined with the underemployed, resulted in a broader measure of labor underutilization (LU4) of 8.4 percent. This figure is significantly higher for women at 15.9 percent compared to 5.3 percent for men.
The Malé economy’s strong service-sector orientation is evident in the employment data. The tertiary sector employed 113,412 individuals, representing over 80 percent of all jobs. The secondary sector accounted for 19 percent of employment (26,404 jobs), while the primary sector, largely located in the atolls, employed only 196 individuals. The quarter’s net job gains were exclusively within the service sector, with a decline observed in the secondary sector.
Simultaneously, the number of individuals outside the labor force increased by 1,861 to 44,959, representing 36 percent of the working-age population in Malé. This group consisted primarily of women, with household responsibilities frequently cited as the primary reason for non-participation. Men more often attributed their non-participation to studies or long-term illness.
The survey reveals a complex labor market dynamic. While positive trends in employment and unemployment are evident, a substantial portion of the population remains on the periphery of the labor market, with women disproportionately affected by underutilization and inactivity. This suggests a need for further investigation into the underlying factors contributing to these disparities and the development of targeted policies to address them.