Friday Mar 27, 2026
Friday Mar 27, 2026
Friday, 27 March 2026 04:47 - - {{hitsCtrl.values.hits}}
Sri Lanka’s labour market in the fourth quarter of 2025 recorded lower unemployment even as labour force participation declined, with employment increasing during the period, according to the Department of Census and Statistics.
Participation eased to 48.8% in 4Q from 49.9% in 3Q, while total employment increased to 8,465,808 from 8,097,879, reducing the number of people unemployed and bringing the rate down to 3.8%.
The labour force participation rate was 48.8% in 4Q 2025, compared with 47.7% in 4Q 2024. Male participation was 68.1%, while female participation stood at 32.3%, down from 33.9% in 3Q but above 30.3% a year earlier.
The unemployment rate declined to 3.8% in 4Q from 4.3% in 3Q. Male unemployment was 2.7%, while female unemployment was 5.7%, down from 3.2% and 6.2%, respectively, in the previous quarter.
Total employment increased to 8,465,808 in 4Q. Of this, male employment was 5,514,454 and female employment was 2,951,354.
The fourth quarter coincided with a slowdown in output growth. The economy expanded by 4.8% in 4Q, down from 5.4% in 3Q, contributing to a full-year growth rate of 5% in 2025, following a contraction of 2.3% in 2023.
In late November 2025, Cyclone Ditwah affected multiple districts with concentrations of labour in agriculture and plantations.
An International Labour Organisation brief estimates that up to 374,000 workers were in areas directly impacted by floods and landslides, with potential monthly earnings losses of about $ 48 million if employment was disrupted.
The same assessment notes that up to 23% of rice-cultivating land was affected, while tea output losses could reach 35%, with smallholders accounting for around 70% of production.
A separate assessment by the World Bank Group estimates direct physical damage from the cyclone at about $ 4.1 billion, equivalent to around 4% of GDP, with infrastructure, housing, and agriculture accounting for a large share.
Sectoral employment data for 4Q show services accounting for 50.6% of total employment, or 4,280,123 persons, up from 49.8% in 3Q. Industry accounted for 26.3% or 2,225,352 persons, while agriculture accounted for 23.2% or 1,960,333 persons.
Youth unemployment was 13.1% in 4Q, down from 14.9% in 3Q. Among those aged 20–24, unemployment was 17.3%, while the 15–19 age group recorded 13.8%. Unemployment among those with G.C.E. A/L and above declined to 5.2% from 7% in the previous quarter.
