Workforce in Mauritius: Local and Foreign Workers Insights

Mauritius boasts a diverse and evolving workforce, comprising both local and foreign workers. The country’s economic development, particularly in sectors such as tourism, finance, IT, and construction, has led to an increased demand for skilled individuals. While Mauritian people form the backbone of the economy, the role of expatriates has become increasingly significant. However, in 2025 this dynamic comes with various implications for businesses, employment opportunities, and economic policies.

Role of Local Workers in Mauritius

Mauritians play a vital role in sustaining the Mauritian economy. The government has implemented various policies to encourage employment among citizens, ensuring job security and skill development. Despite these initiatives, challenges such as skill shortages, youth unemployment, and wage disparities continue to affect the labour market. For instance:

• Unemployment Rate: As of recent statistics, the unemployment rate stands at 6%, with youth unemployment significantly higher at 17%.

• Educational Challenges: Only 28% to 35% of primary school students complete secondary education. In 2010, 17,553 students enrolled in Standard I, but only 6,141 obtained their Higher School Certificate in 2023. This highlights gaps in educational outcomes that impact workforce qualifications.

Reasons for Employing Local Workers

Employing Mauritian workers is crucial for several reasons:

• Cultural Alignment: Local workers are more familiar with cultural nuances and consumer preferences, enhancing customer satisfaction.

• Long-term Commitment: Local workers are more likely to remain in the country long-term, reducing turnover rates.

• Economic Multiplier Effect: Local workers spend their earnings locally, contributing to a stronger economic multiplier effect compared to foreign workers.

Role of Foreign Workers in Mauritius

Mauritius’ economy is influenced by foreign workers and migrant workers. As of recent years, there are approximately 48,000 foreign workers in Mauritius, making up about 8% of the active workforce. These workers are primarily concentrated in sectors such as manufacturing, construction, and tourism. The recruitment of expatriates is motivated by their higher productivity and willingness to work longer hours compared to local workers.

Reasons for Employing Foreign Workers

• Labour Shortages: Despite having around 11,700 unemployed individuals, Mauritius faces labour shortages in key sectors like hospitality and retail.

• Productivity: Foreigners are often perceived as more productive and willing to work in conditions that may not appeal to local workers.

• Economic Growth: The influx of foreign workers has been crucial for maintaining growth momentum.

Recent Developments and Policies

In the 2024-2025 budget, several measures were introduced to attract more foreign professionals:

• Streamlined Work Permit Process: Minimum salary requirements for occupation permits were reduced to MUR 22,500.

• Temporary Work Permits: A three-month temporary work permit allows foreign professionals to work while awaiting their final permit.

• 10-Year Expert Work Permit: Designed to attract talents in key areas like wealth management and virtual assets.

• Labour Shortages and Foreign Labour Demand: Recently, there has been an emphasis on the urgent need for foreign workers, with at least 25,000 Indian workers required to address labour shortages. This shortage has significantly impacted industries such as hospitality, retail, and food services, forcing companies to seek international labour to maintain operations. The reliance on foreign workers from countries like Bangladesh and Madagascar highlights the ongoing challenges in meeting labour demands locally.

Additionally:

Diaspora Trends: Over 182,000 Mauritians live abroad—16% of them are working-age individuals—exacerbating labour shortages domestically.

Population Pyramid Dynamics: By 2038, the population in working age is expected to decrease by 11.7%, while by 2063 it could drop by a staggering 36.8%. This demographic shift increases reliance on foreign labour to sustain economic growth.

Implications for Businesses and What They Can Do

The evolving workforce landscape presents both challenges and opportunities for businesses operating in Mauritius:

Implications

• Skill Shortages: Businesses face difficulties finding qualified professionals locally due to gaps in education and training systems.

• High Turnover Rates: Industries like hospitality experience frequent employee turnover as workers seek better opportunities elsewhere.

• Labour Costs vs Productivity: Wage suppression from foreign worker competition can create tension among local employees while impacting morale.

• Compliance Challenges: Navigating updated labour laws and work permit requirements demands careful attention from employers.

Some Suggestions

• Invest in Employee Training:
  • Partner with local universities or training providers to upskill employees in emerging fields like AI or fintech.
  • Example: A financial services firm could collaborate with universities to offer internship programs focused on advanced financial technologies.

• Adopt Flexible Work Arrangements:
  • Introduce hybrid or remote working options supported by technological infrastructure to attract younger talent.
  • Example: Implement telework policies that align with international standards while boosting employee satisfaction.

• Enhance Employer Branding:
  • Offer competitive salaries aligned with industry benchmarks alongside comprehensive benefits packages (e.g., health insurance or wellness programs).
  • Example: Profitable companies offering wellness programs can stand out from competitors.

• Encourage Return Migration:
  • Develop initiatives that reduce wage disparities and offer attractive career development opportunities for skilled Mauritians abroad.
  • Example: Align salaries with international standards while promoting professional growth paths.

• Modernize Recruitment Processes:
  • Use digital tools like AI-driven platforms for efficient hiring while ensuring compliance with labour regulations.
  • Example: Businesses can streamline onboarding processes using automated systems that reduce administrative delays.

By adapting their strategies to address these challenges proactively, businesses can position themselves competitively within Mauritius’s dynamic labour market while fostering sustainable growth.

Challenges Facing Mauritius’s Workforce

Mauritius faces several critical challenges that could hinder its economic future:

• Demographic Decline: By 2038, the population will decrease by 5.8%, with an ageing population (60+) rising from 20% in 2023 to over 26%. This will intensify dependency ratios from 420 dependents per 1,000 working-age individuals (2023) to over 522 by 2038.

• Brain Drain: Skilled professionals continue leaving Mauritius due to limited career prospects and wage disparities; over 3,500 Mauritians emigrate annually.

• Educational Gaps: The education system struggles to produce enough qualified graduates for high-skilled jobs.

Government and Private Sector Initiatives

• Code of Conduct: The Mauritius Export Association (MEXA) has developed a comprehensive Code of Conduct for the recruitment and employment of migrant workers.

• Skills Development: Initiatives like the “Mauritius Skills Development Programme” aim to upskill the local workforce.

• Youth Employment: The National Career Guidance Service provides counselling and job placement support for recent graduates.

• Tech Sector Growth: The “Digital Mauritius 2030” plan is driving significant growth in the tech sector, with over 12,000 tech jobs available and a focus on AI and fintech.

Balancing Local and Foreign Workers in Mauritius

As Mauritius continues to develop its economy, balancing local and foreign workers will remain crucial. The focus should be on:

• Developing Local Skills: Meeting industry demands through local skill development.

• Fair Treatment of Foreign Workers: Ensuring ethical recruitment and fair treatment is essential for a healthy labour market.

• Knowledge Transfer: Creating opportunities for knowledge transfer between foreign and local workers.

• Policy Adjustments: Continuously monitoring and adjusting policies to maintain a balanced workforce.

Potential Solutions to Support Local Workers in Mauritius

The report “The Hands That Build Mauritius“ published by AXYS in March 2025 outlines actionable solutions:

• Modernizing Education: Reforming education systems with a focus on vocational training can address skill shortages while reducing dropout rates at secondary levels.

• Encouraging Return Migration: Offering competitive salaries aligned with international standards could incentivize skilled Mauritians abroad to return home.

• Automating Key Sectors: Mechanizing agriculture and other primary sectors can boost competitiveness while creating new opportunities for local workers.

• Salary Reforms: Restructuring salary policies that reward higher education can mitigate brain drain while attracting skilled professionals.

Conclusion

Mauritius’s workforce dynamics reflect both opportunities and challenges stemming from demographic shifts, educational gaps, brain drain trends, and reliance on foreign labourers across key sectors like manufacturing and tourism. Addressing these issues through policy reforms—such as modernizing education systems or implementing salary structures that retain skilled professionals—will be essential for sustainable economic growth.