Mauritius Large Firms: Jobs Stagnate but Average Pay Rises 6.2%

Employment growth at Mauritius's largest businesses has remained sluggish, even as average remuneration increased by 6.2%, according to the latest survey of large establishments published by Statistics Mauritius. **What the data covers** Statistics Mauritius periodically surveys what it classifies as "large establishments" — typically companies employing a significant number of workers across key sectors such as manufacturing, financial services, tourism, construction, and retail. These firms represent a major share of formal employment and wages in the country. The latest figures show that while pay packets are getting bigger on average, the actual number of jobs being created in this segment of the economy has barely moved. **Pay is up — but who is benefiting?** A 6.2% rise in average remuneration sounds encouraging, but economists and labour observers caution that headline averages can be misleading. When high earners — senior executives, financial sector professionals — receive substantial salary increases, they can pull up the average significantly, even if the majority of workers see only modest gains. This distinction matters in Mauritius, where income inequality remains a persistent concern. A rising average wage does not necessarily translate into improved living standards for lower-paid workers in sectors such as retail, hospitality, or manufacturing. **Weak job creation: a structural problem?** The near-stagnation in employment at large establishments reflects broader pressures facing the Mauritian economy. Businesses have cited rising operating costs, a tight labour market, and increased competition as reasons for caution when it comes to expanding headcount. Mauritius has also seen a significant influx of foreign workers in recent years to plug labour gaps — particularly in construction and manufacturing — which complicates the picture of domestic employment growth. The government has made economic diversification and job creation central pledges, but data from large employers suggests progress in formal employment remains limited. **What this means for workers and the economy** For employees at large firms, the 6.2% average remuneration increase may offer some relief against inflation, which has remained elevated in Mauritius over the past two years. However, workers whose pay rises fall below that average — or who remain in precarious or informal employment — will continue to feel the squeeze. For policymakers, the combination of weak job creation and rising pay at large employers points to a productivity-driven wage push rather than broad-based labour market expansion. This could have implications for the government's fiscal position, business competitiveness, and efforts to reduce poverty. The data also arrives against a backdrop of wider concern about Mauritius's public finances, with the public deficit having widened sharply in recent reporting periods. Source: Le Defi Media