Labor Supply, Employment, and Sustainable Development in Mauritius

The interconnections between a country's labor supply, employment, and its economic development have been extensively investigated in development literature. These interconnections are particularly crucial to small countries with limited capital and natural resources. This paper reviews recent trends in Mauritius' labor supply and employment levels and their implications for the future sustainable development of the island. Labor has played an important role in Mauritius' development since the establishment of sugar cane plantations and the imports of indentured laborers from India in the early 1800s. The thrust towards export-oriented manufacturing that began in the 1970s was also based upon the availability of a large labor pool. Changes in the labor force and employment composition currently underway suggest that the future economic development of Mauritius will have to adjust to a lower supply of labor and a leveling off of manufacturing jobs. Some policy suggestions related to the labor force are offered