Kingdom of the Netherlands—Aruba: Selected Issues

International Monetary Fund

No 2025/316, IMF Staff Country Reports from International Monetary Fund

Abstract: This Selected Issues paper analyzes recent demographic trends and their potential impact labor markets and medium-term growth in Aruba. It discusses policies that could help to increase labor force participation (LFP) and reduce bottlenecks on further growth. The evolution of population pyramids illustrates the shifts in age distribution. Aruba’s aging increases dependence on the working age population to support the healthcare and elderly services. United Nations (UN) baseline projections suggest that the population of Aruba will peak in the coming years before beginning to decline. The LFP in Aruba has slightly declined post-pandemic, with gender gap broadly unchanged over the past decade. Employment status by gender and age provides additional insights on the Aruban labor market. Policies to encourage labor supply and reduce labor market frictions need to be considered to increase LFP and facilitate resource allocation.

Keywords: Aruba's demographics; climate adaptation in Aruba; staff team; IMF country; climate trend; Labor markets; Climate change; Environmental policy; Labor force; Global; Caribbean; South America; Central America (search for similar items in EconPapers)
Pages: 37
Date: 2025-12-01
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