A shortage of skilled workers could raise operating costs and slow the island’s building boom, the Central Bank of Barbados warned, as projects across tourism, housing, water infrastructure, and roads race ahead.
Governor Dr Kevin Greenidge told journalists on Wednesday that low employment in the construction industry presented the most immediate challenge to the sector which could lead to rising operating costs for builders.
In the Central Bank’s economic review for the third quarter of this year, he said he was not worried about the job market in the medium term when the boom ends, but rather, the more immediate constraints on the supply of labour to carry out the multiple capital projects underway and pending.
Dr Greenidge said: “Economic growth is becoming even more broad-based. In fact, I felt really good when reporting on agriculture that that is ten per cent up. It means that while in the context of construction you get a soak up of labour. As that is happening, at the same time, other sectors are expanding and are able to take on some of those… When that labour is no longer needed, [it] can go into other areas.
“I think that is something a little further down the road, and I am not concerned, because I see the other sectors building out as we move forward. What I think is the constraint right now is dealing with the bottleneck that the low employment gives, in not having enough bodies to do the work that you want done. To me, that is more of a short-term concern… because, after that, it will all absorb.”
He suggested that there is also a redistribution of labour in the construction industry when one project is complete.
“What we have to deal with is the supply constraint on labour itself, which, if not dealt with, can cause cost increases. So, when you call a mason or carpenter, you are going to be paying more than [if you were] going to a doctor. [There is] nothing wrong with that… but that’s a direct reflection of supply constraints on labour.”
Capital projects currently under construction or in development span across several sectors, including tourism, housing, water infrastructure and road networks. Key projects include the major Pierhead waterfront development in Bridgetown, extensive residential construction, and significant roadworks and upgrades across the island. (EJ)
Building boom – key projects
The Pierhead Barbados: This $200 million waterfront revitalisation project in Bridgetown is under construction, with Phase 1 launched in mid-2025. This phase includes new retail and dining spaces, a beach club, and the refurbishment of The Steel Building into 39 apartments.
Hyatt Ziva Hotel at Carlisle Bay: Construction of the long-delayed all-inclusive hotel is finally set to begin in earnest by November and is expected to create at least 2 000 construction jobs with 1 200 jobs for the hotel. Completion date is projected to be the end of 2027.
WestBeach Condos: Construction began in October 2024 for this west coast development in Speightstown, which will feature 24 new two- and three-bedroom condominiums.
Royal Westmoreland Developments: Berkan Construction is currently working on the Mahogany Heights townhouse development and the Hilltop Villas at the exclusive Royal Westmoreland resort. The company also planned to begin the Lancaster Mews townhouses this year.
Welches Plaza: This mixed-use commercial development, designed with sustainable features, was near completion as of mid-2025. It includes a large photovoltaic energy system and a rainwater harvesting system.
Equip4You Warehouse: Berkan Construction is also building a warehouse for the company Equip4You equipment rental firm in St Thomas.
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