Across Latin America and the Caribbean, shifting labor dynamics have put employee retention at the forefront of business strategy, particularly as younger workers increasingly change roles more frequently than previous generations. In the Dominican Republic, two key sectors – technology and tourism – have emerged as standouts in maintaining stable workforces and reducing staff turnover. According to Natalia Vásquez, country manager for ManpowerGroup in the Dominican Republic, the tourism industry, which is a major driver of foreign direct investment and job creation in the country, currently holds an annual turnover rate between 25% and 30% – a figure lower than many other critical sectors of the Dominican economy. Vásquez explained that expanding tourism development projects across the country, from the southern regions to the Punta Bergantín development in Puerto Plata, are reshaping internal migration patterns by creating local employment opportunities for skilled workers. Instead of relocating to major urban centers to find work, talented individuals are now able to build careers in their home communities, which in turn creates long-term value for both employers and local economies. As Vásquez highlighted, the tourism value chain extends far beyond hotel staff, encompassing thousands of roles across food and beverage services, transportation, hospitality cleaning, and a wide range of supporting service industries that collectively sustain the sector’s growth. Despite these positive trends for tourism and technology, broader labor market challenges persist in the Dominican Republic. The country continues to grapple with high levels of informal employment, which stood at 54.1% during the first quarter of 2026, according to data from the Central Bank of the Dominican Republic (BCRD). Of the 5.2 million people currently employed in the country, only 2.5 million hold formal, regulated positions. Sectoral data shows significant gaps in formalization across different industries: agriculture and construction, for example, only have 12% and 15% formal employment respectively, while other sectors such as manufacturing (70%) and education (96%) boast far higher rates of formal, regulated work. Industry analysts note that the success of the tourism and technology sectors in retaining staff offers a blueprint for other Dominican industries seeking to improve retention and formalize their workforces. By expanding local opportunities and aligning business growth with community development, these sectors have demonstrated that it is possible to reduce worker mobility even in a market characterized by high overall turnover.
Tourism, among the sectors with the lowest employee turnover in the Dominican Republic
