### Labour Market 4Q 2025: Unemployment Drops to 3.8% Amid Sectoral Shifts 📈

Sri Lanka’s labour market showed resilience in 4Q 2025, with unemployment falling despite a dip in participation and significant climate-related disruptions. • Key Indicators Unemployment Rate: Declined to 3.8% (from 4.3% in 3Q). Labour Force Participation: Eased to 48.8% (from 49.9% in 3Q), though higher than 47.7% YoY. Total Employment: Increased to 8.47 Mn (from 8.10 Mn in 3Q). • Sectoral Breakdown Services: Now accounts for 50.6% of total employment (4.28 Mn persons). Industry: Comprises 26.3% of the workforce (2.23 Mn persons). Agriculture: Represents 23.2% (1.96 Mn persons). • Climate & Economic Impact Growth: GDP expanded 4.8% in 4Q, contributing to a full-year 2025 growth of 5%. Cyclone Ditwah: Estimated physical damage of US$ 4.1 Bn (4% of GDP). Tea & Rice: Impacts on agriculture were severe, with potential tea output losses of 35% and 23% of rice lands affected. Earnings: The ILO estimates potential monthly wage losses of US$ 48 Mn for 374,000 workers in disaster-hit areas. • Demographics & Education Gender: Male participation stood at 68.1%; Female participation dipped to 32.3% from 33.9% in 3Q. Youth: Unemployment improved to 13.1% (from 14.9% in 3Q). Education: Unemployment for those with G.C.E. A/L and above dropped significantly to 5.2%. _Data based on provisional reports from the Dept. of Census & Statistics, ILO, and World Bank._