PORT OF SPAIN, Trinidad and Tobago — Trinidad and Tobago’s unemployment rate rose to 5.4 per cent in the first quarter of 2026, up from 4.9 per cent in the corresponding quarter of 2025.

The data was released by the Central Bank of Trinidad and Tobago (CBTT) in its September Monetary Policy Announcement on Wednesday.

The CBTT said sectoral employment showed mixed developments during the first quarter of 2026, while supplementary indicators monitored by the bank suggested that labour demand softened through July.

“Supplementary indicators monitored by the Central Bank suggest that labour demand softened through July 2026,” the bank said.

The unemployment increase comes as economic activity showed mixed developments across several sectors.

The CBTT noted that recent data from the Central Statistical Office (CSO) showed that the non-energy sector grew by 0.2 per cent in the fourth quarter of 2025, while the energy sector contracted.

Economic indicators suggested that during the first quarter of 2026, there was a slowdown in the construction and distribution sectors, which was offset by a 4.3 per cent increase in manufacturing.

An increase in petroleum exports was offset by marginal declines in methanol, ammonia and natural gas production.

However, the CBTT said the slowdown in the energy sector is expected to wane as increasing production of crude oil and natural gas, along with investments in new acreage and projects, begin to bear fruit.

Within the non-energy sector, a pick-up in construction is likely as government projects come on stream.

The monetary announcement also indicated a slowing pace of credit expansion.

Consolidated system credit grew by 3.4 per cent year-on-year in July 2026, down from 4.2 per cent in March and 3.5 per cent in June.

Consumer lending growth slowed to 4.3 per cent in July, compared with 5.2 per cent in March, while business lending growth eased from 3.7 per cent to 0.6 per cent over the same period.

Real estate mortgage lending moved in the opposite direction, expanding from 4.4 per cent in March to 5.6 per cent in July.

Mortgages for both residential and commercial properties continued to grow, although demand for residential mortgages slowed. Data to June showed that interest rates on new mortgages increased to 5.33 per cent, from 5.24 per cent in the first quarter.

Inflation, meanwhile, remained low locally despite higher inflation internationally.

CSO figures for July 2026 showed headline inflation at 0.6 per cent, with food inflation at 1.7 per cent and core inflation at 0.2 per cent.

The Central Bank noted that global conditions remained highly uncertain because of persistent geopolitical tensions, elevated inflation and tightening monetary conditions.

The International Monetary Fund’s July World Economic Outlook update projected global growth of 3 per cent for 2026 and 3.4 per cent for 2027, citing the effects of the war in the Middle East and its impact on energy importers and vulnerable economies.

Against this backdrop, the Monetary Policy Committee (MPC) decided to maintain the repo rate at 3.50 per cent.

The committee noted the moderation of economic activity, slowing private sector credit expansion and low inflation conditions on the domestic front.

The Central Bank said it will continue to monitor international and domestic developments and take further action as necessary.

The next Monetary Policy Announcement is scheduled for December 23, 2026.