Jamaica Call Center Sector Sheds US$220M, 5,000 Jobs
Jamaica · Business
Key Facts
—Spending Drop Local spending in the Jamaica BPO sector fell by roughly US$220 million to about US$780 million in the fiscal year ended March 2026.
—Job Losses Employment dropped to approximately 50,000 from 62,000 two years earlier, with some industry counts suggesting a fall to 40,000.
—Company Closures The number of operating firms declined from more than 90 to about 70 by March 2026.
—Economic Weight The sector is Jamaica’s second-largest employer and third-largest source of foreign exchange, historically generating about US$1 billion annually.
—Government Response A multi-agency task force was created to address job losses and help workers adapt to artificial intelligence.
The Jamaica BPO sector, long a pillar of the island’s foreign-exchange earnings, has suffered a sharp contraction, losing roughly US$220 million in local spending and about 5,000 jobs in the fiscal year that ended in March 2026.
Inside the Jamaica BPO Contraction
For foreign investors and expats, Jamaica’s global digital services sector – widely known as business-process outsourcing or BPO – has been one of the country’s most reliable economic engines. The industry operates large call centres and back-office hubs, primarily serving North American clients from special economic zones in Kingston, Montego Bay, and Portmore.
Before the recent downturn, the sector employed roughly 60,000 people and generated about US$1 billion in foreign exchange annually. Government estimates showed that roughly 80% of that revenue, or US$720 million, stayed in the local economy, with about 70% of the total going directly to wages.
This made BPO Jamaica’s second-largest employer and its third-largest source of foreign currency, trailing only tourism and remittances. The industry’s rapid growth over the past decade transformed it from a niche service provider into a cornerstone of formal employment for young, English-speaking Jamaicans.
The Scale of the Contraction
Data from the government’s annual Form 18-K filing, reported by The Jamaica Observer on July 24, 2026, paints a sobering picture. Local spending by the sector fell to approximately US$780 million in the fiscal year ending March 2026, down from roughly US$1 billion a year earlier.
Employment also slid. The official count showed about 50,000 workers remaining, down from 62,000 two years prior.
The number of active companies shrank from more than 90 to roughly 70 over the same period.
A separate industry census cited by Yoni Epstein, president of the Global Services Association of Jamaica (GSAJ), suggested an even steeper decline. Speaking to the Jamaica Gleaner in mid-July, Epstein said the workforce had dropped to about 40,000, down from 60,000 a few years back.
The discrepancy likely reflects different counting methodologies between government and industry bodies.
What Is Driving the Decline
The government’s filing attributes the losses to a mix of onshoring and reshoring by US clients, geopolitical considerations, technological advancements, the impact of Hurricane Melissa, and local cost-of-doing-business challenges. The hurricane, which disrupted operations, compounded existing structural pressures.
Crucially, GSAJ’s Epstein pushed back on the narrative that artificial intelligence is the primary culprit. He told the Financial Gleaner that low productivity, the hurricane’s aftermath, and a tight labour market with limited available talent were the main drivers.
“AI was not the main cause” of the job losses, he stated.
Still, the government is not ignoring automation. In early July, Minister Pernell Charles Jr announced a new task force to address job losses and the growing impact of AI.
He argued that workers must become more compatible with AI tools so the technology boosts productivity rather than simply displacing jobs.
The broader trend of nearshoring shifts is partly reflected in the official reference to onshoring and reshoring. As US companies face political pressure to bring service jobs back home or move them closer to American soil, Jamaica faces stiffer competition from destinations in Latin America and the Caribbean.
The Industry and Government Response
The GSAJ has outlined a three-point recovery plan. First, it aims to restore investor confidence through targeted marketing that reinforces Jamaica’s value proposition.
Second, it will push to upskill the workforce, moving agents from routine call handling toward more complex knowledge-process outsourcing (KPO) tasks. Third, it wants to reduce operating expenses to improve the country’s cost competitiveness.
The government is moving in parallel. A working group now includes representatives from the GDS sector, the Port Authority of Jamaica (PAJ), the investment promotion agency JAMPRO, and the Jamaica Special Economic Zone Authority (JSEZA).
Its mandate has expanded from three focus areas to six, with a central goal of shifting the job mix toward higher-value work.
Officials want to change the sector’s composition from an 80:20 ratio of basic BPO to KPO work toward a 60:40 split. This implies a significant reskilling effort, moving employees into areas like accounting, legal process support, and data analytics.
The July 7 government response emphasized helping workers adapt to AI rather than treating automation only as a threat.
What This Means for Foreign Investors and Expats
For foreigners with business interests in Jamaica, the BPO contraction signals a period of adjustment rather than collapse. The sector still employs tens of thousands and generates hundreds of millions in foreign exchange.
However, the loss of 5,000 to 20,000 jobs – depending on which count one uses – will ripple through consumer spending and real estate in BPO-heavy areas like Montego Bay and Portmore.
Investors in Jamaican special economic zones should watch the government’s push toward KPO closely. The shift to higher-value services could create demand for more skilled, better-paid workers, potentially tightening the labour market for educated professionals.
It may also open niches for training providers and technology vendors.
The US$220 million drop in local spending is significant for an economy where BPO contributed roughly 6% of GDP, or about J$136 billion (~US$870 million). Yet the sector’s fundamentals – English fluency, proximity to US time zones, and established infrastructure – remain intact.
The question is whether Jamaica can adapt quickly enough to a global market that is rewiring itself around AI and political demands for domestic job creation.
Frequently Asked Questions
How many jobs has the Jamaica BPO sector lost?
Official government data shows employment fell to about 50,000 in March 2026, down from 62,000 two years earlier – a loss of roughly 12,000 positions. The industry association GSAJ cites a steeper decline to about 40,000 jobs from a peak of 60,000.
Is artificial intelligence the main cause of job losses in Jamaica’s call centres?
No, according to GSAJ president Yoni Epstein. He stated that AI was not the main cause.
He pointed instead to low productivity, Hurricane Melissa, a tight labour market, and reshoring by US clients as the primary drivers.
How is the Jamaican government responding to the BPO contraction?
The government created a multi-agency task force including JAMPRO, the Port Authority, and the special economic zone authority. Its mandate covers six areas, including shifting the workforce from basic BPO to higher-value knowledge process outsourcing (KPO) and helping workers adapt to AI tools.
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