Guam employment and earnings on the rise, but global conflict poses threats to local economic gains

By Pacific Island Times News Staff

More residents are back on the job and taking home higher pay, signaling an incremental improvement in the local economy, according to the latest employment report from the Guam Department of Labor’s Bureau of Labor Statistics.

David Dell'Isola

While noting a positive movement in Guam's labor market, Labor Director David Dell’Isola acknowledged that local businesses are still operating in a tough environment.

Just as Guam's post-Covid economy started to bounce back from the pandemic-triggered recession, a new global menace is threatening to offset local gains.

"We must brace for global uncertainty and the war in Iran that could create additional challenges for our economy and tourism," Dell'Isola said.

Global economists have assessed the ramifications of the Iran war for the world economy following a week of heightened attacks on energy infrastructure. 

The World Trade Organization has predicted that if oil and gas prices remain high for the rest of the year, this could reduce the forecast 2026 global GDP growth by 0.3 percent.

The December 2025 preliminary statistics show an increase of 750 jobs over the latest quarter, going from 67,690 to 68,440 persons employed.

The greatest private-sector employment gains over the quarter were 440 in construction, which is no surprise, and 180 in hotels. The majority of the construction job increases were in H-2B workers.

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The last quarter of 2025 showed that rising tourism numbers led to increased hotel employment. Alongside this growth, average weekly hours worked rose, going from 33.5 to 36.2.

The hotel industry’s average hourly rate also increased in the latest quarter from $11.96 to $12.26. On a weekly basis, hotel workers are earning about $43.63 more in the latest quarter.

“We’re seeing more residents back at work, some modest wage increases and job gains," Dell I'sola said. "While our tourism industry remains below pre-pandemic levels, it’s encouraging to see some growth in the hotel sector."

Gary Hiles, chief economist, noted that while the private sector job count increased, federal and the government of Guam employment declined in 2025.

Private-sector jobs increased by 15.3 percent, from 45,010 in March 2021 to 51,900 in March 2025.

Government of Guam jobs increased from 11,750 in March 2021 to 11,890 in March 2025. However, it went back down to 11,750 by December 2025.

Although federal jobs increased from 3,920 in March 2021 to 4,010 in March 2025, the number dipped to 3,870 in December 2025.

"Voluntary and involuntary federal agency downsizing resulted in a 4 percent reduction in federal employment on Guam, substantially lower than the 10.3 percent decline in the U.S. federal workforce," Hiles said.

"Federal grant program cuts resulted in the loss of some federally funded jobs in the local government, which declined 1.9 percent, less than previous estimates,” he added.

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