Cuban Private Enterprises Struggle to Find Workers with Daily Wages Barely Above a Dollar

In Cuba, private businesses are grappling with significant challenges in attracting and keeping employees, as many positions offer wages that barely exceed one dollar a day.

The difficulty in stabilizing their workforce is evident across various sectors, including restaurants, printing services, and construction teams. The rising cost of living further discourages reliance on a single job as a viable means of support.

According to a report by Havana Times based on interviews in Camagüey and Ciego de Ávila, there exists a stark contradiction affecting both the workforce and small business owners: while workers find the wages insufficient, employers struggle to hire and retain personnel.

A prominent example is the restaurant D'Ichín, which specializes in Chinese cuisine. It reopened in Camagüey on October 10 under new private management. Just three days later, it began seeking waitstaff, kitchen assistants, and chefs.

Job advertisements promised a base salary of 900 Cuban pesos per day, with potential additional compensation to be discussed during interviews. At the informal exchange rate, this is roughly equivalent to $1.08 per day in US dollars.

The announcement sparked criticism on social media, where users questioned whether such pay could attract experienced workers.

Efforts by Havana Times to interview the restaurant's management went unanswered by the time their report was published.

Widespread Employment Challenges

The struggle to hire is not confined to a single establishment. At the Nü House bar-restaurant in Camagüey, job postings for pizza makers and kitchen assistants emerged, despite the venue maintaining a busy commercial activity, according to gathered testimonies.

A former employee revealed that assistants earned about 1,250 pesos per shift, while pizza makers and other chefs received between 2,000 and 3,000 pesos, contingent on sales.

The ex-worker noted that wages had not been updated for months, despite menu price increases. A meal for two at the restaurant rarely costs less than 20,000 pesos, which is over six times the national monthly minimum wage of 3,210 pesos.

This comparison highlights the disparity between the prices private businesses charge for services and what they can afford to pay their employees.

Entrepreneurs Face Constant Turnover

Other business owners report facing similar issues. Leandro, who runs a printing business in Camagüey, stated he must continually train new employees as many leave shortly after starting.

Lack of staff has occasionally forced him to serve customers himself to keep the business running.

Iván Ortiz, who owns a team specializing in roof construction, mentioned having to turn down jobs due to worker instability.

His view was that people are unwilling to work, though the reported wages and working conditions suggest a more nuanced situation.

For many employees, the challenge is not merely finding a job but securing one that meets their basic needs.

Economic Strain and Legislative Responses

An informal survey cited by Havana Times involved 25 private workers from Camagüey and Ciego de Ávila. Among them, only three had permanent contracts, and more than half juggled multiple jobs.

Reported wage increases averaged no more than 20% over the past year, highlighting the ongoing economic strain.

Despite not being a comprehensive survey of Cuba's private employment, these accounts shed light on the labor conditions faced by workers.

One notable case involved a former Nü House employee who left to sell bread on the street, illustrating the allure of self-employment compared to fixed-salary jobs losing value rapidly.

Persistent inflation exacerbates the decline in labor income. Data from the National Office of Statistics and Information (ONEI) shows a 24.85% price increase in the first nine months of 2026, with annual inflation reaching 28.44% by September.

Essential goods and services have seen particularly steep price hikes, with food and non-alcoholic beverages experiencing a 42.66% annual inflation rate, and restaurants and hotels at 39.11%.

These figures demonstrate how nominal wage increases can be insufficient when prices rise even faster.

The Cuban economist Omar Everleny Pérez estimated a two-person household needed approximately 61,710 pesos monthly to cover basic needs, excluding extraordinary expenses, celebrations, or recreational activities.

In September, he adjusted his estimate for food expenses alone for two people in Havana to 47,135 pesos monthly. In contrast, the average state salary recorded in August was 7,354 pesos monthly, less than one-eighth of the estimated two-person household budget of 61,710 pesos.

While not all families rely on a single income, and private workers' wages vary, this comparison underscores the gap between certain labor incomes and the estimated cost of living needs.

Amidst this backdrop, Cuba's new Labor Code, Law 189/2026, was enacted on September 25, aiming to regulate labor relations across both state and non-state sectors.

The legislation mandates hiring and labor protection obligations for micro, small, and medium enterprises. Article 455 empowers these entities to employ workers and requires safeguarding labor rights and social security as outlined in the Code.

However, the presence of new legal provisions does not inherently ensure adequate wages or resolve the economic difficulties affecting the labor market.

An analysis of the new legislation reveals that the Code maintains the Cuban peso as the reference currency for wage payments, even in certain employment types linked with foreign companies.

The issue of inadequate compensation is not limited to private employment. Low state salaries, inflation, goods shortages, and the devaluation of the national currency are all part of a broader economic crisis in which job opportunities do not necessarily translate into better living conditions.