Employment in Puerto Rico’s manufacturing sector has reached minimal levels due to automation and process optimization, according to public and private sector experts. Data from the Department of Labor and Human Resources (DTRH) shows a 49.3% decline in manufacturing jobs over 35 years, with approximately 78,200 fewer workers between 1990 and 2025. Despite this, manufacturing remains the largest contributor to Puerto Rico’s economy, accounting for 43% of the island’s Gross Domestic Product.
As of June, the manufacturing workforce had increased by only 100 jobs, totaling around 80,300 direct jobs. Gabriel Maldonado, former DTRH secretary and member of the Puerto Rico Manufacturers Association (PRMA) Human Capital Committee, attributes the decline to the evolution of production chains and the elimination of Section 936 of the federal Internal Revenue Code, which allowed US corporations to operate in Puerto Rico tax-free.
The sector also generates around 150,000 indirect jobs in support activities like logistics and administration. In the past year and a half, there have been around 25 announcements of expansions or new investments in the sector.