By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A senior private sector executive said he would be “happier than hell” over the reduced 14.3 per cent unemployment rate, as long as the drop resulted from private sector rather than government hires.

Peter Goudie, head of the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) employment and labour committee, told Tribune Business: “If unemployment is down, and it looks like things are coming around, I’m happier than hell.

“That’s good news. As long as those hires were not generated by government or government entities, like BEC and NIB, I’d be a very happy camper. If those are government hires, it’s a different thing. If it’s the private sector, I’m a happy boy.”

The decline in the unemployment rate, as measured by the Department of Statistics, from 15.4 per cent in November 2013 to 14.3 per cent this May represents a modest bit of good news for a government desperate to see some signs of economic improvement.

Michael Halkitis, minister of state for finance, correctly said the May Labour Force Survey “paints a picture of a gradual improvement in the labour market in line with the gradual strengthening of the Bahamian economy”. If the trend continues, the Bahamas can look forward to better days.

Mr Goudie noted that the improved employment situation coincided with an upswing in the world economy. He reiterated: “If employment is increasing, and people are hiring, that’s nothing but good news and will also increase the Government’s coffers.”

The Government also touted the figures as showing that some 8,390 new jobs have been created since the Christie administration took office, based on the difference between the 169,040-strong employed labour force now, and the 160,650 jobs that existed in May 2012.

While the Government’s supporters are suggesting that this shows it has come close to delivering on its 2012 campaign promises of 10,000 new jobs, a more detailed analysis of the figures shows another worrying trend.

While the total employed labour force may have grown by 8,390 jobs over the two-year period, the total labour force (those employed plus those unemployed but looking for work) has increased by more between May 2012 and May 2014.

The data shows the total labour force has expanded by 9,025 persons, from 188,310 to 197,335, over that time. Given that this exceeds the number of new jobs created, it again shows the Bahamian economy is not growing fast enough to provide the necessary jobs for its people.

In addition, the number of persons said to be unemployed now - some 28,295 - exceeds the 27,655 who were out of work at May 2012.

Mr Halkitis, meanwhile, also pointed to the 28 per cent drop in the number of discouraged workers - from 6,765 in November to 4,880 in May 2014 - as another positive sign. He said the 28 per cent decrease indicated more Bahamians were optimistic about finding work, and had returned to the workforce to look for it.

Grand Bahama saw a 60 per cent drop in discouraged workers, but Mr Halkitis acknowledged that the relatively high unemployment rate among 15-24 year-old Bahamians, remained at 28 per cent. While below some recent historical trends, it remains high and a concern.