Labour Dept placing just 2 per cent of job seekers

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Department of Labour is finding work for just 2 per cent of its registered job-seekers, a ratio that is exacerbating low workforce productivity and inequality in Bahamian society.

The Inter-American Development Bank (IDB), in a report on the planned $20 million initiative to overhaul the Bahamas’ job training and matching systems, said the Department of Labour’s ‘placement’ success rate was exceptionally low compared to the regional average.

While the Bahamas was able to find work for one out of every 50 registrants, the Latin American and Caribbean average for similar employment exchanges was a placement rate slightly greater than one in every four applicants.

The IDB report, lifting the veil on another issue impacting the Bahamas’ 30 per cent ‘youth unemployment’ rate, said the Department of Labour was catching job vacancies from only 12 per cent of listed Bahamian businesses.

It added that this ratio paled when compared to the 20-40 per cent of companies captured by European Employment Exchanges “at a similar stage of development”, and warned that these problems meant job opportunities were not going to the most qualified and ‘best matched’ Bahamians.

They were instead being seized by “the well connected”, resulting in lower workforce productivity and a society that was far from a meritocracy.

Calling for the Department of Labour’s Employment Exchange to “reach international best practices”, the IDB said the facility was currently well short of attaining them.

“Its limited capacity – in terms of personnel, soft and hard infrastructure, and articulation with the private sector – does not facilitate an adequate response to the demands of current and potential employers,” the report said.

“It also forces workers to search jobs through inefficient informal channels, which reinforces inequality of opportunities. Currently, the [Employment Exchange] capture vacancies of about 12 per cent of listed businesses, and places about 2 per cent of registered job-seekers.

“The strengthening of the [Employment Exchange] is thus critical in ensuring a labour intermediation system that facilitates better employment opportunities for everyone. Therefore, there is a need for institutional strengthening and modernisation of its services.”

Explaining the implications for the Bahamian workforce, economy and society, the IDB said: “In this scenario, job opportunities do not necessarily go to the better prepared or the ones that better match the vacancy, but to the well connected, lowering the quality of the matches worker-jobs, and with it, labour productivity.”

The Latin American and Caribbean job placement rate of 27.1 per cent includes the Bahamas, suggesting that other countries are even further ahead, because this nation’s 2 per cent will have dragged down the regional average.

Even Jamaica, with an 11 per cent job placement ‘success rate’, is achieving a ratio five times’ greater than the Bahamas, with one in 10 work seekers placed in positions. Barbados is even better placed, its 25.7 per cent being in line with the regional average.

“The Bahamas’ placement rate of 2 per cent compares to the Latin American and Caribbean regional average of 27.1 per cent, corresponding to an average of 2013 figures for Honduras, Jamaica, Peru, the Bahamas, Mexico, Brazil, Nicaragua, Barbados, Guatemala, Guyana, and Ecuador,” the IDB said.

When it came to the fact that the Department of Labour captures vacancies from just 12 per cent of companies, the report added: “This compares to 20% for 40% of public employment services in Europe that are in a similar stage of development as those of the Bahamas.

“The Department of Labour currently resides in a building that is not consistent with the 21st century public employment services environment that it envisions, whereby the unemployed can have access to high quality and well- targeted services that can help them find formal and productive job opportunities.”

The Government is moving to address this by moving the Ministry of Labour and National Insurance, and the Department to new premises.

However, the IDB report illustrates just how much work remains for the Bahamas to address its structural long-term unemployment problems, especially among young Bahamians aged between 15 to 24 years-old, where almost one in three cannot find work.

Taking the cue from Prime Minister Perry Christie’s call for more apprenticeship initiatives to train young Bahamian workers, between $6.4-$9.4 million of the IDB loan proceeds will be employed to design such a programme for 1,500 to 3,000 young Bahamians.

The report said the programme would provide 80 per cent “on-the-job” training, with just 20 per cent of the time spent in the classroom.

“This is targeted to the unemployed and school leavers between the ages of 16-29 years,” the IDB report said. “[It] will seek to fulfil two main objectives.

“Firstly, to increase the employability, and thus the probability of youth employment in three strategic sectors for the economy, and second, to promote formal and systematic feedback mechanisms between training providers and employers in these three sectors, so as to ensure the development of programmes that promote higher labour market productivity.”

The existing National Training Agency (NTA) will be used to deliver a pre-apprenticeship programme, involving literacy, numeracy and soft skills, while “employer-led skills councils” will also be created to develop training standards and courses.

The three industries targeted include tourism and financial services, with the final one set to be selected from construction, energy, logistics and information and communications technology (ICT).

A ‘matching grant facility’ is also intended to link the apprenticeship programme directly with the productive sectors in the Bahamian economy.

Elsewhere, between $8.3 million to $11.3 million of the IDB loan proceeds will be targeted at upgrading the Department of Labour’s employment exchange and job matching capabilities.

This will help “to provide targeted quality services to the unemployed (with special emphasis on youth services), and more closely engage with employers within a 21st century setting”, the IDB added.

“Currently, the Department of Labour is promoting the concept of one-stop- shops, where its clients receive centralised information about the array of services available to improve their prospects of employment.”

The final $1.5 million component will be used to boost the Department of Statistics’ ability to generate and analyse “labour market intelligence”.

“This operation will contribute to the reduction of unemployment by increasing and improving access to quality jobs,” the IDB report said.

“The programme will have the following specific objectives: Increase employability and productivity of programme beneficiaries; improve the effectiveness of public employment services; and enhance the capacity of the labour market’s intelligence and monitoring and evaluation systems.”

Comments

OMG says...

Absolutely on the target. Jobs are not advertised but passed down to family members, or through political connections. Moreover the policy of hiring Cuban teachers who in many cases have difficulty with the English language or are here to make as much money as possible is at the expense of the Bahamian students. In reality nothing changes and mediocrity extends in every area especially in education.

Posted 13 May 2016, 4:01 p.m. Suggest removal

B_I_D___ says...

Some of the Cuban teachers can speak and spell english better than our Bahamian teachers...just saying.

Posted 17 May 2016, 7:51 a.m. Suggest removal

Well_mudda_take_sic says...

Bahamians had better mark their "X" on the ballot next to the picture of the gate, as it represents (1) the gate to keep thousands of foreigners (wanting Bahamian status) out of our country and (2) the gate to keep same-sex marriages from happening in our country! The corrupt Ingraham-led FNM and Christie-led PLP governments of the past three decades think we are all fools. Even though many of us are either unemployed or under employed, our corrupt government is now hell bent on granting thousands of foreigners Bahamian status in exchange for their vote down the road. We can't afford to let this happen. Bahamians must show up at the polls on June 7th and vote a resounding "NO!" to all four of the proposed amendments to our constitution. Remember....just mark your "X" next to the picture of the gate on your ballot. We must all vote "NO" otherwise we and our families will really be sorry when the wave of foreigners come to our shores to take our jobs for less pay!

Posted 13 May 2016, 4:16 p.m. Suggest removal

killemwitdakno says...

Lol pure embarrassment

Posted 13 May 2016, 5:04 p.m. Suggest removal

asiseeit says...

Bahamian's are not desirable as employee's. This is evident! Maybe it has something to do with their attitude, level of education, general vest for life? Who knows. It does not look good on the ground level for those the government are churning out, that is for sure.

Posted 13 May 2016, 8:57 p.m. Suggest removal

ohdrap4 says...

how can we find a bahamian's mason's assistant who speaks five languages includig japanese?

well need to get a work permit.

Posted 14 May 2016, 12:34 p.m. Suggest removal

sheeprunner12 says...

The top 10% of graduates each year go off to school and do not return ....... the next 10% go to COB and local colleges and linger for a decade ....... the middle 30% look for a job hookup with a family or political friend ........ the bottom 50% sit at home play video games, smoke, drink and have sex or go on the block and deal, steal or prostitute ....... that is what happens to the 6000 graduates/dropouts each June ............ and that is compounded year over year

Posted 14 May 2016, 1:16 p.m. Suggest removal

Economist says...

Good statement. But what is the solution? How do we turn this around?

Much of this stems for a feeling that we have a right to a job because we are Bahamian and, no matter how bad we are at the job, you are stuck with me.

I don't have to work because Immigration will protect me.

Posted 14 May 2016, 3:16 p.m. Suggest removal

sheeprunner12 says...

The solution is: Get rid of the two-tiered system of education that maintains class/race discrimination .......... end primary school at grade 5 and jr school at grade 8 ........make BJC results criteria to advance to specific type of high school.......create real magnet technical & vocational high schools including a public elite academic school ........ Adopt CXC program ........ Refine national HS diploma .........INVEST IN BETTER TRAINED BAHAMIAN TEACHERS with its own Teachers' Commission ...... Make teaching profession a 5-year contract system, merit-based incentives with board certification required at end of each contract period.......... make principals' performance responsible to school boards and staff ............ invest in a real Polytechnic College to train all post-HS trade sectors ......... create mandatory para-military national service (2 summer of HS/ 1 year after HS) to be served on a Family Island ........ ?!?!

Posted 14 May 2016, 6:36 p.m. Suggest removal

Economist says...

Yes, we really need a good Polytechnic College. I would also suggest a percentage of foreign teachers though. Studies have shown that the best Universities and Private Boarding Schools have a high number of foreign professors and teachers.

The idea behind this is that they provide the student with different points of view thus making the students better thinkers and problem solvers.

Universities like Harvard, Princeton, Oxford and Cambridge all have a high percentage of foreign professors.

Posted 14 May 2016, 8:39 p.m. Suggest removal

Economist says...

***"The IDB also noted the relatively low graduation rates at the Bahamas Technical and Vocational Institute (BTVI), the main provider of occupational and vocational training to high school graduates, non-finishers and adults.
“The bulk of students fall between 19-23 years of age, and the Institute enrolls about 1,700 students each year during the fall, and graduates about 150 to 440 persons a year on average,” the IDB said."***

This is serious.

Posted 15 May 2016, 12:24 a.m. Suggest removal

ohdrap4 says...

the point is that technical education is not for the illiterate and innumerate.

masons, carpenters, electricians, mechanics all need to learn how to read well and do basic math well.

the average of the exam might be D, for those who got a grade. the majority had papers so bad they were unmarked or ungraded.

Posted 15 May 2016, 2:48 a.m. Suggest removal

SP says...

**.............. Proud end results of 4 decades of *YOUR* PLP and FNM at work! .............**

No need to be concerned. Their friends, family and lovers are all straight!

Posted 15 May 2016, 11:41 a.m. Suggest removal

truetruebahamian says...

Everything was better educationally and morally and realistically prior to 1967. Graduates from all government and private (church) schools were literate, numerate, had better social skills and appreciated their country, its people and realities of life and true potential of possibilities ahead of them.

Posted 15 May 2016, 1:27 p.m. Suggest removal

baldbeardedbahamian says...

having worked in the private business sector for over 25 years I have hired and terminated many employees. during the pindling rule particularly in the 80's, the cabinet spent a lot of energy trying to persuade the Bahamian voters that high prices in our country were solely due to greed of the (white) merchant class rather than their lousy fiscal policy.
as a result I, and I suspect many other business owners and managers do not believe that the government is our friend. this lack of trust means that we have never even considered supporting a government institution with it's inherent corruption, unless no other alternative is available. Nothing much has changed since that time with this new bunch of jokers and the private business sector will continue to mostly ignore the ministry of labour's offerings.
it should be noted that nottage and Christie were both part of the cabinet that devised the tactic of blaming the white merchant class to strengthen their racially divisive policy. The plp has sown many bad seeds, this is just one that has come home to roost. Excuse the mixed metaphors.

Posted 16 May 2016, 4:18 a.m. Suggest removal

B_I_D___ says...

We cycle through dozens of worthless employees each year...most of them are fresh 'graduates' being pumped out by RMBailey apparently 'educated'. Very very sad...our schools are merely big day care centers and not much else.

Posted 17 May 2016, 7:50 a.m. Suggest removal

sheeprunner12 says...

Why are you beating up on RM Bailey?????? ........ there are at least 50 high schools in this country that pump out "dummies" every year ...... and they are only "dummies" because the PLP & FNM governments have watered down the educational system so much in the past 40 years that it is efficiently creating "dummies" with high school diplomas, BJCs, BGCSEs etc ...... the Bahamas now is officially FAT, DUMB & HAPPY (if you are a PLP)

Posted 17 May 2016, 12:15 p.m. Suggest removal

B_I_D___ says...

There are the nearest school to us so the brunt of most of our 'graduates' are from there...but yes, in reality, it is across the board.

Posted 17 May 2016, 2:03 p.m. Suggest removal

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