By LEANDRA ROLLE 

Tribune Chief Reporter 

lrolle@tribunemedia.net

ALTHOUGH the latest unemployment figures suggest the country is still struggling to get the rate where it was before the 2008 recession, Prime Minister Philip “Brave” Davis said he is encouraged by the latest figures and is not concerned that the increasing National Insurance Board contribution rate would worsen the problem.

He expressed optimism that jobless numbers will decrease in the “next two months or so” and said he is excited about what the future holds for job seekers.

The Bahamas National Statistical Institute (BNSI) revealed on Friday that the unemployment rate was 10.4 percent during the third quarter of 2023 and 9.9 per cent in the fourth quarter.

A labour force survey earlier last year had the unemployment rate at 8.8 percent, a 15-year low.

Although BNSI officials said the quarterly survey results should not be compared to earlier bi-annual surveys, the third and fourth-quarter figures defied expectations some had that the unemployment rate would continue to drop. Since the Great Recession, the rate has consistently hovered near or above double-digit territory, dropping below nine per cent only once.

Meanwhile, some businesses are bracing for higher costs, with NIB contribution rates set to rise by 1.5 percent on July 1. A new Bahamas Power and Light equity rate structure is also expected to increase costs for larger businesses.

Some companies have said they may offset costs by increasing prices, service fees and firing employees.

Yesterday, Mr Davis said he was not concerned about the impact of the increasing NIB rate on the unemployment rate.

“When we raise the minimum wage, you would have heard them saying that’s a bad idea because it’s going to impact employers, going to lay off people,” he said. “That didn’t happen.

So let’s speak to what is happening and what is the result and respond to it.”

“We are not to discourage people thinking this is something that’s going to impact persons adversely. What it’s going to do is ensure that you pay your premiums. We’re trying to save the fund so when you reach the age of retirement, there’s something there for you.”

He said the latest labour force survey results show Bahamians have hope and recognise the country’s economy is “doing well”.

He said many Bahamians want to work, but want a government job.

He said the government cannot absorb everyone due to financial restraints but encourages people to join the private sector.

“When you looked at the statistics, and how it is the methodology engaged to determine unemployment, they don’t take into account persons who have stopped looking for work, the discouraged worker,” he said.

“What this tells me is that it has inspired a lot of persons who have stopped or given up hope of finding a job, that they’re now finding hope to find jobs and hence, that one per cent tick and hopefully within the next two months or so, we can see that number going down.”

In fact, the BNSI survey did account for discouraged workers. Experts concluded there were 10,800 discouraged workers in the third quarter of 2023 and 9,500 in the fourth quarter.