By Fay Simmons

Tribune Business Reporter

jsimmons@tribunemedia.net

A Cabinet minister yesterday hailed the 8.7 percent national unemployment rate at end-June 2024 as the lowest recorded in 16 years while asserting that it shows the Government’s economic policies are working.

Pia Glover-Rolle, minister of labour and the public service, said in a statement that the reduction from 9.9 percent at year-end 2023 represented the lowest jobless rate since 2008 and she expects more “good news” to follow over the coming months.

Speaking after the Bahamas National Statistical Institute released its latest Labour Force surveys for the 2024 first and second quarters, Mrs Glover-Rolle said: “The decrease in the unemployment rate over the past three years is proof that the economic and labour market policies of the Davis administration are working.

“We have generated growth by expanding and diversifying key industries, bringing in over $10bn in new investments and making key government investments in infrastructure, digitisation and support for local businesses. Given the positive impact of our policies, we expect to see even more good news in coming months.”

Mrs Glover-Rolle said several initiatives, such as Labour on the Blocks neighbourhood job fairs and and job readiness training, have increased labour market participation and boosted employment levels.

“Through our job fairs, we have linked thousands of Bahamians with employers, and when we meet with major investment projects, such as the resorts and private island destinations that are being expanded, we make it clear that the vast majority of jobs should be allocated for Bahamians,” said Mrs Glover-Rolle.

“At the same time, through enforcement of our ‘Notice of Vacancy’ policies for ‘Bahamianisation’ of our workforce, we are securing high quality opportunities for Bahamians in high demand areas, as well as managerial and leadership positions.”

Mrs Glover-Rolle said the ministry will move to strengthening legislation that protects employees and provides training opportunities. “We have just completed the first draft of our white paper on labour market legislative reforms, which will help us to leverage global challenges and opportunities like climate change and digitisation,” she added.

“At the same time, we are strengthening laws and policies to protect workers’ rights, exploring ways to increase compensation in the public and private sectors, introducing new training opportunities like the upcoming National Apprenticeship Programme to improve employability, and working closely with employers and unions to ensure that all stakeholders have input into the important work we are doing.”

Meanwhile, Dr Leo Rolle, chief executive of the Bahamas Chamber of Commerce and Employers Confederation (BCCEC), raised concerns about the high number of discouraged workers and the lack of skilled workers. The number of discouraged workers stands at 10,800, concentrated mainly in New Providence. These individuals are available for work but not actively seeking it due to low prospects of finding employment.

While agreeing that the decrease in unemployment is positive, he said the lack of skilled workers is alarming as many private sector firms struggle to find such employees. “As the voice of the business community, we understand the ripple effect more employment has on the economy as a whole, so we are elated at the prospect of more jobs equating to more economic prowess,” said Dr Rolle.

“While we are pleased on one hand, we are concerned on the other, noting the 10,000-plus discouraged workers in the workforce, the disparity between workers employed in areas aligned to their training/skillset, and those with high school versus tertiary education.

“These statistics are alarming to us because we note that employers have expressed the challenge of securing and retaining skilled employees along with the struggle of capacity building, which may be attributed to the stats as provided. We welcome the opportunity for collaborative research with the BNSI to garner empirical data on the correlation between the two variables.”

Dr Rolle said a major challenge highlighted during the recent National Conclave of Chambers of Commerce in October was the mass migration of talent from the Family Islands to New Providence, adding that statistics for each Family Island would be beneficial to understanding the labour market on each island and providing support.

“While there was a reference made to Grand Bahama, it would be interesting to note the delineation between New Providence and each specific Family Island to understand where there were increases or decreases, and chart a course of action to address the same with the involvement of the various Family Island chambers,” said Dr Rolle.

“All things considered, we look forward to working closely with the BNSI to ensure that our collective efforts continue to yield the best results for the communities we serve.” The BNSI report also revealed that youth unemployment also saw a decrease, dropping from 20.5 percent to 18 percent in the 2024 first quarter.

The labour force participation rate stood at 73.8 percent overall, with men participating at a higher rate (78.2 percent) than women (69.8 percent). Unemployment in New Providence was recorded at 8.6 percent, while Grand Bahama saw a slightly higher rate of 9.8 percent, with women in Grand Bahama experiencing an 11.5 percent unemployment rate compared to 8.2 percent for men.

Officials further highlighted that 54 percent of employed persons are working in areas aligned with their training, particularly within professional and community service sectors. Sixty percent of the labour force has completed secondary education, and 22 percent have achieved university-level qualifications.