By LYANIRE MUNNINGS

Tribune Staff Reporter

lmunnings@tribunemedia.net

THE Davis administration yesterday defended its labour record as unemployment jumped to 10.8 percent in the first quarter of 2025, insisting the rise reflects a mismatch between skills and available jobs rather than a shortage of opportunities.

Its response comes after the administration spent late 2024 touting BNSI reports showing an 8.7 percent jobless rate — the lowest in 16 years — before unemployment rose to 9 percent in the fourth quarter and 10.8 percent in the first quarter of 2025.

A Ministry of Labour and Public Service statement acknowledged the findings of the Bahamas National Statistical Institute (BNSI), which showed 25,925 Bahamians were unemployed between January and March, an increase of nearly 9,000 since late 2024. The ministry believes the figures also reflect seasonal layoffs and sectoral contractions, particularly in construction and tourism, as well as more Bahamians entering the workforce, with participation climbing to 76 percent.

Labour Minister Pia Glover-Rolle said the challenge is not job creation but unemployability.

“It is not simply that jobs are unavailable,” she said. “Hundreds of openings exist in our Department of Labour database that we have been unable to fill. The real challenge lies in building and aligning skills with the opportunities on offer. That is why this administration has been proactive in investing in training, apprenticeships, and new pathways to ensure Bahamians are ready for the jobs of today and tomorrow.”

She pointed to initiatives such as the National Apprenticeship Programme, piloted in construction and maritime sectors; the Bahamas Polytechnic Accreditation and Training Hub (BPATH), which allows students to earn career certifications; the Creative and Performing Arts School (CAPAS); and the expansion of the Bahamas Technical and Vocational Institute (BTVI) to Abaco, Eleuthera, and Exuma.

The minister also cited the launch of the National Productivity Task Force, mandated to lay the foundation for a National Productivity Council to address efficiency and workforce shortfalls.

While the government stressed that GDP growth and record-low unemployment in late 2024 show strong fundamentals, private sector leaders warned the latest data expose deep structural weaknesses.

Peter Goudie, labour chief for the Bahamas Chamber of Commerce and a representative on the National Tripartite Council, branded the 52 percent increase in jobless workers over seven months as “pretty scary”.

“We have a very difficult situation in our country,” he told Tribune Business. “What also concerns me is the number of males not getting through higher education. We need to fix the education system from the bottom up.”

The BNSI report also showed nearly one in three employed Bahamians — 65,225 people — were underemployed, working part-time while seeking more hours. Some 28 percent of working men and 17 percent of working women had no formal qualifications, raising concerns about productivity and competitiveness in an economy increasingly shaped by digital and knowledge-based industries.

Youth unemployment stood at 20.9 percent, with 6,960 young people unable to find work. The data also highlighted gender disparities: women aged 20 to 44 and 45 to 54 were more likely to be unemployed than men in the same age groups, though men aged 25 to 44 had slightly higher unemployment than women in that cohort.

Mrs Glover-Rolle said the Department of Labour has since facilitated major hiring exercises, particularly in Grand Bahama, that will be reflected in future surveys.

“Last year, our GDP continued to grow. And in the third quarter, unemployment reached one of its lowest points since the turn of the century,” she said. “We remain confident that our policies, training initiatives, and investments will continue to expand opportunities and prepare Bahamians for long-term success. We are focused on creating jobs, and we are also going a step beyond to ensure that our people have the skills, training, and readiness to seize the jobs that will be created.”

Still, Mr Goudie warned that unless the education system improves and more Bahamians gain the skills employers demand, businesses will remain unable to recruit effectively, undermining productivity, competitiveness, and living standards.