NASSAU, Bahamas, June 25, 2024 — Prime Minister Philip Brave Davis said yesterday he is hopeful the unemployment rate will continue to drop as more job opportunities open up in the private sector, The Nassau Guardian reported today in an article written by Senior News Reporter Taneka Thompson.
The national unemployment rate stood at 9.9 percent in the last quarter of 2023, according to figures released by the Bahamas National Statistical Institute (BNSI) on Friday.
The latest figure reflects a drop in the unemployment rate compared to the 10.4 percent recorded in the third quarter of 2023, BNSI said.
This is the first time BNSI has released quarterly unemployment statistics. Previously, the Labour Force Survey was done biannually.
In June 2023, officials revealed that the unemployment rate was 8.8 percent in May 2023. At the time, this represented a drop in the unemployment rate from the 10.7 percent recorded in December 2019 and 9.5 percent in May 2019.
The Prime Minister was asked yesterday to react to the recently released quarterly numbers.
“First of all, it is still low when you compare it with other periods … what I’m encouraged about is that now Bahamians are recognizing that the economy is growing and the economy is doing well. They are no longer discouraged in looking for work,” Davis said.
“First of all, it is still low when you compare it with other periods … what I’m encouraged about is that now Bahamians are recognizing that the economy is growing and the economy is doing well. They are no longer discouraged in looking for work,” Davis said. “When you look at the statistics and the methodology engaged to determine unemployment, they don’t take into account persons who have stopped looking for work, the discouraged workers. What this tells me is that it has inspired a lot of persons who had given up hope of finding a job that they are now finding hope, they are finding jobs, hence that one percent tick and hopefully within the next two months or so we can see that number going down.”
There were 9,500 people listed as discouraged workers in the fourth quarter, compared to the 10,880 in quarter three, according to the BSNI.
According to the standard definition of the International Labour Organization, discouraged workers “are persons without work and are available for work, yet were not actively seeking work because they are not hopeful about their prospects of finding work”.
They are not counted among the unemployed.
Noting that job opportunities are out there, the Prime Minister said, “The economy is growing, it is doing well and there are still a lot of vacancies out there for Bahamians to grasp. The challenge we are having is a lot of Bahamians want to work, but they want a government job…The government can only absorb so much of it. We are trying to get as many people employed in the private sector as we can to help that segment of our society.”
While the unemployment rate in the fourth quarter (9.9 percent) was higher than the 8.8 percent recorded in May 2023, officials said the numbers presented last week should not be compared to figures released in previous years because of a new methodology for collecting the data.
Next month, the contribution rate for the National Insurance Board will increase by 1.5 percentage points, to be paid equally by employees and employers.
Davis was asked to respond to those critics who say this increase could lead companies to lay off staff to reduce operating costs.
The Prime zinister dismissed these predictions as doom and gloom from naysayers.
“I’m not concerned about that,” Davis said. “Just as when we raised the minimum wage, you would have heard them say that’s a bad idea because it’s going to impact employers, they are going to lay off people. That didn’t happen.”
He said people should not think of the contribution increase as something that will impact them adversely.
“…We are trying to save the fund so when you reach the age of retirement, there’s something there for you,” Davis said.
