MINISTRY OF LABOUR AND SMALL AND MICRO ENTERPRISE DEVELOPMENT

UNEMPLOYMENT AND SOCIAL SECTOR ISSUES: PROMOTING DECENT WORK AS A SOLUTION

Presented by: Ms. Shanmatee Singh, Acting Director of Research and Planning, Ministry of Labour and Small and Micro Enterprise Development

Conference on the Economy 2008University of the West Indies, St.Augustine October 9, 2008

Unemployment is widely regarded as a major social and economic global problem

It has challenged and continues to challenge the minds of professionals – economists, sociologist, psychologists, planners, policy makers etc.

INTRODUCTION

Labour is the thread that weaves the social and

economic fabric of society

major trends in unemployment

possible causes and consequences of unemployment

some initiatives to address unemployment

employment within the decent work framework

reflections on the way forward

INTRODUCTION

Defining unemployment concept

A person who does not have a job, is available for work and is actively looking for work - consistent with the International Labour Organisation’s definitionTrinidad and Tobago Central Statistical Office defines unemployment as:

“all persons who looked for work during the 3-month period preceding the enumeration and who at the time of enumeration did not have a job but still wanted work. It comprises persons without jobs who fall into one of three categories:

those who never worked during a reference period but were actively seeking

their first jobs; those who previously worked and were actively seeking

work during a period; and those who wanted work and were available, but did not

actively work during their reference period.”

Decent Work definition

“productive work in which rights are protected, which generates an adequate income with adequate social protection. It also means sufficient work in the sense that all should have access to income earning opportunities. It marks the high road to economic and social development, a road in which employment, income and social protection can be achieved without compromising workers’ rights and sound standards.”

Unemployment rate has declined significantly over the last decade form 14.2% in 1998 to 5.5% in 2007 and more recently to 4.2% in second quarter 2008 - a level considered by many economist to be full employment

Over the past decade the total number of persons unemployed was more than halved from 79,400 in 1998 to 34,500 persons in 2007. The

labour force however increased by 63,600 persons over the same period

Male labour force participation has remain fairly consistent over the last Decade however female labour force participation rates has increased from 47% to 51.7% and accounted for 41,300 persons (of 63,600 persons referred to above)

Over the decade unemployment was highest in the Construction Sector followed by the Community, Social and Personal Services Sector

TRENDS IN UNEMPLOYMENT

Over the decade unemployment rates was highest in the Occupational Group - Elementary Occupations, Service Workers and Clerks

Youth unemployment rate remained substantially higher than adult unemployment rate and national unemployment rate.

TRENDS IN UNEMPLOYMENT

Year Unemployment Rate %

Youth Adult National

2003 20.6 7.7 10.5

2004 18.3 5.7 8.3

2005 16.5 5.7 8.0

2006 13.0 4.5 6.2

2007 10.5 4.1 5.5

Youth, Adult and National Unemployment Rates

2003-2004

TRENDS IN UNEMPLOYMENT

Lon-Term Unemployment Rate 2002-2006

2.5 2.4

1.91.5

1.3

4.1 4.2

3.2

2.42.0

0.81.01.0

1.21.4

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

2002 2003 2004 2005 2006

Year

Rat

e(%

) Total

Male

Female

Source: Central Statistical OfficeCompiled by: Research and Planning Unit, Ministry of Labour and Small and Micro Enterprise Development

Long-term Unemployment Rate

2002-2006

Year

Incidence of long term Unemployment

Total Male Female

2002 23.7 18.3 28.3

2003 22.9 14.4 30.7

2004 22.9 16.2 28.5

2005 19.3 16.4 21.5

2006 20.5 17.7 22.6

Incidence of Long Term Unemployment 2002 -

2006

TRENDS IN UNEMPLOYMENT

Year Male Female

Primary Secondary Tertiary Primary Secondary Tertiary

2003 8.4 8.6 1.4 18.1 14.0 2.9

2004 4.2 7.2 1.4 14.2 11.7 3.1

2005 5.7 6.4 1.7 13.7 11.3 2.2

2006 4.0 5.0 1.9 11.4 9.1 2.2

2007 3.5 4.5 1.1 10.4 8.2 3.2

Source: Central Statistical OfficeCompiled by: Research and Planning Unit, Ministry of Labour and Small and Micro Enterprise Development

Unemployment Rate by Education and Sex

2003-2006

Other unemployment related data

Category Sector

SemiSkilled

Skilled Technical Professional Total Shortage

Construction 6 952 15 543 845 269 23 609

Personal Services 11 701 5 643 1 749 1 153 20 246

Distribution 7 881 5 208 1 562 823 15 474

Agriculture 3 249 4 299 0 189 7 737

Tourism and Hospitality 2 309 2 550 1 029 256 6 144

Manufacturing 1 750 2 775 502 51 5 078

Financial Services 269 581 1 115 1 248 3 213

 Total 34 111 36 599 6 802 3 989 81 501

Percentage of Total 41.85% 44 .9% 8.35% 4.9%

Source: Research and Development Department, National Training Agency

Labour Shortages by categories and Sectors 2008

Other unemployment related data

Sector Areas of Shortages / Sub-sectors

Construction

Building construction and repair, Civil engineering, Plumbing installation, Painting and Decorating, General construction and contracting, Trade contracting

Tourism & Hospitality

Hotels, Guest houses, Bed & Breakfasts, Other rooming establishments, Bars

Manufacturing

Construction materials, Food, Beverage, Plastic, Jewelry, Miscellaneous, Boat Building, Assembly and repairs (appliances and air conditions), repair industrial machines/machine shops, Metal Building materials, Mufflers/radiators, glass and glass products, wooden furniture

Distribution

Retail and wholesale trading, Driving, Construction material and hardware, Food, drink and tobacco, Household appliances, Machinery and equipment, Computers, Supermarkets, Textiles, Fast-food restaurants

Personal Services

Barbering, Beauticians, Tailoring, Dressmaking, Medical and Dental Technicians, Opticians/Optometrists, Recreation services, Miscellaneous repairing

Financial Services

Insurance Agencies, Commercial Banks, Merchant Banks, Finance Companies, Credit Unions

Agriculture Meat processing. Citrus processing, Fish processing, Grain processing, Baking, Confection and Snack foods, Breweries

Source: Research and Development Department, National Training Agency

Areas of labour shortages 2008

Industrial Group  Number of Work Permits Issued

2001 2002 2003 2004 2005

Total all industries 684 3,217 2,911 2,906 4,434

Agriculture, Hunting, Forestry and Fishing

1 2 10 2 0

Petroleum and gas including production, refining and service contractors

242 1,316 839 717 1,457

Manufacturing 37 147 178 237 329

Electricity and Water 0 5 15 25 14

Construction 38 171 344 422 823

Wholesale and Retail Trade, Restaurants and Hotels

26 81 173 172 227

Transportation, Storage and Communication

18 102 344 164 318

Finance, Insurance, Real Estate and Business Services

12 68 237 398 330

Community, Social and Personal Services 147 382 558 434 795

Not Adequately Classified 163 943 213 335 141

Source: Manpower ReturnsCompiled by: Research and Planning Unit, Ministry of Labour and Small and Micro Enterprise Development

Other unemployment related dataWork Permits issued by industrial groups 2001-

2005

CARICOM Country Number of Skills Certificate Issued*

Antigua and Barbuda 14

Barbados 108

Belize 4

Dominica 43

Grenada 42

Guyana 288

Jamaica 338

Montserrat 6

St. Kitts and Nevis 12

Saint Lucia 95

St. Vincent and the Grenadines

46

Suriname 25

Trinidad and Tobago 469

Other unemployment related data

* The Majority of Certificates were issued to University Graduates.Source: CSME Unit of Trinidad and Tobago, Ministry of Foreign Affairs

Certificates of Recognition of Caribbean Community Skills Qualification

(Skills Certificates)

CAUSES OF UNEMPLOYMENT

UNEMPLOYMENT

DOMESTIC POLICIES

REGIONAL /INTERNATIONA

L RELATIONSHIPS

AND DEVELOPMENT

PERCEPTION OF A

WELFARE STATE

SKILLS GAP: POPULATION

INADEQUATELY QUALIFIED

UNSATISFACTORY TERMS

AND CONDITIONS

OF EMPLOYMENT

LACK OF ECONOMIC GROWTH / JOBLESS GROWTH

REDUNDANCY OF

PRODUCTIVE ASSETS

MONETARY, FISCAL,

TRADE AND EMPLOYMENT

POLICIES

GLOBALISATION

TECHNOLOGICAL CHANGE

ECONOMIC INTEGRATION

INEFFICIENT AND

INEFFECTIVE PRODUCTIVE

PROCESS

MISMATCH OF GLOBAL

MARKET DEMAND

WITH LOCAL PRODUCTIVE

CAPACITY

DISMISSALS

DISCOURAGED WORKER SYNDROME

INADEQUATE LEGISLATIVE COVERAGE

MISMATCH OF

EDUCATION CURRICULUM

TO SKILLS DEMANDED

POOR ACCESS TO EDUCATION

POOR EDUCATION

SYSTEM

UNEMPLOYMENT

CONSEQUENCES OF UNEMPLOYMENT

INNOVATION

INWARD MIGRATION

SKILLS DETERIORATION

ECONOMIC PSYCHOLOGICAL

IINCREASE USE OF

INIATIVES

NEW BUSINESS

OR AVENUES

FOR EARNING INCOME

REDIRECT INTO

SUSTAINABLE

EMPLOYMENT

UNEMPLOYMENT TRAP

INCREASED INVESTMEN

T IN TRAINING

ECONOMIC, SOCIAL AND CULTURAL

INTEGRATION

LOSS OF

INCOME

POVERTY

ENVIRONMENTAL DEGRADATION

MIGRATION – BRAIN DRAIN

POOR HEALTH

INADEQUATE HOUSING

NO OR LOW INVESTMEN

T IN EDUCATION

INCREASED NEED FOR

SOCIAL WELFARE

PROGRAMMES

SOCIAL EXCLUSIO

N

DEPRESSION

SUBSTANCE ABUSE

LOW INDIVIDUAL

SELF ESTEEM

CRIME

LOSS OF CONFIDENC

E

BREAKDOWN IN

FAMILY AND

SOCIAL RELATIONSDECLINE IN

FAMILY LIFE

LOSS OF OUTPUT

INCREASE IN

EQUALITY

SOME INITIATIVES TO ADDRESS THE CAUSES AND CONSEQUENCES OF UNEMPLOYMENT

• Unemployment relief programmes eg. URP, CPEP• Universal Early Childhood Care and Education• Expansion and upgrade of primary school• Free tertiary education such as the Government Assistance for

Tuition Expenses (GATE) Programme and the Higer Education Loan Plan (HELP)

• On the Job Training Programme (OJT)• Multi-sector Skills Training (MuST) Programme• Retraining Programme• Help you prepare for Employment (HYPE)• Promotion of Small and Micro Enterprise Development –NEDCO,

Fair Share, Enterepreneurial Training Institute and Incubation Centres (ETIIC)

• Rationalization and revitalization of Non-Financial C-operative• Other social sector programmes

EMPLOYMENT WITHIN THE DECENT WORK FRAMEWORK

THERE MUST BE WORK (JOBS) BEFORE

THERE CAN BE DECENT WORK

Decent Work is just two simple words with great depth and meaning that everyone can relate to.

Simply stated, Decent work sums up the aspirations of people in their working lives and involves the following:

• opportunities for work that is productive and delivers a fair income;

• security in the workplace;• social protection for families;• better prospects for personal development and social

integration;• freedom for people to express their concerns, organize

and participate in the decisions that affect their lives; and• equality of opportunity and treatment for all women and

men

EMPLOYMENT WITHIN THE DECENT WORK FRAMEWORK

• A decent work deficit is said to occur when:

• there is involuntary unemployment and poverty;• there are abuses of rights at work and forced child labour

exists;• basic income security is missing, and workplace anxiety,

depression and exhaustion are commonplace;• workers and employers are either not organized to make

their voice heard or have obstacles to effective dialogue; and

• life at work cannot be properly balanced with the claims of the family.

EMPLOYMENT WITHIN THE DECENT WORK FRAMEWORK

Reflections on the way forward

i) Develop and implement a Decent Work Policy and Programme of Action

ii) (i) should be undertaken through a process of consultation and dialogue with clear responsibilities for each of the social partners identified

iii) Establish a monitoring and corrective mechanism