The Tribune

By NEIL HARTNELL

Tribune Business Editor

and NATARIO McKENZIE

Tribune Business Reporter

The 1.1 percentage decline in the Bahamas’ official unemployment rate would not have occurred without the post-Hurricane Matthew rebuilding boom, officials conceded yesterday, as Opposition politicians queued up to slam a “false indicator”.

Leona Wilson, the Department of Statistics’ acting director, in unveiling the November results for the bi-annual Labour Force Survey acknowledged that the 16 per cent construction industry employment boost following the Category Three/Four storm had helped to drop the national jobless rate to 11.6 per cent.

That was down from 12.7 per cent in May, with the number of employed persons increasing by 4,025, while those without jobs (looking for work but unable to find it) down by 2,155 over the same six-month period.

The figures, though, may have been skewed slightly by the first-time inclusion of Bimini and Exuma in the figures, which makes comparisons with the May 2016 data - focused only on New Providence, Grand Bahama and Abaco - difficult.

Bimini and Exuma’s unemployment rates were 4 per cent and 8 per cent respectively, both below the national average, while those for New Providence and Grand Bahama, the two largest economies, were at 12.9 per cent and 13.3 per cent, respectively.

The mixed Labour Force Survey data provides something for both the Government and its political opponents to take away. The former can point to reductions in the overall unemployment rate and number of discouraged workers, those who have given up looking for work, as small signs that the economy is improving.

The jobless rate fell on all islands, including for young Bahamians aged between 15 and 24 years-old. However, the unemployment rate for the latter remained stubbornly high at 25.1 per cent, indicating that one out of every four young Bahamians seeking work cannot find it.

Still, youth employment rose by 4.3 per cent in comparison to November 25, while the number of discouraged workers declined by over 15 per cent between May and late October 2016.

Hurricane Matthew, according to the survey, generated 1,385 jobs, with the number of Bahamian households requiring home repairs jumping from 14 per cent to 51 per cent after the storm.

The Department of Statistics said 68 per cent of storm-damaged homes were in New Providence, with another 18 per cent in Grand Bahama. And ninety-four per cent of impacted homes in New Providence required roof repairs.

Shane Gibson, minister of labour and national insurance, and Robert Farquharson, director of labour, could not be contacted for comment before press time.

However, Hurricane Matthew’s impact prompted Opposition politicians to argue that the jobless rate decline was a temporary, “false indicator” of the Bahamian economy and workforce’s position.

Branville McCartney, the Democratic National Alliance’s (DNA) leader, said the employment figures were likely boosted not only by post-Matthew reconstruction but by politically-motivated hirings in the public service ahead of the next general election.

“I see more people working on the side of the road, cleaning one small area, than I’ve seen in four-and-half years; and it was still dirty,” he told Tribune Business.

“It’s really giving a false indicator as to where we are with unemployment in this country.”

The Department of Statistics said it had been unable to assess the quality of jobs, and whether those created were likely to be stable or short-term, casual and relatively low paid.

Meanwhile, K P Turnquest, the FNM deputy leader, blasted the survey findings as “disingenuous and downright wrong”, also pointing to the boost from “extraordinary” temporary employment.

The east Grand Bahama MP told Tribune Business: “This statistical data is so misleading as it attempts to attach extraordinary temporary employment to an overall statistic on the state of employment in the country. 

“It is disingenuous and downright wrong to do so, as it plays on the emotions of Bahamians who know the difference and are becoming increasingly frustrated.”

Mr Turnquest added: “The facts are very clear, as even without the official statistics, the unemployment levels of this country have deteriorated even before the hurricanes.

“However, since that time we have shed jobs like winter coats in summer.  Grand Bahama’s economy is in shambles with multiple layoffs in various sectors, and delayed reopening in various segments of the tourism plant.  Grand Celebration has not returned; where are these jobs the government is speaking about.”

 Mr Turnquest told Tribune Business: “It is high time the government stop lying to the Bahamian people and face the reality of our situation, rather than putting our heads in the sand and pretending to be surprised by the poor results that have resulted in a significant and unprecedented downgrade of our sovereign credit risk.  

“The FNM calls on the Government to compare apples to apples in these statistical presentations, and to ensure that the distinction between temporary/seasonal and permanent jobs is segregated, so that employers and investors have legitimate, objective data from which to make decisions.”