The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

More than one-third of the poorest young Bahamians have failed to complete secondary education, perpetuating income inequality and lack of job opportunities through successive generations.

The Inter-American Development Bank (IDB), in a report outlining its proposed $20 million loan aimed at improving Bahamian workforce productivity, said 35 per cent of 20-24 year-olds from the poorest 10 per cent in society had failed to graduate high school.

Its report, which has been seen by Tribune Business, adds that just 6 per cent of Bahamians from other, higher income groups have failed to graduate high school - illustrating the link between poverty and poor educational achievement.

“The employability of youth hinges critically on the level of education and skills attained to match demands from employers,” the IDB said.

“Even though most students complete secondary education, only half of them actually graduate (pass a final examination). Available data shows that 35 per cent of 20-24 year olds from the poorest decile have not completed secondary education, compared to 6 per cent of the rest of the population of that age.”

The report added that the Bahamas’ unemployment woes, and low labour productivity, were undermining its economic growth and ability to attract foreign direct investment (FDI) in the wake of the 2008-2009 financial crisis and recession.

“Despite the ability of the Bahamas to consistently attract foreign direct investment (FDI), the global economic crisis in 2008 revealed structural weaknesses that have limited economic growth and increased vulnerability, especially in the labour market,” the IDB said.

It added that developing workforce skills and productivity was vital to the Bahamas’ “capacity to maximise investment attraction”, and pointed out that this nation depended on a narrow economic base, with tourism and financial services accounting for 70 per cent of output.

“Labour productivity – measured as output per worker relative to US values – is low and has decreased 1 per cent on average between 2000 and 2011, significantly impacting the country’s competitiveness,” the IDB said, with most employers finding it difficult to locate “the right set of skills for their jobs”.

“More precisely, employers report the lack of specific skills as the most important barrier to recruit workers (34 per cent), followed by applicants’ lack of experience (29 per cent) and applicants’ lack of soft skills (28 per cent),” the report said.

“Skills gaps are also perceived by 24 per cent of firms as a main barrier to productivity, while problems with soft skills are the main cause of dismissals and turnover in firms.

“This reality suggests a misalignment between the skills acquired by Bahamians through the skills and training system and the needs of employers. There is an urgency, therefore, to simultaneously create a skills development and training ecosystem that systematically takes into account the productive sector’s demands, and provide, in the short-term, specific demand-driven and on-the-job training opportunities for Bahamians so that they can gain the necessary skills to find employment.”

The IDB also noted the relatively low graduation rates at the Bahamas Technical and Vocational Institute (BTVI), the main provider of occupational and vocational training to high school graduates, non-finishers and adults.

“The bulk of students fall between 19-23 years of age, and the Institute enrolls about 1,700 students each year during the fall, and graduates about 150 to 440 persons a year on average,” the IDB said.