The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Bahamas faces “worrisome” skills imbalances in the construction trades that are contributing to more than two-thirds of work permits being issued “for low skilled jobs”, the Inter-American Development Bank (IDB) has warned.

A paper attached to its $25 million ‘Skills for Current and Future Jobs in the Bahamas’ project loan said the Bahamas Technical and Vocational Institute (BTVI) had seven existing students for each person that graduated in 2015.

And, of the 253 students who graduated in 2014-2015, only 56 - less than 25 per cent - were in the construction industry. And there were no masons among those 56 graduates.

“In terms of quantity, an analysis of BTVI graduates indicates that there is a numbers challenge,” the IDB said. “Compared to enrolment numbers of 1,798 students in BTVI in November 2015, only 253 people graduated in 2014-2015, including 56 in construction.

“Out of these, 30 were in electrical installation, seven were carpenters and six were plumbers. No one graduated with masonry skills. This is worrisome given the number of work permits granted to foreign workers, as between 2012-2014, 24,000 permits were issued, of which more than 16,000 were for low skilled work, including those in construction.”

The IDB report yet again emphasised that the poor educational achievement of many high school leavers continues to undermine productivity and competitiveness in the Bahamian economy, while also contributing to the country’s numerous crime and social challenges.

“Data shows that the education system has over 5,000 school leavers each year, 50 per cent of young people do not graduate high school, and BGCSE success rates remain low, with only 922 of 6,793 candidates (14 per cent) achieving a ‘C’ Grade or above in five BGCSEs, including English and Math,” the IDB document said, referencing the 2014 National Youth Policy report.

“In terms of quality, employers point to the lack of specific skills for the job as the most important recruitment obstacle (34 per cent),” the IDB added.

“Moreover, the recent consultation for the Private Sector Assessment Report (PSAR) for the Bahamas also highlights as one of the main priorities of the private sector the fact that there is an inadequately skilled labour force: Large private employer associations and private businesses maintain there is a lack of skilled workers, and most private sector representatives believe this negatively impacts their business prospects and production.

“According to the latest World Bank Enterprise Survey (2010), 33 per cent of companies surveyed in the Bahamas, (23 per cent of small companies, 40 per cent of medium companies and 50 per cent of larger companies), identify ‘an inadequately educated workforce as a major constraint’ to doing business.”

Referring to the 2012 ‘Wages and Productivity’ survey of the Bahamas, the IDB noted that 34 per cent of companies cited ‘underqualified’ candidates as the biggest obstacle to hiring new employees.

A lack of experience and absence of ‘soft skills’ were also cited as key impediments by companies, with the latter factor “the main reason for dismissals, increasing turnover costs for firms”.

“The most commonly cited reason for dismissals was related to problems with soft skills or ‘problems with behaviour/conduct’ (65 per cent,” the IDB report said.

“The lack of skills (particularly soft skills) is identified with productivity losses due to unsatisfactory performance, absenteeism, lack of responsibility and commitment to the job.”

Analysing the way forward, the IDB added: “The analysis tells that more integration is needed between the private sector labour demand and the provision of training in the country.

“On-the-job training strategies can align workers’ skills with specific skills demands, benefiting both the labour force and overall productivity. Focus on soft-skills training is key to enhancing worker employability and retention, and job seekers must be told what skills and training the current labour market demands.

“Investing successfully in labour force skills development can be a main driver of economic and social growth, and will demonstrate that upgrading both technical and soft skills is key to increasing productivity and competitiveness, adapting to new technologies and creating stable work opportunities for workers.”