The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

THE Deputy Prime Minister says the Government’s size is “certainly not optimal”, with almost one in five Bahamian workers employed in the public sector.

K P Turnquest, who is also minister of finance, said the November Labour Force data provided initial “encouragement” that the Government’s strategy of allowing the private sector to drive job creation was bearing fruit with 3,575 new posts created.

This, though, came against the background of a 6.3 per cent reduction in public sector employment as the Minnis administration sought to ‘right-size’ the Government following its election win. Direct government jobs, and those at public sector corporations, decreased by 2,555 during the six months to end-November 2017 as the Government elected either not to renew the contracts of short-term pre-election hires or undertake downsizing exercises at entities such as the Ministry of Tourism, Gaming Board and Bahamas Agricultural and Industrial Corporation (BAIC).

Based on a total employed labour force of 203,730, the 38,435 public sector workers are still close to accounting for 20 per cent - one in five Bahamian workers. That ratio was exceeded in the May 2017 Labour Force survey, illustrating how the former Christie administration sought to cure its unemployment and election woes by expanding the public sector.

“It’s certainly not optimal,” Mr Turnquest told Tribune Business of the Government’s size, indicating it has reached a point where the private sector and employed Bahamians are struggling to finance and support it.

The Minnis administration’s strategy is the reverse of its predecessor’s, and the Deputy Prime Minister added: “We anticipate that as we continue to rationalise the public service that the private sector will continue to pick up a lot of this capacity.

“We continue to put in place policies that, as we make the cost and ease of doing business lower and easier, the private sector will get going and pick up this capacity. We’re absolutely encouraged that the private sector is doing their job and creating jobs - 3,000 new jobs.

“Overall, I would say that we’re satisfied - not happy - that there has been growth in the economy, represented by the increase in the number of persons employed, and we’ve been able to maintain a fairly stable environment.”

Mr Turnquest added that “the prospects for 2018 certainly look promising”, revealing that the former Ginn project in Grand Bahama’s West End was looking likely to revive. Tribune Business revealed last year that Skyline Investments, a Toronto-based real estate developer/investor with $500 million in assets under management, had emerged as the project’s potential purchaser.

The November Labour Force survey data were effectively a ‘mixed bag’ that allows the political parties to pick the parts that suit their narrative, with the slight increase in the national unemployment rate - from 9.9 per cent to 10.1 per cent - less than the Government’s previous comments had led many to believe.

While the Opposition can slam the Government for this minor increase, and loss of more than 2,500 public sector jobs, the Minnis administration is able to highlight the increase in the employed labour force and fact that more than 3,000 private sector jobs were created.

Dion Foulkes, minister of labour, said in a statement that the Government remains concerned over 22 per cent youth unemployment rate, which rose from 20.7 per cent in May - likely due to the November survey picking up the several thousand high school graduates that annually enter the workforce.

Mr Foulkes said: “We are optimistic that in spite of the small increase in unemployment, 0.2 per cent as of November of last year, the new jobs at Baha Mar and other business houses in New Providence will have a major positive impact on the number of Bahamians who will be employed this year.

“It is very encouraging that the unemployment rate reduced in Grand Bahama by 0.3 per cent. The pending sale of the Grand Lucayan hotels and the reinvigoration of the hospitality industry in Grand Bahama will significantly further increase the employment opportunities on that Island.”

He added: “The Government continues to be concerned about the high rate of unemployment among our youth, and we have redoubled our efforts in creating training and employment opportunities for young Bahamians. By all indications we are confident that there will be greater opportunities for employment this year, not only in New Providence and Grand Bahama but also in other the Family Islands.”

The Bahamas’ national unemployment rate now stands at 10.1 per cent, Department of Statistics Labour Force Survey officials announced on Friday.The survey captured the status of jobs for the period October 30, 2017 to November 6, 2017.