The Tribune

By NEIL HARTNELL

TRIBUNE Business Editor

nhartnell@tribunemedia.net

A CABINET minister yesterday hailed the unemployment rate’s reduction for “the third straight quarter” while pledging that the Government will “keep working to drive” the jobless numbers even lower.

Pia Glover-Rolle, minister of labour and national insurance, in response to Tribune Business inquiries voiced optimism that the 8.1 percent unemployment rate for the 2026 first quarter will further decline “over time” with the Bahamas National Statistical Institute’s (BNSI) report showing jobs are being created at a faster pace than new persons entering the Bahamian workforce.

However, she conceded that the Government still “has a lot of work left to do” and acknowledged that the 29,000-plus Bahamian workers who are under-employed reinforces the need to create quality jobs and long-term careers as opposed to part-time or casual work.

Speaking after The Bahamas’ unemployment fell by 0.6 percentage points, from 8.7 percent in the 2025 fourth quarter to 8.1 percent in the first three months for 2026, Mrs Glover-Rolle told this newspaper: “This is the third straight quarter the unemployment rate has improved, thanks to the robust job creation happening under this administration.

“Jobs are being created faster than people are entering the labour market, which is always ideal. We expect the 8.1 percent unemployment rate to continue to improve over time.”

The improvements slashed the number of jobless Bahamians by 5.7 percent or 1,225 from 21,465 to 20,240, which was driven by the seasonal Bahamian economic activity peak coinciding with the winter tourism season.

Growth in total employment, of 2,760 persons, also outpaced the 1,535-strong expansion of the total labour force during the 2026 first quarter to signal the economy is growing - and creating jobs - at a faster rate than persons coming into the workforce.

“We are also seeing Bahamians who had given up on finding employment now re-entering the job market, with discouraged workers down by almost 20 percent and youth unemployment falling to 14.2 percent,” Mrs Glover-Rolle added. “Youth unemployment has historically hovered near 20 percent even during the best of times, so any positive movement there is welcome news for our nation.

“These are all encouraging developments, but we still acknowledge that we have a lot of work left to do. We will keep working to drive these numbers down.”

The BNSI report emphasised that The Bahamas has a bigger problem with under-employment than joblessness. More than 29,000 Bahamians, all working, were said to be in jobs that fail to offer their desired level of wages or working hours, or are not properly using their level of skills and expertise. And their number was said to have increased by almost 3,000, representing a double-digit percentage rise, compared to the 2025 fourth quarter.

“During the first quarter of 2026, there were 29,085 under-employed persons, an increase of 2,890 (11 percent) compared with the fourth quarter of 2025,” the BNSI report said.

“Underemployed persons are employed individuals whose work does not meet their desired level of compensation, working hours, or use of skills and experience, and who are seeking or available for additional work during the reference period.” It is unclear whether this also signals further growth in insecure part-time or casual work, which is often paid at minimum wage rates, in the Bahamian economy.

When the 29,085 under-employed are added to the 20,240 who are unemployed, meaning they are actively looking for work but unable to find it, this means 49,325 persons - some 19.8 percent, or almost one-in-five Bahamians - out of a 249,025-strong labour force are either jobless or not being sufficiently employed.

“We take the under-employment data very seriously,” Mrs Glover-Rolle pledged. “Because our goal is not only to get people employed, but to qualify them for jobs that lead to long-term careers.

“Through upskilling, training, our Opportunity Hub initiatives, and focused work with stakeholders, we are working to get Bahamians qualified for higher-paying jobs and careers. That is how we will address under-employment, along with continued job creation.

“Closing the skills gap and working with stakeholders also helps us forecast labour needs and gaps, including occasional furloughs and lay-offs, so we are better prepared to respond and support continued employment opportunities for our workforce.”

Meanwhile, Kwasi Thompson, the Opposition’s finance spokesman, yesterday warned that Bahamians “are being crushed under the weight of the high cost of living” after the Consumer Price Index (CPI) showed inflation for July rose by 3.6 percent over the previous year - a number that was slightly down on the prior few months.

The east Grand Bahama MP accused the Government of being “late to the game” in using tax relief to try and ease cost of living pressures as he renewed Opposition calls for a cap to be imposed on how much VAT is earned on fuel purchases.

“But behind that headline number is an even more troubling reality,” Mr Thompson said of the July 2026 inflation figure. “Transportation costs increased 12.9 percent, gasoline 21.4 percent and diesel an extraordinary 33.4 percent [year-over-year].

“These increases hit working families directly. In communities like east Grand Bahama, many residents have no choice but to drive long distances every day to get to work, take their children to school, attend medical appointments and conduct basic business. When gasoline rises by more than 20 percent in a single year, families are forced to find that extra money somewhere.

“Months ago, Opposition Leader Michael Pintard called for a temporary cap on VAT on fuel, specifically to prevent the Government from collecting increasing amounts of VAT simply because international fuel prices were rising. That relief was not implemented,” he added.

“Barbados capped VAT on gasoline and diesel when international energy prices increased, and subsequently reported that the measure saved consumers $12.6m Barbadian dollars. It demonstrated that governments can act when external events drive up the cost of an essential commodity.

“The Government has been late to the game in recognising that tax relief can be an important tool in easing the cost of living burden. It eventually removed VAT from qualifying food, but only after Bahamian families had already endured years of rising prices. Now, with transportation up 12.9 percent, gasoline up 21.4 percent and diesel up 33.4 percent, Bahamians should not have to wait until families are overwhelmed before meaningful relief comes.”

Acknowledging that the Government cannot control international oil prices, Mr Thompson nevertheless said: “But it can control whether higher international prices result in government collecting more tax from struggling Bahamian consumers.

“Bahamians need relief and opportunity, relief that leaves more money in their pockets today, and greater economic opportunities that allow wages and household incomes to keep pace with the rising cost of living.

“Families are paying more to get to work, more to take their children to school and more simply to live. Government has the tools to provide relief. The question is why Bahamians are still waiting.”