ministry of labour and small and micro enterprise development unemployment and social sector issues:...
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MINISTRY OF LABOUR AND SMALL AND MICRO ENTERPRISE DEVELOPMENT
UNEMPLOYMENT AND SOCIAL SECTOR ISSUES: PROMOTING DECENT WORK AS A SOLUTION
Presented by: Ms. Shanmatee Singh, Acting Director of Research and Planning, Ministry of Labour and Small and Micro Enterprise Development
Conference on the Economy 2008University of the West Indies, St.Augustine October 9, 2008
Unemployment is widely regarded as a major social and economic global problem
It has challenged and continues to challenge the minds of professionals – economists, sociologist, psychologists, planners, policy makers etc.
INTRODUCTION
Labour is the thread that weaves the social and
economic fabric of society
major trends in unemployment
possible causes and consequences of unemployment
some initiatives to address unemployment
employment within the decent work framework
reflections on the way forward
INTRODUCTION
Defining unemployment concept
A person who does not have a job, is available for work and is actively looking for work - consistent with the International Labour Organisation’s definitionTrinidad and Tobago Central Statistical Office defines unemployment as:
“all persons who looked for work during the 3-month period preceding the enumeration and who at the time of enumeration did not have a job but still wanted work. It comprises persons without jobs who fall into one of three categories:
those who never worked during a reference period but were actively seeking
their first jobs; those who previously worked and were actively seeking
work during a period; and those who wanted work and were available, but did not
actively work during their reference period.”
Decent Work definition
“productive work in which rights are protected, which generates an adequate income with adequate social protection. It also means sufficient work in the sense that all should have access to income earning opportunities. It marks the high road to economic and social development, a road in which employment, income and social protection can be achieved without compromising workers’ rights and sound standards.”
Unemployment rate has declined significantly over the last decade form 14.2% in 1998 to 5.5% in 2007 and more recently to 4.2% in second quarter 2008 - a level considered by many economist to be full employment
Over the past decade the total number of persons unemployed was more than halved from 79,400 in 1998 to 34,500 persons in 2007. The
labour force however increased by 63,600 persons over the same period
Male labour force participation has remain fairly consistent over the last Decade however female labour force participation rates has increased from 47% to 51.7% and accounted for 41,300 persons (of 63,600 persons referred to above)
Over the decade unemployment was highest in the Construction Sector followed by the Community, Social and Personal Services Sector
TRENDS IN UNEMPLOYMENT
Over the decade unemployment rates was highest in the Occupational Group - Elementary Occupations, Service Workers and Clerks
Youth unemployment rate remained substantially higher than adult unemployment rate and national unemployment rate.
TRENDS IN UNEMPLOYMENT
Year Unemployment Rate %
Youth Adult National
2003 20.6 7.7 10.5
2004 18.3 5.7 8.3
2005 16.5 5.7 8.0
2006 13.0 4.5 6.2
2007 10.5 4.1 5.5
Youth, Adult and National Unemployment Rates
2003-2004
TRENDS IN UNEMPLOYMENT
Lon-Term Unemployment Rate 2002-2006
2.5 2.4
1.91.5
1.3
4.1 4.2
3.2
2.42.0
0.81.01.0
1.21.4
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2002 2003 2004 2005 2006
Year
Rat
e(%
) Total
Male
Female
Source: Central Statistical OfficeCompiled by: Research and Planning Unit, Ministry of Labour and Small and Micro Enterprise Development
Long-term Unemployment Rate
2002-2006
Year
Incidence of long term Unemployment
Total Male Female
2002 23.7 18.3 28.3
2003 22.9 14.4 30.7
2004 22.9 16.2 28.5
2005 19.3 16.4 21.5
2006 20.5 17.7 22.6
Incidence of Long Term Unemployment 2002 -
2006
TRENDS IN UNEMPLOYMENT
Year Male Female
Primary Secondary Tertiary Primary Secondary Tertiary
2003 8.4 8.6 1.4 18.1 14.0 2.9
2004 4.2 7.2 1.4 14.2 11.7 3.1
2005 5.7 6.4 1.7 13.7 11.3 2.2
2006 4.0 5.0 1.9 11.4 9.1 2.2
2007 3.5 4.5 1.1 10.4 8.2 3.2
Source: Central Statistical OfficeCompiled by: Research and Planning Unit, Ministry of Labour and Small and Micro Enterprise Development
Unemployment Rate by Education and Sex
2003-2006
Other unemployment related data
Category Sector
SemiSkilled
Skilled Technical Professional Total Shortage
Construction 6 952 15 543 845 269 23 609
Personal Services 11 701 5 643 1 749 1 153 20 246
Distribution 7 881 5 208 1 562 823 15 474
Agriculture 3 249 4 299 0 189 7 737
Tourism and Hospitality 2 309 2 550 1 029 256 6 144
Manufacturing 1 750 2 775 502 51 5 078
Financial Services 269 581 1 115 1 248 3 213
Total 34 111 36 599 6 802 3 989 81 501
Percentage of Total 41.85% 44 .9% 8.35% 4.9%
Source: Research and Development Department, National Training Agency
Labour Shortages by categories and Sectors 2008
Other unemployment related data
Sector Areas of Shortages / Sub-sectors
Construction
Building construction and repair, Civil engineering, Plumbing installation, Painting and Decorating, General construction and contracting, Trade contracting
Tourism & Hospitality
Hotels, Guest houses, Bed & Breakfasts, Other rooming establishments, Bars
Manufacturing
Construction materials, Food, Beverage, Plastic, Jewelry, Miscellaneous, Boat Building, Assembly and repairs (appliances and air conditions), repair industrial machines/machine shops, Metal Building materials, Mufflers/radiators, glass and glass products, wooden furniture
Distribution
Retail and wholesale trading, Driving, Construction material and hardware, Food, drink and tobacco, Household appliances, Machinery and equipment, Computers, Supermarkets, Textiles, Fast-food restaurants
Personal Services
Barbering, Beauticians, Tailoring, Dressmaking, Medical and Dental Technicians, Opticians/Optometrists, Recreation services, Miscellaneous repairing
Financial Services
Insurance Agencies, Commercial Banks, Merchant Banks, Finance Companies, Credit Unions
Agriculture Meat processing. Citrus processing, Fish processing, Grain processing, Baking, Confection and Snack foods, Breweries
Source: Research and Development Department, National Training Agency
Areas of labour shortages 2008
Industrial Group Number of Work Permits Issued
2001 2002 2003 2004 2005
Total all industries 684 3,217 2,911 2,906 4,434
Agriculture, Hunting, Forestry and Fishing
1 2 10 2 0
Petroleum and gas including production, refining and service contractors
242 1,316 839 717 1,457
Manufacturing 37 147 178 237 329
Electricity and Water 0 5 15 25 14
Construction 38 171 344 422 823
Wholesale and Retail Trade, Restaurants and Hotels
26 81 173 172 227
Transportation, Storage and Communication
18 102 344 164 318
Finance, Insurance, Real Estate and Business Services
12 68 237 398 330
Community, Social and Personal Services 147 382 558 434 795
Not Adequately Classified 163 943 213 335 141
Source: Manpower ReturnsCompiled by: Research and Planning Unit, Ministry of Labour and Small and Micro Enterprise Development
Other unemployment related dataWork Permits issued by industrial groups 2001-
2005
CARICOM Country Number of Skills Certificate Issued*
Antigua and Barbuda 14
Barbados 108
Belize 4
Dominica 43
Grenada 42
Guyana 288
Jamaica 338
Montserrat 6
St. Kitts and Nevis 12
Saint Lucia 95
St. Vincent and the Grenadines
46
Suriname 25
Trinidad and Tobago 469
Other unemployment related data
* The Majority of Certificates were issued to University Graduates.Source: CSME Unit of Trinidad and Tobago, Ministry of Foreign Affairs
Certificates of Recognition of Caribbean Community Skills Qualification
(Skills Certificates)
CAUSES OF UNEMPLOYMENT
UNEMPLOYMENT
DOMESTIC POLICIES
REGIONAL /INTERNATIONA
L RELATIONSHIPS
AND DEVELOPMENT
PERCEPTION OF A
WELFARE STATE
SKILLS GAP: POPULATION
INADEQUATELY QUALIFIED
UNSATISFACTORY TERMS
AND CONDITIONS
OF EMPLOYMENT
LACK OF ECONOMIC GROWTH / JOBLESS GROWTH
REDUNDANCY OF
PRODUCTIVE ASSETS
MONETARY, FISCAL,
TRADE AND EMPLOYMENT
POLICIES
GLOBALISATION
TECHNOLOGICAL CHANGE
ECONOMIC INTEGRATION
INEFFICIENT AND
INEFFECTIVE PRODUCTIVE
PROCESS
MISMATCH OF GLOBAL
MARKET DEMAND
WITH LOCAL PRODUCTIVE
CAPACITY
DISMISSALS
DISCOURAGED WORKER SYNDROME
INADEQUATE LEGISLATIVE COVERAGE
MISMATCH OF
EDUCATION CURRICULUM
TO SKILLS DEMANDED
POOR ACCESS TO EDUCATION
POOR EDUCATION
SYSTEM
UNEMPLOYMENT
CONSEQUENCES OF UNEMPLOYMENT
INNOVATION
INWARD MIGRATION
SKILLS DETERIORATION
ECONOMIC PSYCHOLOGICAL
IINCREASE USE OF
INIATIVES
NEW BUSINESS
OR AVENUES
FOR EARNING INCOME
REDIRECT INTO
SUSTAINABLE
EMPLOYMENT
UNEMPLOYMENT TRAP
INCREASED INVESTMEN
T IN TRAINING
ECONOMIC, SOCIAL AND CULTURAL
INTEGRATION
LOSS OF
INCOME
POVERTY
ENVIRONMENTAL DEGRADATION
MIGRATION – BRAIN DRAIN
POOR HEALTH
INADEQUATE HOUSING
NO OR LOW INVESTMEN
T IN EDUCATION
INCREASED NEED FOR
SOCIAL WELFARE
PROGRAMMES
SOCIAL EXCLUSIO
N
DEPRESSION
SUBSTANCE ABUSE
LOW INDIVIDUAL
SELF ESTEEM
CRIME
LOSS OF CONFIDENC
E
BREAKDOWN IN
FAMILY AND
SOCIAL RELATIONSDECLINE IN
FAMILY LIFE
LOSS OF OUTPUT
INCREASE IN
EQUALITY
SOME INITIATIVES TO ADDRESS THE CAUSES AND CONSEQUENCES OF UNEMPLOYMENT
• Unemployment relief programmes eg. URP, CPEP• Universal Early Childhood Care and Education• Expansion and upgrade of primary school• Free tertiary education such as the Government Assistance for
Tuition Expenses (GATE) Programme and the Higer Education Loan Plan (HELP)
• On the Job Training Programme (OJT)• Multi-sector Skills Training (MuST) Programme• Retraining Programme• Help you prepare for Employment (HYPE)• Promotion of Small and Micro Enterprise Development –NEDCO,
Fair Share, Enterepreneurial Training Institute and Incubation Centres (ETIIC)
• Rationalization and revitalization of Non-Financial C-operative• Other social sector programmes
EMPLOYMENT WITHIN THE DECENT WORK FRAMEWORK
THERE MUST BE WORK (JOBS) BEFORE
THERE CAN BE DECENT WORK
Decent Work is just two simple words with great depth and meaning that everyone can relate to.
Simply stated, Decent work sums up the aspirations of people in their working lives and involves the following:
• opportunities for work that is productive and delivers a fair income;
• security in the workplace;• social protection for families;• better prospects for personal development and social
integration;• freedom for people to express their concerns, organize
and participate in the decisions that affect their lives; and• equality of opportunity and treatment for all women and
men
EMPLOYMENT WITHIN THE DECENT WORK FRAMEWORK
• A decent work deficit is said to occur when:
• there is involuntary unemployment and poverty;• there are abuses of rights at work and forced child labour
exists;• basic income security is missing, and workplace anxiety,
depression and exhaustion are commonplace;• workers and employers are either not organized to make
their voice heard or have obstacles to effective dialogue; and
• life at work cannot be properly balanced with the claims of the family.
EMPLOYMENT WITHIN THE DECENT WORK FRAMEWORK
Reflections on the way forward
i) Develop and implement a Decent Work Policy and Programme of Action
ii) (i) should be undertaken through a process of consultation and dialogue with clear responsibilities for each of the social partners identified
iii) Establish a monitoring and corrective mechanism