“DESPAIR”

This is the lead-in to an article in the Jamaica Observer today. Normally, I do not advocate such dramatic language, but I think it is accurate in this case. The latest overall unemployment rate (from April 2013) sits at 16.3 per cent, and 38.5 per cent for youth aged 14-24.

According to STATIN (Jamaica’s governmental statistics department), the unemployment rate increased from April 2012 to April 2013:

The number of Unemployed persons in April 2013 was 215,100. This was an increase of 30,200 (16.3%) when compared with 184,900 in April 2012.

The number of unemployed males increased by 9,500 (12.4%) and the number of females by 20,700 (19.1%) for the same period.

The Unemployment Rate for April 2013 was 16.3% compared to 14.4% in April 2012. For the same period, the unemployment rate for males was 12.0% compared to 21.3% for females.

The press release is slightly confusing, but it appears that the increase in unemployment is due to an increase in entrants to the labour force who were unable to find employment.

The incremental increase in the unemployment rate for the April 2013 Labour Force Survey was caused by an additional 38,900 (3%) new entrants to the labour force. Of these additional entrants only 8,700 (0.8%) found employment which resulted in 30,200 (16.3%) persons being unemployed.

Overall, Jamaica’s labour force tops out at 1,322,500, which is an increase of three per cent from April 2012. Broken down by males and females,

The male labour force increased by 15,600 (2.2%), from 700,500 in April 2012 to 716,100 in April 2013, and the female labour force increased by 23,300 (4.0%) moving from 583,100 to 606,400 in the same period.

Looking beyond the numbers, the most alarming trend is youth unemployment (Youth Opportunities Unlimited will be hosting a Twitter discussion on this topic on Wed., Aug. 21 at 1 p.m. We will be joined by Dr. Andre Haughton, who wrote this article on employment in the Jamaica Gleaner. It is worth a read, and please join in the discussion using #youthunemploymentJA).

Here is an excerpt from the article, explaining briefly the reason for Jamaica’s unemployment:

This cyclical unemployment is associated with changes in the business cycle, as economic conditions worsen, people’s demand for goods and services fall, firms respond by reducing production and lay off workers.

Currently in the Jamaican economy, there are more people willing to work than the number of jobs available, and if economic conditions continue to worsen, more and more firms will continue to lay off workers, and cyclical unemployment will continue to increase.

Without the expertise of an economist, it is difficult to understand, but intuitively, I would surmise that Jamaica’s population skews young. Many of these youths do not have the education or training they need to be employable, so they are unable to enter the official labour force. Many of them take “off-the-books” jobs, such as selling fruit on the roadside.

I know of at least one young man who is affiliated with YOU who, every week, hands delivers dozens of resumes to companies who may or may not be hiring, to no avail. It is so discouraging for him and so many other youths. They just want to work, they tell us. But when it comes to employment, it is a seller’s market right now.

The government engages in training programs, while the private sector runs internship programs to help youth enter the workforce, but it is not enough. Jamaica’s economy must show growth, consumer confidence must return and people must start spending money again so that companies begin hiring. In the meantime, Jamaica’s youth face the depressing prospect of remaining out of work.