St Lucia's worse unemployment rate ever

The unemployment numbers are out for St Lucia and the data is painful to read. One out of four St Lucians is currently out of work, according to figures released by the government last week, the most unemployed the country has registered since record-keeping began.

Source: Dept. of Statics, Gov't of St Lucia

The Department of Statistics said the unemployment rate for the 3rd quarter of 2013 stood at a staggering 24.9 percent; an increase of 1.1 percent from the second quarter.

The Department did not give a reason for the worsening unemployment situation in the country but those figures are the worse since 1994 (earliest records available) which is two years after the government first began conducting the Labour Force survey.

The data also shows a continued increase in the unemployment rate that started long before the Kenny Anthony administration came to power in 2011. Women appear to be faring worse with 27.5 percent currently unable to find work, compared to 22.6 percent of their male counterparts.

The figures offer a sobering reminder that the government has so far failed to achieve its main election promise of creating jobs jobs jobs.

In its election 2011 manifesto, the Labour Party pledged that job creation would be its "top priority".

And in making that pledge it said, “The SLP will develop an economy that not only strengthens and consolidates the traditional sectors, but which produces and delivers new and improved goods and services, utilizing new production and service delivery systems, methods and techniques. This new economy must generate new sources of income and employment, based on the most competitive levels of knowledge, skill and productivity."

But after nearly three years in office, the fruits of the government's labour have so far failed to translate into concrete figures which would show that it is making any serious headway in improving the countries dire economic situation.

There has been no recent data on the impact of the government's multi-million dollar construction stimulus package; the administration's flagship program that was introduced in 2012 aimed at reversing the sluggish economy. However word is that the program has been a major flop, failing to meet its intended objectives.

Among the other initiatives introduced by the government to get St Lucians off the breadline are the Short Term Employment Program (S.T.E.P.) that offers people $300 to clean around their homes and communities and the National Initiative to Create Employment (NICE); a program to create employment for 4500 people, according to its website. Many of the NICE workers have simply been absorbed into the public service.

And in more bad news for the government, an International Monetary Fund (IMF) 2012 press release said such programs were not sustainable. The IMF said, addressing the challenges of job creation "through fiscal policies is no longer an option because of lack of fiscal space."

The IMF also called for swift action to control the rising debt. The country has a budget deficit of $328 million dollars or 9.5% of GDP. It is spending more than it can afford.

Nearly three years after assuming office, the Kenny Anthony administration has failed to make a single dent in the unemployment situation. In light of their lack of success, the administration is now seemingly changing strategy.

In his annual New Year’s address to the nation, the Prime Minister announced that he would be meeting with the business community and trade union leaders in his search for a way forward; a decision that perhaps should have been made three years ago.

While businesses continue to close their doors, the PM made the bold prediction that the worse for the private sector was now over.

There has recently been some good news in the tourism sector which recorded an 11 percent increase in visitors to the island in 2012. But the fragile Tourism Industry alone, which is highly susceptible to external shocks, cannot save the country.

St Lucia needs a strong manufacturing sector that is able to compete internationally and bring in much-needed foreign currency backed up by a robust private sector that is able to sustain long-term employment.

The government’s response to St Lucia’s economic difficulties suggests that it either does not understand the situation facing the country or it lacks a clear plan to move the country forward.

Hopefully, the Prime Minister’s scheduled “retreat” with unions and business leaders can provide him with the ideas he needs to chart a new way forward for the country and create a stronger economy that is based not only on tourism but also on agriculture, manufacturing, and other service industries as well.