Nov 2016 Financial News

Unemployment rate increases

Nov 08, 2016

The country’s unemployment rate has increased again. The latest data from the Central Statistical Office (CSO) indicates that the unemployment rate increased from 3.8 per cent in the first quarter of 2016 to 4.4 per cent in the second quarter—April to June 2016.

A year ago the rate was 4.4 per cent for the second quarter of 2015. 

The CSO said the registered labour force at the end of the second quarter was 640,900, a decrease of 1,000 or 0.2 per cent compared to the first quarter of 2016. 

According to the CSO, the data reflected an increase of 4400 or 18.3 per cent in the number of unemployed persons in T&T between first quarter 2016 and second quarter 2015. Unemployed males increased by 1600 or 11.6 per cent, while unemployed females increased by 2800 or 27.2 per cent. Altogether, up to the end of the second quarter there were 28,500 unemployed persons in the country, up from 24,100 in the first quarter.

The survey data showed a decrease of 5,400 or 0.9 per cent in the number of persons with jobs, in the quarter under review. 

From a gender perspective, the CSO said the number of employed males decreased by 700 or 0.2 per cent while the number of employed females decreased by 4,700 or 1.8 per cent. 

Compared to the corresponding quarter a year earlier, the data showed a decrease of 16200 or 2.6 per cent in the total number of employed persons.

More people lost their jobs in the wholesale and retail trade and in restaurants and hotels but there were increases in jobs in manufacturing, transport, storage and communication.

Economist questions rate

Economist Indera Sagewan-Alli said given the number of challenges facing the CSO she is concerned about the validity of the 4.4 per cent unemployment rate.

However, she agrees with the trend that “the unemployment rate is rising, given the contractions in the energy and construction sectors, especially given that the construction sector is a major employer.” 

Sagewan-Alli said: “Cuts by the government in the number of Cepep contractors would have also been reflected in the increase in unemployment.” What was telling, she said, was the “significant increase in the number of women now unemployed. “When you feed a woman you feed a family, so the social implication of that is something which needs to be looked at seriously,” she said.

Sagewan-Alli was also concerned about the fall in the participation rate from 61 per cent to 60 per cent, which she says indicates that people who are looking for jobs and not finding them, so they are dropping out of the labour force. 

She explained: “To be considered unemployed you need to be actively looking for work so it could well be that the real data is not being captured.”

The reality is, she said, that unemployment is increasing. Government “needs to look at the increasing unemployment and put things in place to help create employment opportunities”, she said. “They can’t do it because of declining revenues but they can offer incentives to encourage the manufacturing sector. They should partner with the agricultural sector in terms of filtering the unemployed into those sector.”

Highlights of CSO jobs data

• Labour force fell from 641,900 to 640,900 a decrease of 1000 or 0.2 per cent 

• Labour force participation rate fell from 61 per cent to 60 per cent

• Persons employed fell from 617,800 to 612,400 a decrease 5400 or 0.9 per cent

• The number of unemployed persons rose increase from 24,100 to 28,500—4400 or 18. 3 per cent 

• The unemployment rate increase from 3.8 per cent to 4.4 per cent. 

 

Source:
Rosemarie Sant
Trinidad Guardian
Tuesday November 8, 2016

http://www.guardian.co.tt/business/2016-11-07/unemployment-rate-increases