Log In

Reset Password

Growing scourge of unemployment

The graph above shows that increasing numbers of expatriate workers were employed from 1994 to 2008, but the numbers have dropped off over the last couple of years.

A Bermudian woman told us how she was laid off from her underwriting position at a major reinsurer a year ago, and is now working as a cashier at a supermarket, because she cannot find another job in international business. She has also taken on temping jobs to make her mortgage payment.Many students are returning with bachelor's and master's degrees in business and re/insurance, but they can't find jobs. One said she was told she not only needed to have experience for the positions she'd applied, but also just to get into a training programme. She's thinking of going back to school now - for a master's degree.These examples tell the story of the unprecedented unemployment gripping Bermuda as hundreds now find themselves unable to find jobs.The Bermuda College career fair this Thursday and Friday is expected to again draw thousands, after 2,500 descended on last year's event.Over 2,000 jobs officially have been lost in the local economy since 2008. Several hundred jobs in international business alone have gone.Mello Jones & Martin partner Juliana Snelling said she thought the practice would see a downturn in the recession.But, she said: “With the current terrible economic climate, we are seeing redundancies left, right and centre. Employees are coming to us to make sure all their rights have been respected and employers want to know that they are complying with the law. It is a very sad situation.”Ms Snelling said it imperative employers and employees alike be aware of their legal obligations and rights under the Bermuda Employment act 2000 when redundancy is contemplated.“Also, employees should be on guard for ensuring that the redundancy is a genuine one and that they are not replaced soon after with someone else doing the same job,” Ms Snelling said (see more on employee rights and the law tomorrow).The alarming facts and figuresl Bermuda's unemployment rate appears to have tripled from around 2 percent in 2004 to possibly 5 to 6 percent today- that figure coming from Premier Paula Cox. However, a Government spokeswoman said there is still no definitive unemployment rate. That percentage is still being compiled.l As many as 12 percent of the island's residents have lost a job in the last year, according to a July poll by Mindmaps. The biggest out of work age group was the middle-aged.l The number of work permit holders has dropped by 15 percent, from 10,127 in December 2010 to 8,608 as of March 31, according to figures from Minister of Trade and Industry Kim Wilson. That's a staggering loss of 1,519 work permit holders, on top of the reduction in the previous year, and not including how many guest worker jobs have been cut from April to now.l 1,081 people registered as a part of the Government's recent Unemployment Registration Drive. While most were not college educated, 189 persons reported having attended three or more years of university.l The majority of the unemployed who registered said they had lost jobs in the following industries: construction; retail trade/repair services; public administration; transport/communication; financial intermediation; and business services.l From a peak of 40,213 in 2008 Bermuda jobs fell to 38,097 in 2010, a loss of 2,116 jobs in two years (source: Great Debate/COC power point presentation).l Nearly 500 people (that we know of) have been laid off over the past year; the biggest shock coming in the form of Citi Hedge Fund Services' 105 job cuts.l Direct international business jobs fell from a peak of 4,761 in 2007 to 4,289 in 2010; a loss of 472 well-paid positions (source: Great Debate/COC power point presentation).l The Government has said the impact of the economic downturn and globalisation with the outsourcing and relocation of jobs to other countries has resulted in the loss of 2,116 jobs in the Bermuda economy between 2008 and 2010 (source: Great Debate/COC power point presentation).The joblessness is being seen across the Island, from the rise in small and home-based businesses from baked goods sellers to cleaning services.Employment agencies are getting far more resumes than job requirements, and many students are unable to find jobs because they are competing with so many experienced job seekers.Economy and Trade Minister Kim Wilson said she's been stopped on the street by people wanting her to help them find jobs.The frustration was clear at the Minister's recent staging of “The Great Debate: You and the Economy”.As much as the forum aimed to show the importance of welcoming international business, all that people in the audience wanted to know was why they couldn't find jobs in the industry or elsewhere while non-Bermudians could.Bermuda Industrial Union president Chris Furbert, himself a panellist, felt compelled to point out the number of guest workers has actually risen since 1994, from 7,000 to 12,000 in 2010 (see graph) leaving Bermudians feeling “displaced” by non-Bermudians. That number has fallen dramatically this year though, to less than 9,000 today.Gil Tucker, country managing partner of at Ernst and Young, defended expatriate workers: “They come to help us stimulate the economy.”He stressed that such policies as “limiting the length of time guest workers can remain makes Bermuda a less attractive place to work”. He added, at the end of the day while they give to charity, the international companies are here to make money.The Island's rising unemployment has led to a raft of recent measures by Government to help the unemployed.Ms Wilson said a one-stop job centre for out-of-work Bermudians is to be formed soon from the amalgamation of the Department of Labour and Training and the National Training Board.This way, people who unemployed can get access in one place to job counselling, job ads and placement, and training, she said.There will also be a new soon-to-be designed jobs website as well, she said. The RFPs for that have gone out.As bad as it is, Ms Wilson said: “The challenges we are facing may be daunting, but they are not insurmountable. This economy will turn around.”Bermuda College is planning to have around 80 exhibitors showcasing career opportunities at its 7th Careers Fair running 10am to 3pm on October 13 and 14.Event Chairman Ralph Richardson said the fair, now in its seventh year, will showcase opportunities for young Bermudians and also will try to help the unemployed with a new Career Transition component.“We will have an extended period of the fair for those in transition or looking for jobs,” Mr Richardson said, cautioning that the two-day event would be geared toward advice rather than providing jobs.Ms Wilson added: “Together our sections will be providing attendees with sound career advice, whether they are unemployed, seeking a career, looking to upgrade their skills or looking to embark on becoming an entrepreneur.”Tomorrow: Fired or laid off? Did your employer follow the law?Immediate resources for the unemployed:www.gov.bmDepartment of Labour and Training 297-7716Labour Relations 297-7650National Training Board 292-3700

Seeking work: People crowd the Hospitality Industry Jobs Fair at the Fairmont Hamilton Princess early this year
The graph shows the extent and growth of Bermuda's reliance on international business.