The number of jobs in Bermuda fell by 921 last year, preliminary data from a survey of businesses shows.

But the Ministry of Finance is projecting that Bermuda’s economy is likely to emerge from a five-year recession in the second half of this year with growth gathering momentum in 2015.

These details are among the highlights in the National Economic Report for 2013, published yesterday.

The fall in the number of jobs to 34,522, compared to 35,443 in 2012, represents a 2.6 percent decrease according to the 2013 Employment Survey. It brings to nearly 5,700 the number of jobs lost since 2008 and means that the Island has suffered a net decline in job numbers for a fifth consecutive year.

Unemployment has hampered growth, the report stated, and “the lower level of unemployment will continue to weigh on household consumption and retail sales”.

The Labour Force Survey, which questions households rather than employers and which was released last month, presented a different picture, stating that the number of employed people in Bermuda rose last year by 115 and pegging the unemployment rate at seven percent, one percentage point lower than in 2012.

The Island’s economy suffered four successive years of shrinkage between 2009 and 2012. And the Ministry believes that when Gross Domestic Product (GDP) figures are finalised for 2013, they will show a fifth year of recession, with the economy having contracted by between two and 2.5 percent.

The information was included in the National Economic Report for 2013, which was tabled in the House of Assembly yesterday.

The report states: “Bermuda’s economy should begin to see modest GDP growth in the latter half of 2014 with a return to stronger growth in 2015, although below the pre-crisis (2003-08) average of 2.8 percent.

“For 2014, GDP growth is estimated to be relatively flat, in the range of -0.5 percent to 0.5 percent. Further gains will come as business and consumer confidence strengthens.”

The Government bases its optimism on continuing economic growth in the United States, the Island’s major trading partner, and Government’s pro-growth policies.

These include payroll tax breaks for new Bermudian hires, abolishing work permit time limits and reducing red tape for major capital projects.

The report mentions changes the Government intends to make in the coming year to boost the economy.

“In 2014/15, to help create jobs in the economy, the Government will begin the process to introduce casino gaming by way of the integrated resort concept which will create construction and hospitality related jobs.

“Proposed adjustments to the immigration policy and the 60/40 rule are being considered in an attempt to encourage foreign direct investment and improve Bermuda’s competitiveness,” the report states. “Also, the Government intends to continue existing policies such as the various concessions given to the retail and hospitality industries which are geared to maintain and stimulate employment.”

International business, the biggest contributor to the economy, employed 2.3 percent or 91 fewer people in 2013, providing a total of 3,787 jobs.

In the tourism sector, the report highlights the importance of investment in hotel development as key to sparking growth.

While the number of air arrivals in 2013 increased by 1.8 percent to 236,343, the number of cruise ship passengers fell by more than ten percent to 340,030. However, the report projects that the number of cruise ship passengers will increase by 10,000 in 2014.

The construction industry continued its multi-year slump last year. The report notes that no major projects started during the first three quarters of 2013, leading to the total of new projects started falling 65 percent to $29.1 million. And work put in place slumped 22.9 percent to $104.2 million from $135.2 million a year ago.