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Unemployment sucks but we are not alone

Job crisis: Bermuda is far from being alone in returning unemployment figures that do not make good reading

The 2015 Labour Force Survey released last month revealed that unemployment in Bermuda had dropped to 7 per cent. That was a cause of celebration for some, without going over the top, while others bemoaned that the “real” figures — the numbers behind the numbers — are reasons for worry.

Those hidden numbers, you see, include those over the age of 16 who are not actively seeking employment. They are the lost souls who have given up hope and have stopped trying to find work. They also are among those who have turned to crime — the enablers and apologists might say, “forced into crime” — thus heightening the sense of social decline.

Unfortunately, too, there are those who are intent on crime from the outset, without ever having attempted genuinely to improve their lot in society by traditionally acceptable means — through education, self-improvement and a familial drive instilled by generations of hard graft.

Instead, what has been created, in some, is a sense of entitlement that jobs must be created for those who are ill-equipped to meet the requirements that would-be employers demand of them.

For those who do meet the standards but still find themselves out of work and living on the dole, there is sympathy and a great deal of empathy. But Bermuda is far from being alone in returning unemployment figures that do not make for good reading.

The world’s labour force is in meltdown and this year is not expected to trend upwards, according to World Employment and Social Outlook — Trends 2016, published six days ago by the International Labour Organisation. The final figure for global unemployment in 2015 stood at about 197.1 million and in 2016 is forecast to rise by about 2.3 million to reach 199.4 million. An additional 1.1 million jobless will likely be added to the global tally in 2017, according to the report.

“The significant slowdown in emerging economies coupled with a sharp decline in commodity prices is having a dramatic effect on the world of work,” Guy Ryder, the ILO director-general, said. “Many working women and men are having to accept low-paid jobs, both in emerging and developing economies and also, increasingly, in developed countries. And despite a drop in the number of unemployed in some EU countries and the US, too many people are still jobless. We need to take urgent action to boost the number of decent work opportunities or we risk intensified social tensions.”

The unemployment rate for developed economies decreased from 7.1 per cent in 2014 to 6.7 per cent in 2015. In most cases, however, these improvements were not sufficient to eliminate the jobs gap that emerged as a result of the global financial crisis. Moreover, the employment outlook has now weakened in emerging and developing economies, notably in Brazil, China and oil-producing countries. And Russia has just entered a period of recession, with the rouble trading at record-low levels.

The authors of the report also document that job quality remains a significant challenge. While there has been a decrease in poverty rates, the rate of decline in the number of working poor in developing economies has slowed and vulnerable employment still accounts for more than 46 per cent of total employment globally, affecting nearly 1.5 billion people.

Vulnerable employment is particularly high in emerging and developing economies, hitting between half and three quarters of the employed population in those groups of countries, respectively, with peaks in southern Asia (74 per cent) and sub-Saharan Africa (70 per cent).

Meanwhile, the report shows that informal employment, as a percentage of non-agricultural employment, exceeds 50 per cent in half of the developing and emerging countries with comparable data. In one third of these countries, it affects over 65 per cent of workers.

“The lack of decent jobs leads people to turn to informal employment, which is typically characterised by low productivity, low pay and no social protection,” Ryder adds. “This needs to change. Responding urgently and vigorously to the scale of the global jobs challenge is key to successful implementation of the United Nations’ newly adopted 2030 Agenda for Sustainable Development.”

How well Bermuda recovers from its own crisis may be determined by how soon shovels are put in the ground to deliver another hotel to St George’s, by how soon Pink Beach reopens its doors and by how soon LF Wade International Airport undergoes redevelopment, regardless of who the developer may be.

Until then we can only pray that the rate stays at 7 per cent so that the One Bermuda Alliance’s 2012 election pledge of creating 2,000 jobs is not dismissed as total hogwash.

There should be no doubt in anyone’s mind that the OBA is trying to come good on its promise, but reality bites in times of recession and you simply do not turn around such a critical situation overnight.

Michael Fahy’s overhaul of the Bermuda Job Board, while not likely to make a significant impression on the “hidden numbers”, is an encouraging sign that the Government will not give up without a fight.

And if the technological upgrades that came into effect over the weekend make it easier to identify an eminently qualified Bermudian one day sooner, that is one day fewer that resentment builds towards the easiest and most convenient of targets: guest workers.

For the same applies as does with the long-term partner who annoys and delights in equal measure.

Can’t live with them; can’t live without them.