Fund administrator Butterfield Fulcrum's announcement this week that it is cutting about 30 jobs from its Bermuda operation was a stark reminder that Bermuda, far from being immune from the world economic crisis, is close to its centre.

Thirty jobs – and it could be more – may not seem like a lot by global standards. Large US corporations announced 60,000 job cuts on Monday alone, for example. But for an economy which had 39,851 jobs in total in 2007, 30 jobs here and 47 jobs there can start to add up pretty quickly. And that does not include the redundancies that no one hears about. These job cuts are also notable because they are occurring in sectors of the economy that have been relatively recession-proof in the past.

When Fairmont Southampton Princess Resort announced it was cutting 35 jobs earlier this month, it was not a great surprise. Only the blind cannot see that the tourism industry is facing difficulties, and with the US in a deepening recession, it is obvious that all hotels will have to make cost savings.

But unlike the recession of the early 1990s, this recession, which began in the financial sector, is also cutting deeply there, and Bermuda is vastly dependent on this sector for its economic well-being.

It can be argued that XL Capital has its own problems, which led to its 47 redundancies late last year. But the redundancies at Ernst & Young this month and at Butterfield Fulcrum this week are directly related to the problems facing the mutual and hedge funds sector. Quite simply, with investors cashing out and some funds closing their doors, the work for fund administrators and accountants is not there.

Some credit is due to Butterfield Bank for trying to find jobs for their ex-employees, as it promised to do after it spun off the division. On the debit side, Butterfield also pocketed $100 million as a result of the sale, and it would not be surprising if that sticks in the craw of those who are now out of a job.

Clearly, the pain when you lose your job is equal whether you are a waiter or an accountant. But the cost to the economy from white collar job losses will tend to be more severe. This is not a question of lack of compassion, but economic reality.

It means less cash in the economy, lower tax revenues for Government, the possibility of mortgage defaults and the like. Bermuda has a cushion in that at least some of the jobs being lost were held by non-Bermudians, and while their pain is equal, it does mean less impact on Bermudians. For the overall economy, however, there is a major loss since these are salaries that are lost for good.

So what's to be done? There has been some debate about whether unemployment insurance should be in place, but what is clear is that Government needs to be ready to provide already existing financial assistance provisions to those Bermudians who are now out of work.

Government also deserves credit for staging a jobs fair this week, although the publicity for this event has been quite poor; it certainly needs to do better at letting people know they have options available.

Government also needs to increase its already strong emphasis on training and retraining. Letting people know about training opportunities at the Bermuda College and elsewhere is critical. Private organisations like the Bermuda Employers Council need to do their part here as well.

Finally, it is important that Government and private sector leaders keep people informed. A press release from Government and the hotel operators about a meeting concerning the upcoming tourist season shed very little light on the Island's prospects. Now is the time for openness and transparency.