Unemployment in Bermuda has risen and further increases are on the horizon, according to the chief economic advisor to the Government.

Dr. Andrew Brimmer, principal economic advisor to the Minister of Finance, said that the Bermuda economy is expected to exhibit continuing weakness and said that because of this unemployment will rise further.

"The general direction is clear - unemployment in Bermuda, as one would expect, has risen and further increases are on the horizon," Dr. Brimmer told members of the Bermuda International Business Association annual general meeting luncheon yesterday.

And he added that the rise in the number of unemployed would add a financial burden on the Government as more people looked for social assistance to help deal with their problems.

He said: "A few types of Government outlays will have to increase. Among these are social assistance expenditures as unemployed workers turn to the Government for temporary help."

He told the group of businessmen and women: "Looking ahead to 2002, the overall Bermudian economy is expected to exhibit continuing weakness. As a by-product, unemployment will rise further."

He said there were no reliable statistical data on the number of unemployed in Bermuda, but that anecdotal and economic evidence pointed to a current reduction and possible further lay-offs.

He said: "Statistics are not available which would make it possible to measure and level of joblessness with precision. However one would anticipate a climb in unemployment. In fact, the informal evidence suggests that it is already happening.

"For instance, as hotel occupancy has declined, some of the staffs have been cut, while others have been put on short hours. Lighter patronage at restaurants similarly has led to job reductions. I understand, partly because of conversations with them, that self employed taxi operators and hired drivers are working less. Other examples could be cited, but the general direction is clear."

Dr. Brimmer said that as the rise in jobs slows or even declines, household income will "show little improvement". And he said that this loss of income and therefore purchasing power would affect primarily the low income segment.