Jobs Bermuda

2009 Labour Force Survey Executive Report
Premier, Dr. the Hon. Ewart Brown, JP, MP

Good afternoon,

In the past 15 months or so, Bermuda has experienced its share of challenges due to the global economic slowdown.

We’ve seen consumer spending slide and we’ve seen job losses hit several sectors of the community very hard – from hospitality to international business, from retail to construction.

In more recent months, there has been considerable feedback from various segments of the community on the actual effect that the economic slowdown has had on the workforce. We have listened intently to all sides of the debate regarding the actual number of layoffs and job losses.

However anyone who understands this Government would know that we do not engage in speculation, “guestimations” or anecdotal figures.

Instead we are a Government that focuses on gathering the facts and speaking from a place of accuracy.

Flash back to May 2009. At that time, the Department of Statistics conducted a Census pre-test, in preparation for this year’s official Census.

The Ministry of Labour, Home Affairs and Housing saw this as a prime opportunity to delve deeper into the unemployment statistics.

So in addition to gathering vital information for the Census pre-test, Team Statistics also randomly surveyed roughly 1,500 households in an attempt to get a more accurate, clearer picture of unemployment in Bermuda.

Such a labour survey is the first of its kind. It also looked at such critical factors as education, gender, race and age.

The end result is a comprehensive document called the 2009 Labour Force Survey Executive Report. It measured and assessed employment and unemployment, multiple job holding and labour force participation of residents in Bermuda.

The report is proving to be an invaluable tool on many levels and it’s providing this Government with critical information to address the needs of those members of the community who are seeking employment.

Here are some of the key findings of that report.

• The official unemployment rate is 4.5%.

• During the Labour Force Survey (LFS) reference week of May 13th to May 19th approximately 1,700 persons were looking for work.

• Median individual earnings from employment in the main job was $58,734 in 2009

• The jobless rate was 6% for men and 3% for women

• 227 persons stated they were unemployed due to redundancy

• Despite no significant change in the size of the workforce since 2000, the number of persons holding two or more jobs dropped from 3,015 persons in 2000 to 2,043 persons in 2009

• The labour force participation rate dropped from 85% in 2000 to 78% in 2009

Members of the public should also note that the provisional results of the 2009 Employment Survey confirm significant erosion in employment during the year.

There was a drop in jobs filled of roughly 2% or 711 positions based on the survey reference week August 24th 2009. Total filled jobs were 39,502 in 2009 compared to 40,213 in 2008.

Three sectors of the economy were impacted most heavily by declining job levels. They were:

1. International Business – loss of 328 filled positions
2. Business Services – loss of 301 positions
3. Hotels – loss of 223 positions

The public will note that the Education, Health and Social Work sector which comprises of a substantial proportion of Government workers registered an annual increase of 347 positions.

In a moment Minister Burch will highlight some of the things that his Ministry is doing to assist unemployed residents. In fact on January 28, the Department of Labour hosted a job forum aimed at getting laid off workers on the right track.

This Government is committed to ensuring that all Bermudians who are in need of employment assistance have access to jobs.

Yes, these are anxious times.

This fact is even truer for those individuals who have faced layoffs due to the effects of the economic downturn.

Bermuda has not been immune to this global crisis. Minister Burch and I recognize that our challenges are not insignificant.

The economic slowdown has had devastating effects in virtually every country.

And for this government job support for workers is one of the central goals of our ongoing recovery efforts.

Now I will turn it over to the Minister of Labour, Home Affairs and Housing and then to the Minister of Finance.

The Acting Director of Statistics, Mr. Steven Holdipp, will respond to any questions you have regarding the report or the upcoming Census.

Thank you.

Press Statement
By The Hon. Paula A. Cox, JP, MP
Deputy Premier and Minister of Finance

“The Economy”

Mr. Premier, Minister Burch, and ladies and gentlemen of the media, good afternoon.

The employment data that has been shared today paints a sobering picture of the state of our economy in 2009. On the basis of the newly available data, the Ministry of Finance considers that the contraction of GDP in 2009 could reach as high as 2.5 per cent.

I like to keep people in the picture. It’s the people factor and the people’s priorities that really matter.

While the data from the US is that the macro outlook calls for a below trend recovery notwithstanding that, it is the labour market and consumer sector providing a lasting drag to activity.

Lawrence Summers, head of the National Economic Council said the US is in “a statistical recovery and a human recession”.

The people factor is what is key and just as he said far more Americans are out of work than official unemployment statistics show. Labour Minister, Senator the Hon. David Burch has alluded to the same.

I would state that the real toll in the economy is evidenced by the labour fall-out with the levels of unemployment and also the hesitance of consumers to dip their toes back in the waters re spending.

While economists state that the near term looks promising the longer-term economic outlook is cautious.

The economy is at a critical juncture and policies that encourage entrepreneurship, investment and free market activity are to be encouraged.

As we enter 2010, the strength of the economic recovery will be critical and the debate over the likely pace of the recovery continues to be intense. Historically the US economy has experienced 6%- 8% real GDP growth in the first year of a recovery after a recession as deep as the 2007-2009 downturn. While it is believed that the economic recovery will continue into 2010 we do not believe it will be as robust as history would suggest. In the US there are credible signs that the economy is improving. Industrial production has risen 6.7% and retail sales are up 7.2 % (annual rates), the fastest pace in more than nine years and the best showing since April 2006.

However to be sure, serious problems remain in the US economy. Double-digit unemployment is still problematic and is a wild card. In the US further restraints on the economy as we go forward could be higher interest rates, tax increases and some tightening in the regulatory environment.

What we want as stakeholders in the Bermuda economy is probably an economy that is not too hot, not too cold, but just right. We are not there yet but it is starting to look less like a mirage and more likely that we can get to a better place during the course of this next year.

It has certainly been a roller coaster of a ride last year and this year may well be a year when volatility and systemic risk fade and where the economy and capital markets churn out modest, steady progress. In addition, all of the other G7 countries – the United Kingdom, Canada, France, Italy, Germany and Japan – are projecting positive economic growth in 2010.

In summary, the outlook for 2010 is more positive but the road to full recovery will be a long one.