2007 - Central Bank of Trinidad and Tobago

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CENTRAL BANK OF TRINIDAD & TOBAGOANNUAL ECONOMIC SURVEY 2007THE LABOUR MARKETThe buoyant pace of economic activity especiallyin the non-energy sector has resulted in a significanttightening of the labour market and a sharp reductionin the number of unemployed persons. During thelast quarter of 2007, the unemployment rate fell to anhistoric low of 4.5 per cent bringing the average ratefor 2007 to 5.5 per cent compared with 6.2 per centin 2006. The fall in the unemployment rate reflectedboth a decline in the labour force of 2.8 thousandpersons and an increase in the number of personswith jobs (1.7 thousand). The contraction in thelabour force is related to the decrease in the numberof persons employed or actively seeking jobs in theAgricultural sector. With the rapid fall in unemployment,employers in a wide cross-section of industriescontinue to experience difficulty in sourcing labour.The most significant employment gains were made inthe Construction sector which employed an additional6.2 thousand persons. Activity in this sector continuedto be propelled by a broad range of public sectorresidential, commercial and infrastructural projects. Incontrast, the number of new jobs created in the servicessector, which has been the main driver of growth overthe past five years, fell by 300 persons. Although thenumber of jobs in the Wholesale, Retail, Restaurantsand Hotels sector and in the Finance, Insurance andReal Estate sector increased by 1.7 thousand and 1.5thousand persons, respectively, these were not sufficientto compensate for the decline in the numbers employedof 2.4 thousand and 1.2 thousand, respectively in theCommunity, Social and Personal Services and in theTransport, Storage and Communication sector. In theManufacturing sector where labour shortages havebeen most acute, the number of persons employedshowed an unexpected decline of 1.8 thousand. Theclosure of local sugar cane refinery operations in2007 contributed to a contraction of employmentby 3.3 thousand workers in the Agricultural sector.Going forward, labour management issues are likely toassume greater prominence as the demand for labourincreases in the context of a buoyant non-energysector. In this regard, the decline in the participationrate in 2007 to 63.5 per cent following 5 successive yearsof increase is a matter of concern since in a growingeconomy, there generally tends to be growth in thelabour force and in the number of persons seeking jobs.26
BOX 3DEVELOPMENTS IN THE LABOUR MARKETFor the past three years, labour shortages have affected several industries in the non-energy sector. TheGovernment has moved to alleviate the situation by implementing both domestic and regional initiatives.One such initiative was the revision of the immigration regulations regarding the employment of foreignnationals. The Cabinet approved amendments to the Immigration Act to simplify the processing andissuance of visas and work permits to non-nationals. Some of the amendments included:• The submission of work-permit applications electronically.• Submission of group work-permit applications for groups of ten or more persons.• Issuance of multiple entry visas when required.• Issuance of visas by immigration officers to holders of work permits when they arrive at a port of entryin Trinidad and Tobago.Further prospects for alleviating labour shortages also emerge under the CARICOM Single Market. Thecategories of workers eligible for free movement under this arrangement were expanded in 2007 toinclude nurses and teachers. Also, there was a proposal for a further expansion to include domestics andhospitality workers.TABLE 8LABOUR FORCE STATISTICS, 2004-2007/ Thousands /2004 2005 2006 2007Population (Mid Year) EstimatesNon-Institutional Population - 15 years and overLabour ForcePersons with jobsPersons without jobsParticipation Rate (%)Unemployment Rate (%)1,290.6973.6613.5562.451.263.08.41,294.5979.0623.7574.049.763.78.01,297.9978.3625.2586.239.063.96.21,303.2981.6622.4587.934.563.55.5Source: Central Statistical Office.27
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2007 ANNUAL ECONOMIC SURVEY
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2007 - Central Bank of Trinidad and Tobago

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