The Current State of Employment in The Bahamas
Executive Summary
As of mid-2024, The Bahamas has achieved its lowest national unemployment rate in 16 years, standing at 8.7%. Despite this progress, youth unemployment remains a significant concern at 19%, with nearly 8,000 young individuals aged 15–24 unemployed. Additionally, a substantial portion of the workforce lacks formal qualifications, highlighting challenges in aligning educational outcomes with labor market demands.
National Employment Overview
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Unemployment Trends: The national unemployment rate decreased from 9.9% in late 2023 to 8.7% by mid-2024, marking a 16-year low.
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Labor Force Participation: The labor force comprises approximately 233,575 individuals, with 213,210 employed and 20,365 unemployed as of the second quarter of 2024.
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Discouraged Workers: The number of discouraged workers—those available for work but not actively seeking employment—rose to nearly 13,000 in the second quarter of 2024.
Youth Unemployment and Educational Preparedness
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Youth Unemployment: Youth unemployment increased to 19% in the second quarter of 2024, up from 18% in the first quarter.
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Educational Attainment: Among the labor force, 58% have completed secondary education, 22% have completed university, and 8% have completed tertiary education.
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Workforce Qualifications: Workers without any formal qualifications slightly outnumber those with university degrees, raising concerns about workforce productivity and competitiveness.
Challenges in Education and Employment Alignment
The data indicates a disconnect between the education system and labor market needs:
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Skill Mismatch: A significant portion of the workforce lacks the necessary qualifications, suggesting that the education system may not be adequately preparing students for current job market demands.
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Apprenticeship Programs: The National Apprenticeship Programme, aimed at providing workplace training and skills certification, has been identified as a critical initiative to address youth unemployment and skill gaps.
Recommendations
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Enhance Vocational Training: Expand vocational and technical education programs to equip students with practical skills aligned with market needs.
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Strengthen Apprenticeship Initiatives: Prioritize the implementation and scaling of apprenticeship programs to provide hands-on experience and facilitate smoother transitions into the workforce.
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Curriculum Reform: Revise educational curricula to include soft skills development, digital literacy, and entrepreneurship to better prepare students for diverse career paths.
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Industry-Education Partnerships: Foster collaborations between educational institutions and industries to ensure training programs are responsive to labor market demands.
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Career Guidance Services: Implement comprehensive career counseling services in schools to help students make informed decisions about their education and career trajectories.
Conclusion
While The Bahamas has made commendable strides in reducing overall unemployment, persistent youth unemployment and skill mismatches underscore the need for targeted interventions. By aligning educational outcomes with labor market requirements and enhancing vocational training opportunities, The Bahamas can better prepare its youth for meaningful employment, thereby fostering economic growth and social stability.
