Poverty Breeds 35% ‘No Graduate’ Rate
By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
More than one-third of the poorest Bahamians fail to complete secondary education, helping to create what a former Cabinet minister yesterday described as a “stubbornly high” youth unemployment rate that must be reduced urgently .
James
Smith, ex-state finance minister, told Tribune Business that the high
jobless rate among Bahamians aged between 15-24 years-old, which hit 31
per cent in November 2014, was “structural” in nature.
He
said the high rate epitomised the large gap between jobs that were
available and the skill sets required by employers, with many young
Bahamians not equipped to meet these requirements.
Apart
from the “social fallout” caused by high youth unemployment, the former
Central Bank governor warned that it also held back economic growth,
because unemployed persons lacked the incomes to give them spending
power.
The
consequences are spelled out in a recent Inter-American Development
Bank (IDB) report obtained by Tribune Business, which identified high
unemployment among young Bahamians, and resulting poverty and social
inequality, as key factors behind the high crime levels.
The
IDB report, on a proposed ‘Citizen Security and Justice Programme’,
found that 35 per cent of 20-24 year-old Bahamians drawn from the
poorest segment of society had failed to complete secondary school,
compared to just 6 per cent of the rest of the population in the same
age group.
Highlighting
the startling inequalities in Bahamian society, the IDB report said:
“The fact that most students complete secondary education but only half
of them graduate (pass a final examination) is a worrying indicator of
poor system performance.
“Available
data shows that 35 per cent of 20-24 year olds from the poorest decile
have not completed secondary education, compared to 6 per cent of the
rest of the population of that age.”
While
unemployment in the 15-24 year-old age group was slightly down in
November 2014 compared to the 32.3 per cent peak hit in 2013, the IDB
report left no doubt as to the consequences for Bahamian society.
“Research
and evidence, show that a wide variety of risk factors contribute to
the prevalence of youth violence, one of them being lack of attachment
to school and the workplace during adolescence and adulthood,” its
report said.
“In
the Bahamas, youth unemployment has doubled from 14.9 per cent in 2001
to 32.3 per cent in 2013 for job seekers aged 15 to 24)”, a rate double
that of the overall nation’s.
“Further
analysis within the 15-24 age group shows that unemployment is
particularly high among 15-19 year-olds seeking jobs (42 per cent versus
24 per cent for those 20-24),” the IDB added, highlighting the problems
secondary school leavers face in finding immediate employment.
“Searching
for jobs can be a discouraging process given that more than 50 per cent
of youth remain unemployed for more than a year,” the Bank’s report
said. “Idle young people (not in employment, education, or training) are
particularly vulnerable to continued labour detachment, which may
contribute to violent or anti-social behaviour.
“The
employability of youth hinges critically on the level of education and
skills attained to match demands from employers. Even though most
students complete secondary education, only half of them actually
graduate.
“Although
there are not available measures of skill levels of unemployed youth,
most employers report difficulties in recruiting job candidates because
of insufficient specific skills (66 per cent), soft skills (24 per cent)
and numeracy skills (12 per cent).”
Responding
to the Department of Statistics’ Labour Force Survey, Mr Smith
described youth unemployment as “stubbornly high” and “an area that
really needs to be addressed”.
He
identified the cause as “the gap between available jobs and the skill
sets to meet those jobs”, and said: “Jobs being advertised are calling
for skills a lot of young people don’t have, plus experience, because a
lot of them have never worked before.
“The
quick solution to that is really to identify and train the people, if
they can, to reach the level of aptitude for jobs that is required.”
Besides
the social impact, Mr Smith told Tribune Business: “It’s a restraint to
economic growth. Young people joining the labour force at a
sufficiently large rate, that keeps an economy going.
“I’m optimistic that over time most of these things will work themselves out.”
The
Bahamas Chamber of Commerce and Employers Confederation (BCCEC), too,
in a statement issued yesterday called for “more emphasis” to be placed
on training and skills development in the Bahamian workforce.
“In
the excessively fast pace world in which the Bahamas competes, things
are moving at the speed of light and if individuals do not take the time
to tool and retool themselves, they will get left behind,” the BCCEC
said.
“Businesses
are looking for people with drive and ambition who are able to produce
quality work at an accelerated pace. Loyalty in the workplace
experienced in years gone by is a thing of the past, and individuals who
are high achievers are always looking for something that is more
challenging and more gratifying.
“Therefore,
it is also important for private sector businesses and the public
service to be on the cutting edge of innovation and technology to ensure
that they are also keeping pace with new developments and that they are
able to attract quality employees in their businesses.”
The
BCCEC added that industrial peace would also aid hiring, and called on
employers and trade unions to negotiate reasonable settlements to
outstanding issues.
Describing
the Bahamian economy as “very fragile”, the Chamber said: “Trade
unions, particularly in this environment, should remain cognisant of the
vulnerability of workers and should ensure that their members remain
employed through balanced demands tied with worker performance and the
financial position of employers.
“Employee benefits will come, but the first rule should be that of survival in this current economic environment.”
