Download JOB CREATION AND SKILLS DEVELOPMENT : LABOUR MARKET

Survey
yes no Was this document useful for you?
   Thank you for your participation!

* Your assessment is very important for improving the work of artificial intelligence, which forms the content of this project

Transcript
SKILLS DEVELOPMENT AND
JOB CREATION: LABOUR
MARKET POLICIES FOR THE
21ST CENTURY CARIBBEAN*
ANDREW S DOWNES PhD
PRO VICE CHANCELLOR and PROFESSOR OF
ECONOMICS
UNIVERSITY OF THE WEST INDIES
*The 29th Adlith Brown Lecture, Trinidad & Tobago, 20
November 2014
OUTLINE OF PRESENTATION
Introduction
 Overview of the Caribbean Labour Market
 Job Creation Process
 Skills Development for the Labour Market
 Policy Measures for the Next Decades
 Conclusion

INTRODUCTION




The operation of the labour market is critical to
personal welfare and overall national growth
and development
At the person level, a large percentage of persons
obtain their income from selling their labour services
in the labour market. They spend several years
obtaining knowledge/skills/competencies to be used as
human capital in the commodity market
In the small developing countries of the region and
beyond, the development of human capital and
subsequent use in the production process enhances
productivity, economic growth and development
Households build human capital which is sold to
firms and other organisations for the production
process.
INTRODUCTION



This lecture in the memory of Adlith Brown examines
the job creation process and associated skill
development in the Caribbean with a view of
identifying policies for making the labour market
effective, efficient and equitable in decades to
come.
Adlith herself looked at the operation of the labour
market in her article “ Employment Policy in the
Open Dual Economy” SES, 29 (4), 1980 and also
related issues in her subsequent paper “Issues of
Adjustment and Liberation in Jamaica: Some
Comments” SES, 31(4), 1982
Indeed, Adlith’s PhD thesis at McGill University in
1982 was entitled “Unemployment in Jamaica: An
Analysis of the Relationship Between the
Demand for Labour and the Distribution of
INTRODUCTION

In these articles which are relevant to this lecture, Adlith
reviewed the alternative models of the Caribbean labour
market:





Lewis’ Dual Economy model
Tidrick’s Rural to Urban Migration model
Seers’ Open Petroleum Economy model
Keynesian Demand model
Her main conclusions with respect to employment growth
in the Caribbean were:






The wage-price –productivity relationship is important to
labour demand
Productivity growth esp in the traditional sector is important
to employment growth
Export demand is the most significant factor for job creation
Foreign investment ( capital inflows) was also very critical
A conductive macroeconomic environment is vital for growth
and employment
Need to pay attention to structure—prices, wages, exchange
rates, markets, production. etc
INTRODUCTION
This lecture elaborates on some of the issues
raised by Adlith in her review of Caribbean
labour market models and extends her analysis
to look at skills development in the region.
 The macroeconomic production plans for
the region largely inform the job creation
process and also the skills development
initiatives adopted by the respective
countries.
 Since there is a “time to educate and train”,
skills development in the education/training
market must be largely guided by the demands of
firms and other organisations.

OVERVIEW OF THE CARIBBEAN
LABOUR MARKET

LABOUR SUPPLY/FORCE:





Relatively low rate of labour force growth over the
past two decades ( less that 2% for most countries)—
associated with low population growth [issue of
replacement in the future]
Some ageing of population ( those over 65 years of
age) with an extension of the retirement age in some
countries
Significant increase in the female participation rate
and relative constancy and in some cases a decline in
the male participation rate ( which is generally
higher than female rate).
General improvement in the educational and skills
bases of the labour force but still significant
deficiencies
Ongoing brain drain problem esp in high skill areas.
OVERVIEW OF THE CARIBBEAN
LABOUR MARKET

EMPLOYMENT





Decline in agricultural sector as a significant employer of
labour in most countries ( still important in Guyana,
Belize, Dominica and St Vincent)
Growth in new and traditional services employment (
tourism, distribution, business and financial services,
professional services, government services etc)
Increase in the number of persons indicating that they are
self-employed or own account workers. Partly associated
with the informal labour market and improved training.
Private Sector accounts for the largest percentage of the
employed ( generally over 60% in most countries).
Government is the single largest employer of persons.
Altho’ Government employment reduces unemployment,
there is evidence of partial crowding out of private
sector employment in Barbados [Craigwell/Jackman
22014]
OVERVIEW OF THE CARIBBEAN
LABOUR MARKET




Some degree of labour market segmentation with
females dominant in Clerical/Sales/Service jobs. But
growth in female employment in
professional/technical occupations associated
with the increase in females with tertiary level
education
High percentage of workers in “elementary
occupations” pointing to a possible “missing
middle” and “polarisation” in the labour market.
Also the issue of the “quality of jobs” in some sectors
of the labour market
Some evidence of an increase in the working poor
and vulnerable due to the link between poverty and
the human capital base of workers
Social networks are seen as important in shaping
employability
OVERVIEW OF THE CARIBBEAN
LABOUR MARKET

UNEMPLOYMENT
High rates of unemployment in all countries except
T&T.
 Very high rates of youth ( 15-24 years of age)
unemployment and esp. among females. Youth
unemployment rates tend to be 2 to 3 times higher
than the national rates
 Low level of educational and training attainment
among the unemployed—low human capital base—
suggesting a “mismatch problem”
 Poor labour market information for matching people
to jobs and allowing a smooth and productive
transition from school to work –asymmetric
/imperfect information problem

25
Unemployment in the Caribbean 2000-13
(%)
20
The Bahamas
15
Barbados
Belize
Jamaica
St. Lucia
10
Suriname
Trinidad and Tobago
5
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
AVG UNEMPLOYMENT Rate 2000-13 (%)
14
12
10
8
AVG UEMPLOYMENT
6
4
2
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
OVERVIEW OF THE CARIBBEAN
LABOUR MARKET






Higher urban unemployment in geographically larger
countries and higher rural un/under employment in
smaller countries
High reservation wage by the unemployed, hence
queuing for jobs is preferred. Remittances from
abroad have exaggerated this situation
Weak systems of social protection for the unemployed
( little protection beyond severance pay in most
countries)
Strong inverse relationship between unemployment
and economic growth ( Okun’s Law) supported by
recent IDB research
There has been a general downward trend in
economic growth since the 1980s
Evidence of hysteresis effect with unemployment—
persistence after output shocks
Avg Growth Rate for Caribbean 1980-2013 (%)
6
5
4
3
Avg Growth rate for Caribbean
2
Linear (Avg Growth rate for
Caribbean)
1
0
-1
-2
-3
Poly. (Avg Growth rate for
Caribbean)
Avg Unemployment and Growth 2000-13 (%)
14
12
10
Avg Unemployment and Growth
2000-13 (%)
8
Linear (Avg Unemployment and
Growth 2000-13 (%))
Expon. (Avg Unemployment and
Growth 2000-13 (%))
6
Power (Avg Unemployment and
Growth 2000-13 (%))
4
2
0
-3
-2
-1
0
1
2
3
4
5
6
OVERVIEW OF THE CARIBBEAN
LABOUR MARKET

WAGE-PRODUCTIVITY LINK





Some real wage stickiness/resistance exists in some
countries
Real wages seem to be rising faster than measures
labour productivity at the aggregate level ( that is,
falling or stagnant levels of productivity)–
implications for competitiveness esp in “fixed”
exchange rate regimes
Earnings affected mainly by human capital and work
experience
Various forms of minimum wage arrangements exist
( national and occupational wages). Labour
legislation tend to change slowly but labour practices
tend to create adjustment costs and hence
inflexibility.
Slow uptake in alternative forms of compensation—
performance based/gainsharing schemes
1980 [YR1980]
1981 [YR1981]
1982 [YR1982]
1983 [YR1983]
1984 [YR1984]
1985 [YR1985]
1986 [YR1986]
1987 [YR1987]
1988 [YR1988]
1989 [YR1989]
1990 [YR1990]
1991 [YR1991]
1992 [YR1992]
1993 [YR1993]
1994 [YR1994]
1995 [YR1995]
1996 [YR1996]
1997 [YR1997]
1998 [YR1998]
1999 [YR1999]
2000 [YR2000]
2001 [YR2001]
2002 [YR2002]
2003 [YR2003]
2004 [YR2004]
2005 [YR2005]
2006 [YR2006]
2007 [YR2007]
2008 [YR2008]
2009 [YR2009]
2010 [YR2010]
2011 [YR2011]
2012 [YR2012]
60000
GDP per person employed at constant 1990 PPP
50000
0
Barbados
Jamaica
40000
St. Lucia
30000
Trinidad and Tobago
20000
Linear (Barbados)
10000
Linear (Jamaica)
Linear (Trinidad and Tobago)
OVERVIEW OF THE CARIBBEAN
LABOUR MARKET

Average Employment-Output Elasticities
calculated by Kandil et al ( 2014) support the
productivity trends
COUNTRY
ELASITICITY VALUE
Bahamas
0.53
Barbados
0.79
Belize
0.69
Jamaica
1.06
St. Lucia
0.54
Trinidad/Tobago
0.32
OVERVIEW OF THE CARIBBEAN
LABOUR MARKET

In summary, some of the main labour market
challenges in the region include:





High level of unemployment ( esp among the
youth)
Relatively low levels of skills development
Low level of labour productivity
Breaking the poverty-human capital nexus
Weak social protection systems
These call for an examination of the Job Creation
and Skills Development processes in the region,
and
 The formulation and implementation of
appropriate policy measures

JOB CREATION PROCESS

PRELIMINARIES:


JOB: a set of task elements or prescribed work
activities which are grouped together under one job
title and designed to be performed by an individual
JOB DESIGN is characterised by several elements
Multi-tasking—where job requires the employee to
perform several tasks
 Skill—which relates to the breath and depth of ability and
human capital ( education, training etc) required
 Discretion---the ability to make decisions
 Interdependence—the degree to which one job is related
to others in the organization


Job Flow dynamics determine/reflect the variation of
net employment in the labour market and the
degree of upskilling/deskilling ( i e creative
destruction) taking place
JOB CREATION PROCESS
NET EMPLOYMENT CHANGE = JOB
CREATIONS- JOB DESTRUCTIONS (job
flows)= HIRINGS- SEPARATIONS (worker
flows)
 JOB CREATION: the sum of job gains
measured at the organisation level over a given
period as a result of the opening of new
production units and the expansion of jobs
within existing workplaces
 JOB DESTRUCTION: the sum of job losses
resulting from the closing of production units
and the contraction in the number of jobs in
units that stay open over a given period

JOB CREATION PROCESS

There are several MODELS OF JOB
CREATION:

DEMAND-ORIENTED MODEL:
Assumes nominal wage stickiness and excess supply of
labour
 Aggregate Demand is the key determinant of job creation (
increase in aggregate demand leads to output expansion
and job creation and employment)
 Keynesian in nature
 Aggregate Demand can be driven by
 Monetary and Fiscal policies
 Exchange rate policy
 Export Promotion
 Entrepreneurial confidence etc
 Lewis’ open dual economy and Seers’ models discussed by
Adlith emphasised export expansion as a key driver of
employment creation

JOB CREATION PROCESS

SEARCH-MATCHING MODEL:
Assumes that unemployment is due to labour market
frictions and that “supply creates its own demand”
 The product market is competitive and the labour market
has frictions so that job creation needs an understanding of
both markets
 Job Creation in a firm depends on:
 The availability of workers ( ie unemployment)
 The number of job openings in other firms ( labour
market hoarding)
 Job Creation depends on the degree of unemployment or
labour supply—if the supply of labour increases firms will
open up more vacancies and more matches will be formed.
 Firms search for productive workers and workers search for
higher paying jobs and search continues until matching
occurs
 JC= F( Unemployment, @)

JOB CREATION PROCESS

PRODUCTIVITY MODEL
If labour productivity increases relative to real
wages, then the profit rate increases and firms would
hire more workers.
 Productivity enhancement due to several factors:

Improvements in technology
 Greater utilisation of capital goods
 Enhanced skill development of workers
 Research and Development resulting in new products
 New organisational changes/ layout


Technological shocks/Innovations can lead to
increased productivity and reduced output prices
followed by increased demand for goods/services and
job creation/employment
JOB CREATION PROCESS

Lewis’ Dual Labour Market Model
Given a surplus of labour in subsistence sector and fixed
wage rate
 Capitalist makes a profit which is reinvested
 Investment/capital accumulation raises labour productivity
which in turn increases the demand for labour in the
capitalist sector.
 The new employed workers can come from low productivity
areas ( subsistence sector). Assumes that there is
matching of labour supply quality and skill needs.
 Over time productivity in subsistence sector rise and result
in an increase in the wage to the capitalist sector ( turning
point)


JC=F( Productivity, @)
JOB CREATION PROCESS

INNOVATION MODEL:
Assumes that entrepreneurs lead the innovation
process ( Schumpeterian). Schumpeter argued that
economic development and innovation depend
critically on CREDIT and FINANCE going to
entrepreneurs
 Various forms of Innovation:

New production methods
 New markets
 New products or quality of good
 New technologies/techniques
 New organisational structures
 New sources of supply of inputs


Innovation leads to investment and job creation
which is greater than job destruction –net
employment growth
JOB CREATION PROCESS

SELF EMPLOYMENT MODEL


Self employed individuals create small and medium
size enterprises (SMEs) which employ other
individuals ( incorporated)
Several factors influence persons to become self
employed and subsequently employ other persons
Maturing of previously micro or informal businesses
 Tax and regulatory policies that encourage business
formation
 Maturing of technologies that allow smaller firms to operate
 Demographic factors –mid age (30s and 40s), better
educated, having some wealth base (eg housing stock)
 Innovations in the market

Business formation (SMEs) is a significant driver
of long term economic growth and job creation
 JC=F( Bus Formation, @)

JOB CREATION PROCESS

In summary, the models of the Job Creation
process point to:






Increasing aggregate demand
Unemployment
Productivity growth
Innovation and Entrepreneurship
Self employment and SME development/business
formation
Empirical research on the determinants of
employment growth in the Caribbean suggests an
aggregate demand/output growth factor, which is
in turn influenced by exports, financial
development (credit) and capital investment. The
growth of self employment has also been a factor in
the process.
JOB CREATION PROCESS
The World Economic Forum’s classification of
development stages puts Trinidad/Tobago in
the innovation stage with Barbados is
transitioning to this high stage.
 The WIPO’s Global Innovation Index ranks
the region in the middle to low range with
relatively low rates of innovation efficiency
defined as the ratio of Output Innovation(
knowledge and technical output, creative output)
to Input Innovation ( institutions, human
capital and research, infrastructure etc). Hence
innovation- driven job creation is likely to
be low in the region

JOB CREATION PROCESS

Using data for the change in employment over the
period 2000-2013 for Barbados, Jamaica, St Lucia
and Trinidad & Tobago, the following observations
can be made:
There have been challenges associated with job
creation in Barbados and St Lucia esp since the
Great Recession of 2008. Job Destruction has been
generally greater than Job Creation
 Job Creation has been a major issue in Jamaica
since 2008
 Trinidad & Tobago has done better than the other
countries but it has also been affected by the shock of
the Great Recession


These observations reinforce the critical role of
demand/output expansion(shocks) in the job
creation process.
100
Change in Employment 2000-13 (000)
80
60
40
Barbados
Jamaica
20
St Lucia
Trinidad
0
2000
-20
-40
-60
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
JOB CREATION PROCESS





The job destruction process has been significant in the
agricultural and to some extent the manufacturing sectors
The job creation process has been taking place in the
services sector
Development Plans and Strategies have been developed to
accelerate the growth process in the region. CARICOM has
recently completed its Strategic Plan for the region.
These Plans and Strategies have identified Renewable
Energy, Creative Sector, New Manufacturing, Agroprocessing, ICT, Specialty Tourism, Transportation
and International Business as key areas of New Growth
and Job Creation for the Caribbean.
Focus also on Green and Blue Economy jobs along with
Personal Care and Leisure activities for retired/aged
JOB CREATION PROCESS

Job creation, especially the creation of “good
quality jobs” is driven by:
Changes in consumer demand ( domestic and foreign)
 Demographic change
 Technological change and Innovation
 Deliberate policy action


Job creation policy formulation must take into
consideration the main drivers in the Caribbean
while being mindful of the job destruction
elements
SKILLS DEVELOPMENT FOR THE
LABOUR MARKET
It is important that the Job Creation process be
synchronised with the Development of Skills
given the “time to educate and train”
 The range of skills can be broadly classified into:

Basic Skills such as Content Skills ( literacy,
numeracy etc) and Process Skills ( critical thinking
etc) –which facilitate the acquisition of
knowledge
 Cross Functional Skills such as Social skills,
Technical skills, Problem solving skills,
Resource management skills, System skills –
which permit a person to perform effectively on
a range of job settings

SKILLS DEVELOPMENT FOR THE
LABOUR MARKET



Significant percentage of the adult population has no
certification ( Barbados 2010 Census- 47.7% with no
exams taken or passed, T&T 2011 Census –38.7 % no
exams passed)
Low percentage of Labour Force with tertiary level
attainment and in some countries a significant
percentage have primary or less education. T&T has
shown an increase in tertiary level educational
attainment between census years (5%in 2000 to
10.3% in 2011)
These features suggest that a major up-skilling of
the labour supply to meet higher order skills
needs esp for the Innovation Stage of
Development ( cp with Factor and Efficiency
Stages)
SKILLS DEVELOPMENT FOR THE
LABOUR MARKET

Labour Force by Educational Attainment (%)Kandil et al (2014)
Country
Less than
Prim
Primary
Secondar
y
Tertiary
Other
Bahamas
(2006)
2.6
8.8
63.0
25.5
0.1
Barbados
(2007)
0.5
14.8
65.3
18.4
1.0
Belize
(2012)
45.9
28.8
12.0
6.2
7.1
St Lucia
(2011)
*
50.3*
39.9**
9.8
--
Trinidad/T
obago(200
8)
0.3
26.9
67.0
5.5
0.3
SKILLS DEVELOPMENT FOR THE
LABOUR MARKET

Human resource needs can be met at different
levels and reflect the time to educate and train:
HIGH LEVEL SKILLS – engineers, health/medical
persons etc ( 4-7 years in tertiary institutions)
 MIDDLE LEVEL SKILLS-- technicians, paraprofessionals (1-3 years in post secondary
institutions)
 LOWER LEVEL SKILLS – customer services, data
entry, office assistants ( weeks/months in formal or
on-the-job skills training)
 These levels have been formalised in the Caribbean
Qualifications Framework with 2 basic Access
Levels and 8 Achievement Levels. They are also
linked to the Caribbean Vocational Qualification
(CVQ) five(5) levels which cover Lower and Middle
Level Skills

SKILLS DEVELOPMENT FOR THE
LABOUR MARKET

Educational and Institutional training facilities
are widespread throughout the region:
High and Middle Level Skills —Universities and
Colleges( UWI, UG, UTech, UTT, U of Belize,USC,
BCC, BIMAP,COSTAATT, COBah, Colleges of the
OECS,
 Middle Level Skills –Technical and Vocational
Education and Training (TVET)—( HEART/NTA in
Jamaica, YTEPP, NTA etc in T&T, Skills Training in
Barbados and OECS
 Lower Level Skills ---School system, Skills
Training Programs, Private institutions, NGOs

SKILLS DEVELOPMENT FOR THE
LABOUR MARKET


There are however deficiencies in the
institutional provision of skills in the regions—
low completion rates in TVET; lack of adequate
facilities and personnel; inadequate monitoring and
evaluations of skills provided; insufficient funding;
poorly prepared students
Weaknesses in the primary and secondary school
system throughout the region. CXC-CSEC
experience indicates
Low pass rate for Maths (37%) and English A (59%)
over 2005-13 period
 High absenteeism from exams ( 30+% for several
subjects) in recent times
 Low enrolment in so called STEM and vocational
subjects

SKILLS DEVELOPMENT FOR THE
LABOUR MARKET




Attempts at the vocationalisation of the
secondary school system in some countries with
varying level of success
Non-institutional training ( ie on-the-job
training) favoured by employers in the region due to
lower costs and the specific nature of training.
Employers still have problems with attitude to
work and poor soft skills by employees
Recent focus on entrepreneurial training and
training for self employment as there has been a
growth in SMEs—focus on youth
Some concern with polarization in the labour
market with a “missing middle” of technical and
para –professionals ( with the growth of professional
and elementary occupations)
SKILLS DEVELOPMENT FOR THE
LABOUR MARKET




Migration/labour mobility within the region seen
as a means of resolving the short run HR
needs/requirements ( esp given the external
migration of skilled persons)
Phased approach to labour mobility within the
CSME adopted (university graduates, media workers,
artistes, musicians, sports persons) with other
categories ( domestics, nurses, teachers etc ) coming
afterwards
Uptake on the issue of skills certificates still at
a slow pace
Work permits in highly skilled areas still issued to
extra-regional personnel and for some categories in
high demand (agricultural workers, construction
workers etc)
SKILLS DEVELOPMENT FOR THE
LABOUR MARKET
Skills Development is critical to personal welfare
and overall growth and development in the
region. Also to the creation of “good quality
jobs” ( wage/salaried/self employment)
 Job Creation in the “new economy” areas ( and
even revamped traditional areas) will require a
re-structuring/modernising of the education and
skills development process/institutions
 Skills Development and Job Creation must be
synchronised in the form of a HRD and Job
Creation Plan developed by the economy’s key
stakeholders

POLICY MEASURES FOR THE
NEXT DECADES
Job Creation and Skills Development policies
require an understanding of the labour market
and also other markets ( financial, commodity,
education/training)—an integrated approach
 The World Bank’s MILES framework provides
a useful basis for developing policies for the
Caribbean
 In addition the ILO’s Global Jobs Pact which
incorporates decent work and promotes
economic recovery via investment,
employment generation and social security
complements the MILES framework.

POLICY MEASURES FOR THE
NEXT DECADES

MILES FRAMEWORK
Factors Affecting
Employment
Performance
Policy Issues
Macroeconomic Conditions
Conditions for Growth, Macroeconomic
Stability
Investment Climate
Regulations, Governance, Taxes, Financing,
Infrastructure, Incentives
Labour Market Policies and
Institutions
Regulations, Wage Setting, Non-wage
Costs, Unions, Social Dialogue, Migration
Education and Skills
Basic Education, Higher Education,
Training and Lifelong Learning
Social Protection
Social Insurance, Social Risk Management,
POLICY MEASURES FOR THE
NEXT DECADES

GLOBAL JOBS PACT
ELEMENTS
POLICY ACTION AREAS
Decent Work
Employment Creation and Enterprise
Development with productive jobs and fair
income
Social Dialogue ( Government, Employers and
Employee Reps)
Social Protection for workers and families
Labour Standards and Respect for Rights at
Work and Equality of Opportunity
Global Action
Shaping and Promoting Fair Globalisation
POLICY MEASURES FOR THE
NEXT DECADES



Development of National and Regional Growth and
Development Plans and Strategies—CARICOM’s
Strategic Plan and CARICOM Commission on the
Economy provide a basis forward
Growth strategy and policies include—private sector
development, development finance, trading and
marketing, institutional reform etc [see Downes (
June 2013)]
HRD Plan and Strategy to complement Growth and
Development Plan and Strategy ( see the Barbados
case)
Reform education and training system to fit skills
needs (improved educational output quality)
 Ease the transition from school to work---internships
etc
 Development of frontier skills and skills for future

POLICY MEASURES FOR THE
NEXT DECADES




Create an environment for macroeconomic
stability—fiscal balance, stable and competitive
exchange rates, low inflation rates, affordable interest
rates, available foreign exchange etc
Funding for R&D and Innovation and
promotion of entrepreneurship – direct and
incentives. Support for sustainable development of
SMEs.
Reduced transactions cost of doing business esp
in government offices—revise
legislation/rules/regulation [World Bank’s Reports on
the Caribbean]
Take advantage of trade agreements eg EPA, to
expand export opportunities. Strategic use of foreign
missions.
POLICY MEASURES FOR THE
NEXT DECADES
Support the free mobility of labour within the
Caribbean with establishment of Pan-Caribbean
companies—development /promotion of CVQs
and associated certification/accreditation
 Promote new sectors in the green economy (
green jobs) and the blue economy ( maritime
sector jobs) in small island developing states.
Also ICT jobs in a globalised world with a 24/7
economy.
 Establishment of a Regional LMIS as data
challenges exist with analysis of labour and
associated markets. Assist with job search and
matching within the regional on an e-platform

POLICY MEASURES FOR THE
NEXT DECADES
Use of public sector employment
programmes as part of a “crowding in”
process more so than a welfare
assistance/crowding out exercise
 Establishment of a social safety net for the
vulnerable who may be temporarily displaced in
the adjustment process ( can include job and
wage subsidies)—ie passive labour market
policies
 Promotion of Social Dialogue and democratic
involvement in national decision making—aim at
labour market flexibility ( functional, numerical,
financial , temporal etc) and decent work

CONCLUSION




Lecture has looked at Job Creation and Skills
Development in the Caribbean
It notes major challenges in the Caribbean labour
market with respect to unemployment ( esp youth), low
labour productivity, poverty-human capital link, brain
drain, mismatch of educational system and labour market
and weak social protection system
Building on Adlith’s survey of the models of the Caribbean,
policy action is needed on promoting ( export)
economic growth, enhancing productivity and
keeping wages in line, revamping the structure of
incentives and regulations which increases the costs
of doing business, boosting innovation,
entrepreneurship and HRD.
I hope that my presentation has encouraged you to further
examine the issues( in spite of the data challenges) in
keeping with the spirit of Adlith Brown.

THANK YOU VERY MUCH FOR YOUR
ATTENTION