Friday, July 23, 2010Cayman Unemployment Rises

Brent Fuller Caymanian Unemployment At 10 per cent

Caymanian unemployment figures rose to 9.8 per cent as of October 2009, according to a study released this month by the government Economic and Statistics Office.

In 2008, Caymanian unemployment was estimated at 6.6 per cent by the same survey.

Although government officials had previously quoted unemployment at about six per cent in 2009, that figure was given for the entire population of the Cayman Islands; approximately 53,000 people.

Unemployment numbers for expatriates are always very low because those foreigners here on government contracts or work permits are generally required to leave the Islands if they lose their jobs.

According to the conclusion in the statistics office Labour Force Survey, there was an overall decrease in the population, which “may be due to the economic crisis that resulted in the transfer/closing of business.”

“This affected the overall labour force participation with increased unemployment rates,” the study read. “Caymanians were most affected.”

Overall, there were 2,181 unemployed people in the Cayman Islands, including expatriates. That number includes individuals who are without a job and who are available for work and are seeking employment.

“The majority of the unemployed had high school or lower level education,” the statistics office report stated. “On a whole, they have been without work for longer than six months and have relied mainly on financial support from spouse/partners, parents or other relatives and friends.”

The majority of the unemployed population in the Cayman Islands comprised of males and those younger than 35.

In previous years, the highest jobless rate was seen among those aged 15-24, and that did not change in the 2009 labour survey.

However, there were some disturbing revelations concerning the younger section of the workforce.

“Males and those in the 25 to 34 age group experienced the highest increase in unemployment rate between 2008 and 2009,” the report stated, adding that the elderly were the only group where unemployment levels actually decreased – largely indicative of the fact that many had retired.

The unemployment rate among Caymanians increased even though records showed that local members of the population actually increased their participation in the workforce slightly during 2009.

The number of Caymanians with jobs in 2008 grew from 17,686 to 18,162 in 2009; a modest rise of about 2.5 per cent.

On the other hand, expatriate workers in the Islands saw their numbers plummet from 21,313 in 2008 to 17,936 in 2009; a fall of about 16 per cent.

The total number of jobs in the local workforce fell by about 2,900 between 2008 and 2009.

Last year was also the first time since 2005 that Caymanians made up the majority of the local workforce. Despite those gains, overall Caymanian unemployment increased substantially.

Working conditions

Overall, the 2009 labour study found the average employee in the Cayman Islands put in 42.5 hours per week.

According to the survey, males worked about two hours longer per week than females and non-Caymanians worked about three hours longer per week than Caymanians.

The main occupations in the Islands were public administration jobs (15 per cent), construction (14.5 per cent), followed by retail (13.5 per cent), real estate (12.7 per cent), and financial services (9.4 per cent).

A slim majority of the local workforce (about 51 per cent) earned at least $2,400 per month, although the per capita income average fell to $44,197 per year in 2009, compared to $46,409 in 2008.

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