The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE LOSS of employment, particularly in financial services sector, highlighted in the Labour Force and Household Income Survey was described yesterday as “most worrisome” by the Opposition finance spokesman.

The Labour Force and Household Income Survey compiled by the Department of Statistics released last week provided information on the labour force as it existed during the period April 27 to May 3, 2015. It noted that the unemployment rate in the country dropped from the 15.7 per cent recorded in the November 2014 survey to 12 per cent. The survey also noted that workers employed in the “finance, insurance, real estate and other business service sectors experienced the greatest job loss, with 36 per cent - 4,447 jobs.

“The loss of employment in the high wage financial services sector I believe is the most compelling and worrisome statistic,” said K Peter Turnquest, deputy leader of the Free National Movement. “Traditionally, this sector has provided stability for the important middle income segment of our economy, a segment that carries the brunt of the burden in taxes, mortgages and discretionary spending that affects other sectors of the economy.” He said that the Bahamas must pay particular attention to the financial services sector to ensure that the appropriate resources and talents are overseeing the sector and that it is properly monitored, regulated and promoted.

“Integral to that is the aggressive and proactive protection of the sector in international financial groups and regulatory bodies,” Mr Turnquest said. “It is imperative that the recent blacklisting by European countries is address effectively and firmly. It is also critical that the sector innovate and bring new compliant, less tax sensitive structures to the market.” The prospect of domiciled wealth management, taking in mind the dual advantage of second homes and FATCA compliant wealth management structures, is “a sweet spot that should be promoted along with other existing and potential financial products,” he added.

“In the final analysis, we will do well as a country to do all we can to ensure that this sector does not collapse under the weight of poor sector management, unwise and inflammatory language and an unwelcoming regulatory and policy environment.”