The Tribune

A CABINET minister yesterday said the collective $610,000 per month that the National Insurance Board (NIB) is paying in unemployment benefit is “considerably less” than during the COVID-19 pandemic.

Myles Laroda, minister of state in the Prime Minister’s Office with responsibility for NIB, said ahead of the weekly Cabinet meeting that the social security system is presently on track to payout just over $7.2m in unemployment benefits that go to a maximum of 13 weeks.

“NIB is paying out about $610,000 per month,” he said. “If we do the figures, over the past few years it’s around $12 million. So at this pace, between $7m and $8m would be the figure, so that’s considerably less than in the past.”

NIB paid out more than $100m in unemployment benefits at COVID-19’s peak in 2020 as much of the country’s workforce was either temporarily furloughed or terminated. Given the pandemic’s duration, and the fact NIB’s payouts were capped at 13 weeks, the Government was forced to provide its own unemployment benefit to the long-term jobless that totalled some $237m.

COVID-19’s easing has thus significantly reduced both the rate of unemployment and benefit payouts, and Mr Laroda said: “If we continue on this trend, we may see a reduction. I don’t want to be presumptuous, because things could turn on a hurricane or some catastrophic financial situation that could create a downturn. So we just hope that this trend continues.”

Amid concerns that the imminent hike in Bahamas Power and Light (BPL) fuel charges and overall electricity bills may spark more lay-offs, Mr Laroda shrugged off the possibility on the basis that the country is moving into the fall and winter season when energy consumption is less. “So usually the trend is electricity costs would go down, people using less air conditioning and stuff, and we just hope that until relief comes that there is no need to lay-off,” he said.

Mr Laroda indicated that the Government has yet to heed calls, made in the most recent actuarial report, which said NIB contribution rates should have been increased by two percentage points in July and continue at intervals of every two years until 2036 to ensure the scheme’s financial sustainability.

“It’s a fluid situation. And that time will come when a decision on that matter will be revealed,” he added.