The Tribune

By ANNELIA NIXON

Tribune Business Reporter

anixon@tribunemedia.net

THE Bahamas Chamber of Commerce and Employers’ Confederation (BCCEC) yesterday welcomed the country’s lowest sustained unemployment levels in years, but warned that skilled worker shortages and widening skills gaps continue to threaten business expansion and economic growth.

Responding to the Bahamas National Statistical Institute’s (BNSI) Labour Force Survey for the third and fourth quarters of 2025, the Chamber said it viewed the latest data with “cautious optimism”, praising both the public and private sectors for helping generate new jobs while warning that the headline figures do not reflect the challenges employers continue to face.

“The findings signalled continued improvement in employment and labour market participation, reflecting the resilience of the Bahamian economy and the confidence businesses have demonstrated by continuing to invest, expand and create employment opportunities,” the Chamber said.

It added that continued expansion in tourism, construction, financial services and other productive industries has translated into more employment opportunities for Bahamians, demonstrating that the economy continues to recover and mature following recent years’ unprecedented challenges.

The BNSI reported unemployment held steady at 8.8 percent in the 2025 third quarter, and 8.7 percent in the fourth quarter, which are among the lowest sustained rates in recent history.

The survey showed 3,350 more people entered the labour force during the second half of 2025, while employers hired 3,450 workers, enabling the economy to absorb many persons into the job market. The data also showed a decline in discouraged workers, with women accounting for the majority of new labour force participants.

However, while welcoming the improving employment picture, the Chamber said businesses remain constrained by a labour market that is struggling to produce workers with the skills employers require.

“For years, the Chamber has consistently highlighted the growing shortage of skilled labour in The Bahamas,” it said. “That concern remains one of the greatest constraints on economic growth today.”

According to the Chamber, employers across hospitality, construction, healthcare, information technology, financial services, manufacturing, retail and professional services continue to experience significant difficulty recruiting candidates with the technical expertise and practical experience needed to fill vacancies.

The Chamber also warned that businesses are finding it increasingly difficult to retain experienced employees as competition for skilled workers intensifies. “Competition for experienced workers has intensified, increasing recruitment and training costs while creating operational challenges for businesses of every size,” it said.

“High turnover not only affects productivity but also limits the ability of firms to expand, innovate and deliver consistently high levels of service.”

Beyond technical shortages, the Chamber said employers continue to identify a disconnect between the qualifications many job seekers possess and the competencies businesses require.

While educational attainment has improved, employers continue to report deficiencies in workplace readiness, including communication, critical thinking, problem-solving, professionalism, adaptability, punctuality, customer service and other essential soft skills.

The Chamber argued that addressing those shortcomings will require stronger collaboration between government, employers and educational institutions to better align courses, apprenticeships, internships and vocational training programmes with the evolving needs of the economy.

“The BCCEC believes that labour force development must remain a national priority,” it said. “Investments in technical and vocational education, digital literacy, management training, entrepreneurship and lifelong learning will strengthen productivity, improve competitiveness and create greater opportunities for Bahamians to access high-quality, sustainable employment.”

While the latest labour market data point to a more stable employment environment, the Chamber said the figures should be viewed not as an end point but as an opportunity to strengthen the country’s workforce.

“The encouraging labour market results released by the BNSI should be viewed not as the conclusion of our work, but as an opportunity to build a stronger, more skilled and more competitive Bahamian workforce capable of sustaining economic growth for years to come,” it said.