The Tribune

By NEIL HARTNELL

TRIBUNE Business Editor

nhartnell@tribunemedia.net

AN OPPOSITION Senator yesterday asserted that cost of living pressures are being “worsened” by the high level of under-employment, describing its 11 percent quarter-over-quarter increase for the first three months of 2026 as “staggering”.

Arinthia Komolafe, the FNM’s shadow minister of economic affairs, described the reduction in the unemployment rate from 8.7 percent in the 2025 fourth quarter to 8.1 percent in the 2026 first quarter as “encouraging” since it signals that more Bahamians have entered the labour force and are earning a living.

“However, the staggering 11 percent increase in the number of under-employed persons is cause for concern and requires further action,” she warned. “The under-employment data shows that 2,890 more people are not working enough hours, not fully using their skills on the job or earning less than their potential income.

“This translates into frustration and financial stress for the 29,085 persons who are currently classified as under-employed in The Bahamas. Bahamians are feeling the effects of the cost of living crisis and this is worsened by the under-employment challenge…

“Training, upskilling and professional development opportunities must be accompanied by tangible policies to lower the cost of living for working Bahamians. With gas prices approaching $8, rising electricity bills, high food prices and general inflationary pressures reducing the purchasing power of Bahamians, the Government cannot turn a deaf ear to the struggles of the masses,” Mrs Komolafe added.

“Again, we implore the Davis administration to implement the FNM’s recommendations to make food, gas and electricity cheaper among other things to lessen the burden on our people.”

Pia Glover-Rolle, minister of labour and national insurance, in response to previous Tribune Business inquiries, voiced optimism that the 8.1 percent unemployment rate for the 2026 first quarter will further decline “over time” with the Bahamas National Statistical Institute’s (BNSI) report showing jobs are being created at a faster pace than new persons entering the Bahamian workforce.

However, she conceded that the Government still “has a lot of work left to do” and acknowledged that the 29,000-plus Bahamian workers who are under-employed reinforces the need to create quality jobs and long-term careers as opposed to part-time or casual work.

Speaking after The Bahamas’ unemployment fell by 0.6 percentage points, from 8.7 percent in the 2025 fourth quarter to 8.1 percent in the first three months for 2026, Mrs Glover-Rolle told this newspaper: “This is the third straight quarter the unemployment rate has improved, thanks to the robust job creation happening under this administration.

“Jobs are being created faster than people are entering the labour market, which is always ideal. We expect the 8.1 percent unemployment rate to continue to improve over time.”

The improvements slashed the number of jobless Bahamians by 5.7 percent or 1,225 from 21,465 to 20,240, which was driven by the seasonal Bahamian economic activity peak coinciding with the winter tourism season.

Growth in total employment, of 2,760 persons, also outpaced the 1,535-strong expansion of the total labour force during the 2026 first quarter to signal the economy is growing - and creating jobs - at a faster rate than persons coming into the workforce.

“We are also seeing Bahamians who had given up on finding employment now re-entering the job market, with discouraged workers down by almost 20 percent and youth unemployment falling to 14.2 percent,” Mrs Glover-Rolle added. “Youth unemployment has historically hovered near 20 percent even during the best of times, so any positive movement there is welcome news for our nation.

“These are all encouraging developments, but we still acknowledge that we have a lot of work left to do. We will keep working to drive these numbers down.”

The BNSI report emphasised that The Bahamas has a bigger problem with under-employment than joblessness. More than 29,000 Bahamians, all working, were said to be in jobs that fail to offer their desired level of wages or working hours, or are not properly using their level of skills and expertise. And their number was said to have increased by almost 3,000, representing a double-digit percentage rise, compared to the 2025 fourth quarter.

“During the first quarter of 2026, there were 29,085 under-employed persons, an increase of 2,890 (11 percent) compared with the fourth quarter of 2025,” the BNSI report said.

“Underemployed persons are employed individuals whose work does not meet their desired level of compensation, working hours, or use of skills and experience, and who are seeking or available for additional work during the reference period.” It is unclear whether this also signals further growth in insecure part-time or casual work, which is often paid at minimum wage rates, in the Bahamian economy.

When the 29,085 under-employed are added to the 20,240 who are unemployed, meaning they are actively looking for work but unable to find it, this means 49,325 persons - some 19.8 percent, or almost one-in-five Bahamians - out of a 249,025-strong labour force are either jobless or not being sufficiently employed.

“We take the under-employment data very seriously,” Mrs Glover-Rolle pledged. “Because our goal is not only to get people employed, but to qualify them for jobs that lead to long-term careers.

“Through upskilling, training, our Opportunity Hub initiatives, and focused work with stakeholders, we are working to get Bahamians qualified for higher-paying jobs and careers. That is how we will address under-employment, along with continued job creation.

“Closing the skills gap and working with stakeholders also helps us forecast labour needs and gaps, including occasional furloughs and lay-offs, so we are better prepared to respond and support continued employment opportunities for our workforce.”