Working Paper Series: Special Edition of 2016 to 2018 Interns

The other major driver of employment and by extension growth and development of which both Smith (1776) and Schumpeter (1911) were proponents is entrepreneurship. Entrepreneurs are key in the creation of dynamic economies characterized by innovation and well-remunerated workers (Lederman, Messina, Pienknagura & Rigolini, 2013). While the verdict on whether individuals can be turned into entrepreneurs is still inconclusive, the precept is that government has the ability to encourage entrepreneurship by crafting policies to improve the incentives and support institutions that facilitate innovation (Lederman, Messina, Pienknagura, & Rigolini, 2013). 3.0 Methodology This section lays out the methodology used to understand the labour market in Saint Lucia. The study achieves its objectives through a case study approach involving an analysis of key labour market statistics (labour force surveys 2012-2015 and the labour market needs assessment survey of 2012) compiled by the Department of Statistics (Saint Lucia) and the World Bank over the post 2008 period. The author conducts an overview of government employment programmes to identify its cost and beneficiaries. In order to arrive at the emerging sectors for employment a review of the current government’s policy is undertaken as well as consideration is taken for the country’s natural endowment, existing infrastructure and demographics.

4.0 Stylized Facts: Labour Force Participation and Unemployment 4.1. Labour Force Participation

Figure 1: Labour Force Participation Rate (%)

Labour force participation rate is a measure of the population 15 years and older, either employed or actively seeking employment. In Saint Lucia, the labour force participation rate averaged 71.3 per cent between 1994 and 2015, peaking at 78.7 per cent in 2009. As at 2015, the participation rate is 72.2 per cent ( Figure 1 ).

55 60 65 70 75 80

Source: Central Statistics Office, GOSL

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