Working Paper Series: Special Edition of 2016 to 2018 Interns

In addition, the majority of jobs provided are short term and the number of quality jobs generated are not sufficient to impact unemployment over the medium term. . In 2013 for instance, it was estimated that 2,400 net new jobs would have been necessary to keep unemployment unchanged from its level in 2012. Forecasts generated, using a similar method as that employed by the U.S. Congressional Budget Office, show that in 2016, just to keep the unemployment rate unchanged approximately 640 net new jobs are required. An additional 1000 net jobs are then required to reduce the unemployment rate by 1 per cent. The forecasts suggest that over the next five years an average of 1,700 net jobs would have to be created annually to keep the unemployment rate at its current level and an average 2,400 jobs annually to reduce unemployment by 1 per cent per annum. Cumulatively, approximately 12,000 jobs are required over the next 5 years to reduce unemployment by some 5.0 percentage points. It is evident that the Government’s ALMP are not long-term solutions for job creation and growth. More appropriately, government’s intervention should be the facilitation of a favourable economic environment to enable strategic sectors to lead the growth agenda. Economists believe that structural change, like economic growth, is not an automatic process and that deliberate and targeted action in the appropriate direction is essential. Successful regions around the world have done this effectively, facilitating investment, the development of human skills and jobs in the priority areas. Singapore is an example of how this has been done well. Similarly, a national growth plan is needed in Saint Lucia to guide the limited resources and investments into sectors where they are likely to have the best returns.

6.0 Labour Market Prospects:What are the Viable Sectors for Job Creation?

6.1. Tourism In 2015, Travel & Tourism in total contributed US$7.2 trillion to world GDP, representing 9.8 per cent of global GDP. The sector supported 284 million jobs globally (World Travel & Tourism Council, 2016). In 2015, growth in Caribbean tourism grew by 7.0 per cent surpassing global tourism growth of 4.0 per cent. The Travel & Tourism sector is forecasted to grow, in terms

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