On the careers portal page of website of the Ministry of Public Administration and Artificial Intelligence, it is disclosed that approximately 35,000 people are employed in T&T’s civil service in permanent and temporary roles across ministries and departments. That website also discloses that approximately 21,000 people work within the 14 regional and municipal corporations. That is 56,000 people employed in the civil service and in local government.
If one adds the protective services—such as the Defence Force, police, fire and prisons services—another 17,200 employees are paid by the Government, again according to the website of the Ministry of Public Administration and Artificial Intelligence.
By my estimate, therefore, a total of 73,200 people receive monthly salaries from the Government, excluding the URP (Unemployment Relief Programme) and the Cepep (Community-Based Environmental Protection and Enhancement Programme), which have been a feature of employment in this country. Both of these programmes have been suspended and may never return..
During her controversial speech at the Monday Night Report on August 11, Prime Minister Kamla Persad-Bissessar said the following:
“My friends, I want to tell you jobs are coming your way...Let me tell you what has been happening in the public sector. Every minister will come to you and tell you in their ministry, the number of vacancies in the public service. The PNM (People’s National Movement, the previous administration) refused to fill those vacancies. Why? Because they wanted to handpick political friends and put them on contract for big, big money. They did not fill the vacancies. There are thousands of vacancies in the public sector. They left those jobs unfilled. Why did they do that? Because they wanted to give you make-work programmes, which is another kind of slavery...
“We have a mandate to fill all the vacancies across the public service, to create more meaningful jobs, to allow the average citizen to earn more, to advance your education, your skills and careers, so you don’t get stuck in a Cepep syndrome for 10 years, that puts you in an oppressed position that you have to depend on some political pappy to give you a hand down...
“I have instructed my ministers to fill all vacancies across all ministries. Fill them properly and transparently. The Police Service Commission, the Teaching Service Commission. Let’s fill the vacancies across the service and create sustainable jobs for the people of Trinidad and Tobago.
“I am told there are about 20,000 vacancies...”
First of all, in theory, I am very much in favour of the Government filling all the vacancies across all ministries in this country. The more people employed means greater aggregate spending in the economy, which is likely to result in more tax revenue for the Government, but also greater demand for foreign exchange and the possibility of higher inflation.
The obvious questions that arise from the Prime Minister’s instructions to her ministers to fill all the vacancies across all of T&T’s ministries are:
1) What would it cost T&T taxpayers to fill all of the vacancies across all of the ministries, which the Prime Minister was told could amount to 20,000 jobs?
2) Where is the money going to come from to fill all of the vacancies in all of the ministries?
3) Did the PNM refuse to fill vacancies “because they wanted to handpick political friends and put them on contract for big, big money?’
Cost of filling vacancies
According to the budget document, Estimates of Expenditure for the Financial Year 2025, which is from October 1, 2024 to September 30, 2025, the Government’s total spending on personnel costs in the 2025 financial year is expected to be $9.37 billion. That does not include the subvention for public service pension and gratuities, which is projected to total $3.19 billion for the current financial year.
The 2024 estimate of expenditure on personnel for the 2024 financial year was $10.42 billion. Pensions and gratuities amounted to $2.67 billion.
According to the Review of the Economy 2024, “Wages and salaries is expected to have increased by $1,049.6 million (11.1 per cent) to $10,469.7 million, in fiscal 2024. This increase in spending in comparison to fiscal 2023 is a result of the payment of arrears of salaries, allowances and overtime for the Police, Fire and Prison Officers as well as the payment of arrears of salaries to teachers, consequent to the settlement of collective bargaining agreements for the 2014 to 2016 and 2017 to 2019 periods.”
If the Government is able to successfully fill all of the 20,000 vacancies across all of the ministries, my back-of-the-envelope calculation is that that is likely to increase the recurrent expenditure on wages and salaries by about 27 per cent. At the higher end, that could add $2.7 billion to the wages and salaries cost of the public service, as defined above, taking the allocation for that expenditure close to $13 billion.
But, of course, that is not all: During the 2025 general election campaign, the political party that now forms the Government promised to start public sector wage negotiations at a 10 per cent increase. One assumes, therefore, that those appointed or selected to fill the vacancies across all of T&T’s ministries would benefit from the higher salaries, allowances and benefits that president of the Public Services Association, Felisha Thomas expects will be announced in the 2026 budget.
So, if the Government seeks to fulfill its promise to increase public sector salaries by at least 10 per cent, that is likely to lead to higher salaries and backpay of between $8 and $10 billion for existing public service employees in the 2026 financial year, plus another $2.7 billion for the new employees, spread out over a period of two years perhaps..
There is one additional cost that has to be estimated, and that is the pensions and gratuities that these new employees will receive when it is their time to retire from the public service. No prudent employer hires anyone without calculating what their pension and gratuity cost is going to be in the future. In other words, the future pension liability of an employee is always part of the calculation in their hiring. This is especially true for public service employees, who benefit from unfunded pension arrangements, meaning the employees of Government do not contribute to their own pensions.
Where is the money coming from?
I can predict, with a high degree of certainty, that if Prime Minister Persad-Bissessar or Minister of Public Utilities Barry Padarath are asked this question, the answer will be that cutting corruption and ending pharmaceutical, rental, lease, private security and other agreements with the so-called one percenters would be enough to fund the hiring of 20,000 people to fill the vacancies in all the ministries in this country.
In the real world, most of the money to fund the filling of vacancies will have to be borrowed or accessed from drawing down on the Heritage and Stabilisation Fund. If I am right, filling the vacancies in the public service will deepen T&T’s deficits, at a time when the country should be looking to reduce the gap between revenue and expenditure.
Creating additional aggregate demand in the economy would have consequences on: T&T's deficit and therefore its debt; demand for foreign exchange and the rate of inflation.
Why did the PNM not fill the vacancies?
Former minister of finance, Colm Imbert, is best placed to answer that question, but one of the reasons could be that he did not think the country could afford to fill all the vacancies in the public service.