Senior Reporter
dareece.polo@guardian.co.tt
The Government has announced a 0.3 per cent increase in the unemployment rate in T&T, although officials assert that this figure is not cause for concern.
Speaking in the Senate yesterday, Finance Minister Colm Imbert reported that unemployment rose to 5.4 per cent in the first quarter of 2024, up from 5.1 per cent in the final quarter of 2023. He referenced data from the Central Statistical Office (CSO), emphasising that this trend aligns with global standards and is not uncommon, particularly as many businesses typically engage in short-term hiring during the Christmas season.
“This is typical because there is always increased employment in the fourth quarter in order to take advantage of increased sales in the Christmas season and there’s always a decline in the first quarter,” he said, as he gave his contribution to the Budget debate which is now in the Senate.
However, Opposition Senator Wade Mark challenged the Minister’s statistics, suggesting they did not reflect the full picture. He claimed that since 2015, over 66,000 individuals had lost their jobs, a figure he attributed to data from the Central Bank. Mark further asserted that unemployment rates among young people are rising, based on information obtained from the CSO. It is worth noting that the legal age for employment in Trinidad and Tobago is 18, he said.
“We have seen the largest share of jobless individuals among the age range of 15 to 29 years, Mr President and the Government of Trinidad and Tobago does not fully appreciate that when you have so many young people unemployed, you lay the basis for these young people being attracted to recruitment via gangs,” Mark said.
According to the International Labour Organisation’s World Employment and Social Outlook Trends 2024 report, just over five per cent of the global workforce is currently unemployed.
Turning to inflation, Imbert stated that T&T’s rate may be among the lowest worldwide. He indicated that inflation dropped from 8 per cent at the end of December 2022 to 3.9 per cent in the last quarter of 2023. By July 2024, inflation had further decreased to 0.3 per cent and stood at 0.4 per cent in August.
In response, Mark dismissed the Minister’s figures as speculative, arguing that they do not originate from the CSO or Central Bank. He contended that contrary to Imbert’s assertions, the cost of goods and services in the country has risen sharply.
Mark highlighted what he termed an “explosive” increase in the cost of living, noting significant rises across various price indices from September 2015 to December 2023. He pointed to the Retail Price Index, which, according to CSO data for that period, rose by 21.8 per cent, indicating a broad escalation in consumer prices. He said the Food Price Index saw an even steeper climb of 43.5 per cent, suggesting that food prices have significantly outpaced general inflation.
He identified specific food items that have experienced dramatic price increases, including butter, margarine and edible oils, which rose by 65.8 per cent. He said other staples such as bread, cereals, meat and fish also saw substantial price hikes.
“So, on the one hand, inflation is low, and on the other hand, Mr. President, the cost of living is extremely high,” he said.
The COVID-19 pandemic significantly impacted food import costs globally between 2020 and 2023. This situation was further exacerbated by global shortages stemming from the ongoing conflict between Russia and Ukraine, which intensified in February 2022.
Mark also criticised the Government for its five per cent wage increase offer to public sector workers for the 2020-2022 bargaining period, as well as the $2 increase for minimum wage public sector employees.