The Labour Market, Employment and The Strength of The Bahamas Economy

Employment and the Labour Market in The Bahamas

The job market in The Bahamas should be more occupied with Bahamian labor than foreign ones, and the Bahamian middle class must be reinforced to make The Bahamas more economically balanced

By Jamal Moss
Nassau, The Bahamas

The challenges of Bahamian labor markets comprise various complex issues that affect the strength of its economy.  This article delves into one of the issues that is critical - measures to build up the middle class in the wake of taxation and inflation.  Thus, this issue is noted, and corresponding gradual commonsense changes are suggested, considering the nature of the Bahamian labor market and possible directions for its development. 

Strengthening the Middle Class

The current economic climate shows that the middle class faces hardships as taxes and inflation rates continue to rise in The Bahamas.  These costs, such as housing, medical care, food, and other essentials, burden middle-income earners and slow their income growth.  Increased taxes for middle-income earners and small business owners intensify the financial challenges.  The government needs to enact policies that reduce the tax burden, tame inflation, encourage the construction of affordable housing for its population and solve the problem of rather costly health care.

Offering tax credits for small businesses, decreasing barriers to underestimating small companies, and assisting development in the middle class contribute to the economy's steady growth.

Solutions

1. Prudent tax incentives are required to lower critical costs for middle-income earners and small businesses.  Broadening the base means decreasing the VAT rates on food and other necessary products and services that affect citizens' daily lives. 

2. Support in the form of tax credits for homeownership and education costs can further ease the burden on family spending and make more provisions for their future.  Further, tax incentives for small businesses will ensure that they operate, thus creating employment opportunities for the country’s citizens.

3. An affordable housing project is needed so that more middle-income earners can own houses.  The price for constructing affordable housing projects can be lowered through government grants or by providing soft loans for first-time home buyers.  Success in mortgage approval and a decrease in down payments shall continue to ease homeownership.  It also helps with the stability and financial side of the family.  It also helps with the economy, not to mention the expansion of home builders and services that result from the increase in home construction.

4. The general welfare of the income earners will need to address issues that affect inflation and, consequently, the cost of living.  Sherman (2022) states in the Nassau Guardian that there is a possibility of maintaining stable prices and thus avoiding inflation by controlling and setting the prices of the goods and services necessary for the population.  Simplifying the expected price range with the help of introducing ceilings or floors for prices for foodstuffs, medications, and utilities can make the profile more affordable.  Measures, such as removing VAT off medical services, will reduce healthcare costs and reduce pressure on the financial burden.  It will improve local production, reduce importation, ensure the stability of prices, and create employment opportunities through the grants, loans, and venture and technical support that will be rendered to the business.

Awareness creation among members of the public in these areas of financial management, investment, and the available government assistance will equip middle-income earner families with the knowledge and thus help them be in good standing to face the present economic challenging hard times.

Conclusion

The brain drain issue should be addressed continuously and practiced to achieve justice.  The job market should be more occupied with Bahamian labor than foreign ones, and the middle class must be reinforced to make The Bahamas more economically balanced.  By funding education, implementing sound policies and policies, and deploying other specialized measures, employment in The Bahamas can be made to serve the interests of all its citizens.  A detailed planning process integrated with stakeholders can ensure that progressive improvements are brought to enhance the online education system, hence improving economic growth and security.

The Bahamas National Trade Policy Instituted

With the launch of the National Trade Policy, The Bahamas now has a comprehensive framework for trade that the government intends to use to lower the trade deficit by empowering more local businesses to tap into export markets.

Speaking at a press conference held on Thursday, 25 May, 2023 to announce the launch of the nation’s first-ever National Trade Policy, Bahamas Trade Commission Chairman, Philip Galanis, said that trade is expected to play a big role in the Bahamian economy as the nation continues its post-pandemic recovery.

“Prior to the pandemic, the export of services, particularly tourism related services, served as a counterbalance to our food and goods trade deficit.  However, moving forward we are seeking to expand existing areas of strength and diversify into new areas to create new trade opportunities for local businesses and more resilient national economy.”

With the launch of the National Trade Policy, Chairman Galanis indicated that country finally has a coherent approach to the development of trade in alignment with wider national development plans.  He stated that the policy is “comprehensive and with broad impacts on the Bahamian economy.”

“This Policy speaks to more effective management of imports through reviewing our tariff structure, the need for competition laws, domestic preferences, and improved incentive schemes.  It addresses how we will expand existing exports through our trade promotion efforts and development programmes, a full review of the existing tax regime, the embracing of digital technology, and the development of free trade zones.”

“Through this Policy, The Bahamas will diversify its exports in target areas within the blue, green, and orange economies, while strengthening our domestic competitiveness through the creation of more service-oriented, faster processes combined with greater education and support for local businesses.”

Chairman Galanis credited the extensive consultation process done over the past two years with local businesses, trade experts, and other stakeholders for the comprehensiveness of the Policy.

“We have held numerous formal and informal sessions with local businesses of all sizes and in all relevant industries, securing vital stakeholder input that played a big role in the crafting of the policy.  The document we have today reflects that input, as well as the inclusion of input from top local and international experts.  As a result, we have developed a trade framework that addresses local needs and is responsive to global demand.”

Moving forward, Mr. Galanis encouraged all local businesses who are interested in participating in international trade or expanding the extent of their trade activity to reach out to the Trade Commission to learn more about the Policy and upcoming opportunities for enrichment.

He also welcomed all industry stakeholders to continue to work collaboratively with the government as the policy is rolled out, so that all initiatives continue to reflect the needs and input of Bahamian businesses.

“Most trade is conducted by businesses, not the Government, and affects the lives of the Bahamian people, so it will take the joint efforts of both the Government, as well as the private sector, to truly encourage economic diversification in the country.  I encourage you all to take an interest in trade and to learn more about the importance of trade to helping us building a stronger economy.”

Those who wish to learn more about the National Trade Policy can download a copy of the policy at https://moea.gov.bs/the-bahamas-national-trade-policy.

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