Private Sector Commission

Private Sector Commission Technical Information Bulletin No. 4 Labour Force and Employment in the Guyana Economy Private Sector Commission 157 Waterloo Street North Cummingsburg Georgetown

Labour Force and Employment in Guyana The labour force is defined as the number of persons above a given age limit who are either employed or actively seeking employment. An analysis of this supply of labour is therefore important for business planning and for policy formulation at the macro level. The age limit for inclusion in the labour market usually varies among different counties, providing a challenge for comparative analyses. In Guyana, as in most Caribbean countries, the age limit is 15 years, while in Jamaica and the US, the limits are 14 years and 16 years respectively. Recently released demographic details collected at the Neighbourhood Democratic Council level during the 2002 Census have made possible the construction of the following profile of the Guyana labour market. Prior to this, the most recent information available was for 1997. Data for earlier periods, and for the selected Caribbean countries included, was obtained from the International Labour Organization s statistical database. This examination is limited to the basic features of the labour market and comparisons with other Caribbean countries. Future bulletins will examine the utilization of labour across regions and sectors as well as the relative sizes of occupational groups. The Guyana Labour Market in 2002 The labour force in Guyana in 2002 consisted of 263,149 persons who were 15 years or over. Of these, the number of males was 182,226 or almost 70% of the labour force. The total number of females was 80,923 or 30.8% of the labour force. (see Table 1) Table 1 Labour Force and Employment in Guyana 2002 COUNTRY TOTAL Region 1 Region 2 Region 3 Region 4 Region 5 Region 6 Region 7 Region 8 Region 9 Region 10 Adult Population 476,682 11,653 30,130 67,447 204,284 33,115 79,363 9,922 5,879 10,254 24,635 Labour Force 263,149 6,653 16,309 35,876 119,342 15,904 38,867 6,312 3,551 6,171 14,164 Males 182,226 4,851 12,022 26,963 75,307 12,377 30,062 4,332 2,868 4,305 9,139 Females 80,923 1,802 4,287 8,913 44,035 3,527 8,805 1,980 683 1,866 5,025 Total Employed 232,409 5,544 13,786 33,008 105,270 13,582 34,935 5,680 2,860 5,726 12,018 Males 163,742 4,164 10,591 25,076 67,457 10,847 27,232 4,020 2,354 4,031 7,970 Females 68,667 1,380 3,195 7,932 37,813 2,735 7,703 1,660 506 1,695 4,048 % of Labour Force Employed 88.3% 83.3% 84.5% 92.0% 88.2% 85.4% 89.9% 9 80.5% 92.8% 84.8% Males 89.9% 85.8% 88.1% 93.0% 89.6% 87.6% 90.6% 92.8% 82.1% 93.6% 87.2% Females 84.9% 76.6% 74.5% 89.0% 85.9% 77.5% 87.5% 83.8% 74.1% 90.8% 80.6% Total Unemployed 30,740 1,109 2,523 2,868 14,072 2,322 3,932 632 691 445 2,146 Males 18,484 687 1,431 1,887 7,850 1,530 2,830 312 514 274 1,169 Females 12,256 422 1,092 981 6,222 792 1,102 320 177 171 977 Unemployment Rate 11.7% 16.7% 15.5% 8.0% 11.8% 14.6% 10.1% 1 19.5% 7.2% 15.2% Males 10.1% 14.2% 11.9% 7.0% 10.4% 12.4% 9.4% 7.2% 17.9% 6.4% 12.8% Females 15.1% 23.4% 25.5% 11.0% 14.1% 22.5% 12.5% 16.2% 25.9% 9.2% 19.4% Source: Data extracted from Bureau of Statistics 2002 NDC Census Table 14 Private Sector Commission 1

The total number of employed persons was 232,409 or 88.3% of the labour force, while 30,740 persons or 11.7% of the labour force were unemployed and actively seeking work. The unemployment rate for females was well above the national average at 15.1%, while the rate for males was 10.1% of the male labour force. Due, however, to the significantly higher number of males than females in the labour force, these rates translated into a higher total of unemployed males than females. In 2002, 18,484 males and 12,256 females were unemployed. Regional Distribution The size of the labour force varied widely across the ten regions of Guyana. Region 4, with its larger population, also provided the largest labour force at 119,342 persons or 45.4% of the country total. (see Fig. 1) Regions 3 and 6 also fielded relatively large labour forces at 13.6% and 14.8% respectively, while Regions 1,2,5, and 7-10 together accounted for just over a quarter of the total labour force. Regional Distribution of Guyana's Labour Force, 2002 Region 2, 16,309 Region 3, 35,876 Region 1, 6,653 Region 10, 14,164 Region 9, 6,171 Region 8, 3,551 Region 7, 6,312 Region 6, 38,867 Region 4, 119,342 Region 5, 15,904 Figure 1 Gender disparities were also evident in the geographic distribution of the labour force across the ten regions of Guyana. The disparity was least pronounced in Regions 4 and 10 where females constituted relatively large percentages of the labour force. Region 6, however, with the second largest labour force, had the lowest ratio of females to males. (see Fig. 2) Private Sector Commission 2

Gender Distribution of Guyana's Regional Labour Force, 2002 Figure 2 100% 80% 60% 40% 20% 0% Region 1 Region 2 Region 3 Region 4 Region 5 Region 6 Region 7 Region 8 Region 9 Region 10 Males Females Employment status of the labour force also varied widely across the regions. Unemployment in Region 4, at 11.8%, was close to the national average while total unemployment in Region 8, which has the smallest labour force, reached 19.5%. Region 9 had the lowest unemployment rate with 7.2% of its labour force, or 445 persons, not working. (see Fig. 3) 7,850 Number of Unemployed Persons in Guyana by Region, 2002 Males Females 6,222 16.7% 15.5% Unemployment Rates 8.0% 14.6% 11.8% 10.1%1 19.5% 7.2% 15.2% Region 1 Region 2 Region 3 Region 4 Region 5 Region 6 Region 7 Region 8 Region 9 Region 10 2,830 1,887 1,431 1,530 687 422 1,092 981 792 1,102 312 320 514 274 177 171 1,169 977 Region 1 Region 2 Region 3 Region 4 Region 5 Region 6 Region 7 Region 8 Region 9 Region 10 Figure 3 Examination of the gender composition of unemployment within the regional labour force reveals pockets of high unemployment among women across the regions. In Region 8, for example, 25.9% of the female labour force were unemployed while the jobless rate for women in Regions 2 and 1 reached 25.5% and 23.4% respectively. (see Table 1) Private Sector Commission 3

Generally, the unemployment rate for females was highest in regions with small workforces, resulting in a relatively low overall female rate of 15.1%. Labour Force and Employment Trends 1970-2002 The size of the Guyana labour force grew from 182,171 persons in 1970 to 275,390 in 1986. By 1992, an additional 2,688 persons had entered the market despite a 2% decline in the adult population. (see Table 2) Table 2 Aggregate Changes in Guyana's Labour Market from 1970 to 2002 1970 1980 1986 1992 1997 2002 Adult Population 370,102 449,242 476,783 467,173 n.a. 476,682 Total Labour Force 182,171 231,547 275,390 278,078 263,807 263,149 Total Employed 154,126 192,636 239,816 245,492 239,847 232,409 Total Unemployed 28,045 38,911 35,524 32,586 23,960 30,740 Unemployment Rate 15.4% 16.8% 12.9% 11.7% 9.1% 11.7% Employment to Pop. Ratio 41.6% 42.9% 50.3% 52.5% n.a. 48.8% Labour Force Participation Rat 49.2% 51.5% 57.8% 59.5% n.a. 55.2% Sources: Data Extracted from National Development Strategy and Bureau of Statistics 2002 NDC Census Table 14 From 1970 to 1980, labour force growth exceeded the rate of job creation. This caused the unemployment rate to increase from 15.4% to 16.8% in 1980. The period 1980 to 1986, however, saw an expansion of the labour force by 18.9% or 43,843 persons while the number of jobs increased by 24.5% or 47,180 reducing the level of unemployment to 12.9%. Aggregate Changes in Guyana's Labour Market from 1970 to 2002 300,000 250,000 231,547 275,390 239,816 278,078 245,492 263,807 239,847 263,149 232,409 200,000 182,171 154,126 192,636 150,000 100,000 50,000 28,045 38,911 35,524 32,586 23,960 30,740 0 1970 1980 1986 1992 1997 2002 Total Labour Force Total Employed Total Unemployed Figure 4 Private Sector Commission 4

During the period 1986 to 1992, 5,677 jobs were created, more than twice the number of persons who entered the labour force. This resulted in a further lowering of the unemployment rate to 11.7%. From 1992 to 1997, the labour force declined by 5.1% from 278,078 to 263,807, but employment declined at a slower rate of 2.3% from 245,492 to 239,847. These factors led to a significant reduction of the unemployment rate to 9.1%. Figure 5 shows the relationship between labour force and employment growth from 1970 to 2002. The downward trend of both the labour force and employment continued from 1997 to 2002 but, while the labour force declined by only 0.2%, the number of jobs fell by 3.1% to 232,409 increasing the unemployment rate to the 1992 level of 11.7%. 3 25.0% 2 Growth Rates of Labour Force and Employment in Guyana between 1970 to 2002 (absolute % change from beginning to end of each period) 27.1% 25.0% 24.5% 18.9% 15.0% 1 5.0% -5.0% -1 2.4% 1.0% -2.3% -3.1% -5.1% -0.2% 1970 to 1980 1980 to 1986 1986 to 1992 1992 to 1997 1997 to 2002 Labour Force Employment Figure 5 Gender Distribution of the Labour Force 1970 to 2002 From 1970 to 1992, the proportion of females in the labour force increased steadily from a 1970 level of 19% in 1970 to 39.3% in 1992. By 2002, however, females accounted for only 30.8% of the labour force. (see Fig. 6) Gender Distribution of Guyana's Total Labour Force, 1970 to 2002 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 19.0% 24.5% 33.5% 39.3% 30.8% 81.0% 75.5% 66.5% 69.2% 60.7% 1970 1980 1986 1992 1997 2002 Males Females Figure 6 Private Sector Commission 5

Labour Force Participation in Guyana, 1970 to 2002 The labour force participation rate measures the proportion of the eligible population which is either working or able and willing to work. In Guyana, the labour force participation rate from 1970 to 1986 followed the increasing trend of the labour force and the adult population, moving from 49.2% of the population in 1970 to 57.5% in 1986. In 1992, however, the adult population declined by 2% to 467,173 but the number of persons entering the labour force increased by almost 1% to 278,078. This occasioned an increase in the labour force participation rate to 59.5% of the potential work force. By 2002, the potential work force had recovered to 476,682, almost back to the 1986 level of 476,783 but the labour force had contracted to 263,149 or 55.2% of the population. (see Fig. 7) 10 9 8 7 6 5 4 3 2 1 49.2% Labour Force Participation Rates in Guyana, 1970 to 2002 (i.e. % of over-15 population able and willing to work) 51.5% 57.8% 59.5% 55.2% 1970 1980 1986 1992 1997 2002 Figure 7 Private Sector Commission 6

Labour Force and Employment in Selected Caribbean Countries Figure 8 depicts the size of the labour force and the employment status, in absolute terms, of Guyana s labour force as compared with that of Barbados, Jamaica and Trinidad and Tobago. Labour Force and Employment in Selected Caribbean Countries, 2002 ('000's of persons) 1,200 1,104.8 1,000 939.4 800 600 400 Labour Force Employment Unemployment 263.1 586.2 525.1 200 143.2 128.6 14.8 232.4 30.7 165.4 61.1 0 Barbados Guyana Jamaica Trinidad & Tobago Figure 8 A comparison of the characteristics of Guyana s labour force with those of the other three major economies of the Caribbean for the years 1997 and 2002 is shown in Table 3. Table 3 Labour Force and Employment in Selected Caribbean Countries, 1997 & 2002 ('000's of persons) Barbados Guyana Jamaica Trinidad & Tobago 1997 2002 % change 1997 2002 % change 1997 2002 % change 1997 2002 % change Labour Force 135.8 143.4 5.6% 263.8 263.1-0.2% 1,133.8 1,104.8-2.6% 541.0 586.2 8.4% Males 69.8 74.1 6.2% 170.9 182.2 6.6% 613.8 618.1 0.7% 335.8 356.9 6.3% Females 66.0 69.2 4.8% 92.9 80.9-12.9% 520.0 486.7-6.4% 205.2 229.3 11.7% Total Employed 116.1 128.6 10.8% 239.8 232.4-3.1% 946.9 939.4-0.8% 459.8 525.1 14.2% Males 61.9 67.7 9.4% 160.3 163.7 2.2% 549.0 554.8 1.1% 294.5 329.0 11.7% Females 54.3 60.9 12.2% 79.6 68.7-13.7% 397.9 384.7-3.3% 165.3 196.1 18.6% % of Labour Force Employed 85.5% 89.7% 4.9% 90.9% 88.3% -2.9% 83.5% 85.0% 1.8% 85.0% 89.6% 5.4% Males 88.7% 91.4% 3.0% 93.8% 89.9% -4.2% 89.4% 89.8% 0.4% 87.7% 92.2% 5.1% Females 82.3% 88.0% 7.0% 85.7% 84.9% -1.0% 76.5% 79.0% 3.3% 80.6% 85.5% 6.2% Total Unemployed 19.6 14.8-24.5% 24.0 30.7 28.3% 186.9 165.4-11.5% 81.2 61.1-24.8% Males 7.9 6.4-19.0% 10.7 18.5 73.4% 64.8 63.4-2.2% 41.3 27.9-32.4% Females 11.7 8.4-28.2% 13.3 12.3-7.9% 122.1 102.1-16.4% 39.9 33.2-16.8% Unemployment Rate (%) 14.5% 10.3% -29.0% 9.1% 11.7% 28.6% 16.5% 15.0% -9.1% 15.0% 10.4% -30.7% Males 11.3% 8.7% -23.0% 6.2% 10.1% 62.9% 10.6% 10.3% -2.8% 12.3% 7.8% -36.6% Females 17.8% 12.1% -32.0% 14.3% 15.1% 5.6% 23.5% 21.0% -10.6% 19.4% 14.5% -25.3% Sources: Data Extracted from International Labour Organization, Caribbean Labour Statistics and Bureau of Statistics, Guyana, NDC Census Data 2002 Table 14 Private Sector Commission 7

For each country the male labour force grew between 1997 and 2002 but a significant decline in the female labour force in both Guyana and Jamaica led to a decline in the total labour force. In Guyana, a 12.9% decrease in the number of females available for work in 2002 caused a.02% decline in the size of the overall total. In Jamaica, where there is a lower disparity in the gender composition of the work force, a 6.4% decrease in the number of females, and a 0.7% increase in the number of males, occasioned a 2.6% decline in the overall labour force. (see Fig. 9) Labour Force Growth - Selected Caribbean Countries 1997 to 2002 15.0% Males Females Total 11.7% 1 6.2% 4.8% 6.6% 6.3% 5.0% 5.6% 0.7% 8.4% -0.2% -2.6% -5.0% -6.4% -1-12.9% -15.0% Barbados Guyana Jamaica Trinidad & Tobago Figure 9 Sources: Data Extracted from ILO Caribbean Labour Statistics & Bureau of Statistics, Guyana, NDC Census Data Table 14 Gender Distribution of the Labour Force in Selected Caribbean Economies, 2002 In 2002, the economies of Barbados and Trinidad & Tobago showed significant improvements towards a lessening of the gender disparities of the labour force while those of Guyana and Jamaica showed an increase in disparity. In Barbados, for example, women accounted for almost half of the labour force. In contrast, the proportion of females in Guyana s labour force contracted to just 30.8% of the total. (see Fig. 10) In Jamaica, despite a 6.4% decline in the number of females entering the labour market, women still accounted for 44.1% of the total. Private Sector Commission 8

Composition of Labour Force by Gender, 2002 10 9 8 7 6 5 4 3 2 1 Males 30.8% 48.3% 44.1% 39.1% 51.7% 69.2% 55.9% 60.9% Barbados Guyana Jamaica Trinidad & Tobago Females Figure 10 Unemployment in Selected Caribbean Countries With the exception of Guyana, unemployment rates declined in the major economies of the Caribbean over the period 1997 to 2002. (see Fig. 11) Unemployment Rates in Selected Caribbean Countries 1997 & 2002 25.0% 1997 2002 2 15.0% 14.5% 16.5% 15.0% 15.0% 1 10.3% 9.1% 11.7% 10.4% 5.0% Barbados Guyana Jamaica Trinidad & Tobago Figure 11 Though Guyana s labour force declined marginally over the period, unemployment moved from 9.1% in 1997 to 11.7% in 2002, with the number of available jobs declining by 7,400 or 3.1%. Gender Distribution of Unemployment in the Caribbean in 2002 Unemployment among females in Guyana declined by 7.9% from 1997 to 2002, but the number of jobless males increased over the same period by 73.3% to 18,500. This resulted in males constituting more than 60% of the total unemployed labour force. Private Sector Commission 9

This phenomenon was in stark contrast to the other Caribbean economies examined where unemployment was higher among females in 2002. In Jamaica, for instance, females constituted 61.7% of the total number of unemployed persons. (see Fig. 12) Distribution of Unemployment by Gender, 2002 10 8 56.8% 39.9% 61.7% 54.3% 6 4 2 43.2% 60.1% 38.3% 45.7% Figure 12 Males Barbados Guyana Jamaica Trinidad & Tobago Females Labour Force Participation in Selected Caribbean Countries, 1997 to 2002 In 2002, Guyana had the lowest labour force participation rate among the Caribbean countries examined. At 55.2% the rate was significantly lower than that of Trinidad & Tobago, the country with the next lowest rate of participation. (see Fig. 13) Labour Force Participation Rates in Selected Caribbean Countries, 2002 (i.e. % of over-15 population able and willing to work) 10 9 8 7 6 5 4 3 2 1 68.5% 1,997 67.5% 66.5% 63.6% 60.3% 60.9% 2,002 55.2% Barbados Guyana Jamaica Trinidad & Tobago Note: Data for Guyana 1997 not available; Jamaica - over 14 population Figure 13 International Labour Force Participation Rate A comparison of labour force participation rates across the globe in 2001, as compiled by the International Labour Organization, is depicted in Figure 14, while the global gaps between participation rates for males and females are shown in Figure 15. Private Sector Commission 10

Figure 14 International Labour Force Participation Rates Source: International Labour Organization Figure 15 Global Gaps in Labour Force Participation Rates of Males and Females Source: International Labour Organization Private Sector Commission 11