MINISTRY OF LABOUR AND SMALL AND MICRO ENTERPRISE DEVELOPMENT

1. MINISTRY OF LABOUR AND SMALL AND MICRO ENTERPRISE DEVELOPMENT UNEMPLOYMENT AND SOCIAL SECTOR ISSUES: PROMOTING DECENT WORK AS A SOLUTION Presented by: Ms. Shanmatee Singh, Acting Director of Research and Planning, Ministry of Labour and Small and Micro Enterprise Development Conference on the Economy 2008 University of the West Indies, St.Augustine October 9, 2008

2. Unemployment is widely regarded as a major social and economic global problem It has challenged and continues to challenge the minds of professionals � economists, sociologist, psychologists, planners, policy makers etc.

3. major trends in unemployment possible causes and consequences of unemployment some initiatives to address unemployment employment within the decent work framework reflections on the way forward

4. Defining unemployment concept

5. Serious work towards modernization of Trinidad and Tobago�s OSH law began at around the year 2000. First, the Ministry sought to identify a number of key principles that would underlie the new law. Such principles included: a modern framework for the operation of decent standards of safety and health and the protection of the working population from injury and disease; law that would ensure that all persons who are employees at work or who are exposed to situations arising out of or in connection with work in an industrial establishment would enjoy adequate safety, health, protection and welfare amenities; law that is transparent and clearly identifies rights, obligations, responsibilities, duties, enforcement and compliance mechanisms; a dynamic system of monitoring to ensure that emphasis is placed on prevention; law that promotes voluntary compliance but is strong on enforcement; and stakeholder collaboration to ensure belief and knowledge that safe and healthy systems of work mean benefits to industry and the economy. Some key themes identified were: PREVENTION, PRIORITY SETTING, ACTION PLANNING, ENFORCEMENT AND COMPLIANCE, IMPLEMENTATION, MONITORING AND REPORTING. The identification of these principles were informed by international developments in OSH, in particular the work being done by the ILO in this area. The Ministry of Labour sought to review the provisions of key ILO instruments such as: Convention No. 155, Occupational Safety and Health Convention, 1981; Recommendation No. 164, Occupational Safety and Health Recommendation, 1981;and Protocol of 2002 to the Occupational Safety and Health Convention, 1981. The work of the Caribbean Community (CARICOM) Secretariat was also instrumental in providing guidance through the CARICOM Model Law on OSH. A defining feature of the process has been and continues to be tripartite consultations. Given the desire to broaden the scope of coverage to include all workers, not just those employed in factories, and in recognition of employers� and workers� rights as well as responsibilities in relation to their health and safety, representatives of trade unions and employers were brought into the process at an early stage. The consultative process was formalized in May 2003 with the establishment of an Occupational Safety and Health Council, comprising the social partners as well as representatives of Non-governmental organizations, for a period of five (5) months with the following terms of reference: to draft an Occupational Safety and Health Policy; to develop codes that would provide the framework for the Occupational Safety and Health Authority to carry out its functions; and to submit recommendations for the organizational structure of the Occupational Safety and Health Authority. The Council submitted its recommendations and drafts which formed the basis for finalization of the draft law. Serious work towards modernization of Trinidad and Tobago�s OSH law began at around the year 2000. First, the Ministry sought to identify a number of key principles that would underlie the new law. Such principles included: a modern framework for the operation of decent standards of safety and health and the protection of the working population from injury and disease; law that would ensure that all persons who are employees at work or who are exposed to situations arising out of or in connection with work in an industrial establishment would enjoy adequate safety, health, protection and welfare amenities; law that is transparent and clearly identifies rights, obligations, responsibilities, duties, enforcement and compliance mechanisms; a dynamic system of monitoring to ensure that emphasis is placed on prevention; law that promotes voluntary compliance but is strong on enforcement; and stakeholder collaboration to ensure belief and knowledge that safe and healthy systems of work mean benefits to industry and the economy. Some key themes identified were: PREVENTION, PRIORITY SETTING, ACTION PLANNING, ENFORCEMENT AND COMPLIANCE, IMPLEMENTATION, MONITORING AND REPORTING. The identification of these principles were informed by international developments in OSH, in particular the work being done by the ILO in this area. The Ministry of Labour sought to review the provisions of key ILO instruments such as: Convention No. 155, Occupational Safety and Health Convention, 1981; Recommendation No. 164, Occupational Safety and Health Recommendation, 1981;and Protocol of 2002 to the Occupational Safety and Health Convention, 1981. The work of the Caribbean Community (CARICOM) Secretariat was also instrumental in providing guidance through the CARICOM Model Law on OSH. A defining feature of the process has been and continues to be tripartite consultations. Given the desire to broaden the scope of coverage to include all workers, not just those employed in factories, and in recognition of employers� and workers� rights as well as responsibilities in relation to their health and safety, representatives of trade unions and employers were brought into the process at an early stage. The consultative process was formalized in May 2003 with the establishment of an Occupational Safety and Health Council, comprising the social partners as well as representatives of Non-governmental organizations, for a period of five (5) months with the following terms of reference: to draft an Occupational Safety and Health Policy; to develop codes that would provide the framework for the Occupational Safety and Health Authority to carry out its functions; and to submit recommendations for the organizational structure of the Occupational Safety and Health Authority. The Council submitted its recommendations and drafts which formed the basis for finalization of the draft law.

6. Unemployment rate has declined significantly over the last decade form 14.2% in 1998 to 5.5% in 2007 and more recently to 4.2% in second quarter 2008 - a level considered by many economist to be full employment TRENDS IN UNEMPLOYMENT This slide shows the chronology of events from the assenting by Parliament of the Occupational Safety and Health Act at the start of January 2004 to August last year when the OSHA took full effect. Between the period February 17, 2006 to August 17, 2007 the Factories Ordinance was left operational as the arrangements for the establishment of the Occupational Safety and Health Agency, which is provided for in the Act, were being put in place. This slide shows the chronology of events from the assenting by Parliament of the Occupational Safety and Health Act at the start of January 2004 to August last year when the OSHA took full effect. Between the period February 17, 2006 to August 17, 2007 the Factories Ordinance was left operational as the arrangements for the establishment of the Occupational Safety and Health Agency, which is provided for in the Act, were being put in place.

7. Youth unemployment rate remained substantially higher than adult unemployment rate and national unemployment rate. A youth is defined as a person between the ages of 15-24 years However, there was a significant decline in the youth unemployment rate from 20.6% in 2003 to 10.5% in 2007.A youth is defined as a person between the ages of 15-24 years However, there was a significant decline in the youth unemployment rate from 20.6% in 2003 to 10.5% in 2007.

8. TRENDS IN UNEMPLOYMENT This indicator comprises two measures of long-term unemployment: the long-tem unemployment rate, calculated as the number of persons unemployed one year or longer as a percentage of the labour force; and the incidence of long-term unemployment, calculated as the number of persons unemployed one year or longer as a percentage of the total unemployed. This indicator may highlight concerns and issues in the labour market where the percentages are high. Long-term unemployment is potentially undesirable as the longer a person is unemployed, the more the chances of finding a job decline. Based on available data up to 2006, the long-term unemployment rate in Trinidad and Tobago has declined from 2.5% in 2002 to 1.3% in 2006. The female long-term unemployment rate reflected a higher rate than that for males as shown in Table 5 and Figure 4. Calculation of the incidence of long-term unemployment show that in 2006, the most recent year for which data is available, approximately one-fifth of the total unemployed were in this state for one year or longer. Though this rate has declined from 23.7% in 2002 as shown in Table 6 and Figure 5, it is still a cause for concern especially among females. This indicator comprises two measures of long-term unemployment: the long-tem unemployment rate, calculated as the number of persons unemployed one year or longer as a percentage of the labour force; and the incidence of long-term unemployment, calculated as the number of persons unemployed one year or longer as a percentage of the total unemployed. This indicator may highlight concerns and issues in the labour market where the percentages are high. Long-term unemployment is potentially undesirable as the longer a person is unemployed, the more the chances of finding a job decline. Based on available data up to 2006, the long-term unemployment rate in Trinidad and Tobago has declined from 2.5% in 2002 to 1.3% in 2006. The female long-term unemployment rate reflected a higher rate than that for males as shown in Table 5 and Figure 4. Calculation of the incidence of long-term unemployment show that in 2006, the most recent year for which data is available, approximately one-fifth of the total unemployed were in this state for one year or longer. Though this rate has declined from 23.7% in 2002 as shown in Table 6 and Figure 5, it is still a cause for concern especially among females.

9. TRENDS IN UNEMPLOYMENT This indicator provides insights into the relationship between the educational attainment of workers and unemployment. Educational attainment is currently the best available indicator of the skills level of the workforce. This information can impact on both employment and education policies so as to achieve a better match between employment opportunities and skills in the labour market. Table 7 confirms the correlation between unemployment and education. Unemployment rates for both males and females were lowest among those with tertiary education. However, it should be noted that among males, those with secondary education experienced higher unemployment than those with primary education for each year over the period 2003-2007 (Figure 6 refers). This highlights a problem of males with secondary education being able to access jobs compared to those with primary ed This indicator provides insights into the relationship between the educational attainment of workers and unemployment. Educational attainment is currently the best available indicator of the skills level of the workforce. This information can impact on both employment and education policies so as to achieve a better match between employment opportunities and skills in the labour market. Table 7 confirms the correlation between unemployment and education. Unemployment rates for both males and females were lowest among those with tertiary education. However, it should be noted that among males, those with secondary education experienced higher unemployment than those with primary education for each year over the period 2003-2007 (Figure 6 refers). This highlights a problem of males with secondary education being able to access jobs compared to those with primary ed

10. There are also a number of attendant issues arising from the present unemployment situation and the current state of the labour market in Trinidad and Tobago. These are briefly discussed below. Labour Shortage One of the biggest challenge currently facing the Trinidad and Tobago labour market is the shortage of workers especially skilled workers. Migrant labour is one of the many avenues currently being used to address this issue. According to research conducted by the National Training Agency (NTA), there is a skills shortage of 81,501 in seven (7) key sectors as of 2008. These key sectors are as follows: Construction; Personal Services; Distribution; Agriculture; Hospitality; Manufacturing and Financial Services The top three (3) sectors where this shortage is most notable is in the Construction Sector (shortage of 23,609 persons); Personal Services (20,246 persons) and Distribution (15,474 persons). Table 8 refers.There are also a number of attendant issues arising from the present unemployment situation and the current state of the labour market in Trinidad and Tobago. These are briefly discussed below. Labour Shortage One of the biggest challenge currently facing the Trinidad and Tobago labour market is the shortage of workers especially skilled workers. Migrant labour is one of the many avenues currently being used to address this issue. According to research conducted by the National Training Agency (NTA), there is a skills shortage of 81,501 in seven (7) key sectors as of 2008. These key sectors are as follows: Construction; Personal Services; Distribution; Agriculture; Hospitality; Manufacturing and Financial Services The top three (3) sectors where this shortage is most notable is in the Construction Sector (shortage of 23,609 persons); Personal Services (20,246 persons) and Distribution (15,474 persons). Table 8 refers.

11. Other unemployment related data

12. Other unemployment related data The problem of labour shortage is partly being addressed through the inward migration of persons from within the CARICOM region and well as extra-regionally. Work permits are issued to a particular person for a specified period of time and for attachment to a particular company or institution. During the period 2001-2005, the number of work permits issued increased significantly by 3,750 or 548.2%, from 684 in 2001 to 4,434 in 2005. For the year 2005, 4,434 work permits were issued, reflecting an increase of 1,528 or 52.6% over the previous year 2004. Table 10 refers. The Petroleum and Gas Sector has consistently accounted for the largest number of permits issued. In 2005, 32.9% of the total permits issued in Trinidad and Tobago were for workers in the Petroleum and Gas Sector. In light of major industrial developments in this sector, the statistics indicate a significant increase in the number of work permits issued in 2005 as compared to 2004. In 2005, work permits issued for workers in the Petroleum and Gas Sector increased by 103.2% from 717 work permits to 1,457. Other Industrial Groups, which show major increases in 2005, were Construction, an increase of 401 or 95.0%; Transportation, Storage and Communication increased by 300 or 93.9%; Community, Social and Personal Services an increase of 361 or 83.2%. There were also increases in Manufacturing; Wholesale and Retail Trade and Restaurants and Hotels. The Industry Groups of Agriculture, Hunting Forestry and Fishing and Electricity and Water showed decreases of 2 or 100% and 11 or 44.0% respectfully. The problem of labour shortage is partly being addressed through the inward migration of persons from within the CARICOM region and well as extra-regionally. Work permits are issued to a particular person for a specified period of time and for attachment to a particular company or institution. During the period 2001-2005, the number of work permits issued increased significantly by 3,750 or 548.2%, from 684 in 2001 to 4,434 in 2005. For the year 2005, 4,434 work permits were issued, reflecting an increase of 1,528 or 52.6% over the previous year 2004. Table 10 refers. The Petroleum and Gas Sector has consistently accounted for the largest number of permits issued. In 2005, 32.9% of the total permits issued in Trinidad and Tobago were for workers in the Petroleum and Gas Sector. In light of major industrial developments in this sector, the statistics indicate a significant increase in the number of work permits issued in 2005 as compared to 2004. In 2005, work permits issued for workers in the Petroleum and Gas Sector increased by 103.2% from 717 work permits to 1,457. Other Industrial Groups, which show major increases in 2005, were Construction, an increase of 401 or 95.0%; Transportation, Storage and Communication increased by 300 or 93.9%; Community, Social and Personal Services an increase of 361 or 83.2%. There were also increases in Manufacturing; Wholesale and Retail Trade and Restaurants and Hotels. The Industry Groups of Agriculture, Hunting Forestry and Fishing and Electricity and Water showed decreases of 2 or 100% and 11 or 44.0% respectfully.

13. Other unemployment related data Certificates of Recognition of Caribbean Community Skills Qualification (Skills Certificates) The free movement of labour is a significant feature of the CARICOM Single Market and Economy (CSME). Currently, certain categories of wage-earners are permitted to move freely within CARICOM. These persons are: University Graduates, Sports Persons, Media Persons, Artistes, Musicians, Nurses and Teachers, Self-employed persons. Movement is facilitated through the Certificate of Recognition of CARICOM Skills Qualification, also known as a CARICOM Skills Certificate. For the period 2001 up to the end of January 2008, the Government of Trinidad and Tobago has issued 1,489 Skills Certificates to its citizens.� The breakdown by country is presented at Table 11. � Certificates of Recognition of Caribbean Community Skills Qualification (Skills Certificates) The free movement of labour is a significant feature of the CARICOM Single Market and Economy (CSME). Currently, certain categories of wage-earners are permitted to move freely within CARICOM. These persons are: University Graduates, Sports Persons, Media Persons, Artistes, Musicians, Nurses and Teachers, Self-employed persons. Movement is facilitated through the Certificate of Recognition of CARICOM Skills Qualification, also known as a CARICOM Skills Certificate. For the period 2001 up to the end of January 2008, the Government of Trinidad and Tobago has issued 1,489 Skills Certificates to its citizens.� The breakdown by country is presented at Table 11. �

14. Notable among such economists is Dr. Trevor M.A. Farrell, who in his logical, systematic and simple manner has documented his thoughts on unemployment in Trinidad and Tobago. In his paper, The Roots of Unemployment, Dr. Farrell made a number of useful observations in the approach to addressing the problem of unemployment, observations which have broader useful implications for social science research. He noted the multifaceted dimensions of unemployment and its multi-causal nature as well as the need for action on a number of fronts and �not just one grand policy initiative.� Interestingly, Dr. Farrell has highlighted the fact that the causes of unemployment in one country may change over time and full investigation required both a micro- and a macro approach. Today, Trinidad and Tobago�s unemployment situation is markedly different from the 1980�s and the 1990�s where this country can now boast of near full employment by international standards. This Paper seeks to review some of the major trends in unemployment in Trinidad and Tobago over the past decade as well as re-examine possible causes and consequences of unemployment and initiatives undertaken in this regard. Further, this Paper places the issue of unemployment within the decent work framework and provides some reflections on the way forward.Notable among such economists is Dr. Trevor M.A. Farrell, who in his logical, systematic and simple manner has documented his thoughts on unemployment in Trinidad and Tobago. In his paper, The Roots of Unemployment, Dr. Farrell made a number of useful observations in the approach to addressing the problem of unemployment, observations which have broader useful implications for social science research. He noted the multifaceted dimensions of unemployment and its multi-causal nature as well as the need for action on a number of fronts and �not just one grand policy initiative.� Interestingly, Dr. Farrell has highlighted the fact that the causes of unemployment in one country may change over time and full investigation required both a micro- and a macro approach. Today, Trinidad and Tobago�s unemployment situation is markedly different from the 1980�s and the 1990�s where this country can now boast of near full employment by international standards. This Paper seeks to review some of the major trends in unemployment in Trinidad and Tobago over the past decade as well as re-examine possible causes and consequences of unemployment and initiatives undertaken in this regard. Further, this Paper places the issue of unemployment within the decent work framework and provides some reflections on the way forward.

15. Unemployment has been a phenomenon which plays a deciding role on the hue of macro and micro economic indicators of a country. As such, it attracts a variety of explanations. According to Farrell, in his paper The Roots of Unemployment the cause of unemployment can be �hydra-headed�, that is, it may be a consequence of several factors, and he cites the following as causes of unemployment in Caribbean societies: Effective demand for output; Production technology; Organisational technology; Capital; Skilled labour; Relative factor prices and availabilities; Infrastructure and ancillary services; Land (physical environment and the natural environment); The socio-legal framework; and Demographic factors. Unemployment has been a phenomenon which plays a deciding role on the hue of macro and micro economic indicators of a country. As such, it attracts a variety of explanations. According to Farrell, in his paper The Roots of Unemployment the cause of unemployment can be �hydra-headed�, that is, it may be a consequence of several factors, and he cites the following as causes of unemployment in Caribbean societies: Effective demand for output; Production technology; Organisational technology; Capital; Skilled labour; Relative factor prices and availabilities; Infrastructure and ancillary services; Land (physical environment and the natural environment); The socio-legal framework; and Demographic factors.

16. SOME INITIATIVES TO ADDRESS THE CAUSES AND CONSEQUENCES OF UNEMPLOYMENT Unemployment relief programmes eg. URP, CPEP Universal Early Childhood Care and Education Expansion and upgrade of primary school Free tertiary education such as the Government Assistance for Tuition Expenses (GATE) Programme and the Higer Education Loan Plan (HELP) On the Job Training Programme (OJT) Multi-sector Skills Training (MuST) Programme Retraining Programme Help you prepare for Employment (HYPE) Promotion of Small and Micro Enterprise Development �NEDCO, Fair Share, Enterepreneurial Training Institute and Incubation Centres (ETIIC) Rationalization and revitalization of Non-Financial C-operative Other social sector programmes

17. EMPLOYMENT WITHIN THE DECENT WORK FRAMEWORK

18. Simply stated, Decent work sums up the aspirations of people in their working lives and involves the following: opportunities for work that is productive and delivers a fair income; security in the workplace; social protection for families; better prospects for personal development and social integration; freedom for people to express their concerns, organize and participate in the decisions that affect their lives; and equality of opportunity and treatment for all women and men EMPLOYMENT WITHIN THE DECENT WORK FRAMEWORK Decent work is promoted through the Decent Work Agenda. This Agenda comprises the following four pillars namely: 1. The Promotion of Standards and Fundamental Principles and Rights at Work Certain ILO Conventions are regarded as core or fundamental in that adherence to their provisions ensure certain basic rights of workers. These Conventions are set out in the ILO Declaration on Fundamental Principles and Rights at Work which was adopted by the International Labour Conference in June 1998. The Declaration marked a reaffirmation of Member States� willingness to �respect, to promote and to realize in good faith� the principles concerning four (4) categories of fundamental rights at work. The categories and associated Conventions are outlined in Table 12. These eight core Conventions are accepted as forming the decent work framework. Trinidad and Tobago has ratified the eight core Conventions. 2. The creation of employment Decent work cannot be achieved without sustainable jobs. As such, employment creation, including through the development of sustainable enterprises, is a central objective in the promotion of decent employment. 3. The enhancement of social protection This objective seeks to protect workers from the vulnerabilities and contingencies at work whether these arise from unemployment, loss of livelihood, sickness or old age The strengthening of social dialogue Social dialogue refers to meaningful and deliberate consultations among Government, Employers� and Workers� representatives. This is an ongoing process used to achieve conflict resolution, social equity and effective policy implementation. It is the means by which rights are defended, employment promoted and work secured. Decent work is promoted through the Decent Work Agenda. This Agenda comprises the following four pillars namely: 1. The Promotion of Standards and Fundamental Principles and Rights at Work Certain ILO Conventions are regarded as core or fundamental in that adherence to their provisions ensure certain basic rights of workers. These Conventions are set out in the ILO Declaration on Fundamental Principles and Rights at Work which was adopted by the International Labour Conference in June 1998. The Declaration marked a reaffirmation of Member States� willingness to �respect, to promote and to realize in good faith� the principles concerning four (4) categories of fundamental rights at work. The categories and associated Conventions are outlined in Table 12. These eight core Conventions are accepted as forming the decent work framework. Trinidad and Tobago has ratified the eight core Conventions. 2. The creation of employment Decent work cannot be achieved without sustainable jobs. As such, employment creation, including through the development of sustainable enterprises, is a central objective in the promotion of decent employment. 3. The enhancement of social protection This objective seeks to protect workers from the vulnerabilities and contingencies at work whether these arise from unemployment, loss of livelihood, sickness or old age The strengthening of social dialogue Social dialogue refers to meaningful and deliberate consultations among Government, Employers� and Workers� representatives. This is an ongoing process used to achieve conflict resolution, social equity and effective policy implementation. It is the means by which rights are defended, employment promoted and work secured.

19. A decent work deficit is said to occur when: there is involuntary unemployment and poverty; there are abuses of rights at work and forced child labour exists; basic income security is missing, and workplace anxiety, depression and exhaustion are commonplace; workers and employers are either not organized to make their voice heard or have obstacles to effective dialogue; and life at work cannot be properly balanced with the claims of the family. It should be noted that although the term �decent work� was coined by the ILO, it has received international commitment and has been endorsed as a global goal at various high-level meetings including the Fourth Summit of the Americas (2005), the OAS General Assembly (2005) and the United Nations Economic and Social Council (2006 and 2007). At the Sixteenth Americas Regional Meeting (May 2006), a Decade of promoting Decent Work was declared where the Americas committed to taking action aimed at realizing the decent work agenda.It should be noted that although the term �decent work� was coined by the ILO, it has received international commitment and has been endorsed as a global goal at various high-level meetings including the Fourth Summit of the Americas (2005), the OAS General Assembly (2005) and the United Nations Economic and Social Council (2006 and 2007). At the Sixteenth Americas Regional Meeting (May 2006), a Decade of promoting Decent Work was declared where the Americas committed to taking action aimed at realizing the decent work agenda.

20. Reflections on the way forward Develop and implement a Decent Work Policy and Programme of Action (i) should be undertaken through a process of consultation and dialogue with clear responsibilities for each of the social partners identified Establish a monitoring and corrective mechanism