national employment report guyana

NATIONAL EMPLOYMENT REPORT
GUYANA
i
Contents
1
Introduction
1
1.1
Geographic profile
1
1.2
Projections for 2006
2
2
Performance by Sectors
3
2.1
Sugar
3
2.2
Rice
3
2.3
Mining and Quarrying
4
2.4
Gold
4
2.5
Diamond
4
2.6
Manufacturing Sector
4
2.7
Services Sector
4
2.8
Investment Levels and Interest Rates
5
2.9
Interest Rates
5
2.10
Stability
5
2.11
Consumer Price Index
6
2.12
Investment levels and Interest Rates
7
2.13
Employment: structure, growth and quality
8
2.14
GDP growth and employment
10
2.15
Education and employment
11
2.16
Real Wages: minimum wages and occupational/sectoral wages
12
2.17
Income and wages
15
2.18
Social profile
16
2.19
Crime
22
3
Summary of macro-economic objectives and policies
23
3.1
Macro-economic policies for economic growth
24
3.2
Fiscal Policy
24
3.3
Monetary Policies
25
3.4
Balance of Payments
25
ii
3.5
Investment in Human Capital- Education
25
3.6
Health
26
3.7
Infrastructure to support services
26
3.8
Safety Nets
26
3.9
Infrastructure to Support Growth
26
3.10
Government Policies
27
3.11
Overview of major ongoing\planned public and private investments programmes
30
4
The Labour Market: trends, issues and policies
30
4.1
Institutional structure for employment policies and labour market policies
31
4.2
The Labour Market: Structure and Growth
32
4.3
Demographics
32
4.4
Structure and growth of employment
35
4.5
Unemployed and underemployment: characteristics and recent trends
35
4.6
Informal sector
36
4.7
Gender aspect
36
4.8
Report on activities to eradicate child labour in Guyana
36
4.9
Child labour report
37
4.10
Migrant workers (both in and out migration)
39
4.11
The Informal Sector
40
4.12
Incomes in the informal sector
40
4.13
Productivity
40
4.14
Wage and other income inequality
40
4.15
Social protection
40
4.16
Industrial relations
43
4.17
Mission and Function of the Labour Department
43
4.18
Man-days lost 2000–2004
44
4.19
Strikes
45
4.20
Trade union recognition
45
4.21
Collective labour agreements
46
4.22
Labour market reform: problems, objectives, policies, measures, impact
46
4.23
Underemployment
46
4.24
Employment problems identified: urgency and impact
46
5
Policy responses to labour market problems
iii
46
5.1
Ongoing programmes aimed at the working poor
49
5.2
Ongoing programmes aimed at the elimination of the worst forms of child labour
49
5.3
Gender policies and the labour market
49
5.4
Policies aimed at other labour market problems identified
49
5.5
Labour exchange Issues
49
5.6
Ongoing programmes aimed at the labour market reform
51
6
Conclusions
53
6.1
Impact of macro-economic, social & labour market policies
53
6.2
Programmes on employment in the short and medium term
53
6.3
The integration of policies and programmes
53
6.4
The gaps and areas of institutional collaboration
54
6.5
Major employment/labour market problems
54
6.6
Areas for institutional labour market reforms
54
6.7
Impact of ongoing policies and programmes
54
7
Recommendations
55
7.1
Solve inconsistencies
55
7.2
Strengthen linkages with macro-economic and social policies
55
7.3
Need to design & adjust policy responses and/or resources allocated
55
8
Statistical annex
55
iv
LIST OF TABLES
Table 1: Guyana Selected Interest Rates (Percent Per Annum)...................................................................... 7
Table 2: Employed persons by sex and economic activity (Year???) ............................................................ 8
Table 3: Employed personsby sex and occupation (2001) ............................................................................. 9
Table 4: Labour Force Indicators ................................................................................................................. 10
Table 5: Employment and growth ................................................................................................................ 11
Table 6: Real Wage 1999-2005 .................................................................................................................... 12
Table 7: Minimum wage 1999-2005 (G$).................................................................................................... 12
Table 8: Average basic wages paid in some occupations in Guyana 2004/05.............................................. 13
Table 9: Sample of daily wages 2005......................................................................................................... 13
Table 10: Weekly wages paid in selected occupations (G$)2005 ............................................................... 13
Table 11: Average hours worked in selected sectors.................................................................................... 15
Table 12: Employment cost (G$) ................................................................................................................. 16
Table 13: Ministry of Education expenditure from 1999–2005 (G$)........................................................... 17
Table 14: Graduates from University of Guyana.......................................................................................... 18
Table 15: Caribbean Examination Council regional analysis of passes ....................................................... 18
Table 16: Comparative analysis of the SSEE 2000-2004............................................................................. 19
Table 17: Illiteracy rate of persons aged 15 yrs and over ............................................................................. 19
Table 18: Secondary education drop-outs .................................................................................................... 20
Table 19: Secondary education drop-outs .................................................................................................... 20
Table 20: Ministry of Health expenditure from 1999–2005......................................................................... 21
Table 21: Infant Mortality Rate 2000-2004.................................................................................................. 21
Table 22: Life Expectancy at Birth............................................................................................................... 21
Table 23: Ministry of Housing Expenditure from 1999–2005 ..................................................................... 21
Table 24: House lots distributed and houses built ........................................................................................ 21
Table 25: Ministry of Home Affairs Expenditure from 1999–2005 Guyana Police Force (Crime) ............. 23
Table 26: Report of Serious Crimes Committed from 2000-2005................................................................ 23
Table 27: Projected growth and replacement employment in key sectors: 1998-2007 ................................ 32
Table 28: Age Dependency Ratio................................................................................................................. 33
Table 29: Median Age ................................................................................................................................. 33
Table 30: Population according to age groups.............................................................................................. 34
Table 31: Number of self employed registrants 1998-2002 ......................................................................... 41
Table 32: Active Employees Registered With the NIS. ............................................................................... 41
Table 33: Benefit payments in 2001/2002.................................................................................................... 43
Table 34: Strikes 2000 - 2004....................................................................................................................... 45
Table 35: Strikes and man-days and wages lost in 2004 .............................................................................. 45
Table 36: Collective labour agreements by type (Year) ............................................................................... 46
Table 37: Projects facilitated by GOINVEST .............................................................................................. 47
Table 38: Loans approved according to industries ....................................................................................... 47
Table 39: Loans distributed according to gender.......................................................................................... 48
Table 40: Summary result of loan activities of IPED 2000-2004................................................................. 48
LIST OF FIGURES
Figure 1: Investments.......................................................................................................... 7
Figure 2: Man-days lost .................................................................................................... 45
v
vi
1. Introduction
1.1. Geographic profile
Guyana, with an area of 83,000 square miles or 215,000 square kilometres, is located on
the northern coast of South America, and is the only English speaking country on that
continent. It is bounded on the north by the Atlantic Ocean, on the east by Suriname, on
the South and South-West by Brazil, and on the west and north-west by Venezuela.
Guyana is physically divided into four types of landforms:
(i)
flat coastal, clayed belt which is about 4.5 feet below sea level, and in
which most of its agricultural activity occurs
(ii)
a sand belt, to the south of the coastal belt, which includes the
Intermediate Savannahs
(iii) an undulating, central plain which comprises more than half the
country’s area, and in which are located lush, almost pristine, tropical
forests, and extensive mineral deposits. This landform stretches from
the sand belt to the country’s southern boundary and encompasses,
also, the Rupununi Savannahs which borders Brazil
(iv)
and the highlands which are to be found in the Midwestern area. This
portion of the Guiana Highlands includes the Pakarima mountain
range
Guyana has a plenitude of natural resources: fertile agriculture lands on the coastal plain
and in the river rain areas; vast areas of tropical hardwood forests of various ecosystems
and with a multitude of plant and animal species, abundant fish and shrimping grounds,
both in its numerous rivers and in the Atlantic Ocean to its north; and a wide variety of
minerals, including gold, diamonds, a range of semi-precious stones, bauxite and
manganese. Moreover, because of its many rivers (the word “Guyana” means “land of
many waters”), its potential for hydropower is immense.
Guyana lies wholly in the tropics and possesses an equatorial climate that is characterized
by seasonal rainfall, high humidity, and small variation in temperature. There are two
rainy seasons, which occur from May to June, and from November to January. The
average daily temperature is about 80° F (26° C).
The country has a multi-racial population which was 751,223 at the 2002 census, or just
over three persons per square kilometre. However, because about 90 percent of the
country’s population lives in the coastal zone, which comprises only about 7.5 percent of
its total land area, the actual living-space of most of the population is cramped.
Page 1 of 76
Summary of economic and social performance
Guyana is well endowed with natural resources; fertile agricultural lands with suitable
climatic conditions for the cultivation of large scale crops; diversified mineral deposits
and large acreage of tropical forests. The economy is natural resource-based and
produces mainly agriculture commodities such as sugar, rice and timber. There are huge
bauxite and gold reserves that account for the major output in the productive sectors.
Despite the implementation of various economic strategies, Guyana’s economy still
depends on the production and export of primary commodities. However, after the
introduction of the Economic Recovery Programme (ERP) in 1988, the economy began
to demonstrate positive growth rates. The key elements of the ERP, which was
recommended and financed by several international donors, were:
1. liberalisation of the exchange and trade systems
2. removal of price controls and subsidies
3. removal of restrictions on capital flows
4. and reforms in tax policy and administration.
After the implementation of these measures the economy began to show positive growth
rates in all sectors.
By 2000, the economy had experienced fluctuating growth rates from -1.4per cent in
2000 to -3.0per cent in 2005. The real gross domestic product (GDP) contracted by 1.4per cent in 2000 despite encouraging performances in a number of sub-sectors. A
contributing factor to poor GDP growth in 2000 was the several disturbances and
protests, which disrupted businesses and operations in the service sector. These
disruptions followed disapproval of the 2000 national election results by some sections of
the population. From 2000 to 2004 the economy experienced an average growth rate of
.72per cent. For the year 2005 the growth rate was -3.0per centper cent and this was in
large part due to flooding affecting the coastal belt in early 2005.
1.1 Projections for 2006
The real GDP is projected to grow by 4.3per cent in 2006. Most of the sectors, especially
sugar, rice, fishery and the forestry sub-sectors are expected to experience increased
production and hence positive growth. However, due to the flooding in 2005/6,
production of livestock and other crops were expected to decline.
Output in the mining and quarrying sub-sector has been programmed to decline by
15.4per cent due to the closure of Omai Gold Mines Limited. However, bauxite
production should increase by 77.6per cent. Huge increases are projected for the
engineering, construction and manufacturing sectors during 2006.
Page 2 of 76
The services sector is programmed to play a major role in the achievement of the planned
recovery of the economy with strong growth from the transportation and communications
sub-sectors.
2
Performance by Sectors
2.1 Sugar
Sugar is an export-oriented commodity that is produced by the state-owned company,
Guyana Sugar Corporation (Guysuco). In 2000 this enterprise owned 66,420 hectares of
coastal lands and employed 18, 674 workers. However, by 2005 the employment figures
declined to 15,680. Guysuco is the largest foreign exchange earner and contributed 14per
cent to the GDP in 2005. Sugar cane cultivation and production is the largest agricultural
activity in the country and contributed over 30per cent to the agriculture, forestry and
fishing sector of the GDP in 2000. Sugar production and manufacturing increased despite
the many challenges, such as the 36.5 per cent phased sugar price reduction by the
European Union which caused a severe decrease in foreign revenue earnings.
In order to transform the sugar industry and improve its capacity to compete on the world
market Guysuco developed a strategy to modernize the industry. A cost-benefit analysis
report recommended four areas for improvement in competitiveness, namely:
(ii)
modernize and upgrade the Skeldon Sugar Estate
(iii) sell unproductive assets
(iv)
restructure management contracts and
(v)
continue discussion with trade unions to link wages and bonuses to
productivity and profitability indicators
The report was instrumental in the Government signing a concessional loan contract with
China valued at US$32.2 million for the construction of a bagasse power generation plant
to assist in the upgrade of Skeldon Sugar Estate and to reduce the factory’s production
cost of sugar.
2.2 Rice
The rice industry is the second most important industry in Guyana. It employs over
18,000 farmers and workers. Rice is a major source of income and employment in rural
areas. Rice paddy production contributed 17.4per cent to the agriculture sector of the
GDP and 16.9per cent in the manufacturing sub-sector in 2000 while generating G$7.4
billion in export earnings. However, rice production and export earnings fluctuated since
2000 when the commodity no longer enjoyed preferential access to the European Market.
Therefore, the Government embarked on a 10-year strategic plan which focused on
research to increase yield, produce higher quality rice, improve marketing and increase
the support services.
Page 3 of 76
2.3 Mining and Quarrying
The mining sub-sector, which comprises of the extraction of bauxite, gold, diamond and
other minerals, continues to make invaluable contributions to the country’s economy.
This sector contributed 15.9per cent to the GDP in 2000 then declined to 10.5per cent in
2005. The sector employs between 15,000 to 20,000 workers including foreigners who
operate mines in the hinterland communities. The bauxite industry has been experiencing
several problems such as obsolete machinery and equipment and unreliable power supply
over the years. The Government privatised the enterprise. In 2004, Omai Gold Mines
Limited, which was the largest producer of gold in Guyana, acquired the Linden Mining
Company (Linmine) and began resuscitating bauxite production. Under a new
management the company was instrumental in increasing production of dried and
calcined bauxite in 2005 by 6per cent to 1.5 million tonnes.
2.4 Gold
Omai Gold Mines Limited was the largest producer of gold and was responsible for the
increased gold production in Guyana; gold production rose from 1,204.1 kg in 1990 to
11,462.1 kg in 2004. After Omai Gold Mines Limited ceased operations in 2005 gold
production fell by 26.3per cent. The world market price for gold is increasing and this
provides an incentive for increased investments in gold production.
2.5 Diamond
Diamond declaration fell by 19.8per cent to 356,948 carats in 2005 when compared to
production in 2004. The overall decline in production of these minerals caused the output
of the mining and quarrying sector to contract in 2005.
2.6 Manufacturing Sector
Guyana is rich in commercially exploitable natural resources. But in spite of this
potential, growth in the manufacturing sector has been limited and accounted for 8.3 per
cent of GDP in 2001. Sugar and rice manufacture represents over 5.0per cent contribution
to the manufacturing sector. In 2005, the manufacturing sector experienced a 2per cent
growth which was an indication of increased foreign and local investment that enabled
the expansion of existing products and the development and diversification into new
activities. The growth was attributed to the prominence and activities of small businesses
and micro-enterprises.
2.7 Services Sector
The services sector accounts for over 40per cent of GDP. The largest contributors were
Government at an average of 18per cent per annum followed by transportation which
averaged 9per cent annually. This sector has a diversified array of activities especially in
the area of information technology, which is a new growth area with the potential to
create employment.
Page 4 of 76
2.8 Investment Levels and Interest Rates
Total investments at current factor cost represented 37per cent to 40per cent of the Gross
Domestic Expenditure according to the national aggregates of the economy. The
investment level in 2000 was G$50.0 billion and progressed with marginal increases until
2002 when it reached G$52.7 billion. According to the 2006 Budget projections,
investment will increase to approximately G$54.5 billion in 2006.
The private sector accounted for over 22per cent of all investments. Its contribution
peaked in 2001 at 29.6per cent. The highest level for public investment reached 17.2 per
cent in 2002. Between 25per cent and 30per cent of the total national investment was
sourced from domestic savings. However, financing investment from domestic savings
was expected to decline in 2006. The Public Sector Investment Programme over the years
focused on developing the physical and social sectors, economic advancement and
poverty reduction. In order to attain these goals the total capital expenditure had
increased by 100per cent from G$17 billion in 2000 to G$42 billion in 2006.
These resources were invested in several sectors such as construction, transport and
communication, environment and pure water and education. Some of the projects were
the construction and rehabilitation of the educational and health facilities, road network,
drainage and irrigation systems. On-going projects are the construction of the Providence
Cricket Stadium and the upgrading of the surroundings for the 2007 World Cup Cricket,
the expansion of a portion of the East Bank Demerara Highway and the construction of a
bridge over the Berbice River. Over G$8.5 billion, which represents 20 per cent of the
total capital expenditure was allocated to the transport and communication sector in the
2006 Budget for the development of the physical infrastructure.
The health and education sectors accounted for an average of 21.0 per cent of
Government Expenditure from 2000 to 2005. In addition, the percentage of financing of
the Capital Expenditure during the period under review had increased from 29 per cent to
38per cent of the National Budget.
2.9 Interest Rates
Interest rates, which act as a barometer for the fixing of other financial rates continued to
show a downward trend due to competitive bidding for Treasury Bills. Interest rates on
saving deposits fell by 50 per cent while the weighted average lending rate declined
marginally from 17.16 per cent in 2000 to 15.91 per cent in 2004. The decrease in the
savings and lending rates serves to stimulate investment in the economy.
The exchange rate against the US dollars depreciated between 2000 and 2005 from
G$184.75 to G$200 in 2005 eroding consumers’ purchasing power.
2.10 Stability
Monetary policy has traditionally focused on maintaining price stability and safeguarding
the Bank of Guyana’s external reserve position. A technical study was conducted at the
Page 5 of 76
Bank of Guyana (BOG) to review the domestic debt policy with the objective of retiring
domestic bonded debts and reducing domestic interest payments. To maintain stability
the Government has supported the Bank of Guyana policy to reduce interest rates,
improve payment systems and diversify financial products. As a result the BOG will
implement legislative reforms to lower economic risk and expand the availability of
collateral as ways of bringing down interest rates.
The positive effects of these policies influenced the decline of interest rates by the BOG
and commercial banks according to data from Table 1 below. The BOG Treasury Bill
Discount Rate and lending and saving rates have been declining over the years. For
example, the discount rate for bonds with a maturity period of 364 days earned 11.09per
cent in 2000 then decreased to 4.13per cent in 2004. Similar trends were observed for the
saving rates at the Commercial Banks.
2.11 Consumer Price Index
The consumer price index measures the price changes to a basket of goods and services
over a given period and is a key indicator of inflation. Over the years the Government of
Guyana pursued prudent fiscal and monetary policies to reduce the fiscal deficit and
maintain price and exchange rates stability. Analysis of the Consumer Price Index
indicated fluctuations from a low level of 2.6per cent in 2001 to 8.3per cent in 2005. The
main item responsible for the recent increases was the high import prices for fuel, which
is the primary source of energy for all the industries. To prevent the inflation rate from
escalating the Government had to lower the Consumption Tax for fuel and implement
measures for the utility services to maintain competitive rates.
Nonetheless, transportation and communication was responsible for the highest increase
of prices in the basket of goods followed by housing, education, recreation and culture
service. Clothing, footwear and repairs price increases were negligible. Increases in the
consumer price index averaged 7.9 per cent over the last five years (2000-2004).
Page 6 of 76
2.12 Investment levels and Interest Rates
Private Investment
Private investments to GDP at Market Prices fluctuated between 25.4per cent in 1999 and
19.5per cent in 2004, averaging 23.0per cent over the four-year period.
Figure 1: Investments in Guyana, 1999 (Year 1) to 2004 (Year 6) (1999 -2004)
The prime lending rate at the Bank of Guyana has been weighted by the amount of the
loans issued at the corresponding rate. The average prime lending rate is the one actually
used by commercial banks, applicable to loans and advances. That rate declined over the
period, as indicated below.
Table 1: Guyana Selected Interest Rates (Percent Per Annum)
Item/Year
1999 2000 2001 2002 2003 2004
Bank of Guyana
13.25 11.75 8.75 6.25
5.5
6
Bank Rate
Treasury Bill Discount Rate
91 Days
11.07
9.2 6.25 3.91
3.4 3.79
182 Days
12.66 10.66 7.31 4.12
3.4 3.96
364 Days
12.79 11.09 8.17 4.91 4.01 4.13
Commercial Banks
Small Saving Rate
7.97 7.28
6.7 4.29 3.46 3.42
Prime Lending Rate (weighted average))
17.13 17.16 17.26 17.27 16.69 15.91
Prime Lending Rate
17.25 17.21 16.79 16.25 14.88 14.54
Commercial Banks Lending Rate
(Weighted Average)
17.87 17.68 17.6 16.83 15.58 10.85
GNCB Trust Company
Domestic Mortgage
16
16
16
14
14
14
Page 7 of 76
Commercial mortgage
19
20
Average deposit rate
11 9.18
New Building Society
Deposits
7
7.5
Mortgage Rates
11
11
Five Dollar Shares
8.5
9
Save and Prosper Shares
10 10.5
Source: Bank Of Guyana, Commercial Banks and Financial Institutions.
20
7.55
20
4.82
16
3.79
16
3.75
6.5
11
8
9
4.5
9.95
5.75
6.5
3.5
9.95
4.75
6
2.5
8.95
4
5
.
2.13 Employment: structure, growth and quality
In terms of employment, the recent 2002 census reported the unemployment rate as
11.7per cent. However the 2001 Household Income and Expenditure Survey report
provided a more comprehensive breakdown. In this latter report the following is
observed:
1) Employment according to economic activity
The sector comprising agriculture, hunting and forestry has the largest group of workers.
In this sector 60,481 persons or 25per cent of the working population are employed. In
the wholesale and retail trade 43,056 or 18per cent of the working population are
employed, manufacturing 27,869 persons or 11.6per cent of the working population and
in transportation 8.4per cent. Public administration employed 15,219 persons or 6.3per
cent of the working population.
Table 2: Employed persons by sex and economic activity (Year???)
Economic activity
Both sexes
Male
Female
Agriculture, hunting & forestry
60 481
48 668
11 813
Fishing
6 308
5 144
1 164
Mining and quarrying
7 299
5 163
2 136
Manufacturing
27 869
18 987
8 882
Electricity, gas & water
2 547
1 522
1 025
Construction and installation
16 545
12 369
4 176
Wholesale & Retail Trade
43 056
25 245
17 811
Hotels & Restaurants
1 597
545
1 052
Transport, storage & comm.
20 154
15 112
5 042
Financial Intermediation
4 334
2 205
2 129
Real Estate, rent & Business Activities
7 885
4 604
3 821
Public Administration & Defence etc.
15 219
8 536
6 683
Education
6 659
2 700
3 959
Page 8 of 76
Health & Social Work
Other Community, Social & Personal Services
Private Households with Employed Persons
Extra-Territorial Organizations & Bodies
No Industry
Total
Source: Bureau of Statistics.
2 988
4, 765
8 146
294
3 701
239 847
1 365
2 761
4 163
0
1 740
160 829
1, 623
2 004
3 983
294
1 961
79 558
2) Occupational Groups
The majority of the work force was involved in elementary occupations which provided
jobs for 61,706 persons or 25.7per cent of the employed persons. Next in line was the
category comprised of agriculture, forestry and fishery occupations with 17.4per cent of
the employed persons. Craft and related occupations comprised 14.1per cent. Service
workers, shop sales workers, are the next group in line. This group accounted for 10.2 per
cent of the occupational grouping. Technicians and associate professionals was 5.7per
cent with clerks being 4.6per cent of the employed or occupational groups.
Table 3: Employed personsby sex and occupation (2001)
Occupation
2001
Both sexes Male
Female
Legislators, Senior Officials & Managers
13 163
8 817
4 346
Professionals
5 048
2 679
2 369
Technicians & Associate Professionals
13 777
5 343
8 434
Clerks
11 150
4 031
7 119
Service Workers & Shop Sales Workers
24 528
13 020
11 508
Agricultural, Forestry & Fishery Workers
41 734 36, 365
5 369
Craft & Related Workers
33 897
28 194
5 703
Plant & Machine Operators & Assemblers
17 451
16 019
1 432
Elementary Occupations
61 706
37 895
23 811
Defence Force
1 647
1 230
417
Not Stated
15 746
6 696
9 050
Total
239 847 160 289
79 558
Source: Bureau of Statistics.
Page 9 of 76
3) Labour Force Indicators
Lack of data in 2002 column compromises this table
Table 4: Labour Force Indicators
Main labour force indicators
Labour Force
Male
Female
Employed Labour Force
Male
Female
Unemployed Labour Force
Male
Female
Levels of Unemployment
Youths (under 25 yrs)
Male
Female
Adults (25 yrs and over)
Male
Female
Unemployment Rate %
Male
Female
Participation Rate %
Male
Female
Source: Bureau of Statistics, Guyana
2002
1992
278,080
183,190
94,890
245,490
167,780
77,710
32,590
15,410
17,180
21,800
11,090
10,710
10,790
4,320
6,470
11.7
8.4
18.1
59.5
81.2
39.3
2.14 GDP growth and employment
The real growth rate was sluggish through 2003. It was projected to grow by 2.5 percent
in 2004, but actually grew by 1.6per cent.
In January of 2005 the country suffered its worse national disaster in decades due to
unusual floods which affected the coastlands. Those floods caused over G$80 billion
dollars in damages. Fifty-one lives were lost and the economy failed to achieve its growth
projection, which was set at 2.5per cent. Instead, the economy grew negatively at a rate
of -3per cent.
A Labour Market Study of Guyana was executed in 2004 under the Public Sector
Technical Assistance Credit Project. In this study, the average level of employment for
Page 10 of 76
the period 2000-2004 was placed at 259,478. Growth in the employed work force
amounted to seven hundred and forty persons per year during that period.
The study also projected employment growth for the years 2006 and 2007 which average
2759 jobs. Main areas for growth include mining, forestry and manufacturing (Table 8).
Table 5: Employment and growth
Year
GDP (000???)
Employment
1990
3319
211 622
1991
3519
222 912
1992
3792
234 202
1993
4104
245 492
1994
4450
246 200
1995
4676
246 908
1996
5048
247 617
1997
5360
258 325
1998
5426
258 187
1999
5426
258 187
2000
5352
256 903
2001
5474
259 020
2002
5536
260 096
2003
5501
259 488
2004
5639
261 883
2005
5470
264 329
2006
5705
266 827
2007
6098
269 846
Source: Bureau of Statistics, Projections 2006 and 2007
Employment Growth
11 290
11 290
11 290
11 290
708
708
709
708
10 813
-951
-1 284
2 117
1 076
-608
2 395
2 446
2 498
3 019
2.15 Education and employment
Guyana is becoming more urban. As people move to Georgetown and other towns they
reach for educational opportunities as a way of achieving a higher standard of living.The
migration of the population brings with it intractable problems that typically accompany
rural-urban growth, for example, poverty, unemployment, inadequate housing, poor or
nonexistent sanitation, contaminated or depleted water supplies, and environmental
pollution. However, it is felt that rapid urbanization can also offer benefits, such as better
opportunities for entrepreneurship, creativity, generation of wealth, education, health and
social services compared to conditions existing in rural areas.
Guyana’s economy requires a skilled and educated workforce. Of the total workforce of
259,138 from the (1998 Labour Force Survey), 62per cent have lower than or equal to
primary education. Only 14 percent of the workforce has tertiary education qualifications.
However it is interesting to note that the Guyanese women in the workforce have a higher
incidence of primary and higher levels of education than men.
Page 11 of 76
2.16 Real Wages: minimum wages and occupational/sectoral wages
Real wage
The real minimum wage for the period 1999 to 2005 can be seen below in Table 6. The
real wage declined in 2005. The main factors driving up the consumer price index
include food items, housing, transport, communication and recreational cultural services.
Table 6: Real Wage 1999-2005
Year
1999
2000
2001
2002
2003
2004
2005
Source: Derived
Real Minimum Wage (G$)
12 338
11 656
12 119
11 993
11 991
11 936
11 800
Minimum wages
In 2005, Public Service minimum wage was G$24,828.
over the period 1999-2005 is shown Table 7.
Table 7: Minimum wage 1999-2005 (G$)
Year
Minimum Wage
1999
15 000
2000
19 000
2001
20 045
2002
21 047
2003
22 099
2004
23 204
2005
24 828
Source: Circulars -Public Service Ministry
Government minimum wages
Mid-Point
Maximum Point
16 060
21 461
22 099
23 661
24 844
-
17 116
22 871
24 015
25 216
26 477
-
In 2000 workers enjoyed a 26.7per cent increase in the minimum wage as a result of an
Arbitration Agreement between Government and the Public Service Union. It must be
noted that the official inflation rate was 8.3per cent in 2005 while it was 5.0per cent and
5.5per cent in 2003 and 2004 respectively.
Page 12 of 76
Table 8: Average basic wages paid in some occupations in Guyana 2004/05
Occupation
Public Sector (G$)
Private Sector (G$)
Labourer
22 099
27 347
Confidential Secretary
36 350
67 892
Driver
26 594
34 076
Accountant
37 716
Accounts Clerk
38 962
Source: Occupational Wages and Hours of Work Survey 2004/05 Ministry Of Labour
Wages Council Act Chapter 98:04
The minimum wage for the less popular but more pervasive industries are fixed under the
Wages Council Act 98:04. These include the following categories of workers: 1. Sawmill Workers
2. Timber Grant Workers
3. Aerated water factories workers
4. Printing trade workers
5. Dry goods stores workers.
6. Drug Stores
7. Hardware stores
8. Groceries
9. Mechanical Transport
10. Petrol Filling Station
11. Hotels, guest houses, discotheques, night clubs and restaurants
12. Restaurants, cook shops and parlour.
Table 9: Sample of daily wages 2005
Occupations
Labourer
Labourer
Band mill Operator
Tractor Operator
Source: Wages Council Act: (Cap.98:04)
Industry
Timber Grants
Sawmill
Timber grant
Timber grant
Table 10: Weekly wages paid in selected occupations (G$)2005
Occupations Aerated
Printing
Dry Goods
Hardware
Water
Shop
Stores
Page 13 of 76
Daily Rates G$
846.00
776.00
1,236
911.00
Petrol
Station
Foreman
Machine
Attendants
Crowner
Bottle
Washers
Labourers
Mechanics
Salesmen
Checkers
Machinist
Proof
Reader
Cashier
Clerk
Messengers
Porter
Supervisor
Shift
Operator
Attendant
5 800
3 828
4 172
4 172
3 828
3 828
5 800
4 172
6 247
-
4 462
7 140
4 239
9 259
7 140
-
3 624
-
---
7 118
-
3 817
3 624
3624
3564
3 650
-
3 817
3 624
3 624
3 564
-
5 059
7 904
7 031
3 979
Source: Wages Council Act (Cap.98:04)
Security guards and watchmen\women
Wage rates for security guards and watchmen vary between $52 and $60 per hour. From
occupational wages and hours of work surveys conducted by the Ministry of Labour,
security guards and watchmen work the longest hours amongst occupational groups.
The Guyana Association representing security guards put the number of security guards
employed by security firms at approximately 6,000 with an additional 10,000 persons
employed as watchmen/women. These security firms are located in various parts of the
country.
Wages and hours of work surveys 2003 and 2004/05
Two wages and hours of work surveys were conducted by the Ministry of Labour over
the past two years. As expected wage rates differ amongst industries. It was found that
security guards work an average of 65 hours per week. Public servants work an average
of 44.75 hours per week (table 17).
Page 14 of 76
Table 11: Average hours worked in selected sectors.
Industrial group Weekly Hour Worked/ Survey Weekly Hour Worked/ Survey
2004/05
2003
Security Services
65
61
Public Service
44.75
40.65
Sugar
43.2
40.
Manufacturing
39.6
43.1
Bakery
41.8
43.25
Saw Milling
48.1
46
Rice Milling
47.75
54.1
Source: Occupational Wages and Hours of Work Surveys 2003 and 2004/05 Ministry of
Labour.
2.17 Income and wages
Structure and trends in wages
In examining the structure of wages paid in Guyana, it can be noted that in many
instances wages vary among enterprises. There is variation within the private sector, for
example. Higher wages are paid to persons working in the financial sector, as against
persons working in the commercial trades. There is also a variation between persons
working in the public sector; for example, an employee of a particular category in a
ministry may have a different wage as against a similar position in a public corporation,
municipality or town council.
Higher wages are paid in the public corporations and quasi-government enterprises than
ministries, which pay better wages than municipalities. This information is evidenced by
the annual wages and hours of work surveys conducted by the Ministry of Labour.
Employment Cost
Employment cost is quoted from wages and hours of work surveys conducted in the years
2003 and 2004. Employment cost includes payments to staff in money and in kind, these
are wages and salaries, uniform allowances, housing, national insurance employer’s
contribution, gratuity and other benefits. It is significant to note that the industries with
the highest employment cost includes, sugar, insurance, accounting/auditing, ministries,
and quasi government agencies or corporations (table 19).
Page 15 of 76
Table 12: Employment cost (G$)
ISIC code
Industry 2003 Employment Cost 2004 Employment Cost
1531
Rice Mill
311 580
284 132
1514
Sugar Est.
664 296
794 480
1551
Bakery
321 884
453 125
1560
Distillery
560 437
218 233
2010
Logging
194 214
228 867
3610
Furniture
444 323
555 552
4520
Contractor
497 202
355 013
5010
Car Sales
238 544
498 035
5020
Vehicle Main
253 729
n.a
5030
Motor Parts
292 941
n.a
5050
Gas Station
371 507
250,800
5211
Dist/Sales
374 058
585,506
5230
W/Retail
382 539
n.a
5510
Hotels
403 373
319,252
6304
Travel Agency
373 067
968,905
6600
Insurance
693 246
1,045,333
7290
Computer
354 841
486,110
7410
Accounts/Auditing
822 239
n.a
7430
Advertising
481 794
298,473
7511
Ministries
688 434
644,254
7511
Corporation
937 187
1,445,700
7511
Municipalities
416 574
321,518
7523
Security
179 425
188,925
8511
Hospitals
544 788
738,506
1550
Food Proc
n.a
569,396
1512
Livestock/Sea
n.a
706,753
1410
Bauxite
n.a
1,544,497
2420
Pharmaceuticals
n.a
415,098
2424
Paints Mnf
n.a
432,108
2892
Engineering
n.a
300,075
Source: Occupational Wages and Hours of Work Survey 2003/2004/05
2.18 Social profile
Poverty and the working poor
It is important to identify the working poor in Guyana. Little research has been conducted
on this phenomenon. One such survey was the Guyana Living Conditions Survey
(GLCS) of 1999 conducted by the Bureau of Statistics. It stated that 35per cent of the
population in 1999 were living below the poverty line. Even though this is an
improvement on the 1992 figure, when poverty affected 43per cent of the population, it is
still of concern to policy makers and others.
Page 16 of 76
Incidence of Poverty
The report of the 1999 GLCS makes the distinction between absolute poverty and critical
poverty. The absolute poverty line was G$7,639 per person per month (equal to US$1.40
per day) for both food and non-food expenditures. The critical line was set at G$5,463
per person per month (equal to US$1.00 per day) at below which persons could scarcely
survive.
While there is a reduction in the incidence of both absolute and critical poverty between
1992/93 and 1999, the proportion of the population in poverty is still very large (Table 54
in the appendix).
A detailed analysis of the GLCS data indicates that the incidence of both absolute and
critical poverty is higher in rural areas than in the urban areas. The absolute and critical
poverty among those who live in the rural interior are unacceptably high. As the size of
the household increases, the likely incidence of poverty is high. It is clear that the
creation of ample jobs for every one who is willing and able to work is an effective
strategy to reduce the incidence of poverty.
Education sector
In Guyana, priority has been placed on the education. The ability to compete regionally
and internationally is extremely dependent on investment in the labour force so as to
ensure a well-educated, well-trained and skilled workforce. From the year 2000 to present
considerable disbursements have been made towards education. In 2000, G$5.5 Billion
was spent on the education sector and in 2005 the figure stands at G$6.2 Billion.
Presently, the implementation of the Basic Education Access Management and Support
Systems Project (BEAMS) is ongoing. This US$30 million project aims to contribute to
sustainable socio-economic development and equitable poverty reduction. During 2005,
G$791 million was spent from the BEAMS project and a further 900 million is budgeted
for 2006. These measures are aimed at ensuring that the quality of our education system
is improved by the following;
•
•
•
•
Learning materials, including computers and other audio visual material;
Reduce overcrowding and insufficient placements in schools;
Provision of curriculum guides and teacher manuals etc;
Provide general infrastructural improvement to schools and other education
buildings.
Table 13: Ministry of Education expenditure from 1999–2005 (G$)
Revised
Revised
Actual
Actual
Revised
Budgeted
2000
2001
2002
2003
2004
2005
5,507,038
6,523,950
6,570,784
5,415,310
6,171,310
6,207,720
Guyana Estimates of the Public Sector Current and Capital Revenue and Expenditure For
the year 2001–2005 Volume 1 as presented to the National Assembly
Page 17 of 76
Educational Performance
Table 14: Graduates from University of Guyana
Year
Graduates from University of Guyana
Male
Female
2000-2001
255
402
2001-2002
326
706
2002-2003
462
796
2003-2004
2004-2005
Table 15: Caribbean Examination Council regional analysis of passes
2000
2001
2002
% Passes
% Passes
% Passes
Regions
Region 1
64.1
62.7
63.8
Region 2
68.0
69.7
77.7
Region 3
77.6
75.0
77.1
Region 4
79.5
79.9
84
Georgetown
77.7
79.0
82.8
Region 5
61.7
70.1
67
Region 6
76.3
66.9
72.9
Region 7
64.1
85.1
85.2
Region 8
27.3
60.0
59.2
Region 9
76.5
67.8
61.6
Region 10
72.3
78.6
79.1
Whole
73.3
74.5
77.1
Country
Page 18 of 76
Total
657
1032
1258
2003
% Passes
76
77.4
78.1
87.1
84.4
70.2
69.8
86.2
36
58.1
69.6
76.9
Table 16: Comparative analysis of the SSEE 2000-2004
Regio Yea Entri Mathemati
English
Social
n
r
es
cs
Studies
Mea Sd
Mea Sd
Mea Sd
n
n
n
200 15729 25.0 15.2
22.6 12.00
21.9 12.73
0
3
0
6
5
Whole 200 15376 27.6 14.5
25.1 12.37
22.7 12.12
Count 1
8
3
8
3
ry
200 14692 23.1 13.3
23.3 12.29
24.1 13.15
2
7
8
2
4
200 14858 21.6 13.1
22.6 12.96
23.2 13.34
3
4
9
2
6
200 16427 23.3 13.9
21.2 12.57
22.3 13.67
4
0
6
2
1
Source:
Table 17: Illiteracy rate of persons aged 15 yrs and over
Year
Sex
Age
15+
2000
MF
15+
2000
M
15+
2000
F
15+
2001
MF
2001
M
2001
F
Source: Key indicators of the Labour Market
Page 19 of 76
15+
15+
15+
Science
Mea
n
24.0
2
25.1
2
26.9
7
27.2
1
25.7
6
Sd
14.3
5
14.2
8
13.1
5
15.7
2
15.1
0
Adult Illiteracy rate
(15 years and over)
1.5
1.1
1.9
1.4
1
1.8
Table 18: Secondary education drop-outs
Education
Total
Total
District
1999-2000
2000-2001
M
F
T
M
F
Region 1
0
0
0
0
0
Region 2
0
0
0
24
69
Region 3
167
172
339
231
188
Region 4
11
13
24
47
41
Georgetown
40
59
99
103
135
Region 5
0
0
0
92
83
Region 6
0
0
0
302
272
Region 7
0
0
0
0
0
Region 8
0
0
0
26
17
Region 9
0
0
0
0
0
Region 10
0
0
0
60
8
Total
218
244
462
885
% Drop-Out
13
21
4
Rate
Source: Education Planning Unit Database- (Not available)
813
3
T
0
93
419
88
238
175
574
0
43
0
68
1698
-
Table 19: Secondary education drop-outs
Education
Total
Total
District
1999-2000
2000-2001
M
F
T
M
F
T
Region 1
19
10
29
0
0
0
Region 2
52
39
91
0
0
0
Region 3
95
76
171
191
219
410
Region 4
82
71
153
0
0
0
Georgetown
0
0
0
0
0
0
Region 5
53
38
91
0
0
0
Region 6
135
60
195
0
0
0
Region 7
20
22
42
0
0
0
Region 8
29
34
63
0
0
0
Region 9
62
33
95
0
0
0
Region 10
4
2
60
0
0
0
Total
551
385
936
195
224
419
% Drop-Out Rate
24
18
4
3
Source: Education Planning Unit Database
Page 20 of 76
Total
2001-2002
M
F
0
0
26
30
113
115
29
37
145
85
0
0
178
181
67
0
0
3
0
0
115
115
649
3
566
2
Total
2001-2002
M
F
21
18
30
20
62
35
92
90
0
0
59
93
111
76
12
22
9
6
19
13
2
6
417
379
7
8
T
0
56
228
66
230
0
359
67
3
0
206
1215
-
T
39
50
97
182
0
152
187
34
15
32
8
796
-
Health sector
Table 20: Ministry of Health expenditure from 1999–2005
Revised
Budgeted
Actual
Actual
Revised
Budgeted
2000
2001
2002
2003
2004
2005
1,701,214
1,099,285
2,038,506
2,555,187
6,171,347
2,910,879
Source: Guyana Estimates of the Public Sector Current and Capital Revenue and
Expenditure for the year 2001–2005 Volume 1 as presented to the National Assembly
Table 21: Infant Mortality Rate 2000-2004
Years
2000
2001
2002
2003
2004
Infant Mortality Rate
21.9
17.7
24.6*
21.6*
24.7*
per 1000, live Birth
Source: Ministry of Health
Note: Infant Mortality Rates for 2002, 2003 and 2004 were calculated based on Hospital
reported Deaths and Births.
Table 22: Life Expectancy at Birth
Years
1970-1975
Life Expectancy in Guyana
60.0
Source: Human Development Report 2000, 2003
1995-2000
64.4
2001
63.3
Housing sector
Table 23: Ministry of Housing Expenditure from 1999–2005
Revised
Budgeted
Actual
Actual
Revised
Budgeted
2000
2001
2002
2003
2004
2005
2 399 620
2 148 886
2 768 529
3 984 870
3 757 769
3 985 888
Source: Guyana Estimates of the Public Sector Current and Capital Revenue and
Expenditure for the year 2001 – 2005 Volume 1 as presented to the National Assembly
Table 24: House lots distributed and houses built
Year
Number of House Lots
Distributed
2000
22 ,831
2001
3 500
2002
4 195
2003
4 841
2004
4 916
2005
4 987
Total
42 745
Source: Ministry of Housing
Page 21 of 76
Number of Houses Built
120
128
134
215
14 436
2.19 Crime
The crime situation in Guyana cannot be viewed in total isolation since crime has
escalated in many countries regionally and internationally. As such, the entire crime
debate has been catapulted onto center stage with local and regional leaders placing more
emphasis on this troubling phenomenon. In his Budget Presentation for 2006 the Finance
Minister alluded to the fact that “crime has the potential to negatively affect the country’s
long term Growth and development prospects”. He further stated that the crime situation
is being helped by the growing drug menace, arms smuggling, people trafficking, gun
related crimes and the upsurge in deportations, mainly from the United States,
CARICOM countries and French Guiana.
Some of the measures that have been used to combat serious as well as petty crimes
include: •
The establishment of a National Commission on Law and Order. Among its tasks
is the mobilization of all stakeholders in the society for crime prevention and
reduction;
•
The launching of a $650 million National Drug Strategy Master Plan, 2005-09,
which outlines several interventions to create a safer environment and equip the
Guyana Police Force with the skills and intelligence necessary to deal with crimerelated activities;
•
Strengthening of law enforcement, including:
o Recruitment of 600 persons to be trained to become neighbourhood police
based in villages and towns across Guyana.
o Restructuring and revamping community policing, including the
establishment of a Community Policing Secretariat, in the Ministry of
Home Affairs, to coordinate and assist community policing groups, and
improve their partnership with the Guyana Police Force in crime fighting
and prevention.
o Construction of new police stations and outposts in previously unserved
areas and repair of a number of existing stations;
o Acquisition of vehicles, including bullet-proofed and rapid intervention
vehicles, boats, motor cycles, bicycles and engines, as well as equipment
to enhance the communications and forensic capability of the Guyana
Police Force; and
o Heightened training, both locally and internationally in a range of areas.
Page 22 of 76
•
Close collaboration with the private sector and Non Governmental Organisations
Table 25: Ministry of Home Affairs Expenditure from 1999–2005 Guyana Police
Force (Crime)
Revised
Actual
Revised
Revised
Budgeted
2000
2001
2002
2003
2004
1,993,357
2 415 973
2 621 371
2 917 991
3 069 480
Source: Guyana Estimates of the Public Sector Current and Capital Revenue and
Expenditure For the year 2001 – 2005 Volume 1 as presented to the National Assembly
Table 26: Report of Serious Crimes Committed from 2000-2005
Year Total Murder
Man
Wounding Burglary Larceny Domestic* Rape Others
Slaughter
With
And
Violence
Intent
Breaking
Offences
2000 4149
74
21
154
3186
524
117
71
826
2001 3512
79
8
168
2633
449
117
53
532
2002 3470
142
10
156
2746
226
137
49
391
2003 2941
206
18
144
2126
284
122
40
359
2004 3450
131
8
123
2654
317
170
45
307
2005 2808
125
4
Nil
2226
293
160
Nil
290
Source: Criminal Investigation Department
Note:
1. Other, which include Perjury and escape from Lawful Custody
2. Arson
3. Wounding with Intent are not available due to the incompletion of the Annual
Report 2005
* Source: Help and Shelter Crisis Service Yearly Client Data.
3
Summary of macro-economic objectives and policies
Government Policies 2000-2005
Guyana, which has commercially exploitable natural resources, was nevertheless ranked
as one of the poorest countries in the Western Hemisphere with per capita income of
US$773.00 in 2000 which increased marginally to US$857.3 in 2005. Guyana’s external
public debt outstanding was US$1.196 billion in 2000. Consequently the country was
classified as a Highly Indebted Poor Country (HIPC) by donors and became eligible for
debt write off. After several negotiations with donors Guyana was granted debt write off
by creditors who were instrumental in reducing the debt marginally to US$ 1.1 B in 2005
from US$1.2B within the period 2000 -2004.
There were other macro-economic variables which impacted on the economy. In 2000
the Balance of Payment was negative US$109.2 million and improved to negative
Page 23 of 76
US$60.6 million in 2003 then declined to negative US$167.1 in 2005. Similarly, the
export of goods and non-factor services had a negative trend. Workers and other
vulnerable groups were affected by the poor performance of the economy which led to a
high incidence of poverty and unemployment especially in the rural communities. In
1993, the Carter Centre provided technical and other assistance to Government by
financing the preparation of a comprehensive National Development Strategy (NDS)
document which was tabled in Parliament in 2005.
Evolving out of the development strategy in 2000, Government prepared a Poverty
Reduction Strategy Paper (PRSP) which focused on three areas, namely:
(i)
sustained economic expansion
(ii)
access to social services including education, health, water and
housing
(iii) strengthening and expansion of social safety nets.
To address those issues seven (7) broad-based pillars were identified:
1.
job generating economic growth;
2.
environmental protection;
3.
stronger institutions and better governance;
4.
investment in human capital with emphasis on basic education and
primary health;
5.
investment in physical capital with emphasis on better and broader
provisions of safe water and sanitation services, farm-to-market
roads, drainage and irrigation systems and housing;
6.
improved safety nets and
7.
special intervention programs to address regional pockets of
poverty.
3.1 Macro-economic policies for economic growth
To improve the macro-economic framework, Government plans to pursue prudent
monetary policies to further reduce the fiscal deficit and maintain price and exchange rate
stability.
3.2 Fiscal Policy
Fiscal Policy will aim at increasing public sector savings and reducing domestic
indebtedness. For revenue generation, Government will undertake a comprehensive
review of the tax system with a view to broadening the tax base and reducing the rates.
On the expenditure side, emphasis will be placed on:
(i)
careful allocation of capital and recurrent expenditures to improve
transparency and enhance the impact on growth and social welfare
(ii)
tighter controls and higher efficiency through the computerisation of the
public sector payroll
(iii)
rationalisation and streamlining of the public sector
Page 24 of 76
Further, Government will implement a wages policy, working with unions to have a
multi-year agreement. This will include monetary and non-monetary incentives.
3.3 Monetary Policies
The monetary policy will continue to aim at maintaining price stability and safe guarding
the Bank of Guyana (BOG) external reserve position. Through technical assistance BOG
will review its domestic policy with the objective of retiring domestic bonded debts and
reducing domestic interest payments. BOG will reduce interest rates and improve
payment systems and the diversification of financial products.
In 2006, Real Gross Domestic Product is projected to grow by 4.3per cent with most of
the sectors contributing to the recovery. Monetary policy will continue to be the control
of low inflation and a viable international reserves position. Private sector credits are
targeted to grow further in addition to public sector deposits. The Bank of Guyana will
continue to play an active role in fostering price stability and defending the exchange
rate. The Government will take the necessary actions to keep the inflation rate in check.
In this regard, consumption tax on dieseline and kerosene would be reduced.
3.4 Balance of Payments
The balance of payments is expected to decline but would be adequately financed by debt
relief under the Multilateral Debt Relief Initiative which allows the Bank of Guyana to
accumulate additional reserves.
3.5 Investment in Human Capital- Education
The Government’s strategy for poverty reduction centres on investment in human capital.
Government’s goals for the education sector are to reduce the illiteracy rate and the dropout and repetition rates, especially at the primary level, increase the secondary school
enrolment and improve the quality and relevance of education to all. To achieve these
goals the strategy will centre on:
(i)
reforming the curriculum and expanding the teaching of information
technology;
(ii)
increasing access and attendance at secondary schools;
(iii)
increasing the number of trained teachers;
(iv)
complementing teacher’s salaries with non-pecuniary incentives;
(v)
improving the physical facilities to reduce overcrowding;
(vi)
targeting functional illiteracy among out-of-school youths;
(vii)
providing targeted support to the poor and
(viii) strengthening the Ministry of Education.
Page 25 of 76
3.6 Health
Important reforms will have to be implemented to reduce the common causes of mortality
and morbidity and to provide equitable opportunities for people to access health services.
To achieve these goals, Government will focus on:
(i)
improving maternal and child health
(ii)
reducing the rates of communicable diseases
(iii)
improving management of chronic diseases
(iv)
improving the national nutritional status
(v)
providing access to mental health services and
(vi)
providing quality health care
3.7 Infrastructure to support services
The poor state of the social and productive infrastructure is a factor which contributes to
poverty. Insufficient access to potable water and the consequences, spread of diseases,
unsanitary environment as a result of inadequate dumpsites for garbage, poor
maintenance of drains and poor placement of latrines and burial sites are all aspects of
this challenge. To address these problems Government will increase investments in
water, sanitation and housing.
3.8 Safety Nets
Many of the poor are far below the poverty line so that employment or increases in their
incomes will still leave them severely disadvantaged. Others, due to age, disability, or
illness, are unable to participate in the economy.
Taking these factors into account the Government will design social safety nets with the
support of the donor agencies to provide cash and other support to displaced workers
while they seek other opportunities in the labour market; support to pregnant and
lactating women and targeted subsidies in electricity and water tariffs to the poor
including the elderly, pensioners and people with disabilities. In addition, provision
would be made for textbooks, examination fees and other education related costs for
students of poor families.
3.9 Infrastructure to Support Growth
The medium-term infrastructure strategy is to improve the maintenance, quality and
coverage of sea defence, roads and drainage and irrigation schemes. This is vital for
reducing poverty and ensuring access to economic opportunities. A well functioning
infrastructure service can improve competitiveness and market access which are key
elements for generating income and employment.
The strategy for infrastructure development will evolve around private sector investment,
procurement packages of sufficient size to make projects attractive to international
Page 26 of 76
contractors without excluding local bidders. Government will pursue the creation of joint
ventures for public works to encourage the transfer of technology to the local industry.
Policies to support private sector growth and poverty reduction
After several years of state intervention, Guyana’s private sector remains embryonic. To
ensure rapid development and success to keep pace with the rapidly changing external
trade environment, Government will provide export, investment promotion and
development and expansion of small businesses and cottage industries. The Government
export promotion programme will create conditions for the export sector to be an
instrument for sustaining rapid and broad-based growth. This will require maintaining a
competitive exchange rate, eliminating trade barriers and providing more effective export
promotion services for Guyana’s exports. In addition, Government will provide
information and company matching services; support local companies to participate in
overseas trade fairs and domestic exhibitions; and co-ordinate industrial co-operation.
Government’s 2006 economic milestones
The Minister of Finance presented the country’s 2006 Budget in Parliament on January
25, 2006. The theme of the 2006 budget is “Transforming Guyana through modernization
and Partnership”. According to the Minister some expected changes in key sectors
include:
(i)
Real growth of 4.3per cent in the GDP.
(ii)
Sugar production is budgeted at 315,000 tonnes, increasing by 28per cent.
(iii) Rice output is projected to increase to 290,000 tonnes.
(iv)
Gold declaration is expected to fall by 40per cent to 160,000 ounces.
(v)
Output of diamond is projected to decrease by 5per cent to 340,000 carats.
(vi)
Bauxite production is expected to increase in 2006 to 2,832,000 tonnes,
increasing by 77.6per cent.
(vii) The engineering and construction sector is projected to grow by 4per cent.
(viii) The manufacturing sector is budgeted to increase by 2per cent.
(ix)
The transport and communication sector is projected to grow by 4per cent.
(x)
Distribution is targeted to grow by 1.5per cent.
(xi)
Service sectors are projected to grow: rent of dwellings by 1.5per cent,
financial services 2per cent and other services 2per cent.
(xii) Inflation is projected to grow at 6.3per cent.
(xiii) The income tax threshold moved from $20,000 to $25,000.
(xiv) Current revenue is expected to grow by 4.4per cent.
3.10 Government Policies
Summary of the stated macro-economic and monetary policy objectives (short term)
including areas targeted for and levels of openness to international competitiveness
(include objectives of trade polices), fiscal policy, exchange rate policies and other
monetary policies.
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Sectoral Policies
- Sectors targeted by development policies (GDP/employment growth potential)
- Special policies aimed at increasing productivity
• The Small, medium sized and informal sector
• Educational reform and TVET
Reforming the Technical and Vocational Education and Training (TVET) system
Board of Industrial Training (BIT) Apprenticeship Certification Programme
The Colonial administration felt there was a strong need for some regulatory body to
control the induction and training of school leavers in their quest to acquire the skill of an
artisan. This led to the establishment of the Board of Industrial Training in 1910. The BIT
is the national entity charged with the responsibility to formulate policies and regulations
for the training and certification of apprentices and artisans.
For decades the apprenticeship centre was the preferred method of preparing young
persons to satisfy the skilled labour requirements of the industrial sector. However, in
recent years there has been a drastic decline in the apprenticeship, largely due to the
high cost of training, inability to retain those trained due to loss to other companies or
migration. Suitable qualified school leavers also opt for higher education rather than
industrial occupation.
.
Trends have shown that employers prefer shorter periods of training with a much
narrower focus than the broad four-year apprenticeship. The future demands a plan which
will provide steps towards the implementation of policies to improve and strengthen the
overall effectiveness of training systems that will regain the confidence of industry
.Recommendations for improvement include;
1.
2.
3.
4.
5.
Closer collaboration and cooperation with employers.
Closer collaboration with other TVET providers.
Greater standardization amongst masters and trainers.
Improved service to employers
Staff and institutional development.
Main factors driving the need for change of the TVET system are as follows;
- The need for a common approach to workforce development and recognition of
occupational qualifications in CARICOM.
- Guyana’s commitment to the management of free movement of skilled labour, as a
key feature of the CSME.
- The need for the national Human Resource Development system to ensure that its
labour force at all levels is equipped not only with knowledge and skills, but also
Page 28 of 76
-
the attitudes and orientations necessary to convert the provisions of the CSME into
real opportunities.
The need to seize the opportunities presented through the advent of globalisation, by
the transformation of the labour force into a highly trained knowledge–based work
force.
Reforms needed to better address the needs for skills training and enhanced
employability
The harmonisation of the national TVET system and the introduction of policy initiatives
that will provide adequate response to the demands of the labour market are:
(i)
The TVET Bill of 2004 which provided legislation for the establishment of a
National Council for Technical and Vocational Education and Training
(NCTVET). When this agency becomes fully operational it will assume the
overall responsibility for technical and vocational education and training in
Guyana, and will proceed with the following tasks:
¾
¾
¾
¾
¾
Undertake curriculum review analysis and design and cause to
establish training and apprenticeship programmes and vocational
qualifications that are relevant to the needs of Guyana and, where
appropriate, the needs of CARICOM members states
Undertake the development and implementation of a national
system of Competency Based Modularised training
Establish national training standards and performance testing
Establish an inspectorate to ensure that curricula, standards,
schemes and guidelines that are formulated are implemented by
every Registered Training Organisation and Technical Institution
Monitor and evaluate the delivery of all the technical and
vocational education and training programmes.
The NCTVET of Guyana will function as a semi-autonomous agency under the Ministry
of Education. While the Board of Industrial Training (BIT) will continue its supervisory
functions for apprenticeship and short–term artisan training in the industrial sector as a
supervisory registered training organisation, its operations will now be monitored by the
NCTVET.
(ii)
The other recent legislation was the Accreditation Bill of 2004, by which the
National Accreditation Council (NAC) was established in 2005. The NAC
would have among its responsibilities the following:
¾
¾
¾
The establishment of standards for qualifications in education and
training in tertiary institutions
Establish accreditation criteria and procedures for the various
levels of certification
Ascertain equivalencies for levels of certification obtained both
locally and overseas
Page 29 of 76
¾
Compile and disseminate information related to the accredited
institutions and programmes regionally and extra-regionally
3.11 Overview of major ongoing\planned public and private investments
programmes
Modernization of Sugar
A major project in Guyana is the Skeldon modernization project, aimed at construction of
a cogeneration plant to assist in the upgrade of the Skeldon Sugar Estate which is located
in East Berbice and valued at US$32 Million. Two other ongoing public sector projects
include the construction of a cricket stadium, with aid from India, and the Bridging of the
Berbice river which will be done predominantly with private finance. In addition, large
amounts of money are earmarked to be spent on drainage and irrigation in response to
the severe flooding which affected the coastal plains in 2005 and 2006.
Private sector investment in the area of hotel construction will be boosted in 2006 and
2007. in response to accommodation demands for Cricket World Cup 2007.
4
The Labour Market: trends, issues and policies
The agriculture, hunting and forestry sector is the major source of employment . However
the service sector played a tremendous part in employment as reflected in the figures for
persons employed in transport, retail and wholesale.
The 2002 Census reported that the unemployment rate was 11.7per cent. However the
figure merely caters for persons seeking jobs; a pool of underemployed and discouraged
workers is not identified.
The figures of the Labour Exchange will suggest that all persons registering as
unemployed are not placed in jobs. The reduction in job opportunities in recent years was
compounded by the decline of the state sector and the lack of dynamism of the private
sector.
The figures will suggest that SMEs have increased in number and this is particularly so
when one observes the number of loans approved by such institutions as the Institute of
Private Enterprise Development. Notwithstanding the above, the economy has not grown
beyond 1.1 percent over the period 2000-2004 and as such this has affected employment
growth.
Youth employment
Youth employment is an important issue for Guyana. Youth aged 15-24 amounted to
174,552 by the last census and represents 36 per cent of the working age population..
Page 30 of 76
Migration
There are some blanket statements on the level of skill migration. One study quoted a
figure of 77per cent of the educated persons migrating from Guyana. One is forced to
look at the factors driving out-migration. These include issues such as political instability,
educational curriculum, low wages, unemployment, lack of information and guidance as
to the challenges one has to face in countries people are drawn to.
It is felt that there should be:
i. Either encouragement of temporary or permanent remigration of Guyanese.
ii.
There should be controlled recruitment from at-risk-occupations by offering
higher incentives.
iii.
Establish best practices as pertaining to how other countries deal with the
migration problem.
iv.
Regulate Recruitment agencies operating in the country.
v.
Establish bilateral agreements.
4.1 Institutional structure for employment policies and labour market policies
The public sector has performed a major role in employment over the years. Public sector
employment is divided between central government and the rest of the public sector. The
public sector employment has been steadily declining over the years, from nearly 46,634
in1999 to 40,757 in 2002 (13per cent). The central government’s employment declined
faster than that of the public sector as a whole and it reached an all time low level of
7,998 in 2001, increased slightly to 8767 in 2002 and continued to remain roughly at that
level through 2004. As of July 2004, the central government staff complement was
8,996.
Contract and non-contract public servants
In recent years the public service has recruited public servants on contract, as contract
workers secured greater remuneration than the regular public servants this has been a
cause for concern. The rationale given by the Minister of Public Service is that contract
workers have had to be employed in order to keep skilled employees due to the large
migration rate and secondly some of the contract workers are above forty-five years of
age. Contract employees above forty-five years of age when contractied will not qualify
for gratuity which is payable after ten years and the retirement age is fifty five years. In
the case of contract workers gratuity is secured either monthly, quarterly or semiannually, dependent on the persons’ condition of contract.
The Public Service Ministry
The Training Division within the Ministry of Public Service convenes courses in human
resource development, conflict resolution, strategic planning and team building for the
development of public servants. The Ministry is central to the modernization of the
Page 31 of 76
Public Service, which is caught up in an age of improved telecommunication and
computerization.
4.2
The Labour Market: Structure and Growth
Demand side of the labour market
Employment by industry and occupation
As the economy transforms it becomes necessary to use projections as the basis for
planning new education and training programs which will satisfy tomorrow’s skill
requirements.
Table 27: Projected growth and replacement employment in key sectors: 1998-2007
Sector
Estimated
Estimated
Projected
Projected
Employment Employment Employment Employment
1998
2004
2007
Growth Replace Total
Sugarcane
16 264
16 436
16 936
499
1 001 1,501
Rice
15 552
15 717
16, 195
478
957 1,436
Paddy
Forestry
16 260
16 432
16 932
499
1,001 1,500
Bauxite
2 975
1 225
1 389
164
78
242
Sugar
5 876
5 838
6 119
180
362
542
Rice
2 598
2 626
2 ,706
80
160
240
Source: Guyana Labour Market Study 2004 PSTAC Project (Chottependa.)
4.3 Demographics
The 2002 population and housing census shows that the population of Guyana has risen
to 751,223 persons, an increase of 27,500 persons over the 1991 census figure.
The figures show that males outnumbered females by a small percentage (0.1per cent).
The population is concentrated in Regions 4 and 6, with 41.3 percent located in Region 4
and Region 3, the third most populous area having almost 14 percent.
Age dependency
There has been an overall decline in dependency ratios from 108 in 1980 to 90 in 2002
with a small increase exhibited between 1991 and 2002, though not to the previous level.
The population of those not of working age (0-4 and 65+) is less than the working
population. The median age of the population has also increased to 22.9 years from 18.6
in 1980 and 21.8 in 1991. These movements support the fact that the population is ageing
gradually.
(table 36).
Page 32 of 76
Table 28: Age Dependency Ratio
Year
Male
1980
109
1991
86
2002
91
Source Bureau of Statistics: Census Report 2002.
Female
Total
106
86
89
108
86
90
Median age
The median age of the population is another indicator of the size of the young dependent
population. The median age divides the population into two equal sized groups, one
which is younger, and the other older than the median. It corresponds to the 50 percentile
mark in the distribution. The computed median age is shown below in table 29. It
illustrates from the last three censuses that the population is gradually maturing. Fifty
percent of the population was below 18.6per cent in 1980, the number steadily increased
to 21.8per cent in 1991 and to 22.9 per cent in 2002 respectively. The low median age
and subsequent small increases decennially represent the level of age maturity of the
population, and as such the population can still be described as young with many
dependent children, but maturing gradually.
Table 29: Median Age
Year
Male
1980
18.4
1991
21.6
2002
22.6
Source Bureau of Statistics: Census Reports
Female
18.8
21.9
23.2
Total
18.6
21.8
22.9
Age sizes
The size of the working population has grown steadily over the decades. In 2002 it was
two thirds of the total population, 484,042 persons; 417,770 in 1980 and approximately
462,173 in 1991.
The age grouping of the population can be seen in table 30.
Page 33 of 76
Table 30: Population according to age groups
Age
1991 census
0-4 yrs
85 107
5-9 yrs
78 890
10 -14 yrs
86 215
15-19 yrs
82 324
20-24 yrs
75 863
25-29 yrs
67 055
30-39 yrs
56 552
40-44 yrs
44 239
45-49 yrs
35, 559
50-54 yrs
26 335
55-59 yrs
20, 778
60-64 yrs
16 851
65-69 yrs
13 425
70-74 yrs
12 216
75 yrs +
8 446
Total
709855
Source: Bureau of Statistics-Census 2002, 1991
2002 census
97 928
106 949
105 730
96 990
77 542
57 730
44 215
37 080
28 390
25 873
23 025
18 280
13 522
12 810
9,420
755484
One notes that even though there was a population increase in the census year 2002 over
census year 1991, there was a reduction in the number of persons in the age groups 25-29
to 50-54 years. A lot of this can be attributed to the large migration of persons.
Labour Force Participation
The working age population has grown to two thirds of the total population and
approximately 44 percent of these persons are not economically active. The remainder
(approximately 56 percent) is divided into those who actually work and those who are
actively seeking a job or would like a job.
The participation rate therefore is 56 percent. This 2002 labour force participation rate
has been constant as it compares with participation rates of almost 60 percent found by
the 1992 Household Income and Expenditure Survey (HIES) and 57 percent by the 1980
census.
Sex differentials
Seventy–eight percent or a little over three quarters of the male working – age population
carry out economic activity for pay or is economically active. On the other hand, only
twenty nine percent or just over one third of the working age women are involved in
economic activity.
When comparisons are made with earlier years, we see higher participation rates for
males in 1980 (89per cent) and 1992 (81per cent) and fluctuating rates for females, i.e.,
lower (approximately 27 percent) in 1980 and a higher percent in 1992. The participation
rate for women as well as the reducing rates for males are of some concern. It could mean
that some men are genuinely disillusioned. On the other hand, it could be only a dip that
Page 34 of 76
would correct itself with the coming on stream of new initiatives, such as mining and
quarrying.
Unemployment rate
On average, 88 percent of all persons of the working population who would like to work
are actually working. Further, 90 percent of the males who want to work actually do
work, compared with 85 percent of the females. Persons who have no jobs comprise
approximately 12 percent of the population who would like to work.
This 2002 average of unemployment levels masks the male-female differential, in that 15
percent of females are out of work, compared with 10 percent of males, a decline since
the The 1992 Household Income and Expenditure Survey which showed a level of 16.8
percent .
Age-Related Employment
Traditionally, school leavers have a waiting period before they find their first job, due to
the fact that they have no work experience. Unemployment levels for them therefore, are
usually high. It is no exception for Guyana. The 15-19 age-group for both sexes has
unemployment levels that are almost five times as high as the 30-39 and 40-44 age
groups. For the 20-24 age-group, unemployment levels are high, but only twice as high as
for the older ages.
There is sex differential in unemployment however, as female unemployment levels are
still high into the age-group while male unemployment levels off by age 24. A possible
reason for early abatement in male unemployment could be males at all ages are more
likely than females to accept odd jobs as a means of ending their unemployment.
What is notable is the fact that there are a significant percentage of elderly persons (7
percent) who report themselves as seeking or wanting work at ages 75 and over. The
percentage is also higher among women than men, signalling perhaps the loss of a male
main income provider. The observance that some persons well into their retirement ages
reported that they still have the need for work suggests that pensions and other welfare
support mechanism may be insufficient to upkeep them.
4.4 Structure and growth of employment
- Labour force participation (current levels, trends and factors influencing)
- Employment growth
- Recent shifts in distribution across sectors, rural/urban, educational attainment,
gender, full time/part time work, standard vs. non standard employment relations
- The formal-informal sector
4.5 Unemployed and underemployment: characteristics and recent trends
- Levels, trends and particulars of unemployment: youth, gender, rural/urban
- Long term unemployed and characteristics
- Underemployment (current levels, trends and groups mostly affected):
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4.6
Informal sector
Magnitude and dimension of the informal sector
Based on the 1997/98 Labour Force Survey, there were 74,763 employed in the informal
sector, accounting for about 33.3 percent of the total employed. Some of these business
units include those working as self-employed (20.2per cent), owner–employed with
payroll workers (8.6per cent), and unpaid family members (3.7per cent).
The vast majority of self-employed work informally both in agriculture and nonagriculture sector. About 44 percent of the self-employed were in the agricultural sector
and 56per cent in non-agriculture.
4.7 Gender aspect
The working poor: size, trends and particulars of the working poor. Child labour:
incidence, particulars, factors influencing, objectives, policies and measures/impact.
4.8 Report on activities to eradicate child labour in Guyana
The ILO defines child labour in its worst forms as:
1- Slavery, sale and trafficking in children, debt bondage, serfdom, forced /
compulsory labour, forced /compulsory recruitment of children for use in armed
conflict;
2- Use / procuring / offering children for prostitution, for production of pornography
or for pornographic performances;
3- Use / procuring/ offering children for illicit activities e.g. production and
trafficking of drugs;
4- Work- the nature or circumstances under which conducted- is likely to harm the
health, safety or morals of children
By law children are required to attend school up to age 15 and above that age they can
legally participate in some labour force activities that do not jeopardize their health,
safety and morals.
Guyana ratified ILO Convention 182 which undertakes to take immediate and effective
measures to prohibit and eliminate the worst forms of child labour by designing and
implementing relevant programmes. Work has begun on a National Policy on Child
Labour, spearheaded by the ILO with the involvement of all stakeholders.
Also,
Additionally, there is commemoration of a month/day for the prevention of child labour.
Lastly, greater publicity is being given the problem.
Page 36 of 76
4.9 Child labour report
1 - Incidence of child labour – An International Labour Organisation/Bureau Of
Statistics report identified 133 working children in Parika and its environs mainly
vending, farming, sorting fish and shrimp, and fishing. Also a further 185 siblings were at
risk of joining the group of child labourers. The working children were mostly boys of
East Indian ethnicity between the ages of 7 to
17 years.
2 - Particulars of child labour – Child labourers had poor academic development,
inability to garner jobs to provide adequate returns, no marketable skills, lacked the
prerequisites to be properly trained in jobs which require numeracy and literacy skills,
and were prime candidates for the world of crime and misadventure unless interventions
are made to change their circumstances. They were exposed to constant sun and rain
while executing their tasks, lifted heavy loads on a regular basis as part of their work and
could have skeletal problems due to the inability of young bodies to easily cope with such
physical challenges.
In addition, there was inadequate protection on the job where they suffered burns,
wounds and bruises on a regular basis. Eye infections, fevers, colds, flu, falls, back pains
and disorders of the back and fractures are other injuries the children sustained while
working.
The working children faced many hazards such as:
• physical and sexual abuse,
• accidents,
• injuries on the job and on the streets,
• poisoning and chemical exposure,
• exploitation,
• deprivation of education
• snake bites,
• loss of limb,
• death,
• alcohol abuse,
• drugs,
• danger at sea
• bad influence by adults,
• respiratory problems
They were prime candidates for contracting and spreading sexually transmitted diseases,
having to sleep on stalls in the Parika market, on the streets and on the waterfront with no
protection from child molesters, physical and sexual abuse etc. Despite having poor
academic development and lacking trade skills, (69 per cent) of the schools that the
working children previously attended indicated an inability to accommodate more
children due to overcrowding.
-
Page 37 of 76
While 102 of the children said that they liked school and wanted to continue their
schooling. School was better than work for 91 of them; school was too expensive for 56
children while 20 saw school as boring 81per cent of the children said they worked to
support their families
The ILO (Danns) report suggested that child labour was predominant in the informal
sector. The results of the BOS-ILO survey on Parika and its environs supported this
hypothesis, finding that the children worked for long hours, paid no taxes and were not
part of the social security system of Guyana.
The main jobs open to the working children were vending, freight handling, manual and
agricultural work. Vending was undertaken by 42per cent of the working children while
agriculture and fishing were each undertaken by 22per cent of them. They worked
between 3 and 4 hours per day up to 10 and 12 hours. 20 of the 133 child labourers were
involved in secondary activities- They worked both on Parika wharf and on farms.
There were 194 child labour custodians, 100 of whom were working. Of those working,
12per cent were earning below G$500 per day. 79 fathers were found to be living in the
home as against 100 mothers. Many of the children were living in female single-parent
households. Many of the working children were living with siblings.
3 - FACTORS -The ILO (Danns) report found that the main causes of child labour in the
communities studied in Guyana were:
‰ Poverty and the economic situation;
‰ Peer pressure;
‰ Single parenting and lack of adult control
‰ Uneducated parents;
‰ Culture of the communities,
‰
Community leaders in Parika sustained these findings.
However, the BOS – ILO report attributed the phenomenon to mainly economic reasons.
Custodians were not able to adequately provide for the children and on the market days,
many children skipped school in order to work. This led to many of them leaving school
prematurely.
Recommended remdial actions to reduce child labour include: • Heightened public awareness;
• Educating parents on their obligations;
• Strengthening the institutional capacity of the Schools Welfare Service of the
Ministry of Education;
• Providing daily meals at schools for the children; and
• Providing school buses or school boats to take children to and from schools
Page 38 of 76
In addition, the community leaders in Parika recommended planning/controlling family
size and encouraging children to learn trades such as plumbing, carpentry or block
making. ]They also suggested induced participation of community leaders by:
• appropriate timing of the activities;
• educational programmes to help school dropouts;
• the community’s input in the planning of the programmes; and
• providing employment or financial assistance for parents.
The Ministry of Labour has been very active in monitoring certain entities like sawmills
in Parika and its environs. However, when the officials leave the area to return to their
offices in Georgetown activities resume. Any strategy to deal with child labour must
therefore get the cooperation of the wider community. as regards the exploitation of
children. Hence
4.10 Migrant workers (both in and out migration)
Draft report on migrant workers – out migration
The following principal facts, figures and findings have been drawn from the report
on …. Prepared by …
-In the last fifty years, Guyana like the rest of the Caribbean has shifted from being a net
importer of labour to becoming a net exporter.
-The number of Canadian residents that identified themselves as having a Caribbean
background is estimated as 211,000 from Jamaica; 82,000 from Haiti; 60,000 as
West Indians; 52,000 as Guyanese; 50,000 as Trinidadian and Tobagonians
- Increased demand for service workers and professionals (e.g. domestics, teachers,
nurses, doctors) in the North Atlantic countries.
-emigration, re-emigration, temporary migrant workers, return migration, illegal
immigrants, refugees, asylum-seekers,
-The economic significance to the region is underscored by the fact that remittances in
territories like Haiti, Guyana and Jamaica, account for 24.2per cent, 16.6per cent and
12.2per cent of GDP, respectively (IDB/MIF 2003).
-The well educated and skilled are the most mobile group of migrants because they are in
high demand in OECD countries, but also because they can afford to migrate.
-In Guyana, the migration rate among the well educated is estimated at 77per cent.
Page 39 of 76
-the loss of human resources that are not easily replaced, as is the case with the migration
of teachers and medical professionals
-migration has depleted poor Caribbean economies like Guyana of valuable human
capital (e.g. professionals, entrepreneurs and university graduates)
-One issue that has become of utmost importance to the Caribbean is the deportation of
criminals who are non- American nationals. It is often argued that the deportees are
introducing new skills and trans-national networks into the region that contributes to drug
trafficking, money laundering, kidnapping and immigrant smuggling.
4.11 The Informal Sector
Guyana has a large informal sector. The 1991 census estimated this sector as comprising
47per cent of the labour force. Data from the 2002 census is now being processed, but it
might be interesting to confirm whether the informal sector is widening.
4.12 Incomes in the informal sector
A study of income levels of persons working in the informal sector needs to be done. One
major challenge will be to get persons to divulge information pertaining to incomes.
4.13 Productivity
One other shortcoming in economies such as Guyana is the unavailability of productivity
data. Efforts to generate productivity data are in progress. In 2003 and 2004/2005, the
Ministry of Labour, Human Services and Social Securityconducted a wages and hours of
work survey. The number of hours of work within industries is an important variable in
assessing productivity.
4.14 Wage and other income inequality
There may be some sector and gender inequality of wage and other income. For example,
wages paid municipal workers varies from wages paid civil servants. It is evidenced in
the wages and hours of work survey that security guards and watch men are working
longer hours. The survey also discovered that a large part of the security service is
comprised of women and international survey findings support the conviction that where
women dominate certain occupations, there may be income inequality.
4.15 Social protection
1- Social protection in the informal sector
The National Insurance Scheme has allowance for the self employed to be registered
under the scheme. According to the 2002 Annual Report, National Insurance Scheme,
Page 40 of 76
332 self employed persons were registered during 2001 and 349 for 2002. The total
number of self employed persons registered with the scheme as at 2002-12-31 was
25,702. The number of active self employed was approximately 10,002.
Table 31: Number of self employed registrants 1998-2002
Description 1998
1999
2000
2001
Males
639
487
290
220
Females
526
289
142
112
Total
1165
776
432
332
Source: NIS 2002 Annual Report
2002
220
129
349
Of the 349 new registrants in 2002, 135 or approximately 39per cent of the newly
registered persons entered the private sector, 84 or approximately 24per cent entered the
commerce sector and 30 or approximately 8per cent entered the agriculture, forestry
sector. The manufacturing sector absorbed 24 or approximately 7per cent of the new
registrants. The construction sector absorbed 18 or approximately 6per cent and the
Transport, Storage and Communication sector received 10 or 4per cent of the new
registrants.
One of the main issues of social protection is the size of the informal sector. Only a small
number of persons have registered and there is great scope in this sector for expanding
NIS membership. In additioin, there have been complaints in the press of poor recordkeeping of members’ contributions, and this would seem to be an area for improvement.
Social protection in Guyana, scope, coverage, and main social protection indicators
The National Insurance Scheme in Guyana commenced in 1969 as a means of providing
social security. It covers workers in both the public and private sectors. At the end of
2002, 564,028 persons joined the scheme and 123,531 were active registrants. Active
Registrant figures for the years 2002- 2005 are shown in the table below.
Table 32: Active Employees Registered With the NIS.
Year
Active Employees Registered
2002
120,531
2003
115,064
2004
114,723
2005
117,230
Source: NIS.
There are several components under both the short-term and long-term benefit
programmes. These are described below;
Long-term
A. The Old age benefit is available to insured persons who have attained the age of 60
years and is payable in either periodic payments (pension) or lump sum. To qualify for
Page 41 of 76
the pension, the person must have paid or have pain on their behalf a certain number of
monthly contributions (150). An Old Age Grant is payable at the age of 60 to persons
who have paid not less than 50 contributions.
B. The Invalidity Benefit is payable to an insured person who is incapable of work as a
result of employment injury, has been so capable for a period of not less than 26 weeks
and is likely to be permanently incapable. The level of payment is calculated in a manner
similar to that of the Old Age benefit with the same age attainment requirement.
Short -Term
A. Sickness Benefit: It is payable to an insured person who is rendered temporarily
incapable of work resulting from an employment- related injury, subject to a
maximum of 16 weeks in any continuous period of incapacity for work.
B. Sickness Benefit Medical Care: Benefit vouchers are issued to recipients, which
can be en-cashed at the National Insurance Offices, Post Offices or some
Commercial banks. Recipients of Old Age and Invalidity benefits are issued with
coupons to access free Dental and Spectacle care.
C. Maternity Benefits: It is payable in the case of Pregnancy and Confinement of a
woman who is an insured person or whose spouse is an insured person.
D. Public Assistance: This is a temporary relief given persons in difficult
circumstances for which the beneficiary must apply. The recipient’s socioeconomic conditions are reviewed every six months and if their circumstances
have improved they will no longer be eligible. This assistance is means-tested.
The amount paid in 2004 was G$1,275.00 and there were 13,000 recipients on
roll.
Industrial Benefit
A. Injury Benefit: This benefit is payable to an insured person who becomes
incapable of work as a result of an injury or prescribed disease, arising during the
course of or directly resulting from employment. The self – employed person is
not covered for benefits under the Industrial Branch.
B. Disablement Benefit: This benefit is payable to an insured person who has
suffered loss of faculty due to an industrial accident. Self–employed persons are
covered for this benefit.
C. Industrial Death benefit: It is payable to the dependent of a deceased injured
person who died as a result of an industrial accident.
Page 42 of 76
Table 33: Benefit payments in 2001/2002
Benefits
1. Old age pension: average monthly rate paid.
2. Old age grant : the overall monthly pension
3. Invalidity pension : the average monthly pension Survivors
pension
4. Widows who had children received :
5.Widows who were 45 years of age received
6. Widows
7. Orphans
8. Survivors Grant
9. Survivors grant average amount paid out.
10. Funeral Grant average funeral benefit.
11. Sickness benefits medical care amount reimbursed.
12.Average Reimbursement for overseas medical care
13. Maternity Allowance fixed rated.
14. Injury Benefit (Industrial)
15. Disability pension
16. Disability Grant—average amount
17. Industrial death pension average monthly rate
G$
2001
2002
13,013 13,055
24,034 23,142
12,488 12,788
8,754
9,538
5,787
5,930
5,225
5,225
3,798
3,483
271,421 226,200
70,616 69,833
9,438
8,489
7,452
8,572
297,718 247,445
2,000
2,000
13,860 12,470
6,531
7,661
115,054 136,995
13,359 12,470
Summary
NIS benefciaries include employees and survivors for death, disablement, funeral, injury
benefit, invalidity, maternity, injury medical care, sickness medical care, old age,
sickness benefit, survivors’ benefits. The gross amount paid out in 2004 amounted to
G$1,285,984,000.00.
4.16 Industrial relations
One can describe the industrial relations climate in Guyana over the period 2000-2004
was mixed. Work stoppages occurred predominantly in the sugar industry, and these were
of short duration. On the other hand there remained unresolved issues between the
Government and the Public Service Union and the Teachers Union.. These issues
particularly pertain to wages and condition of service. Both unions have protested over
the unilateral fixing of wages and salary by the Government.
The Labour Department played a pivotal role in maintaining the industrial relations
climate in Guyana during the period 2000-2004,. The records of the department over the
period also give us an indication of the industrial climate.
4.17 Mission and Function of the Labour Department
The mission of the Labour Department is to contribute to the economic and social
development of Guyana by preparing and executing appropriate policies and programmes
that will maintain a stable industrial relations climate throughout the country; to develop
a social compact aimed at increasing the productivity and competitiveness of enterprises
in the production and service sectors and to provide a range of services to employers,
Page 43 of 76
trade unions and workers in order to create an atmosphere of mutual trust and social
justice between labour and management.
Labour administration is a function of national labour legislation, industrial relations
policies and practices and International Labour Conventions. This responsibility requires
a high level of trust and understanding among the social partners, who are the employers,
workers’ organisations and the Government.
The mandate of the Department is to regulate the relationship between the employers and
employees and to settle disputes wherever differences exist. This mandate is fulfilled by,
inter alia, the following:
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
reviewing, in conjunction with the tripartite committee, rates of wages, hours of
work and other conditions of services of various categories of employees;
reviewing & drafting amendments and new legislations and recommending same
to Government;
investigating complaints made by workers;
inspecting workplaces to ensure compliance with the Labour Laws;
advising, and conducting seminars to educate employers and employees on the
Labour Laws and industrial relations practices and procedures;
conciliating in disputes between employers and trade unions;
setting up and servicing arbitration tribunals;
conducting membership surveys and polls to determine trade union recognition;
vetting and signing Collective Labour Agreements;
liaising with International and Regional Organisations;
preparing and submitting ILO Instruments to Parliament;
preparing and submitting to the ILO Annual Reports on the application of
Conventions;
completing and submitting ILO questionnaires on proposed conventions;
completing and submitting to the ILO any requested statistical data;
facilitating and promoting collective bargaining;
promoting social dialogue/social partnership; and
facilitating the promotion of programmes to enhance production and productivity.
4.18 Man-days lost 2000–2004
Chart 2 below discloses that there was a rise in the number of man-days lost in 2002, but
a decrease in 2003 with an increase in 2004.
Page 44 of 76
Figure 2: Man-days lost
Man-days Lost
83,760
2004
53,577
2003
70,544
2002
60,755
2001
56,176
2000
4.19 Strikes
There was a steady increase in the number of strikes from 2000 to 2002,. There was an
abrupt falling off in 2003 which was followed by a marked increase in 2004 surpassing
the figures for the five-year period..
Table 34: Strikes 2000 - 2004
YEAR
No of strikes
2000
268
2001
243
2002
226
2003
205
2004
229
Source: Labour Department, Ministry Of Labour 2005 Annual Report
4.20 Trade union recognition
The Trade Union Recognition and Certification Board met on a fairly regular basis in
what year. Several issues pertaining to trade union certification were addressed. In
addition, seven (7) surveys were conducted to determine whether the unions applying for
recognition had enjoyed the requisite support among the workers of the entities. Trade
Unions were certified for four (4) bargaining units. Two certified unions that were
challenged retained their certification.
Table 35: Strikes and man-days and wages lost in 2004
Industry
Code
Agriculture – Sugar
011
Electric Light and Power
511
Medical and other Health Services
822
Total
Source: Labour Department Annual Report
Number
of
strikes
227
1
1
229
Page 45 of 76
Man-days
lost
Wages lost
$
82,880
880
n.a.
83,760
129,061,000
1,228,000
n.a.
130,289,000
4.21 Collective labour agreements
Thirty-five (35) collective labour agreements were counter-signed during the year, details
of which are as follows.
Table 36: Collective labour agreements by type (Year)
Union
Conditions of
Recognition
employment
G.A.W.U
8
1
C.C.W.U
11
G.L.U
7
N.A.A.C.I.E
3
G.W.U
1
G.P & T.W.U
1
G.P.S.U
1
2
TOTAL
32
3
Source: Labour Department Annual Report.
5
Total
9
11
7
3
1
1
3
35
Policy responses to labour market problems
Guyana Office of Investment (GO-INVEST)
GO-INVEST is a government sponsored organization dedicated to promoting investment
in Guyana. It provides information to investors on incentives, recommend the granting of
incentives, engages in investment facilitation and participates in trade shows and
exhibitions outside Guyana.. Some of the specific services GO-INVEST offers in
facilitating the business processes includes:
•
•
•
•
•
•
•
•
•
•
Registering the businesses.
Registering trademarks and patents.
Leasing or buying government or private land.
Applying for building permits.
Preparing environmental management plans or environment impact assessments.
Consulting the Food and Drug Department and Bureau of Standards.
Arranging for telephone, power and water services.
Communicating with the Ministry of Finance on accounting procedures and taxes.
Registering the customs and trade Administration.
Applying for incentives and concessions.
Projects Facilitated by GOINVEST are shown in the table below.
Page 46 of 76
Table 37: Projects facilitated by GOINVEST
Sector
2002
2003
Processed Food
29
38
Eco-Tourism
21
20
Wood-Related
21
26
Info & Comm.
9
11
Tech
Services
11
15
Light
13
18
Manufacturing
Mining
Total
104
128
Source: GOINVEST
2004
-
2005
36
26
21
6
-
32
12
-
8
141
For the year 2005, 141 projects were facilitated by GOINVEST and 4120 direct jobs
were created at a cost of G$67.982 Billion.
Institute of Private Enterprise Development (IPED)
IPED was incorporated in 1985 as a limited liability company by guarantee. It is a nonprofit organization formed to promote and encourage the development and growth of
industry through the provision of business guidance, technical assistance, and nontraditional credit facilities to small entrepreneurs
In 2004 IPED financed 5,518 loans compared with 4,784 in 2002, and 5,170 in 2003. The
number of jobs created/sustained was 8,186, as against 7,618 in 2002 and 8,705 in 2003.
Major activities for which loans were given in 2004, include artisanal fishing (81),
general manufacturing (258), pig and poultry rearing (970). The loan performance of
IPED for the period 2000-2004 is captured in Tables 38 to 40.
Table 38: Loans approved according to industries
Categories
2000
2001
Artisanal fishing
52
45
Food processing/ agro
processing
6
7
Soft toys
0
0
Wooden toys
0
0
General
manufacturing,
garments, furniture
89
80
craft, misc. etc
Mechanical and other
workshops
21
28
Page 47 of 76
2002
31
2003
54
2004
81
15
0
0
6
0
0
2
0
0
77
203
258
24
29
Dairy farming
Pig and poultry
rearing
Sheep and goat
rearing
Bee keeping
Logging, sawmilling,
and charcoal
production
Ground provision,
mixed crops and rice
cultivation
Micro enterprise loan
mixed activities
Rural out reach
programme –
{commercial
activities}
Total
9
5
4
9
49
1
140
0
132
0
141
0
0
0
0
0
4
0
0
15
27
355
702
694
802
1,485
4,610
2,941
3,367
3,401
2, 695
279
404
440
510
5,455
4,352
4,784
5,170
5,518
2002
1,574
1,478
2003
1,648
1,863
2004
2,554
2,040
1,732
4,784
1,659
5,170
924
5,518
Table 39: Loans distributed according to gender
Categories
2000
2001
Men
930
1,411
Women
3,680
1,833
Joint men and
women
845
1,108
Total
5,455
4,352
Table 40: Summary result of loan activities of IPED 2000-2004
Categories
2000
2001
2002
2003
Number of loans
granted
5,455
4,352
4,784
5,170
Value of loans
{$G000}
739,703
669,800
719,690
869,957
Number of jobs
created / sustained
9,680
7,113
7,618
8,705
Average loan
{G$000}
169.1
153.9
150.4
168.3
Administrative cost
per loan {G$000}
15,974
20,701
20,295
22,950
Average number of
jobs per loan
1.8
1.6
1.6
1.7
Loan value per job
{G$000}
83.7
94.2
94.5
99.9
Page 48 of 76
970
2004
5,518
975,294
8,186
176.7
28,158
1.5
119.1
5.1 Labour exchange Issues
The Recruitment and Placement Service formally known as the The Government of
Guyana established the Labour Exchange in October 1944. The purpose of this service was
collecting and furnishing information to employers who wished to recruit workers and to
persons seeking employment.
The objectives of the division are as follows:
To register persons seeking employment
To maintain a register of notified vacancies
To match jobseekers with vacancies and arrange interviews for jobseekers.
To provide occupational counselling and guidance to those seeking employment.
To visit worksites to encourage employers to utilize the services being offered by
the division.
The activities of this department depend on the supply and demand situation and over the
years these figures have fluctuated as can be seen in the table below for the period 20022004. However the average number of persons who registered for the period was 1940
persons and persons who were placed averaged 1461 persons. It should be noted that
vacancies filled were predominantly elementary occupations such as Office Assistants,
Cleaners and Drivers. Figure 3 illustrates registrations and placement between 2001 and
2005.
Source: Recruitment and Placement Department, Ministry of Labour.
Page 49 of 76
Figure 3: Registrations and Placements 2001-2005
3000
2500
2000
Total Registrants
1500
Total Placement
1000
500
0
2001
2002
2003
2004
2005
There was a marked decline in the numbers of registrants and placements in 2005.
Factors that contributed to this decline were as follows:
1. Recently the Public Service commission began filling vacancies in the Public
Sector. In the past not only vacancies of elementary occupations were filled by the
Labour Exchange but clerical and administrative vacancies as well. There was
limited use of the Service by the Private Sector Agencies.
2. Trends in the labour market have shown that the problem of employment is very
severe and compels a lot of persons, even though in possession of an appropriate
educational background, to be jobless or choose a job that is under the level of
their professionalism. The competition for jobs is fierce and is getting fiercer as
jobs get harder to come by.
3. The changes taking place in the world of work due to the increasing use of
technology, globalization, international and domestic competition have major
implications for developing countries like Guyana, which must make adjustments
to become internationally competitive.
Recommendations
In view of the international changes taking place in the world of work, the Ministry needs
to revisit the United States Department of Labor Project, in which the department was
involved in 2000. The goal of this project was the establishment of an automated internetbased Job Bank that can interface with a modernized Labour Market Information System.
This action would have been complemented by strengthening of government institutions
and a public information campaign..
Page 50 of 76
Occupational Health and Safety
An Occupational Health and Safety Department is located within the Ministry Of
Labour. This department is tasked with ensuring that OSH regulations are adhered to. In
recent years the department was in the forefront of HIV/AIDS education in the work
place.
Occupational Safety and Health Act 1997
This Occupational Safety and Health Act was passed in Parliament in 1997. The Act sets
out regulations for enforcing Occupational Health and Safety in Guyana.
The Ministry of Labour is also working on some specific regulations, these include;
forestry, mining, agriculture, manufacturing, chemical safety, noise and steam boilers.
The Occupational Health and Safety Department works on such issues as mental health
and work. Joint safety and health committees were formed in various agencies. The
figures on table below revealed that there has been a fall in occupational accidents and
fatalities over the period 2000-2004.
Table 41: Occupational accidents and fatalities 2000-2004
Year
2000
2001
2002
Accidents
2521
2391
2242
Fatalities
14
8
5
Source: OSH Department of Ministry of Labour.
2003
2281
4
2004
2202
4
HIV/AIDS in the work place
Under the USAIDS project funding was received to pursue a programme of HIV/AIDS in
the work place education.
5.2 Ongoing programmes aimed at the labour market reform
Of significance is the number of ILO Conventions ratified by the Government of Guyana.
Please see a list below of forty-five ILO conventions ratified by Guyana over the years.
The Government through The Labour Department, Private Sector Commission and Trade
Unions is tasked with ensuring that these Conventions are adhered to.
Table 42: International Labour Organisation Conventions ratified by Guyana
Page 51 of 76
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
Convention
No.
2
5
7
10
11
12
15
19
26
29
42
45
50
64
65
81
86
87
94
95
97
98
100
105
108
111
115
129
131
135
136
137
138
140
141
142
144
149
150
151
166
172
175
182
Title
Date
Unemployment 1919
1921
Minimum Age (Industry)
1921
Minimum Age (Sea)
1921
Minimum Age (Agriculture)
1921
Minimum Age (Agriculture)
1923
Workmen Compensation (Agriculture)
1923
Minimum Age (Trimmer & Stokers)
1922
Equality Of Treatment Accidents
1926
Minimum Wage-Fixing Machinery, 1928
1930
Labour Force, 1930
1932
Workmen’s Compensation (Occupational Diseases)
1936
Underground Work(Women) 1935
1937
Recruitment Of Indigenous Workers,1936
1939
Contract of Employment (Indigenous Workers)
1948
Penal Sanctions (Indigenous Workers)
1948
Labour Inspections, 1947(Excluding part 2 Ratified by the protocol of 1995)
1950
Contract of Employment (Indigenous Workers)1947
1953
Freedom of association and Protection of the right to organise 1948
1950
Labour Clauses (Public Contracts), 1949
1952
Protection of wages, 1949
1952
Migration for Employment (Revised), 1949 (Exclude provision for annexes 1-3) 1952
Right to Organise and Collective Bargaining,1949
1951
Equal Remuneration ,1951
1953
Abolition of Forced Labour, 1957
1959
Seafarers Identity Documents,1958
1961
Discrimination (Employment and Occupation)
1958
Radiation Protection
1962
Labour Inspection (Agriculture) 1969
1972
Maximum Wage Fixing 1970
1972
Workers’ Representation, 1971
1973
Benzene Convention, 1971
1975
Dock Work, 1973
1975
Minimum Age, 1973 (Minimum Age Specfied-15)
1975
Paid Educational Leave,1974
1976
Rural Workers’ Organisation 1975
1977
Human Resource Development, 1975
1977
Tripartite Consultation (International Labour Standards), 1976
1978
Nursing Personnel, 1977
1979
Labour Administration, 1978
1980
Labour Relations, 1978 (Public Service)
1981
Repatriation of Seafarers (Revised), 1987
1991
Working Conditions (Hotel and Restaurants)
1994
Part-time Work, 1994
1998
Worst Forms of Child Labour, 1999
2000
Page 52 of 76
6
Conclusions
6.1 Impact of macro-economic, social & labour market policies
6.2 Programmes on employment in the short and medium term
6.3 The integration of policies and programmes
Page 53 of 76
6.4 The gaps and areas of institutional collaboration
6.5 Major employment/labour market problems
6.6 Areas for institutional labour market reforms
6.7 Impact of ongoing policies and programmes
Page 54 of 76
7
Recommendations
7.1 Solve inconsistencies
7.2 Strengthen linkages with macro-economic and social policies
7.3 Need to design & adjust policy responses and/or resources allocated
8
Statistical annex
Table 43: Gross domestic product at current factor cost (G$ million)
SECTOR
2002
2003
Revised
2004
Budget
2005
AGRICULTURE, FORESTRY & FISHING
Sugar-cane
Rice Paddy
Other Crops
Livestock
Fishing
Forestry
36,298
11,191
6,319
2,754
5,971
7,768
2,295
38,749
13,167
6,388
2,979
5,415
8,389
2,411
40,864
14,318
6,079
3,224
5,860
8,812
2,571
44,674
15,545
6,528
3,571
6,461
9,761
2,808
MINING & QUARRYING
Bauxite
17,671
2,739
15,930
1,830
15,786
1,814
12,448
1,430
Page 55 of 76
R
14,932
14,100
13,972
11,018
10,411
4,211
2,246
3,953
11,388
5,281
2,233
3,874
12,577
5,756
2,711
4,111
13,481
6,249
2,744
4,489
5,580
6,199
6,840
7,649
47,803
5,024
10,432
4,704
4,149
21,451
2,043
117,762
50,995
4,996
11,502
5,087
4,400
22,809
2,201
123,261
54,466
5,407
12,630
5,506
4,715
23,836
2,372
130,533
57,810
6,012
14,190
6,058
5,223
23,836
2,491
136,063
2002
4.9
1.1
3.8
2003
4.7
-0.6
5.3
2004
5.9
1.6
4.3
2005
4.2
2.2
2.0
Other
MANUFACTURING
Sugar
Rice
Other
ENGINEERING & CONSTRUCTION
SERVICES
Distribution
Transport & Communications
Rental of Dwellings
Financial Services
Government
Other
TOTAL
Memo Items:
Growth Rate of Nominal GDP
Growth Rate of Real GDP
Implicit Deflator
Source: Bureau of Statistics
Note: Individual figures may not sum up to the total due to rounding.
Table 44: Percentage contribution by sector to GDP at current factor cost
SECTOR
AGRICULTURE, FORESTRY, FISHING
Sugar-cane
Rice Paddy
Other Crops
Livestock
Fishing
Forestry
MINING & QUARRYING
Bauxite
Other
2001
30.3
7.8
6.0
2.3
5.2
6.9
2.2
2002
30.8
9.5
5.4
2.3
5.1
6.6
1.9
2003
31.4
10.7
5.2
2.4
4.4
6.8
2.0
15.7
3.1
12.6
15.0
2.3
12.7
12.9
1.5
11.4
Page 56 of 76
Budget Revised Budget
2004
2004
2005
32.9
31.3
32.8
12.6
11.0
11.4
5.2
4.7
4.8
2.4
2.5
2.6
4.3
4.5
4.7
6.6
6.8
7.2
1.9
2.0
2.1
11.7
1.4
10.3
12.1
1.4
10.7
9.1
1.1
8.1
MANUFACTURING
Sugar
Rice
Other
8.3
2.9
2.1
3.2
8.8
3.6
1.9
3.4
9.2
4.3
1.8
3.1
10.2
5.0
2.1
3.1
9.6
4.4
2.1
3.1
9.9
4.6
2.0
3.3
ENGINEERING & CONSTRUCTION
5.0
4.7
5.0
4.8
5.2
5.6
40.8 40.6 41.4
4.4
4.3
4.1
8.6
8.9
9.3
4.1
4.0
4.1
3.6
3.5
3.6
18.4 18.2 18.5
1.8
1.7
1.8
100.0 100.0 100.0
40.3
4.0
9.3
4.0
3.5
17.8
1.7
100.0
41.7
4.1
9.7
4.2
3.6
18.3
1.8
100.0
42.5
4.4
10.4
4.5
3.8
17.5
1.8
100.0
SERVICES
Distribution
Transportation
Rental of Dwellings
Financial Services
Government
Other
TOTAL
Source: Bureau of Statistics.
Table 45: National accounts aggregates of the economy
Aggregates
Actua Budge Revise Budge
l
t
d
t
2001
2002
2003
2004
TOTAL DOMESTIC FINAL
EXPENDITURE
155,88 155,92
8
8
Page 57 of 76
2004
2005
160,01 170,79 172,87 188,23
7
5
8
4
TOTAL CONSUMPTION
104,51 103,26
3
3
109,54 120,74 122,83 132,79
3
9
2
4
Private Consumption
74,008 70,287
71,615 81,460 85,100 91,050
Public Consumption
30,505 32,976
37,928 39,289 37,732 41,744
TOTAL INVESTMENT
51,375 52,665
50,473 50,046 50,046 55,440
Private Fixed Investment
33,205 32,375
31,080 30,458 30,458 31,372
Public Investment
NET IMPORTS OF GOODS
AND SERVICES
GROSS NATIONAL
PRODUCT AT FACTOR
COST
NET FACTOR INCOME
PAID ABROAD
GROSS DOMESTIC
PRODUCT AT CURRENT
MARKET PRICES
INDIRECT TAXES (NET OF
SUBSIDIES)
GROSS DOMESTIC
PRODUCT AT CURRENT
FACTOR COST
FINANCING OF
INVESTMENT
18,170 20,291
19,393 19,587 19,587 24,068
32,094 27,965
24,277 24,520 22,840 31,273
102,60 107,27
7
7
114,93 125,26 124,21 131,97
6
3
3
5
9,612 10,485
8,325
8,408
6,320
4,088
133,40 138,44
4
8
144,06 154,68 156,35 161,04
4
2
8
9
21,185 20,685
20,803 21,011 25,824 24,987
112,21 117,76
9
2
123,26 133,67 130,53 136,06
1
1
3
3
From Domestic Savings
30,755 35,757
34,192 33,478 33,478 25,491
From Net Foreign Resources
20,620 16,909
16,282 16,568 16,568 29,949
Net External Inflows
22,371 21,694
14,559 14,814 14,814 32,261
Reserve Changes
SELECTED INDICATORS
AS A PERCENTAGE OF
GDP
Consumption
(a) Private
(b) Public
Investment
(1,751
)
(4,785
)
1,723
1753
1753
(2312)
93.1
65.9
27.2
45.8
87.7
59.7
28.0
44.7
88.9
58.1
30.8
40.9
90.3
60.9
29.4
37.4
94.1
65.2
28.9
38.3
97.6
66.9
30.7
40.7
Page 58 of 76
(a) Private
29.6
27.5
25.2
22.8
(b) Public
16.2
17.2
15.7
14.7
Net imports of goods and nonfactor services
28.6
23.7
19.7
18.3
Domestic Savings
27.4
30.4
27.7
25.0
Foreign Resource Financing
18.4
14.4
13.2
12.4
FINANCING AS A
PERCENTAGE OF
INVESTMENT
Domestic Savings
59.9
67.9
67.7
66.9
Foreign Resource Financing
40.1
32.1
32.3
33.1
Source: Bureau of Statistics
Note: Individual figures may not sum up to the total due to rounding.
23.3
15.0
23.1
17.7
17.5
25.6
12.7
23.0
18.7
22.0
66.9
33.1
46.0
54.0
Table 46: Urban consumer price index 2000-2005 Jan 94=100
2000
2001
2002
2003
2004
DEC
DEC
DEC
DEC
DEC
%
Change
DEC DEC
DEC
2005
ALL ITEMS
163.0 165.4 175.5 184.3 194.4 210.4
8.3
FOOD
CLOTHING
FOOTWEAR AND
REPAIRS
HOUSING
FURNITURE
TRANSPORT &
COMMUNICATION
MEDICAL &
PERSONAL CARE
EDUC, RECR. AND
CULTL. SERVICES
163.7 167.6 170.9 175.8 185.7 200.1
72.7 73.2 74.6 75.2 75.2 75.4
7.8
0.2
62.0 62.5 62.5 64.2 64.5 66.2
179.4 182.2 199.6 213.3 228.5 252.3
128.4 128.6 134.8 133.5 142.5 144.2
2.7
10.4
1.2
188.5 186.8 221.3 246.8 255.7 285.3
11.6
187.5 186.4 189.4 194.7 206.5 206.5
0.0
170.2 177.5 190.6 204.7 214.4 235.4
9.8
Page 59 of 76
MISC. GOODS &
SERVICES
155.7 155.4 156.0 158.7 161.6 165.3
2.3
Table 47: Georgetown-cumulative monthly inflation rates (%) Jan. 1994=100
Months
2001
2002
2003
2004
2005
January
-0.8
-0.6
0.5
0.8
2.8
February
-1.4
2.0
0.8
0.9
1.5
March
-1.1
1.3
1.7
1.7
1.8
April
-0.5
2.6
3.5
1.3
2.5
May
-0.5
3.2
3.8
2.7
2.6
June
-0.4
4.1
3.7
3.6
3.3
July
-0.2
4.6
4.4
3.8
3.9
August
0.3
4.8
4.2
4.6
7.0
September
0.6
4.9
5.0
4.8
7.6
October
0.9
5.9
5.7
5.4
7.7
November
1.3
6.0
5.4
5.3
December
1.6
6.1
5.0
5.5
Table 48: All urban CPI-including Georgetown (%)
Months
2001
2002
January
-0.8
-0.1
February
-1.1
2.6
March
-0.9
1.4
April
-0.3
2.1
May
-0.2
3.5
Page 60 of 76
2003
0.3
0.6
1.6
3.6
3.7
Jan.1994=100
2004
2005
1.1
4.4
1.6
3.1
1.8
3.7
2.1
3.8
4.2
3.5
June
July
August
September
October
November
December
Source: Bureau of Statistics.
-0.2
-0.1
0.6
1.0
1.5
2.3
2.6
5.2
5.6
6.0
6.6
7.3
7.1
7.1
3.2
3.7
3.9
4.7
5.3
5.1
4.9
4.8
5.0
6.2
6.5
6.8
6.6
7.2
Table 49: Urban (Georgetown) CPI for the period 1995-2004
1995
1996
Period
Inflation
8.1%
4.5%
Rates
Source: Bureau of Statistics.
2000
2001
5.9%
1.6%
2002
6.1%
2003
5.0%
2004
5.5%
Table 50: All urban CPI including Georgetown for the period 1995-2004
1995
1996
Period
Inflation
9.1%
6.6%
Rates
Source: Bureau of Statistics.
2000
2001
6.2%
2.6%
2002
7.1%
2003
4.9%
2004
7.2%
Note: The inflation rates for the period 1970-2000 were calculated using the yearly
averages of the CPI for each year and not the December CPI values.
Page 61 of 76
Table 51: Global commodity prices of selected commodities
Commodity
Unit
Source
Aluminium
2000
2001
2002
2
US $/metric tonne
All Origins (London)
70.39
65.63
61.30
65.01
Beef
US cents/pound
Australia - NZ
87.79
96.54
95.40
89.74
Butter
US cents/pound
New Zealand
63.99
67.76
57.06
67.41
Cocoa Beans
US $/metric tonne
NY London
41.01
49.38
80.72
79.54
Coconut oil
US $/metric tonne
Philippines (New York)
20.42
14.48
19.12
21.2
Coffee
US cents/pound
Brazil (New York)
79.80
50.5
45.03
50.78
Copper
US $/metric tonne
UK (London)
82.32
71.69
70.79
80.73
Copra
US $/metric tonne
Philippines (Europe. Ports)
Cotton
US cents/pound
USA
59.05
48
46.26
63.44
Gasoline
US cents/gallon
US Gulf Coast
83.37
73.41
72.05
87.17
Gold
US $/fine ounce
UK (London)
279.17 271.05 310.04 363.53
Iron Ore
US $/metric tonne
Brazil (North Sea Ports)
28.79
29.91
29.33
31.51
Lead
US $/metric tonne
UK (London)
20.60
21.61
20.52
23.33
Maize
US $/MT
USA (Chicago)
88.22
89.61
99.33
105.19
Newsprint
US $/short ton
USA (New York)
…
…
Palm Oil
US $/metric tonne
Malaysia (N. W. Europe)
Petroleum
US $/barrel
Average crude price
28.23
24.33
24.95
28.89
Dubai Fateh
26.09
22.71
23.73
26.73
U.K. Brent
28.31
24.41
25.00
28.85
Plywood
308.92 195.55 265.93 299.45
390.56 424.71
309.51 286.45 390.06 442.83
US cents/sheet
Philippines (Tokyo)
448.23 409.65 402.75 436.08
Pulp
US $/metric tonne
Sweden (Swedish Ports)
664.63 518.71 452.21 521.42
Rice
US $/metric tonne
USA (New Orleans)
367.29 306.58
Thailand (Bangkok)
203.69 172.71 191.83 199.46
30.30
26.09
34.70
49.12
6.92
6.96
4.77
5.21
499.90
438.6
462.50
491.1
Rubber
US cents/pound
Malaysia (Singapore)
Shrimp
US cents/pound
US (US Gulf Ports)
Silver
US cents/troy ounce
US (New York)
Page 62 of 76
...
…
…
1
1
Table 51 cont’d: Global commodity prices of selected commodities
Commodity
Sugar
Tea
Timber
Tobacco
Wheat
Zinc
Unit
Source
2000
2001
2002
EU Import Price
25.16
23.88
24.91
27.09
Caribbean (New York)
8.08
8.23
6.24
6.92
US Import Price
19.40
21.34
20.94
21.5
US cents/pound
Avg. Auction (London)
11.26
8.989
8.13
8.817
US cents/cubic metre
Hardwood Logs
190.06
160.19
162.64
187.12
Hardwood Sawn wood
599.18
488.26
518.38
550.2
Softwood Logs
180.78
157.73
145.92
145.57
Softwood Sawn wood
284.81
282.83
273.25
284.3
US cents/pound
US $/metric tonne
USA (All Markets)
2988.17 2989.02 2,733.62
…
US $/MT
USA (US Gulf Ports)
114.00
126.8
148.53
146.14
US $/metric tonne
United Kingdom (London)
51.16
40.23
35.34
37.56
Source: International Financial Statistics, July 2004
Table 52: Global commodity prices of selected commodities
Commodity
Aluminium
Unit
Source
US $/metric tonne
All Origins (London)
Beef
US cents/pound
Australia - NZ
Coffee
US cents/pound
Brazil (New York)
Copra
US $/metric tonne
Philippines (Europe. Ports)
Cotton
US cents/pound
USA
Gasoline
US cents/gallon
US Gulf Coast
Gold
US $/fine ounce
UK (London)
US $/metric tonne
Brazil (North Sea Ports)
US $/MT
USA (Chicago)
Iron Ore
Maize
Page 63 of 76
2003
2004
2005
1st
Qtr
65.01
77.97
86.31
2005
79.02
May
89.74 113.91 117.54 121.45
50.78
69.24
106.41 111.84
299.45 451.13 447.83
63.44
62.01
53.22
…
55.84
87.17 117.03 131.83 139.36
363.53 409.23
31.51
37.9
105.19 111.78
427.1
421.9
46.93
65
96.76
95.27
Table 62 cont’d: Global commodity prices of selected commodities
Commodity
Unit
Source
2003
2004
2005
1st
Qtr
2005
May
Palm Oil
US $/metric tonne
Malaysia (N. W. Europe)
Petroleum
US $/barrel
Average crude price
28.89
37.76
46.13
…
Dubai Fateh
26.73
33.46
41.07
45
U.K. Brent
28.85
38.3
47.64
48.67
436.08 464.83 515.23
519.1
521.42 634.49
672.6
674.7
-
-
Plywood
US cents/sheet
Philippines (Tokyo)
Pulp
US $/metric tonne
Sweden (Swedish Ports)
Rice
US $/metric tonne
USA (New Orleans)
Thailand (Bangkok)
442.83 434.72 356.34 370.16
…
-
199.46 269.76 302.59
…
Rubber
US cents/pound
Malaysia (Singapore)
49.12
59.17
57.39
61.69
Shrimp
US cents/pound
US (US Gulf Ports)
5.21
10.39
10.88
9.47
Silver
US cents/troy ounce
US (New York)
491.1
669.1
699.9
705.3
US $/metric tonne
All Origins (Dutch Ports)
555.7 590.45 463.73
501.4
US cents/pound
EU Import Price
27.09
30.38
31.35
30.78
Caribbean (New York)
6.92
7.55
9.05
8.51
US Import Price
21.5
20.57
20.53
21.89
Hardwood Logs
187.12
197.4
192.03 202.52
Soybean Oil
Sugar
Timber
Tobacco
Wheat
US cents/cubic metre
Hardwood Sawn wood
550.2 582.77 626.47 643.36
Softwood Logs
145.57 173.68 180.85 153.25
Softwood Sawn wood
284.3 323.98 334.95 307.52
US $/metric tonne
USA (All Markets)
US $/MT
USA (US Gulf Ports)
…
146.14 156.88
Source: International Financial Statistics. Last two columns: July 2005 issue.
Page 64 of 76
…
….
….
151.3
144.25
Table 53: Population in poverty: 1999 and 1992/93 comparisons
Category
1999
1999
1992Percentage Percentage
Number Number % pop % pop
93
change
change
in abs
in Crit
in In Crit % pop
Crit
From 92From 92poverty Poverty
Abs poverty
in abs poverty
93
93
poverty
poverty
absolute
critical
Rural –
Urban
All
Guyanese
Urban
Urban
Georgetown
Urban
Other
Rural
Rural
Coastal
Rural
Interior
261,727
34,647
140,328
14,189
36.32
16.2
19.4
6.6
43.3
27.7
-16.3
-29.8
24,018
10,629
227,080
176,064
51,016
12,233
1,956
126,140
80,069
46,070
16.1
16.3
44.7
39.8
78.4
8.2
3.0
24.9
18.1
70.8
28.9
23.1
15.7
12.2
-44.3
-29.4
-47.8
-75.4
45.1
78.6
27,9
70.8
-11.8
-0.3
-35.1
0.0
Absolute Poverty (1999):
Based on consumption expenditure, the absolute poverty was set at G$7,639 per person
per month.
Critical Poverty (1999):
The line below which persons could not afford to survive was set at G$5,463 per person
per month.
Table 54: Household poverty, 1999
Category
%Households in abs
Poverty
Rural-Urban
All Guyanese
26.7
Urban
20.7
Rural Coastal
30.7
Rural Interior
67.7
Working Poor
0-earner Household
3.7
1-earner Household
56.6
2-earners
26.4
3-earners
13.3
Household –Size
Page 65 of 76
% Households in Crit
Poverty
12.7
6.4
12.3
55.8
3.3
57.5
22.5
16.7
1-HH size
2&3 HH Size
4-HH Size
4-HH size
6&7 HH Size
8-HH size +
0.2
6.4
12.3
20.9
33.4
27
0.1
4.4
8.1
15.2
34.2
44.3
NOTE:
The World Bank distinguishes among the critical and absolute poor using the standard
international lines of
Artisans Certified By the BIT over the period 2002-2004
2002
Trade
Auto
Mechanic
Radio &
Electronic
Serviceman
Agriculture
Mechanic
Draughtman
Electrician
Fitter
Mechnist
Instrument
Repairs
Mechanics
Land
Surveyor
Power
Stations
Operator
Cooper
Smith
Transmissio
n Dist
Linesman
2004
Male
s
3
-
Femal
es
1
-
Tota
l
4
-
Male
s
8
2003
Femal
es
11
7
0
7
6
0
6
6
0
6
3
13
21
0
2
0
0
0
5
13
21
0
50
27
40
10
10
17
25
0
60
44
65
10
13
14
6
1
0
0
14
14
6
1
0
1
2
1
3
1
-
0
-
1
-
4
4
11
0
11
3
-
-
3
0
2
5
2
0
0
0
2
5
2
10
1
29
5
15
0
8
0
25
1
37
5
-
-
-
3
-
0
-
3
-
6
2
0
0
6
2
1
4
0
17
1
21
6
1
0
0
6
1
Page 66 of 76
Tota
l
19
Male
s
4
-
Femal
es
-
Tota
l
4
-
Foundry
Operator
Mason
Plumber
Welder
Fabricator
Heavy
Diesel
Mechanic
Sugar boiler
Carpenter
Joiner.
Marine
Fitter
-
-
-
-
-
-
8
0
6
74
3
77
211
105
316
64
1
65
Total
Source : BIT annual reports for 2002-2004
The table below provides details of the number of Apprentices and Trainees registered
with the Board to receive Technical and Vocational Education and Training over the last
10 years
Year
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
Total
Male
189
74
135
81
110
84
94
73
320
82
1242
Female
64
09
17
04
09
05
18
00
128
09
263
Sub total
253
83
152
85
119
89
112
73
448
91
1505
Page 67 of 76
(e) The table below indicates the artisans’ certification over the last 10 years.
A comparative chart by gender
Year
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
Total
Male
164
126
79
87
82
84
94
74
227
81
1098
Female
37
17
11
05
04
05
18
03
107
07
214
Subtotal
201
143
90
92
86
89
112
77
334
88
1312
Page 68 of 76
Bureau of Statistics
Population and Housing Census 2002
Industry
Males Females
Agriculture, Hunting & Forestry
Fishing, Operators of Fish hatchery & Fish
farms
Mining and Quarrying
Manufacturing
Electricity, Gas, Steam & Hot Water Supply
Construction
Wholesale & Retail Trade; Repair of Vehicles,
Motor & H'h
Hotel and Restaurants
Transport Storage and Communication
Financial Intermediation
Real Estate, Renting & Business Activities
Public Admin & Defense; Compulsory Soc Sec
Education
Health & social Work
Other Community, Soc & Personal Activities
Private Households with Employment
Extra Territorial Organisation & Bodies
Not Stated/Don't Know
40,847
4,768
45,615
5,326
8,780
23,493
1,763
15,911
261
691
7,137
499
308
5,587
9,471
30,630
2,262
16,219
22,325
1,986
15,006
1,358
4,587
8,687
3,114
1,286
6,497
1,339
222
1,210
15,579
3,614
1,948
1,742
2,850
6,404
9,956
4,268
3,185
4,852
268
323
37,904
5,600
16,954
3,100
7,437
15,091
13,070
5,554
9,682
6,191
490
1,533
Total
163,737
Total
68,653 232,390
Occupation
Males Females
Legislators, Senior Officials & Managers
Professionals
Technicians & Associate Professionals
Clerks
Service Wrkrs, Shop & Market Sales Wrkrs
Skilled Agricultural & Fishery
Workers/Farmers
Craft and Related Trades Workers
Plant & Machine Operators & Assemblers
Elementary Occupation
Not Stated/Don't Know
4,857
2,789
7,083
5,431
19,622
1,657
2,912
11,065
10,933
14,804
6,514
5,701
18,148
16,364
34,426
22,397
34,014
19,911
47,048
585
3,356
3,831
944
18,920
231
25,753
37,845
20,855
65,968
816
Total
163,737
Page 69 of 76
Total
68,653 232,390
Males Females
18,484
Levels of Unemployment
Page 70 of 76
12,255
Total
30,739