1. Labor force and unemployment

Household surveys indicate that the labor force represented about 40 percent of the population in 1993 (Table 7). ^1/ The employed constituted over 80 percent of the labor force. During 1981-93 the labor force grew by 17 percent, and the number of employed grew by less than 5 percent. The number of females in the labor force rose from 31 1/2 percent in 1981 to 37 percent in 1993.

Table 7.

Trinidad and Tobago: Labor Force and Employment

Source: Central Statistical Office.

Table 7.

Trinidad and Tobago: Labor Force and Employment

		1981	1989	1990	1991	1992	1993
(In thousands of persons)
Population 1/		1,094	1,213	1,227	1,237	1,248	1,252
	Of which: 15 years and over	726	833	836	837	841	847
Labor force		431	469	468	492	505	505
Male		295	312	308	315	318	318
Female		136	157	159	177	187	187
Employed		387	366	374	401	406	405
Male		269	247	253	265	264	262
Female		118	119	121	136	142	143
Unemployed		45	103	94	91	99	100
Seeking work		26	70	63	65	69	70
Other unemployed		19	34	30	27	31	30
(As percent of total labor force)
Male		68.4	66.4	65.9	64.0	62.9	63.0
Female		31.6	33.6	34.1	36.0	37.1	37.0
Employed		89.6	78.0	80.0	81.5	80.4	80.2
Male		62.3	52.6	54.2	53.9	52.2	51.9
Female		27.3	25.3	25.8	27.5	28.2	28.3
Unemployed		10.4	22.0	20.0	18.5	19.6	19.8
Seeking work		6.0	14.9	13.5	13.1	13.6	13.8
Other unemployed		4.4	7.2	6.5	5.4	6.0	6.0
(Percentage share)
Total employment		100.0	100.0	100.0	100.0	100.0	100.0
Petroleum industries		4.4	4.9	4.7	4.6	3.9	3.8
Nonpetroleum industries		95.6	95.1	95.3	95.4	96.1	96.2
	Agriculture	12.0	13.9	12.4	11.7	11.5	11.3
	Manufacturing	11.7	9.6	9.4	10.4	10.4	10.0
	Electricity and water	2.1	2.0	2.2	2.2	1.9	2.0
	Construction	18.0	10.5	10.7	11.4	10.8	10.8
	Distribution and hotels	14.2	16.8	16.8	16.8	17.1	17.0
	Transport and communications	7.0	7.5	7.5	7.0	7.2	7.4
	Finance, insurance, and real estate	2.5	6.3	6.4	6.9	7.1	7.7
	Government	11.3	9.9	10.6	10.0	10.0	10.0
	Other services	16.8	18.6	19.3	19.0	20.1	20.0

Source: Central Statistical Office.

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Table 7.

Trinidad and Tobago: Labor Force and Employment

		1981	1989	1990	1991	1992	1993
(In thousands of persons)
Population 1/		1,094	1,213	1,227	1,237	1,248	1,252
	Of which: 15 years and over	726	833	836	837	841	847
Labor force		431	469	468	492	505	505
Male		295	312	308	315	318	318
Female		136	157	159	177	187	187
Employed		387	366	374	401	406	405
Male		269	247	253	265	264	262
Female		118	119	121	136	142	143
Unemployed		45	103	94	91	99	100
Seeking work		26	70	63	65	69	70
Other unemployed		19	34	30	27	31	30
(As percent of total labor force)
Male		68.4	66.4	65.9	64.0	62.9	63.0
Female		31.6	33.6	34.1	36.0	37.1	37.0
Employed		89.6	78.0	80.0	81.5	80.4	80.2
Male		62.3	52.6	54.2	53.9	52.2	51.9
Female		27.3	25.3	25.8	27.5	28.2	28.3
Unemployed		10.4	22.0	20.0	18.5	19.6	19.8
Seeking work		6.0	14.9	13.5	13.1	13.6	13.8
Other unemployed		4.4	7.2	6.5	5.4	6.0	6.0
(Percentage share)
Total employment		100.0	100.0	100.0	100.0	100.0	100.0
Petroleum industries		4.4	4.9	4.7	4.6	3.9	3.8
Nonpetroleum industries		95.6	95.1	95.3	95.4	96.1	96.2
	Agriculture	12.0	13.9	12.4	11.7	11.5	11.3
	Manufacturing	11.7	9.6	9.4	10.4	10.4	10.0
	Electricity and water	2.1	2.0	2.2	2.2	1.9	2.0
	Construction	18.0	10.5	10.7	11.4	10.8	10.8
	Distribution and hotels	14.2	16.8	16.8	16.8	17.1	17.0
	Transport and communications	7.0	7.5	7.5	7.0	7.2	7.4
	Finance, insurance, and real estate	2.5	6.3	6.4	6.9	7.1	7.7
	Government	11.3	9.9	10.6	10.0	10.0	10.0
	Other services	16.8	18.6	19.3	19.0	20.1	20.0

Source: Central Statistical Office.

Reflecting changes in the structure of the economy during 1981-93, the share of the employment in the services sector increased by more than 10 1/2 percentage points to some 62 percent in 1993. The share of those employed in the distribution and hotel services rose from 14 percent in 1981 to 17 percent in 1993, and those employed in the finance, insurance, and real estate sectors increased from 2 1/2 percent in 1981 to about 7 1/2 percent in 1993. In other services (professional services, domestic services and the self-employed), the share of the employment rose by 3 percentage points over this period to 20 percent in 1993. In contrast, the share of employment in the construction sector fell from 18 percent in 1981 to less than 11 percent in 1993, whereas the combined share of the employed in the agriculture, manufacturing, and petroleum sectors declined by more than 3 percentage points to 25 percent in 1993.

Unemployment rose markedly from 10 percent of the labor force in 1981 to almost 20 percent in 1993, reaching a peak of 22 percent in 1989. Similarly, the unemployment rate of those actively seeking employment rose from 6 percent in 1981 to nearly 14 percent in 1993; accordingly, those not actively searching for employment represented 30 percent of the total unemployed in 1993 (Table 8). Unemployment affected to a greater extent females, individuals in the younger age groups, and persons in mainly unskilled occupations. In 1993, about 23 percent of the females in the labor force were unemployed, and only 17 1/2 percent of the males were unemployed. However, because males made up a larger proportion of the labor force, they accounted for somewhat more than 55 percent of all the unemployed.

Table 8.

Trinidad and Tobago: Unemployed Persons Who Did Not Look for Work During the Survey Week by Reasons

Source: Central Statistical Office.

Table 8.

Trinidad and Tobago: Unemployed Persons Who Did Not Look for Work During the Survey Week by Reasons

		Reasons for Not Seeking Work
Year	Total	Temporary Illness	Awaiting Result of Application	Knew of no Vacancy	Discouraged	Other
1991	26,700	700	5,900	18,300	1,200	600
1992	30,500	600	5,200	23,300	500	900
1993	30,300	700	5,200	22,300	1,300	800

Source: Central Statistical Office.

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Table 8.

Trinidad and Tobago: Unemployed Persons Who Did Not Look for Work During the Survey Week by Reasons

		Reasons for Not Seeking Work
Year	Total	Temporary Illness	Awaiting Result of Application	Knew of no Vacancy	Discouraged	Other
1991	26,700	700	5,900	18,300	1,200	600
1992	30,500	600	5,200	23,300	500	900
1993	30,300	700	5,200	22,300	1,300	800

Source: Central Statistical Office.

Persons in the age groups from 15 to 34 years accounted for 70 percent of the unemployed in 1993; when the age group 34-39 years is added, this ratio increases to some 80 percent. In contrast, persons in the age group 40-49 years represented about 12 percent of the unemployed, those in the age group 50-59 years accounted for some 5 1/2 percent of the unemployed, and few persons of 60 years or older were unemployed. Within the age groups of 15 to 39 years, unemployment did not differ much across gender lines in 1993. Males between the ages of 15 and 39 years represented about 80 percent of the unemployed males while females in the same age group accounted for some 82 percent of the unemployed females.

The unemployed held diverse but mainly unskilled occupations before losing their jobs. In 1993, over 45 percent of the unemployed held previously positions that were classified as elementary occupations, some 17 percent had crafts or related jobs, and close to 14 1/2 percent held service positions (Table 9). Prior to losing their jobs, about 10 percent of the unemployed had been clerks, somewhat more than 5 percent were plant and machine operators, and nearly 4 percent had been technicians. Among the unemployed, few were professionals, senior public officials or managers. When classified by age groups, the occupational groups of the unemployed reflected the same pattern as for the combined age groups.

Table 9.

Trinidad and Tobago: Total Unemployment by Age Group and Occupational Group

Source: Central Statistical Office.

Table 9.

Trinidad and Tobago: Total Unemployment by Age Group and Occupational Group

				Age Group
		Year	Total	15 to 19	20 to 24	25 to 29	30 to 34	33 to 39	40 to 49	50 to 59	60 +
Total all occupations		1991	91,100	16,300	22,300	18,200	11,400	7,700	9,700	4,300	1,200
		1992	99,100	15,400	23,300	19,300	13,800	10,200	11,300	4,700	1,100
		1993	99,900	15,400	21,300	17,200	16,200	10,600	12,400	5,400	1,400
Legislators, senior		1991	400	--	100	100	100	--	--	--	100
	officials and	1992	500	--	--	100	100	100	100	100	--
	managers	1993	900	100	100	100	200	100	200	--	100
Professionals		1991	700	--	100	200	100	--	200	--	100
		1992	500	--	200	200	--	100	--	--	--
		1993	400	--	200	100	--	--	--	--	100
Technicians and		1991	3,200	600	1,100	600	400	200	200	--	100
	associated	1992	2,900	300	800	700	300	200	400	100	100
	professionals	1993	3,900	700	1,100	700	400	400	400	200	--
Clerks		1991	10,300	1,900	3,400	1,800	1,600	700	600	200	100
		1992	11,300	2,200	3,700	2,000	1,700	900	500	200	100
		1993	10,700	2,100	3,700	1,800	1,100	800	900	300	--
Service workers (including		1991	14,500	4,600	4,600	2,600	1,000	800	500	400	--
	defence forces) and	1992	14,200	3,500	4,100	2,800	1,400	1,100	1,000	300	--
	shop sales workers	1993	14,400	4,000	4,000	2,300	1,500	1,000	1,300	200	100
Agricultural,		1991	400	--	--	100	100	--	--	--	200
	forestry and	1992	400	100	100	200	--	--	--	--	--
	fishery workers	1993	400	--	100	100	100	--	--	--	100
Crafts and related		1991	15,200	2,000	3,100	3,400	2,200	1,200	2,200	900	200
	workers	1992	15,700	1,600	3,000	3,300	2,500	1,600	2,300	1,000	400
		1993	17,200	2,400	2,700	2,400	3,100	2,100	2,900	1,300	300
Plant and machine		1991	4,300	500	900	600	700	400	800	200	200
	operators and	1992	4,600	400	600	700	600	700	1,000	400	200
	assemblers	1993	5,100	400	700	700	800	700	1,000	700	100
Elementary		1991	41,500	6,500	8,900	8,600	5,100	4,400	5,200	2,600	200
	occupations	1992	48,700	7,200	10,800	9,100	7,200	5,500	6,000	2,600	300
		1993	46,500	5,700	8,700	8,900	8,800	5,400	5,700	2,700	600
Not stated		1991	600	200	100	200	100	--	--	--	--
		1992	300	100	--	200	--	--	--	--	--
		1993	400	--	--	100	200	100	--	--	--

Source: Central Statistical Office.

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Table 9.

Trinidad and Tobago: Total Unemployment by Age Group and Occupational Group

				Age Group
		Year	Total	15 to 19	20 to 24	25 to 29	30 to 34	33 to 39	40 to 49	50 to 59	60 +
Total all occupations		1991	91,100	16,300	22,300	18,200	11,400	7,700	9,700	4,300	1,200
		1992	99,100	15,400	23,300	19,300	13,800	10,200	11,300	4,700	1,100
		1993	99,900	15,400	21,300	17,200	16,200	10,600	12,400	5,400	1,400
Legislators, senior		1991	400	--	100	100	100	--	--	--	100
	officials and	1992	500	--	--	100	100	100	100	100	--
	managers	1993	900	100	100	100	200	100	200	--	100
Professionals		1991	700	--	100	200	100	--	200	--	100
		1992	500	--	200	200	--	100	--	--	--
		1993	400	--	200	100	--	--	--	--	100
Technicians and		1991	3,200	600	1,100	600	400	200	200	--	100
	associated	1992	2,900	300	800	700	300	200	400	100	100
	professionals	1993	3,900	700	1,100	700	400	400	400	200	--
Clerks		1991	10,300	1,900	3,400	1,800	1,600	700	600	200	100
		1992	11,300	2,200	3,700	2,000	1,700	900	500	200	100
		1993	10,700	2,100	3,700	1,800	1,100	800	900	300	--
Service workers (including		1991	14,500	4,600	4,600	2,600	1,000	800	500	400	--
	defence forces) and	1992	14,200	3,500	4,100	2,800	1,400	1,100	1,000	300	--
	shop sales workers	1993	14,400	4,000	4,000	2,300	1,500	1,000	1,300	200	100
Agricultural,		1991	400	--	--	100	100	--	--	--	200
	forestry and	1992	400	100	100	200	--	--	--	--	--
	fishery workers	1993	400	--	100	100	100	--	--	--	100
Crafts and related		1991	15,200	2,000	3,100	3,400	2,200	1,200	2,200	900	200
	workers	1992	15,700	1,600	3,000	3,300	2,500	1,600	2,300	1,000	400
		1993	17,200	2,400	2,700	2,400	3,100	2,100	2,900	1,300	300
Plant and machine		1991	4,300	500	900	600	700	400	800	200	200
	operators and	1992	4,600	400	600	700	600	700	1,000	400	200
	assemblers	1993	5,100	400	700	700	800	700	1,000	700	100
Elementary		1991	41,500	6,500	8,900	8,600	5,100	4,400	5,200	2,600	200
	occupations	1992	48,700	7,200	10,800	9,100	7,200	5,500	6,000	2,600	300
		1993	46,500	5,700	8,700	8,900	8,800	5,400	5,700	2,700	600
Not stated		1991	600	200	100	200	100	--	--	--	--
		1992	300	100	--	200	--	--	--	--	--
		1993	400	--	--	100	200	100	--	--	--

Source: Central Statistical Office.

Unemployment in Trinidad and Tobago was highly concentrated in certain regions in 1993. Four regions (out of the total of 11 regions in the household surveys) accounted for close to 80 percent of the unemployment. Nearly 40 percent of the unemployed lived in St. George (which covers two counties) that includes the largest urban areas outside the capital city and San Fernando (Table 10). About 16 percent of the unemployed lived in Victoria County, some 15 percent in Caroni County, and close to 10 1/2 percent in St. Patrick County. The unemployed in Port of Spain accounted for less than 5 percent of all the unemployed.

Table 10.

Trinidad and Tobago: Total Unemployed by Age Group and Administrative Area

Source: Central Statistical Office.

Table 10.

Trinidad and Tobago: Total Unemployed by Age Group and Administrative Area

				Age Group
		Year	Total	15 to 19	20 to 24	25 to 29	30 to 34	35 to 39	40 to 49	50 to 59	60 +
Total		1991	91,100	16,300	22,300	18,200	11,400	7,700	9,700	4,300	1,200
		1992	99,100	15,400	23,300	19,300	13,000	10,200	11,300	4,700	1,100
		1993	99,900	15,400	21,300	17,200	16,200	10,600	12,400	5,400	1,400
Cities
Port of Spain		1991	4,000	600	800	800	400	400	600	200	200
		1992	5,100	600	1,000	1,300	900	300	800	200	--
		1993	4,800	800	1,000	600	700	800	600	200	100
San Fernando		1991	1,600	300	300	300	200	300	100	100	--
		1992	2,000	300	500	400	300	200	300	--	--
		1993	2,200	200	300	500	400	200	400	200	--
Boroughs
Arima Borough		1991	1,600	100	400	400	300	100	200	--	100
		1992	1,500	200	300	400	400	--	200	--	--
		1993	1,900	300	200	400	300	200	300	200	--
Point Fortin		1991	1,900	400	400	300	300	200	200	100	--
		1992	2,500	300	600	500	200	600	300	--	--
		1993	2,500	300	400	600	300	400	500	--	--
Counties
St. George		1991	35,900	6,200	8,100	7,600	4,700	2,900	4,300	1,800	300
		1992	36,600	5,600	8,300	6,800	3,400	3,700	4,200	2,200	400
		1993	38,800	5,600	8,300	6,000	6,200	4,000	5,3002,4001,000
Caroni		1991	12,300	2,100	2,800	2,500	1,600	1,000	1,400700200
		1992	13,900	2,100	3,400	2,600	1,800	1,600	1,600600200
		1993	14,600	2,800	2,800	2,200	2,600	1,700	1,700800--
Nariva/Mayaro		1991	2,000	400	700	300	300	200	100----
		1992	3,100	600	800	700	300	100	300200100
		1993	2,000	200	400	700	300	100	100100100
St. Andrew/		1991	4,700	1,100	1,400	700	500	400	400	200	--
	St. David	1992	5,900	1,100	1,700	800	900	700	400	300	--
		1993	4,000	600	1,200	600	700	300	500	100	--
Victoria		1991	13,500	2,600	3,600	2,600	1,600	1,100	1,100	600	300
		1992	13,800	2,400	3,600	2,600	1,600	1,100	1,700	400	400
		1993	15,600	2,500	3,400	2,800	2,600	1,600	2,000	600	100
St. Patrick		1991	9,700	2,000	2,600	1,700	1,000	800	1,100	400	100
		1992	10,800	1,500	2,200	2,300	1,600	1,500	1,100	600	--
		1993	10,600	1,400	2,500	2,400	1,700	1,100	700	700	100
Tobago		1991	3,800	500	1,100	1,000	500	300	200	200	--
		1992	3,700	700	900	900	400	300	400	100	--
		1993	2,600	600	700	400	400	200	300	--	--
Other		1991	100	--	100	--	--	--	--	--	--
		1992	200	--	--	--	--	100	--	100	--
		1993	300	100	100	--	--	--	--	100	--

Source: Central Statistical Office.

View Table

Table 10.

Trinidad and Tobago: Total Unemployed by Age Group and Administrative Area

				Age Group
		Year	Total	15 to 19	20 to 24	25 to 29	30 to 34	35 to 39	40 to 49	50 to 59	60 +
Total		1991	91,100	16,300	22,300	18,200	11,400	7,700	9,700	4,300	1,200
		1992	99,100	15,400	23,300	19,300	13,000	10,200	11,300	4,700	1,100
		1993	99,900	15,400	21,300	17,200	16,200	10,600	12,400	5,400	1,400
Cities
Port of Spain		1991	4,000	600	800	800	400	400	600	200	200
		1992	5,100	600	1,000	1,300	900	300	800	200	--
		1993	4,800	800	1,000	600	700	800	600	200	100
San Fernando		1991	1,600	300	300	300	200	300	100	100	--
		1992	2,000	300	500	400	300	200	300	--	--
		1993	2,200	200	300	500	400	200	400	200	--
Boroughs
Arima Borough		1991	1,600	100	400	400	300	100	200	--	100
		1992	1,500	200	300	400	400	--	200	--	--
		1993	1,900	300	200	400	300	200	300	200	--
Point Fortin		1991	1,900	400	400	300	300	200	200	100	--
		1992	2,500	300	600	500	200	600	300	--	--
		1993	2,500	300	400	600	300	400	500	--	--
Counties
St. George		1991	35,900	6,200	8,100	7,600	4,700	2,900	4,300	1,800	300
		1992	36,600	5,600	8,300	6,800	3,400	3,700	4,200	2,200	400
		1993	38,800	5,600	8,300	6,000	6,200	4,000	5,3002,4001,000
Caroni		1991	12,300	2,100	2,800	2,500	1,600	1,000	1,400700200
		1992	13,900	2,100	3,400	2,600	1,800	1,600	1,600600200
		1993	14,600	2,800	2,800	2,200	2,600	1,700	1,700800--
Nariva/Mayaro		1991	2,000	400	700	300	300	200	100----
		1992	3,100	600	800	700	300	100	300200100
		1993	2,000	200	400	700	300	100	100100100
St. Andrew/		1991	4,700	1,100	1,400	700	500	400	400	200	--
	St. David	1992	5,900	1,100	1,700	800	900	700	400	300	--
		1993	4,000	600	1,200	600	700	300	500	100	--
Victoria		1991	13,500	2,600	3,600	2,600	1,600	1,100	1,100	600	300
		1992	13,800	2,400	3,600	2,600	1,600	1,100	1,700	400	400
		1993	15,600	2,500	3,400	2,800	2,600	1,600	2,000	600	100
St. Patrick		1991	9,700	2,000	2,600	1,700	1,000	800	1,100	400	100
		1992	10,800	1,500	2,200	2,300	1,600	1,500	1,100	600	--
		1993	10,600	1,400	2,500	2,400	1,700	1,100	700	700	100
Tobago		1991	3,800	500	1,100	1,000	500	300	200	200	--
		1992	3,700	700	900	900	400	300	400	100	--
		1993	2,600	600	700	400	400	200	300	--	--
Other		1991	100	--	100	--	--	--	--	--	--
		1992	200	--	--	--	--	100	--	100	--
		1993	300	100	100	--	--	--	--	100	--

Source: Central Statistical Office.

2. Some explanations for the unemployment

The changes in economic activity and the variations in the size of the labor force represent the main reasons for the changes in unemployment in Trinidad and Tobago. However, other factors also help explain the changes in unemployment, particularly the changes in the structure of the economy--including a mismatch of skills and rigidities in the labor market.

As economic activity boomed following the sharp increase in international oil prices, the unemployment rate declined from a steady level of 15 percent in the mid 1970s to a low of 10 percent by the early 1980s. ^1/ As output began to decline in the mid 1980s, unemployment climbed steadily to 22 percent by 1989, but dropped to 18 1/2 percent in 1991 as a result of a temporary recovery in economic activity. However, unemployment rose again to almost 20 percent as real GDP contracted by almost 3 1/2 percent in 1992-93.

The changes in the labor force participation, in part associated with output developments, have contributed to the variations in the unemployment. Labor force participation increased during 1981-93 without a commensurate increase in employment opportunities, prompting changes in the year-to-year unemployment. The decline in the labor force participation led to a drop in the unemployment rate by 2 percentage points to 20 percent in 1990 and the greater participation of females in the labor force led to an increase in the unemployment rate in 1992.

Temporary unemployment, owing to the time spent in-between jobs and the increased reliance on part-time employment, is an important factor in explaining some of the unemployment developments. ^1/ Temporary unemployment arises as employers and employees do not commit to a long-term working relationship as a result of institutional barriers, uncertainties about the course of economic events, and structural changes that no longer require full-time employment. In recent years, the structural changes in Trinidad and Tobago also have reflected the liberalization of the trade regime and the greater ease in importing state-of-the-art technology that would seem to have shifted production towards technologies that are more capital intensive. In 1993, the duration of unemployment was up to three months for about 30 percent of the unemployed, and up to six months for about 45 percent of the unemployed (Table 11). This short duration indicates some flexibility in the labor market owing to the transferability of skills that allows some of the unemployed to alternate easily between periods of employment and unemployment.

Table 11.

Trinidad and Tobago: Total Unemployment by Gender, Duration of Unemployment and Age Group

Source: Central Statistical Office.

Table 11.

Trinidad and Tobago: Total Unemployment by Gender, Duration of Unemployment and Age Group

			Duration of Unemployment
	Year	Total	Less than 1 Month	1 to 3 Months	4 to 6 Months	7 to 11 Months	1 Year and Over	Not Stated
		Both Sexes
Total all ages	1991	91,100	7,500	25,600	9,800	6,700	24,900	16,600
	1992	99,100	6,500	31,700	12,900	8,200	25,600	14,200
	1993	99,900	8,000	31,500	13,000	8,600	25,800	13,000
15 to 19	1991	16,300	800	3,800	1,400	1,000	1,200	8,100
	1992	15,400	800	4,400	1,300	1,000	1,200	6,700
	1993	15,400	1,100	3,300	1,600	1,100	1,500	6,800
20 to 24	1991	22,300	1,200	6,000	2,600	1,700	5,100	5,700
	1992	23,300	1,400	7,500	3,400	2,200	4,200	4,600
	1993	21,300	1,500	5,900	3,600	2,000	4,800	3,500
25 to 29	1991	18,200	1,400	5,200	2,100	1,600	6,100	1,800
	1992	19,300	1,400	5,500	2,800	2,200	5,700	1,700
	1993	17,200	1,400	5,400	2,400	1,400	5,200	1,400
30 to 34	1991	11,400	1,400	3,300	1,200	800	4,000	700
	1992	13,800	800	4,900	1,800	1,300	4,500	500
	1993	16,200	1,400	5,900	2,000	1,400	4,700	600
35 to 39	1991	7,700	1,100	2,100	900	800	2,600	200
	1992	10,200	800	3,300	1,600	400	3,500	600
	1993	10,600	800	4,400	1,300	1,200	2,800	100
40 to 49	1991	9,700	900	3,300	1,000	500	3,900	100
	1992	11,300	900	3,900	1,400	700	4,300	100
	1993	12,400	800	4,500	1,400	1,200	4,300	200
50 to 59	1991	4,300	500	1,600	500	200	1,500	--
	1992	4,700	300	1,900	500	300	1,700	--
	1993	5,400	800	1,700	600	300	2,000	--
60 +	1991	1,200	200	300	100	100	500	--
	1992	1,100	100	300	100	100	500	--
	1993	1,400	200	400	100	--	500	200
		Mailes
Total all ages	1991	49,600	5,800	18,100	6,500	3,400	10,000	5,800
	1992	54,200	5,000	22,400	7,600	4,300	9,500	5,400
	1993	56,200	6,400	21,800	8,000	4,500	11,200	4,300
15 to 19	1991	8,000	600	2,600	1,000	500	700	3,400
	1992	9,000	800	3,000	900	700	500	3,100
	1993	8,500	900	2,300	800	700	800	3,000
20 to 24	1991	12,000	1,000	4,400	1,800	800	2,300	1,700
	1992	12,800	900	5,200	2,000	1,100	2,100	1,500
	1993	11,600	1,200	4,000	2,200	800	2,300	1,100
25 to 29	1991	10,000	1,200	3,700	1,400	900	2,300	500
	1992	10,300	1,100	4,000	1,700	1,200	1,600	700
	1993	10,100	1,200	3,900	1,600	800	2,400	200
30 to 34	1991	6,200	1,100	2,600	900	300	1,200	100
	1992	7,100	600	3,200	1,000	700	1,500	100
	1993	8,800	1,000	4,000	1,200	700	1,900	--
35 to 39	1991	3,600	800	1,100	400	600	700	--
	1992	5,000	500	2,400	900	200	1,000	--
	1993	5,800	600	2,800	800	700	900	--
40 to 49	1991	5,500	600	2,300	700	200	1,600	100
	1992	6,300	800	2,900	700	300	1,600	--
	1993	6,900	700	3,100	800	500	1,800	--
50 to 59	1991	2,800	400	1,100	300--	1,000	--
	1992	3,000	300	1,400	300--	1,000	--
	1993	3,500	600	1,300	500	200	900	--
60 +	1991	700	100	300	--	100	200	--
	1992	700	--	300	100	100	200	--
	1993	1,000	200	400	100	100	200	0
		Females
Total all ages	1991	41,500	1,700	7,500	3,300	3,300	14,900	10,800
	1992	44,900	1,500	9,300	5,300	3,900	16,100	8,800
	1993	43,700	1,600	9,700	5,000	4,100	14,600	8,700
15 to 19	1991	7,500	200	1,200	400	500	500	4,700
	1992	6,400	--	1,400	400	300	700	3,600
	1993	6,900	200	1,000	800	400	700	3,800
20 to 24	1991	10,300	200	1,600	800	900	2,800	4,000
	1992	10,500	500	2,300	1,400	1,100	2,100	3,100
	1993	9,700	300	1,900	1,400	1,200	2,500	2,400
25 to 29	1991	8,200	200	1,500	700	700	3,800	1,300
	1992	9,000	300	1,500	1,100	1,000	4,100	1,000
	1993	7,100	200	1,500	800	600	2,800	1,200
30 to 34	1991	5,200	300	700	300	500	2,800	600
	1992	6,700	200	1,700	800	600	3,000	400
	1993	7,400	400	1,900	800	700	2,800	800
35 to 39	1991	4,100	300	1,000	500	200	1,900	200
	1992	5,200	300	900	700	200	2,500	600
	1993	4,800	200	1,600	500	500	1,900	100
40 to 49	1991	4,200	300	1,000	300	300	2,300	--
	1992	5,000	100	1,000	700	400	2,700	100
	1993	5,500	100	1,400	600	700	2,500	200
50 to 59	1991	1,500	100	500	200	200	500	--
	1992	1,700	--	500	200	300	700	--
	1993	1,900	200	400	100	100	1,100	--
60 +	1991	500	100	--	100	--	300	--
	1992	400	100	--	--	--	300	--
	1993	400	--	--	--	-100	300	200

Source: Central Statistical Office.

View Table

Table 11.

Trinidad and Tobago: Total Unemployment by Gender, Duration of Unemployment and Age Group

			Duration of Unemployment
	Year	Total	Less than 1 Month	1 to 3 Months	4 to 6 Months	7 to 11 Months	1 Year and Over	Not Stated
		Both Sexes
Total all ages	1991	91,100	7,500	25,600	9,800	6,700	24,900	16,600
	1992	99,100	6,500	31,700	12,900	8,200	25,600	14,200
	1993	99,900	8,000	31,500	13,000	8,600	25,800	13,000
15 to 19	1991	16,300	800	3,800	1,400	1,000	1,200	8,100
	1992	15,400	800	4,400	1,300	1,000	1,200	6,700
	1993	15,400	1,100	3,300	1,600	1,100	1,500	6,800
20 to 24	1991	22,300	1,200	6,000	2,600	1,700	5,100	5,700
	1992	23,300	1,400	7,500	3,400	2,200	4,200	4,600
	1993	21,300	1,500	5,900	3,600	2,000	4,800	3,500
25 to 29	1991	18,200	1,400	5,200	2,100	1,600	6,100	1,800
	1992	19,300	1,400	5,500	2,800	2,200	5,700	1,700
	1993	17,200	1,400	5,400	2,400	1,400	5,200	1,400
30 to 34	1991	11,400	1,400	3,300	1,200	800	4,000	700
	1992	13,800	800	4,900	1,800	1,300	4,500	500
	1993	16,200	1,400	5,900	2,000	1,400	4,700	600
35 to 39	1991	7,700	1,100	2,100	900	800	2,600	200
	1992	10,200	800	3,300	1,600	400	3,500	600
	1993	10,600	800	4,400	1,300	1,200	2,800	100
40 to 49	1991	9,700	900	3,300	1,000	500	3,900	100
	1992	11,300	900	3,900	1,400	700	4,300	100
	1993	12,400	800	4,500	1,400	1,200	4,300	200
50 to 59	1991	4,300	500	1,600	500	200	1,500	--
	1992	4,700	300	1,900	500	300	1,700	--
	1993	5,400	800	1,700	600	300	2,000	--
60 +	1991	1,200	200	300	100	100	500	--
	1992	1,100	100	300	100	100	500	--
	1993	1,400	200	400	100	--	500	200
		Mailes
Total all ages	1991	49,600	5,800	18,100	6,500	3,400	10,000	5,800
	1992	54,200	5,000	22,400	7,600	4,300	9,500	5,400
	1993	56,200	6,400	21,800	8,000	4,500	11,200	4,300
15 to 19	1991	8,000	600	2,600	1,000	500	700	3,400
	1992	9,000	800	3,000	900	700	500	3,100
	1993	8,500	900	2,300	800	700	800	3,000
20 to 24	1991	12,000	1,000	4,400	1,800	800	2,300	1,700
	1992	12,800	900	5,200	2,000	1,100	2,100	1,500
	1993	11,600	1,200	4,000	2,200	800	2,300	1,100
25 to 29	1991	10,000	1,200	3,700	1,400	900	2,300	500
	1992	10,300	1,100	4,000	1,700	1,200	1,600	700
	1993	10,100	1,200	3,900	1,600	800	2,400	200
30 to 34	1991	6,200	1,100	2,600	900	300	1,200	100
	1992	7,100	600	3,200	1,000	700	1,500	100
	1993	8,800	1,000	4,000	1,200	700	1,900	--
35 to 39	1991	3,600	800	1,100	400	600	700	--
	1992	5,000	500	2,400	900	200	1,000	--
	1993	5,800	600	2,800	800	700	900	--
40 to 49	1991	5,500	600	2,300	700	200	1,600	100
	1992	6,300	800	2,900	700	300	1,600	--
	1993	6,900	700	3,100	800	500	1,800	--
50 to 59	1991	2,800	400	1,100	300--	1,000	--
	1992	3,000	300	1,400	300--	1,000	--
	1993	3,500	600	1,300	500	200	900	--
60 +	1991	700	100	300	--	100	200	--
	1992	700	--	300	100	100	200	--
	1993	1,000	200	400	100	100	200	0
		Females
Total all ages	1991	41,500	1,700	7,500	3,300	3,300	14,900	10,800
	1992	44,900	1,500	9,300	5,300	3,900	16,100	8,800
	1993	43,700	1,600	9,700	5,000	4,100	14,600	8,700
15 to 19	1991	7,500	200	1,200	400	500	500	4,700
	1992	6,400	--	1,400	400	300	700	3,600
	1993	6,900	200	1,000	800	400	700	3,800
20 to 24	1991	10,300	200	1,600	800	900	2,800	4,000
	1992	10,500	500	2,300	1,400	1,100	2,100	3,100
	1993	9,700	300	1,900	1,400	1,200	2,500	2,400
25 to 29	1991	8,200	200	1,500	700	700	3,800	1,300
	1992	9,000	300	1,500	1,100	1,000	4,100	1,000
	1993	7,100	200	1,500	800	600	2,800	1,200
30 to 34	1991	5,200	300	700	300	500	2,800	600
	1992	6,700	200	1,700	800	600	3,000	400
	1993	7,400	400	1,900	800	700	2,800	800
35 to 39	1991	4,100	300	1,000	500	200	1,900	200
	1992	5,200	300	900	700	200	2,500	600
	1993	4,800	200	1,600	500	500	1,900	100
40 to 49	1991	4,200	300	1,000	300	300	2,300	--
	1992	5,000	100	1,000	700	400	2,700	100
	1993	5,500	100	1,400	600	700	2,500	200
50 to 59	1991	1,500	100	500	200	200	500	--
	1992	1,700	--	500	200	300	700	--
	1993	1,900	200	400	100	100	1,100	--
60 +	1991	500	100	--	100	--	300	--
	1992	400	100	--	--	--	300	--
	1993	400	--	--	--	-100	300	200

Source: Central Statistical Office.

The increased reliance on part-time employees to perform certain tasks could be the result of the legislation relating to dismissals and severance payments. The legislation states that there may be consultation between employees and employers prior to the issuance of formal dismissal notices and specifies a minimum period for these notices to become effective. If disagreement ensues at any point in time, and no acceptable solution is found, the Minister of Labor could intervene at his own volition or if requested by one of the parties. The legislation specifies that wages must still be paid to employees during the period of consultation and the intervention by the Minister of Labor. Moreover, if separation indeed takes place, the legislation requires minimum severance payments amounting to two weeks for each completed year of service for employees with unbroken service of one but less than five years, and three weeks for each completed year of service for employees with unbroken service of five years or more. The legislation states that the Minister of Labor may determine other relief payments.

According to the household surveys, about 33 percent of the unemployed remained without a job for more than six months, and over 25 percent went without working for one year or longer in 1993. This long duration in unemployment could be explained by unemployment resulting from job search (search unemployment), which comes about from the decision to remain (or even become) unemployed in the hope of finding a job at a wage that at least compensates for the expenses incurred in the search period. ^1/ However, search unemployment would require the existence of a support system. In Trinidad and Tobago, this support would appear to come mainly from the extended family and, to a lesser extent, from activities in the informal sector.

The long duration of unemployment also could reflect structural factors, including a mismatch of skills and rigidities in the labor market. As the structure of the economy has been changing, some of the unemployment could be explained by a mismatch between the skills possessed by potential employees and those required for employment. The mismatch of skills could indicate the existence of a group of hard core unemployed, particularly in the case of those who have been jobless for over one year or have stopped searching for employment, and thus could explain in part the persistence of unemployment. ^2/

In addition, the long duration of most unemployment in Trinidad and Tobago could point to the existence of rigidities in the labor market such as the minimum wages and trade unions as well as to the dismissal difficulties mentioned above. ^3/ However, there are indications that their importance is limited as suggested by the large number of persons working below the minimum wages and the likely diminished role of the trade unions in the context of high unemployment.

3. Alleviation policies

The Government has established short- and long-term policies to alleviate the adverse effects of unemployment. ^4/ In the short term, the Government is relying mainly on the Unemployment Relief Program (URP), the Youth Training and Employment Partnership (YTEPP), the National Apprenticeship Program and the Civilian Conservation Corps, and more recently also on the program called Retraining for Displaced Workers.

The URP is the main unemployment program. It aims to place the 25-45 years old unemployed to work in the building or refurbishing of infrastructure and construction projects (roads, bridges, community centers, schools, police stations and sports complexes), community self-help projects, and one-off projects (for example, flood controls). The program works on a rotational basis, and thus only 7 percent of the unemployed hold URP sponsored jobs at any one time. In light of the high unemployment and given that the URP finances 150,000 jobs a year with an average duration of five weeks, the demand has far outstripped the supply of jobs provided under this program. In 1993, the Government spent TT$124 million on the URP, or about 1/2 percent of GDP and 23 percent of all expenditures on the social programs.

The YTEPP program was initiated in 1993, with December 1995 set as the ending date. The program, which is being financed in part by the World Bank, provides the unemployed youth (15-25 years old) with career enhancement abilities, vocational skills training (in some 14 areas) and post-training support. In 1993, some 5,100 youths completed the program and TT$25.6 million were allocated to the YTEPP program in 1993.

The National Apprenticeship Program, which is administered by the Ministry of Education under the direction of the National Training Board, targets youths (15-25 years old) who are looking for their first jobs and are already out of school. Priority is given to YTEPP participants. The program’s objective is to place participants in apprenticeship programs preferably in the private sector. The period of placement varies from six months to three years depending on the qualifications of the participants. One half of the wages paid to the participants is covered by the Central Government and the other half is paid by employers. The wages are based on the minimum wages, but may be higher in some cases. In 1993, some 5,700 participants in the program were placed with support from the Government being TT$8.5 million.

The Civilian Conservation Corps (CCC), which is administered by the Defence Force, started in 1993. This program places persons 15-25 years old--with little education and skills--on conservation projects, including reforestation, establishment of nature trails, beautification of beaches, and restoration of historical sites. The experience provides these persons with practical training as well as motivational skills. In 1993, some 2,600 persons participated in this program in three cycles each lasting four months.

The Retraining for Displaced Workers program, which is administered by the Ministry of Education, aims to cushion the impact of structural adjustment measures by enabling workers (25-45 years old) to re-enter the ranks of the employed as employees or self-employed. To participate in the program, the workers need to have been dismissed, retired on grounds of ill-health, or accepted voluntary separation. The program is based on on-the-job training for up to three months. Some 1,700 displaced workers are participating in the program, but the Government intends to expand it to provide training for up to 6,000 persons a year. Some 56 areas for on-the-job training have been identified by the Ministry of Education.

As part of the long-term policies, the Government is strengthening the flow of information between potential employees and employers, and has introduced further fiscal incentives for the creation of employment opportunities. The Government is expanding the National Employment Service through the opening of four new offices. This program relies on voluntary registration of the unemployed and efforts by Ministry of Labor to find appropriate placements. The Government is proceeding with the establishment of the National Human Resource Management Information System (NHRMIS) that would provide entrants into the labor force with needed information on employment opportunities in different economic sectors and occupational categories. Moreover, this program would allow public and private institutions to be aware of the human resources available, to seek potential employees who possess the skills necessary to fill vacancies, and to help in shaping the training needed to enhance the skills of potential entrants into the labor force.

The fiscal incentives being provided by the Government to encourage the creation of employment opportunities include exempting commercial banks from paying corporate income tax on up to 50 percent of the interest earned on loans to small businesses and agricultural enterprises that lead to the creation of employment opportunities. Moreover, local investment in the tourism sector is being encouraged by allowing investors to claim 25 percent of their equity investment as a tax deductible expense. Given the potential of creating more employment opportunities in the construction sector, the Government has exempted from personal and corporate income taxes all rental incomes from properties constructed after January 1, 1993. In this regard, the Government has introduced procedures to speed up the implementation of major public and private sector construction projects.