$144M spent in five years helping locals into work
(CNS): The Cayman Islands Government spent close to CI$144 million over five years (2019 to 2023) on efforts to get Caymanians into work, but a report by the Office of the Auditor General found little evidence that any of the various programmes and attempts to remove barriers have actually impacted the unemployment rate. The report also noted a significant gap in the data to indicate what does and doesn’t work.
In the latest OAG report, Improving Employment Prospects for Caymanians, Auditor General Sue Winspear said that low standards of education, the failure of the minimum wage to keep pace with inflation and childcare problems are some of the main barriers to getting locals into work.
“Despite meeting the definition of full employment, there are a number of barriers to employment that need to be addressed, including low educational attainment, the level of the minimum wage, lack of apprenticeships and availability of childcare,” Winspear said.
“Most unemployed Caymanians have a high school diploma or lower, and while there are plenty of available jobs that require only this level of education, they tend to be low paid. I note that while progress has been made in developing a framework for technical and vocational education and training (TVET), career guidance in schools does not cover this. Given that the majority of jobs in the Cayman Islands may require TVET skills, this needs to be more of a focus,” she added.
Among the ten recommendations made in the report, Winspear said that WORC should prepare forecasts of long-term labour demands and the government should develop a national employment policy.
“This policy needs to take a holistic approach,” she said in a release about the report. The OAG believes the most important recommendations are those on developing a national employment policy, preparing forecasts of long-term labour force demands, as well as focusing on WORC employment programmes and the Ministry of Education’s TVET framework. Winspear said that there had been insufficient strategic planning to actually address the local unemployment problems.
The report also found worrying trends suggesting that there are massive gaps in the government’s labour policy, such as it is. The CIG has no plans to address challenges revealed by surveys that very few local people are interested in the technology jobs of the future, and Winspear identified a notable “mismatch” in the type of jobs Caymanians want and what employers need.
While almost half of the jobs of the future will be IT-related, less than 8% of Caymanians who took part in a WORC survey last year said they were interested in that type of work. In the report, Winspear said jobs that are in demand are changing, and there is a disconnect between the jobs employers expect there to be a high demand for and those that Caymanians are interested in.
Successive governments have consistently highlighted the importance of improving employment prospects for Caymanians, but little has been said about how that can be achieved or if any of the programmes, policies and initiatives have actually made a difference.
Winspear said it is unclear how the CIG’s objectives set out in its strategies policy statements were to be achieved as they don’t provide clear definitions or identify the needs that they intended to address. Each SPS has, over several years, stated that achieving full employment is a government priority without defining what this means.
While the civil service is responsible for implementing government policies, it has not developed an overarching strategy, and WORC doesn’t have a strategy either. Winspear said several individual strategies and policies are in place, but these could be improved.
A significant amount of public money has been invested in trying to tackle the unemployment problem among locals in a labour force that has grown to an unprecedented size but still fails to offer suitable work for all Caymanians who are looking for a job.
According to ESO’s figures, the $144 million spent over the last five years has simply moved the needle from a Caymanian jobless rate of 3.9% in Spring 2019 to over 5% unemployment among local people at the end of last year. While COVID disrupted the jobless numbers during the lockdown in 2020, once the borders re-opened the recovery of the economy throughout 2022 led to a drop in unemployment back to just 3.6% among Caymanians.
In the report, Winspear noted the lack of data to measure how the money spent and the actions taken by the government have impacted the ability of local people to find suitable employment.
She said that the CIG, “through WORC and other entities, provides a number of employment programmes, but the effectiveness of these programmes is unclear”. The seven programmes offered by WORC and its partners had an average completion rate of 83% over four years. “Although this varies by programme, it is good news. However, when you look deeper into the statistics, it tells a different story.”
She explained that in 2022, less than half of applicants were accepted onto one of the programmes and over a quarter of people who started dropped out before they finished. “The low acceptance rate indicates that there are not enough places to meet demand,” Winspear said. “This is evident for the national apprenticeship programme where less than one in ten were accepted because of limited places.”
The Ministry of Education paid Superior Auto, a private company, $600,000 between 2019 and 2023 to run a training programme for aspiring mechanics. But no purchase agreement was made with the
company, so the ministry cannot hold it accountable and it has not tracked the outcomes for participants.
“It is impossible to assess the programme’s effectiveness and it is unlikely the MoE receives value for money for the funding,” Winspear stated.
The Immigration Act requires WORC to provide the government and the private sector with labour market demand assessments, but no assessments were completed during the first three years after WORC was created. It began making Job Posting Reports in March 2022, but Winspear said she found it difficult to measure and report on WORC’s performance because of incomplete data.
From 2019 to 2021, WORC did not set or monitor key performance indicators (KPIs) to assess its performance. It began to set performance indicators in June 2021, but she said that it still doesn’t regularly measure and monitor performance against them, and many don’t have targets.
As a result, it is impossible to measure performance against them, Winspear said, noting that the department remains focused on outputs rather than outcomes.
See the latest performance audit report in the CNS Library.
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Category: Government Finance, Government oversight, Jobs, Local News, Politics
How are we supposed to become less dependent on work permits, when every year Immigration is expected to generate X million worth of revenue which is driven (precisely) from work permit and permanent residency approval fees? Same thing in planning. We complain about over development, yet planning has to generate X million a year representing planning approval fees.
Raise the cost if a T& B license, stop allowing people to take out half dozen at a time for non-existant jobs, stop allowing 12 permits for each license granted. Get a task force to go undercover on jobsites or street corners to see how many Jamaicans looking work because they have to pay the person holding the T&B license a certain amount weekly yet that person has no work for them but took out permit anyway.
Here’s an idea: Make it a Business License requirement for “trade” companies that have over 25 employees to run a certificated apprentiship programme for young Caymanians sponsored by the government — eletrical, plumbing, construction, etc. We don’t need a trade school, we just need certificated trade programmes, like City & Guilds in the UK; or, why not bring City & Guilds to Cayman?
Already the law, set out in the Immigration (Transition) Act – and applies to every business with work permits.
common sense isnt too common here. these elected officials and the ones in the past are lacking it.
To 06/06/2024 at 10:27am: The Public Works Apprenticeship Programme is certified by City & Guilds. Next!
600k to superior auto over 4 years. Why no HVAC, Plumbing or electrical college?
??? The Public Works Apprenticeship Programme offers all of these. In addition, UCCI offers TVET options as well.
having a diploma doesn’t mean anything if your not willing to go to work on time, put the effort in and after 3 months need to understand you wont be the general manager. People needs to stop brainwashing the youth with unrealistic achievements that they will be the boss with a degree. it doesnt work like that.
This article perhaps would be more accurate if it said $144M of public money wasted in five years “helping locals into work”. I’d love to see a breakdown of exactly how this was spent.
144m of public money?
Population of what? 70, 80,000? 35,000 on work permits. At most that leaves 45,000 Caymanians, including children and those past retirement age. Say, generously, 30,000 working age Caymanians. 5% unemployed is 1,500 people.
So the the best part of $100,000 each for:
“little evidence that any of the various…attempts…have actually impacted the unemployment rate”.
Even by CIG standards that’s a pretty special use of our cash. Maybe next time just print the $1 bills and give them to CUC to burn instead of diesel so we don’t have to deal with electricity blackouts?
Better off giving 144M to caymanians.
Fake news lol.
they are Caymanians idiot
Remember the roll over policy was suppose to solve all of these problems, instead we have seen a massive rise in work permits and caymanians still can’t get the top jobs. Instead of the Government abandoning this failed policy they want to apply it to our essential workers in the civil service. How mad is that.
to do what with it??
$144m figure is misleading. The pie chart shows $131m (or 91%) has been spent on providing higher education for Caymanians.
Genuinely curious why the thumbs down? Are you opposed to Government-funded education in principle? Or, just funding of higher education?
We’re opposed to the number of scholarships being given to people who have scraped through high school doing the absolute minimum but now get a full free ride.
No wonder there is no emphasis on actually trying to do well and get meaningful grades
They’re against Caymanians getting it.
There is an old saying. You can lead a horse to water, but you can’t make them drink it.
Maybe they are holding out for a Management position.
The Government views money like Niagara Falls. Nothing can stop the flow.
The public fiscal management system is just for optics and international ratings and is ignored whenever convenient.
The only thing that is saving Cayman from outright pillaging of the treasury is the Framework for Fiscal Responsibility imposed by the UK. And we know the politicos and their handlers are always trying to get rid of that impediment.
Can we at least be told where to go to get our cars serviced by the $600,000 group of auto mechanics?
It is terrifying. The Caribeean and Southern State hurricane belt is only a few large insurance claims away from uninsurable. Some parts of the USA east coast are already there. At that moment, mortgages are called, and employees have to make a home elsewhere. Our lifeblood, the Financial Services industry, relocates and 75% of CIG revenue disappears overnight. Payroll for CIG’s 4500 employees has expanded to >KYD$500,000,000 a year, and tourism would barely cover half of that, with no money for anything else, plus colossal unamortized debt principal and interest, and billions in unreported social liabilities.
All the unemployed Caymanians should become real estate agents. You don’t need any qualifications, just a cheesy picture on a sign and you make loads of money.
yep..but like most other jobs…the hardest working realtors make the money…lazy ones don’t.
hence why not many caymanian realtors.
Bit like selling cars – no qualifications needed, but some people are way better at it than others. And unlike cars, where you can always buy stock if you don’t want to work for a dealership, you can buy listings – need to persuade people to give u their listing if you want to make the big $. You don’t just make the money by putting up the sign – need the social skills and marketing to get the listings and attract buyers.
Caymanians have historically not wanted commission based employment.
And the local banking industry has always conspired against it by not giving loans to those on commission or gratuity based income.
No conspiracy. Commissions and gratuity can diminish, disappear, or be highly irregular – gone in an eye blink. Banks/lenders are obligated to balance risk/reward. Finance 101.
Employer income letter, attesting to average monthly pay, has to be true. Get the letter written by HR after a big month, and you’re golden with most of the banks, if you also meet the down payment criteria. Loan officers want to write fresh debt, while covering their butts with head office compliance.
Employ them as Civil Service as switchboard operators then they will have a job and the public will get their calls answered.
Good try. But they would need to be polite, prompt, well spoken, professionally dressed, aggressive enough to be better than the competition, understand basics of mortgages, loan applications, etc, etc, etc. This basically eliminates the majority of the “unemployed Caymanians.”
Maybe they are “unemployed” for a reason (actually many reasons, I’m being polite)!
Here’s some ideas 💡
1) Mandatory Cayman Islands Boot Camp for 5 years for ages 8 to 13. Yes Driller Sargent! Hard push ups sweaty push ups
2) Yearly classroom education on the importance of a two parent family upbringing rather than single parent mothers trying to raise 3-5 Caymanian kids on her own
3) Cayman providing free condoms in school. Theme of Don’t Be A Fool Wrap Your Tool
4) after age 18 mandatory 5 years overseas work education.
Upon completion the Caymanian young adult is given $100,000 congratulations a trophy
End result would be fine well rounded disciplined youth ready to enter the workforce.
Sounds like a system to insure a future generation of unemployed Caymanians.
Still, think about how much we paid to keep 19 otherwise unemployables in Parliament over the past five years.
bloody crazy government!
Cayman wastes so much money in ALL departments honestly. I’m experienced it for years
… “I have experienced it for years.” (You slept through grammar). Yes, Cayman wastes so much – on poor education!
Racist. At least we have hot running water for your weekly showers
If it wasn’t the Cayman Islands Government it would almost be unbelievable. But it is CIG so it makes sense.
Madness. Total madness.
don’t worry we can always increase work permit and business fees again……zzzzzzzzz
just another day in wonderland
“In the report, Winspear said jobs that are in demand are changing, and there is a disconnect between the jobs employers expect there to be a high demand for and those that Caymanians are interested in.”
This is a big part of the problem. We tell kids lies like “You can be anything you want to be,” but the truth is, some kids don’t have the aptitude or drive to be anything they want to be. I do believe TVET is a key. By the time our children reach their first year of high school, we should have a pretty good idea if they have the aptitude to go on to university and do well there. If they don’t, then the system needs to provide them with the best chance to succeed in a vocation of some sort. Properly trained people in vocations here (Caymanians and expats alike) are making very good money. There’s nothing dishonourable in having that kind of career. We’ve just have to get past this myth that every Caymanians can be a doctor, lawyer, accountant or politician and then help those who can’t find a career in a line where we’ve identified a growing or ongoing need. I get that Caymanians don’t want to flip burgers or clean the floors – I wouldn’t want to do that either – but let’s train them for jobs that pay well, even if they aren’t the glamour jobs everyone thinks they should have.
Imma let you in on a little Masonic and service club secret sweetheart.
We don’t want locals training for vocational jobs because that would mean putting the wages up. It would interfere with us bringing people over here on nothing, making them pay their own permits so we can make lots of tax free dollars.
I’m telling you right now that caymanians will NEVER have decent vocational options and the associated highly skilled wages they come with (elsewhere in the world) and that’s because it conflicts with my $6 dollar an hour Filipinos and Jamaicans. Sorry. It is whah it is, my house in Vista Del Mar and CIS fees ain’t going to pay for themselves.
Facts.
When you have an MP happily saying on the record that they do not think minimum wage for nannies should be raised because they do not want to pay more for a nanny you can see what you are up against
It’s not the jobs “employers expect there to be a high demand for” it’s the jobs employers have to meet the demand s of their business. The problem is that there are 2 major disconnects between that demand for labour and Caymanian expectations and supply of labour – the rate the job pays and the expectations of Caymanians on rate,and n the higher paid jobs the qualifications of some Caymanians, compounded but not entirely due to a poor public education system ( not everyone can be a hedge fund manager, an actuary, a lawyer or an accountant irrespective of the education they receive). Then at the lower end of the pay scale the situation is exacerbated by the NAU providing benefits that rival or exceed the market wage – ridiculous that you can get more on benefits that man you can get from working you a$$ off on minimum wage. But politicians won’t increase the minimum wage for fear of offending their founders in the business community ( and in some cases their own commercial interests!) and won’t cut benefits for fear of offending a group of voters.
The elephant in the room is the failure of CIG to appreciate that positive discrimination does not help young Caymanians find work. “You gotta gimmee job because it’s the law”. When young Caymanians feel as if the country owes them a job – a living, it breeds an entitlement mentality, making them uncompetitive.
Furthermore, hire an expat (for what amounts to a pittance of a work permit fee) and you can get rid of them within 12-months if they don’t work out. Hire a young Caymanian and you’ll find yourself before the Labor Board if you even raise your voice.
God bless the Auditor General ! For keeping her $#@% Real and for telling Caymanian people what time it is in Cayman What Caymanians are they talking about ? 5 years on and 40,000 work permits is proof that this was a hoax and look at who running Cayman is proof the Hoax was real ! Someone needs to be charged for a 144million dollar Fraud ?
No mention of chronic drug/alcohol abuse or general unreliability in many? As a generational Caymanian small business owner I often see Caymanian job-seekers who are unable to be employed because of these issues.
Many of you same generational Caymanian business people hire foreigners with the same drug addiction, some of whom are seen moving in and out of certain areas looking for their fix. Just pay Caymanians as well and offer them good benefit packages!
You may be correct in some cases, however for an entry level position my pay scale begins at more than twice the minimum wage.
Link to your ad?
We ought to know by now, so conditioned to ritualised fraud, that a closer look is warranted at some of these line items, like the KYD$57,000,000 to UCCI. >KYD$11,000,000 a year, how is that number even possible?
Farcical. A significant waste of time and resources on an incredibly important issue. It is what happens when people who do not understand the buttons are allowed into the cockpit and play with them while the aircraft is in flight.
Enforcing our laws and the principles underpinning them would be so much cheaper, and effective.
Caymanians are the passengers on this plane. I hope that more and more are seeing what is happening.
We don’t wanna work. We just wanna bang on the drums all day. Brain work gimmee headaches.
We don’t wanna work. We just wanna get rich hanging out complaining all day.
New expat Caymanian kids
You mean the ones with more brains and better work attitude than the old Caymanian kids, 5:47?
It’s almost like it’s a cultural problem, maybe the sort of problem our closest neighbour has shipped over to these Islands? almost, just maybe, it may have really started going downhill when a certain Government threw open the doors with some mass status grants at some point in recent memory?
Can’t spend your way out of the symptoms of imported cultural failure. Go figure.
What grade level did all our MLS complete?
I know a lot of dumb highly educated people too.