Poverty, unemployment reduction aligns with objectives of Govt’s economic planning

Dear Editor,
Economic development aims, among other things, to reduce poverty and unemployment. In 2022, Guyana’s overall unemployment rate was 12.4%, with youth unemployment at 25%, according to the IMF. This sparked discussions on unemployment and poverty. However, since 2022, an increase in the labour force has lowered the unemployment rate.
As of 2019, the country had lost over 30,000 jobs. Between 2020 and 2024 the Government claims to have added more than 60,000 jobs in sectors including construction, oil, transport, mining, and services.
Like the Government, the Private Sector Commission (PSC) notes that the existing unemployment rate among youth is less than 25%. The PSC says that qualitative evidence indicates that there are enough job opportunities for both youth and adults. “There are enough job opportunities for both youth and adults. However, attitudes can limit job choices,” says outgoing PSC Chair Mr. Komal Singh. He emphasizes personal effort and discipline and offers job opportunities or training to the unemployed or impoverished.
Relative to poverty, the Poverty Reduction Strategy (2015) shows that moderate poverty decreased from 43.2% in 1992 to 30% in 2010. Regions 1, 2, 7, 8, and 9 had the highest poverty rates. More recently, the IMF reported a poverty level of 48.4% in Guyana for 2019, based on a daily threshold of $5.50 per person, per household. In 2023, this daily threshold was updated to $6.85 per person, per household as Guyana is now considered a high-income country with a per capita GDP of $(US) 24,658 (2024).
Although households on average might theoretically surpass the poverty threshold of $(G) 156,000 or $(US) 742.86 per month, this figure does not indicate the number of households below the poverty line. Despite the substantial annual increase (174%) in net household disposable income from $(G) 805,000 (or $(US) 3,883) in 2019 to $(G) 2,200,000 (or $(US) 10,476) in 2024 (JC Bhagwandin: 2/1124), pockets of poverty persist in several communities. These include regions 1, 7, 8, and 9 as well as neighbourhoods such as Plastic City (Vreed-en-Hoop), parts of Wales, Pigeon Island (ECD), and parts of Georgetown and New Amsterdam. Comprehensive quantitative and qualitative research is necessary to determine poverty levels in these and other vulnerable areas. Targeted programs are being developed to alleviate poverty and unemployment in these neighbourhoods.
There are suggestions of a connection between poverty and unemployment. However, the time series data required to investigate this relationship is currently unavailable. It can be hypothesized that extended periods of unemployment may increase the likelihood of an individual falling into or remaining in poverty. Many Guyanese seeking employment lack necessary qualifications. However, many who possess the right attitude are engaging in skills training, while others are less inclined to work. The Minister of Labor, Hon Joseph Hamilton, articulated that the government is committed to providing resources for nationwide educational and skill-training programs. Between 2020 and 2024, the Board of Industrial Training (BIT) trained 12,742 individuals. It is estimated that 75% of trainees have secured meaningful employment.
The Guyana government also offers skills training through the Ministries of Education (MoE) and Human Services and Social Security (MHSSS). MHSSS runs the WIIN (Women Innovation and Investment Network) programme, while MoE oversees TVET (Technical Vocational and Educational Training), graduating over 6,000 students from 2020 to 2024. Both are aligned with labour demands and guided by the ILO’s study on ‘Prospective Occupational and Skills Needs, 2022-2026.’ Other agencies, like the Ministry of Agriculture’s NAREI, also provide technical training.
Qualitative evidence indicates that since 2019, poverty has decreased by at least half, and unemployment has reduced to single digits. This aligns with one of the key objectives of the PPP/C government’s economic planning.

Sincerely,
Dr Tara Singh