Global crisis: unemployment assistance program in Bahamas

The Labour Minister for Bahamas revealed yesterday that he soon will announce a temporary unemployment assistance program of 6 months.

According to the Minister Foulkes is the first time that they introduce a program like this. The program has been revealed, will be very similar to the one in United States where if a worker lose his/her job he/she has economic assistance for 6 months while you they find another job. He warned that the program details will be announced later. The National Insurance Board is the institution developing the program. The National Insurance Board, a CISS member, offers the retirement pensions, maternity, sickness and invalidity benefits, survivor and industrial benefits.

According to the latest available statistics, the unemployment rate in 2008 is 8.7 per cent, however this number may be higher since recently many people have been laid off. Hence, Foulkes said the initiative is "desperately needed." Moreover, he commented, the government will implement several other initiatives to provide jobs for Bahamians before Christmas.

We believe this is a positive initiative, although, and with out knowing the details of the program, as we commented in a previous note, we believe it is better for countries to have a permanent unemployment insurance well structured, that includes training programs for unemployed and benefits depending on the contributions. This type of “urgent” programs can be used by the countries to establish permanent unemployment insurance programs if designed with a long term perspective.