The Private Sector Commission of Guyana informed the IMF that unemployment is largely voluntary due to economic growth, particularly in the oil and gas sector. A significant increase in labor costs and the demand for skilled workers were highlighted, along with the need for training programs and banking sector reforms to support Small and Medium Enterprises.
During a recent meeting with the International Monetary Fund (IMF), the Private Sector Commission (PSC) of Guyana emphasized the country’s economic growth. The PSC asserted that unemployment in Guyana is predominantly voluntary. Presently, the unemployment rate stands around 12%, with significant job creation attributed to developments in the oil and gas sector as well as related industries.
The PSC expressed the need for targeted training programs to enhance the skill set of the labor force. During discussions, they reiterated their stance on voluntary unemployment, noting the multitude of economic activities that generate job opportunities. Furthermore, labor costs in the private sector have surged by over 60% in the past four years, reflecting the country’s economic expansion and a rising demand for skilled labor.
Chairman Komal Singh informed the IMF that growth is evident across all sectors in Guyana, which is fueling a heightened demand for skilled workers. He highlighted existing resources available for job seekers, such as the Ministry of Labour’s Job Bank and the Diaspora Unit at the Ministry of Foreign Affairs.
Additionally, Singh emphasized governmental initiatives aimed at enhancing the governance framework, including legislative improvements like arbitration laws and streamlined business processes through single-window platforms in both trade and construction.
Nevertheless, the PSC stressed the necessity for regulatory reforms within the banking sector to bolster the growth and financial resilience of Small and Medium Enterprises (SMEs). While acknowledging advancements made by banks to facilitate business operations, they recognized further enhancements are still required for optimal efficiency.
The IMF’s preliminary report, following its visit to Guyana, acknowledged the rapid economic transformation occurring in the country, closely tied to the expanding Oil and Gas Sector, as well as progress in the non-oil segment. This mission, which occurred between February 2024 and March 7, 2025, involved consultations with various stakeholders including government officials, trade unionists, and representatives from the financial sector.
In summary, the Private Sector Commission of Guyana conveyed to the International Monetary Fund that unemployment is largely voluntary amidst a backdrop of economic growth. The rising demand for skilled labor and the necessity for targeted training programs underscore the current employment landscape. The PSC also called for regulatory reforms to enhance support for Small and Medium Enterprises, while acknowledging the impressive economic transformation driven by the Oil and Gas Sector. Overall, a collaborative approach between the government and private sector is crucial for sustaining growth and addressing the challenges within the labor market.
Original Source: newssourcegy.com
