The Private Sector Commission of Guyana informed the IMF that unemployment is largely voluntary, citing economic growth and job creation in the oil sector. Labor costs increased by 60% over four years due to demand for skilled workers. The PSC highlighted the necessity for training programs and regulatory reforms in banking to support Small and Medium Enterprises, while the IMF noted Guyana’s rapid economic transformation linked to its oil sector.
During a recent meeting with a delegation from the International Monetary Fund (IMF), the Private Sector Commission of Guyana asserted that unemployment in the nation is predominantly voluntary. Guyana’s unemployment rate stands at approximately 12%, yet the burgeoning economy, particularly in the oil and gas sector, has created numerous job opportunities for its citizens.
The Private Sector Commission (PSC) emphasized the urgent need for targeted training programs aimed at equipping the labor force with essential skills relevant to the evolving job market. They reiterated that the assertion of voluntary unemployment is substantiated by the numerous economic activities fostering job creation throughout the country.
Reportedly, labor costs in the private sector have surged by over 60% in the last four years, reflecting significant economic growth and a heightened need for skilled labor. Komal Singh, Chairman of the PSC, informed the IMF that every sector in Guyana is undergoing expansion, which has consequently increased the demand for qualified workers.
Singh also referred to supportive initiatives for job seekers, including the Ministry of Labour’s Job Bank and the Diaspora Unit within the Ministry of Foreign Affairs, which assist citizens in finding employment. Furthermore, he acknowledged governmental endeavors to enhance the business environment through legislative improvements like arbitration laws and the introduction of streamlined single-window platforms for trade and construction activities.
Despite recognizing some improvements made by banks to facilitate business operations, the PSC highlighted the necessity for regulatory reforms in the banking sector to bolster the growth and financial stability of Small and Medium Enterprises (SMEs). The PSC believes more enhancements are still required to ensure further ease of doing business.
The IMF’s preliminary report following its visit indicated that Guyana’s economic transformation is progressing rapidly, with growth closely linked to the expanding Oil and Gas Sector, alongside advancements in the non-oil sector. This mission, which took place between February 2024 and March 7, 2025, included dialogues with various stakeholders, including Vice President Bharrat Jagdeo, Finance Minister Dr. Ashni Singh, and representatives from multiple sectors.
In conclusion, the Private Sector Commission of Guyana conveyed to the IMF that unemployment is largely voluntary due to the economic growth, particularly in the oil and gas sector. There is a pressing need for training programs to prepare the labor force with appropriate skills. While labor costs have risen significantly and there are supportive mechanisms for job seekers, further banking sector reforms are essential to enhance the financial resilience of Small and Medium Enterprises. Overall, Guyana’s economic transformation is recognized as accelerating in pace, with strong growth prospects across various industries.
Original Source: newssourcegy.com
