Shortage of Jamaican workers is a national emergency!

Jamaica’s Prime Minister Andrew Holness says a shortage of skilled workers is a national emergency! Keep watching to find out how he plans to correct it.

So during his budget presentation, the Jamaican PM said this…

“We recognised the urgent nature of the shortage of skilled labour, I would go as far to say it is now a national emergency.”

And that lined up well with the Opposition’s call to…

“Transition Jamaica from a low-wage, low-productivity economy.”

Well, it looks like the government took those comments to heart. 

Here are five social initiatives the government recently announced to boost Jamaica’s skilled workforce and avoid that whole discussion of importing workers.

Number 1- They’re removing the need for guarantors to get a loan from the Student Loan Bureau.  That’s massive!

For a long time, the guarantor requirement for SLB was seen as kinda classist. What are the chances that the most vulnerable students who need student loans could find two guarantors to cosign for them? In the last budget, the government brought the requirement down to one and now they’ve completely eliminated the requirement.

This will give more students access to financing to finish their education. And if you’re wondering how the SLB plans to keep track of delinquent payers… Well, the Government says by the time the first cohort of students who will benefit from this rule change graduate, the NIDS Act will be in place. 

NIDS is the National Identification System.  So, there’ll be no need to contact the guarantor to get through to the customer.

Finance Minister Dr Nigel Clarke was actually the one who announced the removal of SLB guarantors but it set the stage for number 2 on our list:

The Prime Minister’s announcement that the Government is also setting aside $200 million to help support at least 1,000 students.

Holness said that the students would need to show that they are in good academic standing with their tertiary institution, but need financial support. 

This grant will be given by constituency.  Each constituency will get $3 million and each beneficiary can get a maximum grant of $200,000.

Number 3 is the CARE programme from the Heart/NSTA Trust. 

CARE stands for  Community Action for Rewarding Engagement. 

According to the Prime Minister, the aim of the programme is to grow Jamaica’s labour force by providing training to every young unemployed person who is not currently enrolled in a training programme. 

Each Member of Parliament will have to identify 30 people from their constituency to join the programme. The Government will give each CARE student a stipend of $15,000 a month for transport, and an additional $13,000 per week towards food for the duration of their training.

HEART offers a variety of skills training, from hospitality to culinary to engineering, so this opportunity could be massive for some individuals.

Number 4 is also about HEART.  It’s an accelerated apprenticeship program.

The PM said the government has teamed up with several construction firms to create the programme.

This includes a three-month pre-apprenticeship period, a seven-month immersive training placement on a construction site, on-the-job mentorship and assessment and certification.

Which brings me to number 5 – the Tools for Trade programme.

Starting April 1, 2024, everyone who graduates from a level 4 trade programme at HEART will get a J$50,000 grant to help them buy the tools of their trade.  That’s about US$325.

If you’re on the government’s social welfare programme, PATH, your grant will get bumped up to J$75,000.  That’s US$488.

Additionally, starting next financial year, there will also be a special $100,000 grant for HEART-certified trainees who’ve registered a business that’s been operating for more than a year.

They’ll also get help with their business plan, marketing and other technical support.

And it doesn’t end there. If you need more tools, starting this June, the Development Bank of Jamaica (DBJ) will also be offering loans to small contractors.  You can get up to $500,000.  That’s about US$3,200.  The interest rate is 9% and you have up to 24 months to repay.

So in summary, there really will be no excuse not to work if you’re willing and able.  You can learn a skill for free at HEART, and the government will even pay you to go to class by giving you lunch money and bus fare.  Plus they’ll give you money to buy your tools when you graduate.

And if you want a higher education, they’re making it easier to get a student loan.  The only thing left to do is make tertiary education free.  And the way things are going, who knows? Maybe that’s next.