Saint Lucia to roll out unemployment insurance scheme for involuntarily jobless

Saint Lucia is moving to establish its first-ever unemployment insurance program, aimed at providing financial support and job-readiness training to citizens who lose their jobs through no fault of their own.

Prime Minister Philip J. Pierre made the announcement during a pre-Cabinet press briefing on Monday, August 4, calling it a “historic step” in strengthening the island’s social protection framework. The initiative will be spearheaded by the National Insurance Corporation (NIC), which has been tasked with drafting formal proposals for the program’s design and implementation.

“In keeping with government’s policy to improve the quality of life and social protections afforded to citizens, the government has commissioned the NIC to present proposals for the establishment of an unemployment insurance program,” Pierre said. “This program will allow persons who have become involuntarily unemployed to receive unemployment benefits.”

The program will be supported by an accompanying Active Labor Market policy, which aims to not only offer temporary relief but also help the unemployed transition into new jobs. Measures under this policy include skills training, job placements, and incentives for businesses to upskill their staff and support small enterprise development.

Pierre stressed that the program is intended to serve as a “stopgap” rather than a long-term subsidy. “We don’t want people in a perpetual state of unemployment and government pays,” he said. “If a person has lost a job involuntarily, the NIC will try to re-train so that person can obtain alternative employment.”

Involuntary unemployment covers a range of scenarios, including layoffs due to business closures, economic downturns, seasonal job losses, or situations where workers’ skills no longer match labor market demands. The Prime Minister emphasized the importance of giving affected citizens the tools to return to the workforce with upgraded skills and renewed opportunities.

Further details on the proposed framework, including eligibility criteria, benefit amounts, and funding mechanisms, are expected once the NIC finalizes its recommendations.