THE Employers’ Consultative Association (ECA) views with cautious optimism the 3.7 per cent unemployment rate as noted by Finance Minister Colm Imbert in Monday’s budget, even as it remains concerned about high underemployment levels.
The ECA welcomed the increase in the minimum wage, agricultural incentives, Christmas back pay and plans to develop the capacity and competency of the SME sector.
It observed, however, critical areas were missing, such as government’s industrial-relations strategy and resourcing key institutions.
Noting crime remains a major concern, the ECA welcomed the injection of $80 million for police vehicles, equipment and expansion of recruits.
It was optimistic that the installation of new scanners at ports of entry would improve the capacity of enforcement agencies and yield the outcomes so desperately needed.
Given the $67 billion injected into national security over the past decade, the ECA called for proper management and maintenance of these resources, defined performance standards, clear deliverables and accountability.
“There is also a fundamental issue of trust in our enforcement agencies that continues to impede effective collaboration with members of the public and other stakeholders.”
In a statement on Tuesday, the ECA welcomed the building capacity for diversification and growth theme, as it continues to consolidate and rebuild after covid19 and ongoing national and global developments and disruptions.
It described the budget as a measured and reasonable attempt to achieve the objective of continuing to sow the seeds of “building back better.”
While encouraged by the reported 3.7 per cent unemployment figure, which falls within the realm of full employment, it said, “We remain cautiously optimistic given what we believe are higher levels of underemployment that continue to exist.”
The ECA said similarly, the uptick in the labour-force participation rate is encouraging, though just over eight per cent lower than a decade ago.
“We hope that this trend continues in the right direction.”
Underlying areas “we liked,” the ECA said the 17 per cent, or $3, increase in the minimum wage, moving it from $17.50 to $20.50 per hour, was reasonable, balancing the interests of employers and employees.
The ECA renewed its call for the allocation of funding to develop and establish a national wage-setting model, in a consultative manner, to support the work of the Minimum Wages Board and to add more objectivity and predictability to the wage-setting process.
On the digitisation agenda, the ECA supports this drive, understanding that it can contribute to expanding access to various opportunities for all citizens, improving the ease of doing business, and driving greater efficiency in delivering public services.
This strategy, however, it said, must not be exclusive.
“We are particularly pleased to see an acknowledgement of the need to create a national financial inclusion roadmap for citizens and businesses alike.”
In terms of industrial development and diversific
