Guyana’s informal economy accounts for at least 30% of its employment sector

• As labour shortages continue to affect all sectors across Guyana, a recent Investment Climate Report released by the United States (US) State Department has found that the country has a major informal economy that accounts for between 30 and 50 per cent of the job market.
• According to the report, the major informal economy was partly due to many Guyanese pursuing self-employment in unregulated jobs. Additionally, businesses continue to report significant challenges in staff recruitment and retention.
• Noting that the private sector has repeatedly called for immigration reform to increase the supply of skilled labour, the US report said companies entering Guyana should consider training and capacity-building opportunities for their employees.
• It was further documented that Guyana’s labour market is tightening due to high investments in the oil and gas sector. Moreover, the Local Content Act “creates pressure on an already tight labour market by offering legal protections and incentives for Guyanese companies to service the oil and gas sector, fueling the flight of labour and investment to the industry and raising the risk of the resource curse.”
• It also found that Guyana’s brain drain was evident, noting that “at 89 per cent, Guyana has one of the highest emigration rates in the world for nationals with a university degree.” Notably, professionals like nurses and teachers were found to be emigrating in high numbers. Nevertheless, it has recognized efforts being employed by the Government to address the situation.

(Source: iNews Guyana)