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News : Bahamas Information Services Updates Last Updated: Feb 13, 2017 - 1:45:37 AM


Bahamas Gov't responds to Labour Force Survey: Increase in Unemployment of 36% for the Financial Services Sector
By Ministry of Financial Services
Aug 18, 2015 - 1:45:00 AM

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(August 17th) The Department of Statistics released its Labor Force Survey for the period ending May 2015. The statistics reflected an increase in the unemployment of persons in the Financial Services sector of some 36%. It is reflective of several factors namely the downsizing, closure and amalgamation of certain commercial and offshore banks and banking services, some of the challenges perceived by some institutions relate to the outsourcing of critical banking functions to jurisdictions where labor is less costly than in the Bahamas, the ease of doing business is less onerous and the burdens related to the obligations associated with the exchange of information. 

Outsourcing is happening globally, for instance, there has been long debate from The United States with regards to moving production to cheaper labor jurisdictions.  The contraction being experienced now is also asymptomatic of a global trend where considerable job losses are being experienced on an ongoing basis. This Ministry is cognizant of the extreme significance of the financial services sector to the Bahamian economy and the critical role this Ministry plays in ensuring its continued success.

Over the next few months as we seek to regain jobs lost to the sector in recent times, and to create new employment, we will be looking towards new markets and new products both domestic and international and focusing more on wealth management.  Looking beyond just the commercial banking sector, The Bahamas has been very successful in the area of investment funds and investment firms have grown significantly over the past two (2) to three (3) years. The creation of new products for the industry is essential to the survival of our jurisdiction. This has more recently been demonstrated in the Smart Fund and the Icon.

However, our competitors regionally and globally have taken advantage of a liberal immigration policy in their jurisdictions towards High Net Worth and Ultra High Net Worth individuals. They have experienced considerable success. The products currently under review in my Ministry are tailored to an environment that is more liberal and open in its immigration policy towards these specific individuals, with the specific objective of increasing our competitiveness. We have been working with industry regarding more products and avenues toward permanent residency, including a new Smart Fund that would give consideration for permanent residency if a threshold is achieved through an investment fund. This product has been supported by the industry and the details are being presently being refined in my Ministry.

If cabinet approval is achieved we can anticipate some and growth to the sector. We will continue to encourage and support the significant efforts by the Insurance industry to revive captive insurance. With the fund product offerings currently under review if policy liberalization is achieved, this would most definitely boost the real estate sector.

It is important that we realize that in order to have a better Bahamas we must build a stronger Bahamas, and that involves all Bahamians.

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