IMF Engagement Highlights Guyana’s Voluntary Unemployment Amidst Economic Growth

The Private Sector Commission (PSC) of Guyana informed the IMF that unemployment is largely voluntary due to a thriving economy. The PSC highlighted the necessity for skill-based training programs and regulatory reforms within the banking sector to support Small and Medium Enterprises (SMEs). Despite improvements, further enhancements can facilitate entrepreneurial growth, as identified in the IMF’s preliminary report regarding the nation’s rapid economic transformation driven by the oil and gas industry.

During a recent engagement with the International Monetary Fund (IMF), the Private Sector Commission (PSC) of Guyana highlighted the nation’s significant economic growth, asserting that unemployment in Guyana is “largely voluntary.” The unemployment rate stands at approximately 12%, but the burgeoning oil and gas sector has facilitated job creation, enabling many Guyanese to find employment opportunities within this field and related industries.

The PSC emphasized the urgent need for targeted training programs to ensure the labor force possesses pertinent skills relevant to the evolving market demands. They reiterated during their discussion with the IMF that the existing economic activities provide ample job opportunities, thereby supporting their claim regarding voluntary unemployment.

Recent reports indicate that labor costs in the private sector have surged by over 60% in the last four years, correlating with Guyana’s rapid economic expansion and increased demand for skilled labor. Komal Singh, Chairman of the PSC, informed the IMF that every economic sector in Guyana is witnessing growth, further intensifying the need for skilled workers.

Singh also pointed out resources available for job seekers, including the Job Bank operated by the Ministry of Labour and the Diaspora Unit within the Ministry of Foreign Affairs. Additionally, he highlighted the government’s initiatives aimed at enhancing the governance environment through legislative advancements, particularly in arbitration laws, and by optimizing business operations through single-window platforms in trade and construction.

Nonetheless, the PSC relationship team stressed the necessity for regulatory reforms in the banking sector to bolster the development and financial stability of Small and Medium Enterprises (SMEs). The PSC acknowledged improvements made by banks to facilitate business operations but expressed that further enhancements are essential.

The IMF’s preliminary report following its mission to Guyana noted the rapid pace of the nation’s economic transformation, attributing this growth primarily to the oil and gas sector as well as progress within the non-oil sectors. This mission, conducted between February 2024 and March 7, 2025, included consultations with key government officials such as Vice President Bharrat Jagdeo, Finance Minister Dr. Ashni Singh, and Dr. Gobin Ganga, the Governor of the Bank of Guyana, as well as representatives from various sectors.

The engagement between the PSC and the IMF elucidates the dynamics of unemployment in Guyana, positing it as a largely voluntary issue linked to economic growth, particularly in the oil and gas sector. While the PSC advocates for targeted skill training programs and regulatory reforms, the positive advancements in the banking and business environments suggest a favorable trajectory for the country’s economy. Overall, the PSC’s insights emphasize the importance of strategic initiatives to harness Guyana’s economic potential effectively.

Original Source: newssourcegy.com