Supply side of the Labour Market Curaçao: results of the Labour Force Survey 2017
The last couple of years have seen major changes in the labour market. With closing of hotels and downsizing of major companies, the labour market has gone through dramatic changes. These changes have manifested themselves in an increased unemployment rate. The unemployment rate has increased in 2017 to 14.1%, which is 0.8% change from 13.3% in 2016.
The group that has been affected the most are the 35-44 year olds. The unemployment under this group has increased with 4.4 percentage points.
Due to the high economic need, people tend to find more creative ways to make ends meet. This can be noted in the increase in self-employed people and decrease in casual workers.
Youth unemployment has improved. However, this group of 15-24 year olds are the most susceptible to the influences of the labour market. A welcoming labour market, with low unemployment and a good demand for labour entices the youth to enter the labour market. When the labour market is tougher with high unemployment, the youth is more inclined or forced into furthering their studies or becoming economically inactive.
Major changes in in unemployment have direct effect on other aspects of the economy. An increase in unemployment population causes a decrease in household disposable income. When a household has less disposable income, they will make less investments. House repairs and personal items will be purchased less. This means that government will collect less taxes. As taxes are a governments major income, the debt crisis will increase and the need for more tax revenue will increase. More unemployed population also means that there will be more request for welfare benefits and thus an increase of government expenses. With less income in the government coffers and a higher demand for government benefits, the economy will find itself in a cycle that is not easily broken.