Karl Samuda, Jamaica’s Labor Minister, announced in a virtual press conference held on February 22, 2022, plans to increase the minimum wage by approximately 28.5%.
Persons who earn minimum wage will see an increase from $7,000jmd to $9,000jmd. Also, the wages for Security Guards will move from $9,700jmd to $10,500jmd. This will come into effect on April 1, 2022.
It’s been approximately 42 months since the last increase on Emancipation Day, August 2 2018, which was raised by 12.9 percent.
The increase comes just in time given the resurgence of inflation. Since January 2022, inflation levels rose to 9.7 percent which has severely impacted low-income workers.
While an increase was needed, it will not change anything long-term economically given the fact the extra money will be used to inject cash back into the economy or overseas.
Most of this cash will not go into investments or any financial vehicle. I assume the increase in wages will not affect large businesses much. It will affect the average man, who has to pay a community housekeeper $9000 a week to take care of matters at home while he goes out to work. That 28.5% seems large but is insignificant given the economical, social, and inherent structural problems the country is facing.
Over-reliance on tourism for example has proved to be a bad model at times and the continuous instability has been like a dagger poking into the sides of our little Jamaica.
This has allowed our economy to be exposed to outside economical factors such as inflation in North America and practically the rest of the western region. What else should the government do then? That’s the question that many have asked over the years and it’s clearly valid.
Jamaica is definitely where it deserves to be currently, we don’t have the productive workforce to push the company forward. It’s easy to blame the government for this in terms of workforce training and advancement.
Our schools are underfunded, we have a hybrid educational system that doesn’t have a goal at this point. The pep (Primary Exit Profile) system seems like an idea that was developed over too many drinks of cocktail between the administration at Pegasus hotel.
Brain drain is a problem as well. I was taken aback when I read an article on Jamaica Observer the other day which states that over 85% of nurses migrated after having completed their final exams at the Caribbean School of Medical Science and have done their internships. But who’s to blame them? It’s the reality at the moment, not every public sector wants to be begging the government for payment.
The increase in pay will help to make life a little easier for working-class men. The skeletal structure of our economic and social environment is still hidden within our country and it may stay that way for some time.
Long term, raising the minimum wage shouldn’t be the issue, it is raising the social capital of our country so that we can grow and compete on a global level.
