Earlier this year, a young graduate faced difficulties in finding a job matching her education and eventually applied to a local meat shop, only to be turned away for being "overqualified." This situation is common across Caribbean countries where young people find that academic qualifications do not always translate into employment opportunities. Businesses report challenges in filling positions due to applicants lacking necessary technical skills or experience.
In Grenada and Saint Vincent and the Grenadines, firms identify the shortage of skilled workers as a major business obstacle. In 2020, half of all job vacancies in Saint Vincent and the Grenadines requiring skilled workers remained unfilled. In Saint Lucia, 40% of employers said that workers' skills hindered competitiveness. Furthermore, 61% of youth struggle with employment due to mismatched qualifications.
Youth unemployment rates in Grenada and Saint Lucia exceed 40%. Many employed individuals work in roles for which they are underqualified or that do not fully utilize their skills. This leads to worker frustration and limits business productivity.
The issues stem from structural problems such as inadequate basic education quality and insufficient collaboration between post-secondary institutions and industry. Institutions often operate separately from businesses, leaving students without practical skills needed by employers.
The Eastern Caribbean allocates about 14% of its education budget to post-secondary education compared to higher percentages elsewhere. With outdated resources, many institutions cannot adequately prepare students for the labor market demands. The emigration of skilled workers exacerbates these challenges by reducing local talent availability.
This skills shortage affects individual job seekers and broader economic productivity, stifling innovation opportunities. Only a small percentage of firms engage in research and development due to perceived high costs relative to market size.
To address these issues, enhancing post-secondary education quality is crucial. Modernizing curricula with technical skills training is necessary alongside fostering educational institution-industry collaborations across various sectors.
Regional frameworks could enhance talent mobility through shared learning standards. Collaboration offers cost-sharing benefits for efficient education systems. Incentives for businesses investing in research and development are also needed to unlock economic potential.
The World Bank supports Caribbean efforts through initiatives like the OECS Skills and Innovation Project with $36 million financing aimed at enhancing youth skills and fostering regional collaboration. Similar efforts are underway in Guyana focusing on vocational training for economic growth, while Belize targets early childhood development and female empowerment through skill development projects.
These initiatives reflect the region's commitment to aligning skills with opportunities for long-term growth potential.