A bird’s eye view of our economy tracks the big changes over the last 30 years
Two in three workers are in sectors where salaries have fallen behind inflation.
This means the majority of local workers have not experienced the growth that our overall economy has seen.
According to economist Craig Simmons, the divide between blue-collar and white-collar workers exposes unfairness.
He says the high-salary International Business sector is keeping our economy afloat, but its success has also led to an increase in the cost of living.
The trends identified in this report are not necessarily tied to any political party; in the last 30 years, both OBA and PLP administrations have faced similar internal and external economic challenges.
Mr Simmons wants the Government voted in on Tuesday to specifically target policies at supporting those at the bottom of the socioeconomic ladder. He also suggests widening the tax base by taxing ‘local’ profits, as distinct from the Corporate Income Tax which is geared towards the International Business sector.
In this extended report, Gary Foster Skelton takes a big-picture view of Government revenues, spending and debt over the last 30 years, painting a picture of what the next administration will inherit.
Then, we zoom in to see how the majority of employment sectors have not seen incomes keep up with the cost of living.
*Data sources for this report include Bermuda annual budgets, 2024/2025 Pre-Budget Report, Employment Survey Tubulations, Bermuda Employment Briefs, 2024 Fiscal Responsiblity Panel Annual Assessment. Statistics are available at gov.bm/bermuda-employment-statistics, https://www.gov.bm/department/statistics, or by contacting the Bermuda Department of Statistics.
