What to do about the unemployed?
Depopulation is a topic which grabs the headlines but what of those left behind especially those who are unemployed? Very little discussion is devoted to the topic of unemployment, whether it is a priority, whether it actually exists, why it exists and what can be done about it.
Do you know how many people in the Cook Islands who are residents, are unemployed? (At the time of the last Census in 2006, the resident population aged over 15 yrs of age was 10,622. 6,794 were in employment and 666 were unemployed. A further 3,162 were not actively seeking employment).
Some might ask why would you need to know if there is no unemployment benefit available? Another question that might arise is, why should we need to know if in reality no-one should be unemployed.
If no-one should be unemployed, it implies everyone currently without a job is in fact employable and there are plenty of jobs available for anyone who wants to work. If this is the view you hold then it must be because you feel some people are simply choosing not to work , are lazy, have independent means of support or may be disabled.
If unemployment is unavoidable, is it because not enough jobs are available, the jobs people want are unavailable, the jobs people are qualified for are not available, people lack the qualifications for the jobs on offer or some people are simply unemployable or make no effort to be employable?
In a country with no significant manufacturing base, reduced agricultural production, undeveloped fishing capability, limited commercial opportunities, tourism has emerged as the major industry providing employment in hotels and services to tourists.
Should government take unemployment seriously? After all, the unemployed can relocate to New Zealand or Australia, end of problem. But what about those who do not leave? If our economy continues to shrink and jobs become fewer, what then? Government will then have to address the matter.
Turning the economy around means growing tourism further. But how much further? The question is what is the critical mass tourism must reach in order to sustain and grow the economy?
A case study might be the island of Aitutaki where tourism is the dominant sector.
Data from the government’s Statistic’s Office would imply that tourism development has not reached that critical point where it is able to generate sustainable growth in the economy. The rate of growth needs to be sufficient to raise incomes and living standards.
An Asian Development Bank (ADB) report in 2008 on Aitutaki’s economy revealed that at the time of the Census in 2001, the unemployment rate in Aitutaki was 19 per cent. Also, for persons over the age of 15 yrs, some 24 per cent had no cash income. The resident population had also dropped from around 2,300 to 1,900 (Today the population is just under 1,700).
At the time of the ADB report the employment figures from the 2006 Census were not available.
Those figures are now available and they show that in 2006, the working resident population on Aitutaki (persons over15 yrs) was 1,364. There were 719 in employment and 142 (just over 10 per cent) were unemployed. A further 503 were not active in seeking employment.
Following Cyclone Pat it became clear that the earnings from tourism did not trickle down to the ordinary person on Aitutaki. The industry did not provide sufficient jobs or opportunities. Government failed to stimulate other private sector enterprises to pick up the slack. In this economic vacuum, with a large percentage of the population lacking a cash income, it’s no wonder so many properties sustained damage from the cyclone.
Repairing the homes needs to be followed by some genuine efforts by government to stimulate growth on Aitutaki through boosting tourism or developing the private sector through for example agriculture and fishing. Homes need to be maintained and that costs money so people need an income otherwise properties will again suffer damage in another cyclone.
What is the critical mass tourism in Aitutaki must attain? That can be the subject of a study which government should commission as this information will be useful when tourism is developed on the other islands.

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