The Bermuda Economy and You

Where does our money and our jobs come from?

In 2010, foreign revenue generated by International Business (IB) and supporting areas was $2.2 billion out of a foreign revenue total of $2.5 billion, so 85 cents of each dollar of foreign earnings come from IB. (Chart 1) In 2010, 11, 409 of the 38,097 jobs were in IB and supporting areas, e.g. banks, legal & accounting firms, etc. (Chart 2) No matter where you work, as stated above 85 cents of each dollar you earn comes from IB. Summary Statement: International business and the infrastructure that support it provide the majority of external revenue and support the majority of jobs in Bermuda.

Foreign earnings are Bermudas Pay Check .anything else is Savings!

SOURCE OF BERMUDA'S FOREIGN INCOME

From Tourism From International Business

82%

85%

88%

87%

In 2008 almost 1 in 3 people worked in the International Business sector or industry related jobs!

18% 2007
CHART 1

15% 2008

12% 2009

13% 2010

Data Source: National Economic Reports of Bermuda - 2007 to 2010

Does Bermuda have the same number of jobs today as it did in 2008, and how can we protect jobs in Bermuda?
Thousands of jobs in Bermuda can be filled and done anywhere in the world. From a peak of 40,213 in 2008 Bermuda jobs fell to 38,097 in 2010, a loss of 2116 jobs in two years. Direct IB jobs fell from a peak of 4,761 in 2007 to 4,289 in 2010; a loss of IB lost 472 jobs. We cannot control the global economy, but we can make Bermuda friendly to business, make it easy to set up a new international business and make it easy to attract and hold on to the talent that IB companies need in order to compete globally.

Employment in IB & Supporting Areas

Employment in Tourism

CHART 2

Data Source: Dept. of Statistics, The Bermuda Job Market Employment Briefs 2010-2011

Summary statement: Potential jobs for Bermudians are lost when jobs are outsourced and relocated away from Bermuda and once these jobs leave they do not return. We must do everything we can to hold on to the companies that are still in Bermuda, attract new companies, look at Immigration reform and relaxing term limits. These issues are critical for Bermuda to be competitive. Bermudians will continue to have protection of jobs through the work permit policy!

Does the Bermuda working population look the same as it did 20 years ago?

There arent enough Bermudians in the workforce to fill the jobs in our economy!

Since 1994, (Chart 3) the number of jobs in IB and supporting services (banks, legal, financial services, etc) has grown from 7000 to 12,000. In 1994 there were 26,930 Bermudians in the workforce, in 2010 there were 26,247. Between 1994 and 2010 the net number of Bermudians entering the workforce was minus 683. So more jobs, but actually fewer Bermudians! With 40,000 jobs in our economy and fewer than 27,000 Bermudians in the workplace, it is inevitable that 13,000 or more guest workers might be needed to sustain the economy.

CHART 3

Data Source: Dept. of Statistics, The Bermuda Job Market Employment Briefs 2010-2011

Summary Statement: The presence of guest workers and the changes in the ethnic and racial makeup of our workforce is the result of economic success and globalization. This cannot change unless the Bermuda economy declines and Bermudians become significantly poorer. Bermudas very low birthrate along with emigration of Bermudians means fewer and fewer Bermudians available to work in Bermuda. For now and for the foreseeable future Bermuda cannot supply enough Bermudians to sustain our economy and we must rely on guest workers to fill this gap, or our economy will decline!

What is the state of our economy and what can we do to improve it?
The impact of the economic downturn and globalization with the outsourcing and relocation of jobs to other countries has resulted in the loss of 2116 jobs in the Bermuda economy between 2008 and 2010. IB lost 472, or 10% of its direct jobs. Each job contributes to the economy as wages circulate. We have exported much of our unemployment as guest workers leave when they lose their job, however we have also lost the money that would circulate in our economy from their salaries to pay rents, taxes, make local purchases etc. ABIC members identify that a business friendly environment, a reasonable cost of doing business and immigration reform are critical elements to maintaining and growing the IB sector in Bermuda. Summary Statement, This process of Immigration reform must continue in order to retain and attract International companies. We need to make it easier to set up and operate a business, streamline the immigration process, implement 10 year WPs and residency for job creators, and create a more welcoming Bermuda experience to attract new international companies and make Bermuda as the business domicile of choice.