11 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED | SEPARATE FINANCIAL STATEMENTS 2022 Labour Market The labour market remains soft; however, evidence showed improvement towards the latter half of the year. At the end of the third quarter, the unemployment rate was 12.4 percent, down from 17.6 percent a year earlier. The Barbados Statistical Services estimated that over 13,000 persons gained employment for the 12 months ending September 2021. Labour force participation moved from 58.9 percent to 62.3 percent a year later and while the improvement in labour force participation was relatively even across genders, gender disparities within the labour force persists with male participation standing at 66.6 percent while female participation was standing at 58.4 percent. Hotel and tourism-related services, when combined, accounted for approximately 30 percent of employment claims in 2020. The government introduced its BEST programme to support businesses’ cash flow and incentivise firms to retain and retrain employees in affected sectors. Under the programme, returning employees are guaranteed 80 percent of their regular wage. This programme contributed to the retention of workers within the tourism sector, with hotels accounting for 76 percent of the financing provided under the program. Despite improvements in the labour market, full employment levels remained below that of 2019. Similarly, while total employment earnings increased by 7 percent, that too remained below the pre-Covid level. The improvement in employment level was primarily credited to persons earning below $1,000 per week or $4,000 per month. Financial Sector Developments The financial sector remained stable despite grappling with the challenges posed by the global pandemic. During the 2021 fiscal, banks and credit unions accumulated excess liquidity as the government enacted counter-cyclical spending to offset any negative fallout from the pandemic. The loan to deposit ratio within these institutions continued to fall, excess cash holdings of commercial banks also slowed, however extra cash holdings reached 26.7 percent of domestic- currency deposits compared to 22.8 percent a year earlier. Capitalisation within the banking system remained strong as their overall profitability strengthened. Overall credit declined, and interest rates on deposits and loans stayed at historically low levels; consequently, net interest income contributed less to profitability. The non-performing loans ratio stabilised, resulting in lower loan provisioning expenses and there was an increased reliance on fees and commission. 4 Labour Market The labour market remains soft; however, evidence showed improvement towards the latter half of the year. At the end of the third quarter, the unemployment rate was 12.4 percent, down from 17.6 percent a year earlier. The Barbados Statistical Services estimated that over 13,000 persons gained employment for the 12 months ending Sept m er 2021. L bour forc participation moved from 58.9 percent to 62.3 percent a year later and while the i provement in labour force participatio was elatively even across genders, gender disparities within the labour force persists with male participation standing at 66.6 percent while female participation was standing at 58.4 percent. Hotel and tourism-related services, when combined, accounted for approximately 30 percent of employment claims in 2020. The government introduced its BEST programme to support businesses' cash flow and incentivise firms to retain and retrain employees in affected sectors. Under the programme, returning employees are guaranteed 80 percent of their regular wage. This programme contributed to the retention of workers within the Quarterly GDP Growth ncy and room rates, particularly in the higher end Hoteliers also increased the availability of room w plants. ver, evidence showed improvement towards the e third quarter, the unemployment rate was 12.4 year earlier. The Barbados Statistical Services ained employment for th 12 months ending tion moved from 58.9 percent to 62.3 percent a n labour force participation was relatively even the labour force ersists with male participation ticipation was standing at 58.4 percent. Monthly Unemployment Claims Received Sources: Central Bank of Barbados and National Insurance Scheme 5 Despite improvements in the labour market, conditions in full employment levels remained below that of 2019. Similarly, while total employment earnings increased by 7 percent, they remained below the pre-Covid level. The improvement in level was primarily credited to persons earning below $1,000 per week or $4,000 per month. Financial Sector Developments The financial sector remained stable despite grappling with the challenges posed by the global pandemic. During the 2021 fiscal, banks and credit unions accumulated excess liquidity while the government enacted counter-cyclical spending to offset any negative fallout from the pandemic. The loan to deposit atio within these institutio s continued to fall, xcess cash h lding of commercial banks also slowed, with extra cash holdings reaching 26.7 percent of domestic- currency deposits c mpa ed t 22.8 percent a y ar earl er. Excess Cash Ratio, Loan Deposit Ratios for Banks and Credit Unions Sources: Central Bank of Barbados Capitalisation within the banking system remained s strengthened. Overall credit declined, and interest rat historically low levels; consequently, net interest inco The non-performing loans ratio stabilised, resulting in However, there was an increased reliance on fees and c Credit to non-financial private sector deposit-taking Non-Performing Loans Sources: Central Bank of Barbados Capitalisation within the banking system remained strong as th strengthe ed. Overall credit declined, and interest rates on depo historically low l vels; co sequently, net interest incom contribu The non-performing loans ratio stabilised, resulting in lower loan However, ther was an increas d r liance on fees and commission Credit to non-financial private sector deposit-taking institution marginally faster rate than recorded in 2020. Overall lending
RkJQdWJsaXNoZXIy MTA2MDM=