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Migration hurting the economy
Passengers departing at Jamaica's airport
Business
BY ANDREW LAIDLEY Senior business reporter laidleya@jamaicaobserver.com  
January 4, 2022

Migration hurting the economy

AS more Jamaicans seek better opportunities overseas, economists are warning that Jamaica’s high emigration rate is hurting the economy.

The economists highlighted that the most notable example is the departure of well-trained Jamaican nurses, who are highly regarded in other countries, potentially leaving Jamaican hospitals understaffed. Similarly, they note that many of the most talented young people head abroad to study and may not return.

According to the Jamaica Labour Force Survey, in 2019, only 9.3 per cent of male and 17.7 per cent of female workers had a degree, meaning that the loss of talented young people is acutely felt. The economists agree that the evidence suggests that brain drain is a potentially significant challenge for Jamaica’s long-term socioeconomic development.

In the latest Jamaica Economy Panel (JEP) report, the economists noted that “While migration is a human right and substantial benefits from migration abound to both sending and receiving countries, the current level of net emigration from Jamaica is one of the causes behind the current population decline.”

The Planning Institute of Jamaica (PIOJ) points out in its Economic and Social Survey of Jamaica that “Internal and international migration plays an important role in the reallocation of labour resources from areas of surplus to areas of need. Migration also fosters social and economic linkages between places of origin and destination.”

However, research economist, Keenan Falconer argues that “The idea that migration fosters social and economic linkages between places of origin and destination is debatable.” He said, “When one assesses the growth in remittances for Jamaica, for example, while it is growing at an average annual rate of 13 per cent, the sustainability of remittance inflows is predicated on several tenuous factors, with the strength of family ties being of paramount importance.”

Researchers admitted that although remittances to Jamaica were among the world’s highest rates in 2020, it is not clear whether these high levels of remittances are having the desired effect on the socioeconomic status of the Jamaican population. As a result, the JEP panellists suggest encouraging the return of retired Jamaicans, which would allow for a wealth transfer from destination countries to Jamaica.

“The process of promoting post-retirement, return-increase benefits derived from Diaspora should be accompanied by encouraging them to invest in local bonds or equity as additional retirement income. The process would require better health-care and other infrastructure as well as a reduction in corruption, crime and violence,” said Dr Andre Haughton, senior lecturer at The University of the West Indies (UWI), Mona.

The JEP panellists also support the use of policies to reduce the pull factors that encourage emigration. They ntoed that “such policies include improving livelihoods in Jamaica and addressing some of the other institutional challenges the country faces. These reflect policy prescriptions that befit overall socioeconomic development in Jamaica, thus making them even more worthwhile to pursue”.

In 2020 there were 33,800 births and 18,100 deaths ( Economic and Social Survey of Jamaica 2019), which would have resulted in a population increase of about 15,700 persons. However, net emigration caused the loss of a further 18,000 people, thus leading to a minor population decline. Before 2010, the Jamaican population increased by around 10,000 people annually but since 2017, this has turned into an annual population decline.

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