Vexed Bermoothes

The PLP must think that Bermudians can’t do math, as they try and paint a happy face on the choking economy that lies at their feet.

Thus, when folks like Larry Burchall start pinning them down on the numbers, they have little option but to unleash the Minister for Slander and Propaganda.

In my previous post I highlighted the vast importance of international business on the Bermudian economy, and why the PLP’s forays into expat-bashing and independence are self-destructive.

I have previously written about the unhealthy effects that Government’s hiring binge over the past five years has on the economy.  Not only has this left fewer tax payers carrying the weight of an inefficient civil service, it masks troubles in the local employment stats.

A reader points out table 3 of the National Economic Report.

Bermuda’s total employment loss of 1.8% is misleading.   These have been boom years for Government hiring – and if you back out the areas that are primarily funded by taxpayers (such as public administration, education, social work etc.) – a different picture emerges.

The total jobs as reported in 2008 were 40,213. If you remove the jobs from the sections outlined above (4,223 + 3,279) then you are left with 32,711 private sector jobs.

Now if you apply the same formula to the 2009 projections you get projected net loss of 1,152 jobs in the private sector (39,502 – 4,371 – 3,626 = 31,559).

In greater detail:

International Business lost 328 jobs  or 28% of the 1,152
Construction lost 153 jobs  or 13% of the 1,152
Hotels lost 189 jobs or 16% of the 1,152
Transport and Communications lost 111 jobs or 10% of the 1,152
Business Activities lost 301 jobs or 26% of the 1,152

Based on the average salary of $55,000 that’s $63,000,000 not going into the economy … not to mention the taxes not being paid to fuel that thirsty Government and trips to India.

These stats are not fantasy.  They come from the Ministry of Finance.