ILO supports social dialogue, costing and design of the Unemployment Insurance in Jamaica

The ILO is supporting the Government of Jamaica and its social partners in their active pursuit of the implementation of the unemployment insurance (UI).

“We are examining the feasibility of implementing unemployment insurance in Jamaica to assist workers who become unemployed through no fault of their own,” said Prime Minister Andrew Holness (in photo).

In 2017, the Labour Market Reform Commission recommended the implementation of the UI in Jamaica. The COVID-19 pandemic provided an impetus for the Government to advance its implementation and has given the mandate to conduct a feasibility study with the assistance of the ILO, which started in May of 2021.

The Project is being implemented in three phases: i) initial assessments (i.e., labour market dynamics, operational capacities for the administration of the UI and termination of employment legislation); ii) cost assessment of the UI; and iii) development of the operational and legal frameworks of the UI. The first two phases have been finalized. The last and current phase included two study visits to The Bahamas (25-29 April 2022) and Barbados (9-13 May 2022) – the only two countries in the Caribbean that have functional unemployment insurance.

During the visit to Jamaica 19-20 April 2022, Mr Ariel Pino, ILO Social Protection and OSH Specialist, held technical discussions with the Planning Institute of Jamaica (PIOJ), the Ministry of Labour and Social Security (MLSS) and the National Insurance Scheme (NIS) of Jamaica on the development of the operational and legal frameworks. Discussions were also held with the Jamaica Confederation of Trade Unions and the Jamaica Employers’ Federation in the framework of stakeholders’ consultations to develop a UI that considers the interests of workers and employers and responds to their needs and realities.

Following the visit to Jamaica, Mr Pino along with representatives from the PIOJ, MLSS, NIS and the Ministry of Finance and the Public Sector, undertook study visits to The Bahamas and Barbados. During the visits the Jamaican delegation met with representatives from the Social Security Organizations, Ministries of Labour and tripartite stakeholders in both countries. The visits allowed for a better understanding on the process of implementing the UI, its functionality and challenges and the impact and relevance that it can have in times of crisis.

The third phase of the Project will conclude with a social dialogue in which the key parameters and characteristics of the UI will be agreed. At the end of this phase recommendations from the Technical Oversight Committee of the UI will be made to Cabinet who will have the final decision in determining if the UI will be implemented based on the findings and recommendations.

UI schemes are implemented in both emerging and advanced economies to protect employed individuals against the risk of job loss. In essence, these interventions provide income support conditional on actively searching for a job and participation in active labour market policies (ALMPs).