Logistics brings large job potential

In April 2013, Jamaica's unemployment rate stood at 16.3 per cent, according to the Statistical Institute of Jamaica.

This comes against the backdrop of what the United Nations International Labour Organisation described in its January 2013 Global Employment Trends Report as a "deceleration" of global growth, leading to a rise in global unemployment.

However, the report also cited several areas in which government policy may help the conditions in the labour market. These areas include increasing investment and creating employment opportunities.

The development of Jamaica, as a logistics hub of the Americas, presents such an opportunity.

The increased trade in goods and services between countries, and Jamaica's geographical location along international shipping routes, combine to give the island an advantage as an assembly and trans-shipment point.

Jamaica is no stranger to Free Trade Zones (FTZs), often called 'free zones', having been introduced to the concept in the 1980s under the Caribbean Basin Initiative signed with the United States. The establishment of both the Kingston and Montego Bay Free Zones was aimed at stimulating economic growth and development by increasing the country's earnings from exports, increasing the inflow of foreign exchange, and providing employment opportunities for a large pool of unskilled or semi-skilled labourers.

Whereas FTZs created jobs for Jamaicans in manufacturing and light assembly, the establishment of a modern logistics framework, under the Logistics Hub Initiative, has the potential to create jobs across many sectors and areas of specialisation, and at various levels of skills, training and expertise.

The Jebel Ali Free Zone in Dubai is home to more than 6,400 global businesses, including 120 Fortune 500 corporations. The operations centred around the zone have created business opportunities and employs persons in a number of different areas including construction and civil engineering, residential services, hospitality, including hotels and restaurants, retail stores including showrooms and supermarkets, financial services and insurance, convention services and recreational facilities. Jafza, also maintains a defined regulatory system, which employs health-and-safety professionals, legal advisors, business consultants and environmental experts.

The Jebel Ali Free Zone is said to employ over 120,000 workers whereas the Colon Free Zone, in Panama employs some 30,000 directly.

Minister of State in the Ministry of Industry, Investment and Commerce (MIIC), Sharon Ffolkes-Abrahams, noted, in her presentation to Parliament during the 2013 Sectoral Debates ,that a number of jobs directly associated with Jamaica's logistics sector are expected in areas such as construction, engineering, aviation, shipping, warehouse management and information and communication technology.

She added that opportunities for entrepreneurs will also exist in retail and merchandising, entertainment and media, food service, and processing and intellectual-property management.

No Guarantee

Despite there being no guarantee in terms of the number of jobs to be created, the state minister added that the Logistics Hub Task Force, established by the Government and chaired by Dr Eric Deans of the MIIC, has teamed up with various educational and training facilities to develop strategies which will help ensure that Jamaicans fully take advantage of opportunities which will result from the implementation of the hub.

The public sector will also receive a boost, as further highlighted by Minister of Local Government and Community Development Noel Arscott, at the dedication of the Freeport Fire Station in Montego Bay on August 28.

The minister noted that the Jamaica Logistics Hub Initiative, as presented to Parliament, presents other areas of opportunity not often considered, as it is expected to create a greater demand for trained firefighters and 'expand' their job prospects as various centres and activities will require enhanced support services.