Marshall Islands: Job Loss, Decline in Salary Levels Continue

Hardship levels are rising in the Republic of the Marshall Islands (RMI) and out-migration continues due to erosion of earnings and job loss. Although there was a slight increase in FY09 earnings, real average annual earnings show the impact of the weakened economy, according to a report issued this month by the RMI’s Economic Policy, Planning and Statistics Office (EPPSO).

Inflation, declining levels of salaries and wages since FY97, and high unemployment are the cause, said EPPSO Director Carl Hacker.

"For the private sector in particular, effort needs to be made in the areas of improving overall Knowledge, Skills and Abilities (KSAs) in the workforce."

Highlights of the report, FY2009 RMI Employment Trends and Tables, follow:

EMPLOYMENT

• There were 37 new jobs in the private sector for FY09, from 4,016
  to 4,053, a 1% increase.



• There was a decrease of 61 jobs in the public sector (public
  enterprise, RMI government, government agencies, and local government)
  during FY09, from 4,629 to 4,568 a 1.3% reduction.



• 69 jobs were lost at USAKA; this represents a 6% reduction in
  FY09. Between FY06 and FY09 there has been a 17% reduction in jobs from
  1,239 to 1,028.

EARNINGS

• Private Sector earnings increased by 2.7% ($533,000) during FY 09,
  from $19,908,000 to $20,441,000.



• Public Sector Earnings increased by 0.4% ($233,000) during FY09,
  from $54,860,000 to $55,093,000, FY09 was the highest year for earnings for
  both the Private and Public Sector, but when inflation is taken into account
  the picture is much, much different, see Sections 3, 4 & 5.



• USAKA earnings increased by 1.3% ($228,000) during FY09, from
  $17,064,000 to $17,292,000. FY06 was the peak year for USAKA earnings
  coming in at $20,123,000.

REAL EARNINGS

• Since FY1997 Private Sector Real Average Annual Earnings have
  fallen by a staggering 37.4%. In FY97 the Private Sector Real Average
  Earnings were $6,097 compared to $3,818 in FY2009. Average Private Sector
  earnings have been devastated by inflation over the years.



• In the Public Sector this Real Earnings figure has decreased by
  5.6% over the same period from $9,676 in FY97 to $9,130 in FY09. Public
  Sector earnings have also not been able to keep up with inflation over the
  years and have fallen off considerably since FY2004 when Real Earnings
  peaked at $11,114.



• The National Total Real Earnings Average from FY97 to FY09 has
  fallen from $8,764 to $7,281.


(Office of the President, EPPSO, Republic of the Marshall Islands)

- Aenet Rowa, Yokwe Online, February 20, 2010