Post Cabinet Press Briefing Report- May 22, 2025
The Hon Pearnel Charles Jnr.
It is a profound honour to address you today — not only in my capacity as the Minister of Labour and Social Security — but also as a proud Jamaican who has personally witnessed the remarkable progress and positive transformation unfolding across our nation.
- Reduction in Poverty
Yesterday, the Planning Institute of Jamaica announced a significant decline in the national poverty prevalence — from 16.7% in 2021 to 8.2% in 2023. The 2023 poverty prevalence of 8.2% represents the lowest recorded poverty rate since the commencement of poverty measurement in Jamaica in 1989, marking a historic milestone for our nation. Notably, this substantial reduction suggests that nearly half of those below the poverty line in 2021 have successfully transitioned out of poverty by 2023 — a testament to the effectiveness of our social and economic policies.
It is essential that we understand and appreciate the broader context in which this historic milestone has been achieved. According to the Planning Institute of Jamaica, the decline in poverty is primarily attributed to a notable increase in consumption among the most vulnerable segments of our population — specifically, the lowest 40%, that is, those who consume the least in our country increased their consumption at a combined rate of 28 % (Quintile 1, the poorest increased their consumption by 12% as they had more money to spend) and Qunitile 2 increased their consumption by 16%. What, then, has driven this remarkable progress? Ladies and gentlemen, it is the result of prudent economic management, underpinned by robust and targeted social assistance programmes and initiatives provided by the Government to significantly improve the socio-economic conditions of many Jamaicans.
- Social Protection Initiatives and Poverty
2.1 Social Programmes such as Programme of Advancement Through Health and Education PATH
The Ministry of Labour and Social Security, the People’s Ministry, has implemented a range of social protection programmes and initiatives aimed at empowering our citizens, particularly the most vulnerable among us. While the Ministry holds portfolio responsibility for both labour and social protection, it is through our social protection programmes that the vast majority of our clients are served.
Prior to the increased consumption of our poorest citizens in 2023 (as reported by the PIOJ), there was also an average 18.5% increase in PATH benefits, in 2022. This increase in 2022 was preceded by a significant spend on PATH in FY 2020/2021 (J$12B) as part of the COVID-19 response.
Through the Ministry, the Government provided critical support to our most vulnerable during the pandemic and subsequently increased the value of benefits in the post-COVID period. These strategic interventions have significantly strengthened the capacity of the poor to increase their consumption levels and quality of life.
2.2 Social Pension Programme
As part of its commitment to supporting the elderly through social assistance, the Ministry introduced the Social Pension Programme in 2021. By the end of its first year, the programme had reached just over 6,200 beneficiaries. Designed to provide critical financial support to individuals aged 75 years and older who lack access to other forms of income, the Social Pension Programme has become a vital lifeline for many senior citizens.
By the end of 2023, the number of social pensioners had increased to 89% that is over 11,700 social pensioners, underscoring the Government’s unwavering dedication to enhancing the financial security and overall well-being of our most vulnerable elderly population.
2.3 Steps to Work Entrepreneurship Grants
The Ministry also bolstered its support for microenterprise development among economically vulnerable individuals by increasing expenditure on the Entrepreneurship Grant initiative from J$44.5 million in FY2020/2021 to J$69.4 million in FY2022/2023. This strategic investment reflects the Government’s commitment to expanding income-generating opportunities for vulnerable persons who traditionally face significant barriers to accessing business capital. Through this initiative, the Ministry has empowered (almost 500) many to pursue entrepreneurship.
- National Minimum Wage
The national minimum wage serves as a critical social protection mechanism, designed to safeguard workers from excessively low earnings. A significant proportion of our most vulnerable citizens are minimum wage earners, many of whom have directly benefited from five (5) wage increases implemented since 2016 — most notably, a substantial 44% increase in 2023.
These recent adjustments to the minimum wage have placed more disposable income in the hands of the working poor, thereby enhancing their financial resilience and contributing to the transition of a number of individuals out of poverty.
- Labour Market Recovery and Poverty
4.1 Unemployment Rates
Unemployment and poverty are inextricably linked, as elevated levels of unemployment often result in increased poverty due to the absence of a stable income to meet basic needs. The historic decline in poverty prevalence recorded in 2023 has coincided with a reduction in unemployment, which fell from 7.1% in 2021 to 4.3% in 2023.
Furthermore, data from the Statistical Institute of Jamaica (STATIN) indicates that the employed labour force grew from 1,234,800 individuals in October 2021 to 1,320,400 in October 2023 — a clear indication of the expanding employment landscape. This growth in employment has played a critical role in reducing the risk of poverty, as more Jamaicans are now able to secure income and improve their standard of living.
4.2 Electronic Labour Exchange
The Ministry’s labour market interventions, particularly through the Electronic Labour Exchange (ELE), have reflected a notable increase in the demand for labour. In 2023, the number of reported vacancies rose by 61% compared to 2021, signalling a rebound in labour market activity. This surge in vacancies not only provided valuable administrative insights into the pace of labour market recovery but also expanded access to employment opportunities for job seekers.
Conclusion
In closing, the remarkable strides we have made in reducing poverty, expanding employment, and strengthening social protection are not merely statistics — they represent real improvements in the quality of lives of thousands of Jamaicans. These achievements are the result of deliberate, people-centered inclusive and transforming policies. We laud the sound economic stewardship, and a steadfast commitment to social equity of the Government led by Prime Minister, Dr. Andrew Holness.
As we look to the future, we will remain resolute in our mission to build a more inclusive, resilient, and prosperous Jamaica — by delivering effective social protection programmes one where every citizen, regardless of background, has the opportunity to thrive. Together, we will continue to advance the social and economic transformation of our beloved nation.
Thank you