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Declining Productivity Hurting Jamaica - Hylton
Published: Wednesday | July 21, 20100 Comments and 0 Reactions
Patrick Hylton, group managing director of NCB. - File
Philip Hamilton, Gleaner Writer
National Commercial Bank (NCB) Group Managing Director Patrick Hylton says Jamaica needs to urgently plan and implement compulsory strategies if it is serious about arresting declining productivity levels.
Hylton, who was guest speaker at a Manchester Chamber of Commerce function at Golf View hotel recently, said a 2009 study conducted by the Jamaica Productivity Council (JPC) revealed the country was lagging behind its Central American neighbours.
According to Hylton, the report, which covered the period 1972-2007, showed that the average Jamaican worker had been producing less each year, amounting to a 1.3 per cent decline in output per annum.
"While labour productivity in Jamaica has been on the decline over the last three decades, many of our Latin American and Caribbean neighbours have experienced labour-productivity growth averaging more than 1.5 per cent per annum over the same period," said Hylton.
The group managing director said a recent study by the Inter-American Development Bank indicated that while Latin America and the Caribbean lagged significantly behind the rest of the world on the growth index, Jamaica's performance put it at the back of the pack.
"In fact, some countries in the Caribbean such as St Lucia, that were behind Jamaica in labour productivity as late as 2002, are now ahead, and moving even further ahead," Hylton said.
The banker said three of the sectors reviewed in the JPC's productivity summary report - agriculture, forestry and fishing; wholesale and retail, hotels and restaurant services; and construction and installation had recorded the lowest productivity levels despite accounting for 72 per cent of total employment.
Formula change
Hylton proposed that greater attention be paid to training a highly skilled Jamaican workforce capable of attracting higher-level investments and moving the country away from the low-skills/low-pay formula, which he insisted does not contribute optimally toward national development.
He encouraged the Manchester business community to make managed productivity the primary focus of its organisa-tions, by encouraging highly knowledgeable workers to suggest ways in which processes could be completed more efficiently on the line, without compromising quality.
Hylton also noted that for too long, many Jamaican businesses accepted poor performance as the norm, simply because persons had become accustomed to receiving only substandard performance.
He said a great disservice to the Jamaica workers was done when persons glorified average output, noting the same workers who migrated to the United States usually achieved higher productivity levels.
"I certainly believe it is time for us to raise our expectations. We must find ways to tap into the latent productivity talent of Jamaicans, and use these as the springboard for phenomenal growth and development at all levels of the society," said Hylton.
philip.hamilton@gleanerjm.com
Published: Wednesday | July 21, 20100 Comments and 0 Reactions
Patrick Hylton, group managing director of NCB. - File
Philip Hamilton, Gleaner Writer
National Commercial Bank (NCB) Group Managing Director Patrick Hylton says Jamaica needs to urgently plan and implement compulsory strategies if it is serious about arresting declining productivity levels.
Hylton, who was guest speaker at a Manchester Chamber of Commerce function at Golf View hotel recently, said a 2009 study conducted by the Jamaica Productivity Council (JPC) revealed the country was lagging behind its Central American neighbours.
According to Hylton, the report, which covered the period 1972-2007, showed that the average Jamaican worker had been producing less each year, amounting to a 1.3 per cent decline in output per annum.
"While labour productivity in Jamaica has been on the decline over the last three decades, many of our Latin American and Caribbean neighbours have experienced labour-productivity growth averaging more than 1.5 per cent per annum over the same period," said Hylton.
The group managing director said a recent study by the Inter-American Development Bank indicated that while Latin America and the Caribbean lagged significantly behind the rest of the world on the growth index, Jamaica's performance put it at the back of the pack.
"In fact, some countries in the Caribbean such as St Lucia, that were behind Jamaica in labour productivity as late as 2002, are now ahead, and moving even further ahead," Hylton said.
The banker said three of the sectors reviewed in the JPC's productivity summary report - agriculture, forestry and fishing; wholesale and retail, hotels and restaurant services; and construction and installation had recorded the lowest productivity levels despite accounting for 72 per cent of total employment.
Formula change
Hylton proposed that greater attention be paid to training a highly skilled Jamaican workforce capable of attracting higher-level investments and moving the country away from the low-skills/low-pay formula, which he insisted does not contribute optimally toward national development.
He encouraged the Manchester business community to make managed productivity the primary focus of its organisa-tions, by encouraging highly knowledgeable workers to suggest ways in which processes could be completed more efficiently on the line, without compromising quality.
Hylton also noted that for too long, many Jamaican businesses accepted poor performance as the norm, simply because persons had become accustomed to receiving only substandard performance.
He said a great disservice to the Jamaica workers was done when persons glorified average output, noting the same workers who migrated to the United States usually achieved higher productivity levels.
"I certainly believe it is time for us to raise our expectations. We must find ways to tap into the latent productivity talent of Jamaicans, and use these as the springboard for phenomenal growth and development at all levels of the society," said Hylton.
philip.hamilton@gleanerjm.com
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