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On October 19, 2024, during a broadcast of Alliance on the Move moderated by Derek Basdeo, Alliance for Change (AFC) leader and attorney-at-law Nigel Hughes delivered a pointed critique of Guyana’s readiness to capitalize on its emerging oil and gas economy. He underscored the urgent need for education and training reforms to ensure that Guyanese, particularly the nation’s youth, can seize the opportunities presented by this sector.
Hughes outlined that while the oil and gas sector will be central to Guyana’s economy for the next 20 to 50 years, the country faces a critical skills gap that could prevent its citizens from benefiting. “If we are losing 50 percent of our students who are not finishing school, and then we look at the pass rates—31 percent in mathematics—it means that our children in Guyana are not going to be qualified for the jobs that the new economy is creating,” Hughes said. His concerns align with a recent Labour Assessment Survey by the Greater Guyana Initiative and the Centre for Local Business Development, which highlighted that key sectors such as oil and gas, agriculture, construction, and healthcare require over 52,000 additional workers by 2028—far outpacing the country’s educational output.
Hughes further emphasized that without proper intervention, many of these high-paying jobs will likely go to foreign workers, given that oil and gas operations run continuously and require skilled labor. He argued that while foreign assistance is welcome, the country must prioritize its own workforce development. “We need to have a program right now that captures those 50 percent that are not finishing secondary school,” Hughes stated, calling for the establishment of training programs tailored to industry-specific needs like offshore welding, scaffolding, and electrical work. These programs, he suggested, should offer certifications and pay participants a livable stipend to support their families during the training period.
Concerns Over Child Poverty
In addition to education, Hughes raised alarm over the prevalence of child poverty in Guyana, an issue he said should be a national priority given the country’s newfound wealth from oil revenues. Citing a 2022 World Health Organization (WHO) and UNICEF report, Hughes revealed that 20 percent of Guyanese children live in “extreme food poverty,” with another 40 percent classified as living in food poverty. “We cannot possibly be in a country that is earning $1.6 billion a day and have any of our children in food poverty,” Hughes argued, stressing that immediate action must be taken to ensure no child goes hungry.
These revelations paint a stark contrast to Guyana’s growing economic stature, fueled by oil production. Hughes questioned how the country, often touted as one of the fastest-growing economies globally, could allow such disparities to exist. “It’s completely unacceptable,” he said. His comments reflect growing concerns among civil society groups and international observers about the uneven distribution of wealth in Guyana, especially as oil revenues increase.
Workforce Challenges and Policy Recommendations
The labor market report by the Greater Guyana Initiative, which echoes many of Hughes’ concerns, outlined that Guyana’s workforce faces significant challenges, particularly in key sectors like construction, healthcare, and oil and gas. The report highlights a shortage of skilled workers in trades such as welding, plumbing, and masonry—skills that are essential for infrastructure projects linked to the country’s booming oil industry. Additionally, the healthcare sector is expected to need over 20,000 new workers by 2028, yet the current education system is woefully underprepared to meet this demand.
The report suggests a comprehensive approach to address these labor shortages, including expanding educational and training capacities, improving immigration policies, and adopting mechanization in sectors like agriculture. Furthermore, it notes the high rate of female non-participation in the workforce, particularly among women with young children, despite their educational achievements outpacing men.
Hughes also called for a clear migration policy that allows for the managed entry of foreign workers while prioritizing jobs for qualified Guyanese citizens. “Once you have qualified Guyanese in these areas, they get priority over anybody else from outside of Guyana,” he said, advocating for policies that ensure local workers are the first in line for the high-demand jobs that will shape the country’s economic future.
The Way Forward
Hughes concluded by stressing that addressing Guyana’s educational deficiencies and food poverty issues should be at the forefront of government policy. He urged the government to develop robust training programs that give young people the skills necessary to succeed in the oil and gas industry. “We must put in place a future for Guyanese that gives them an edge,” Hughes said, emphasizing the importance of creating a sustainable and inclusive economy where all citizens can benefit from the country’s wealth.
As Guyana continues its rapid economic transformation, Hughes’ comments serve as a reminder that development must be equitable. For the country to thrive, its citizens need access to education, training, and basic necessities such as food. Without these foundational elements, Guyana risks perpetuating a system where only a select few benefit from its burgeoning oil wealth, leaving the majority behind.