In a move aimed at boosting the economy ahead of the holiday season, St. Lucia Prime Minister Philip J. Pierre announced that over 12,300 public sector workers, government contractors, and pensioners will receive a one-off $500 bonus.
The payments, which will total more than $6 million, are set to be deposited into bank accounts by December 20, 2024, providing a timely financial boost for workers in Saint Lucia.
“This is part of our commitment to prioritize the needs of Saint Lucians and support the growth of our economy,” said Prime Minister Pierre. “Through these targeted economic policies, we are positively impacting the lives of ordinary Saint Lucians.”
This announcement comes as the country continues to experience significant economic improvement, with the national unemployment rate reaching a historic low of 11.8% in the third quarter of 2024. This marks the third consecutive quarter that unemployment has remained below 12%, a first in Saint Lucia’s history. The rate has dropped dramatically from 18.2% in the third quarter of 2022, and from 12.8% in the same period last year.
Higher employment among young people
The improvement in unemployment figures is largely driven by higher employment rates among younger age groups, with 63% of those aged 15-19, 81.4% of those aged 20-24, and 86.9% of those aged 25-29 finding work. Overall, the national employment rate now stands at 88.2%, signaling continued economic growth as the country heads into the traditionally busier fourth quarter.
Prime Minister Pierre has also emphasized the role of government initiatives in fostering this progress. The administration has been working closely with the private sector to stimulate job creation, offering incentives and attracting foreign investment. Since July 2021, millions of dollars in low-interest loans and grants have been made available to entrepreneurs and small businesses through government-backed programs like the Youth Economy Agency and the MSME Loan-Grant Facility.
In addition to these initiatives, the government has continued to support the private sector with tax breaks. Notable measures include waiving VAT on certain building materials, gym equipment, and medical supplies, as well as suspending withholding tax on government contracts valued at $10,000 or less. Local companies are also exempt from penalties and interest on outstanding VAT payments until May 1, 2025.
These policies, Prime Minister Pierre believes, are helping to strengthen the financial health of local businesses, increasing consumer confidence, and contributing to the creation of new jobs across the island.
