Jamaica’s wage woes persist

The findings of the Caribbean Salary Survey Report: Pay Pulse 2024 are a stark reminder that Jamaica is falling dangerously behind in providing competitive wages.

Despite a recent national compensation review that initially seemed remarkable, the results clearly show it missed the mark. Hardworking Jamaicans continue to earn some of the lowest salaries in the region, with pay levels falling below the regional average in 91 per cent of roles surveyed – the worst outcome among the 20 Caribbean countries included.

For years, Jamaicans have been asked to endure wage freezes and meagre salary increases for the supposed benefit of the economy. Yet, the sacrifices of the average citizen have yielded little improvement in living standards.

In 2024, young people still struggle to secure affordable housing, with mortgages for suitable homes often exceeding $20 million – a figure far out of reach for those earning Jamaica’s substandard wages. This is a disservice to the youth striving to build a better life.

The recent compensation review aimed to address these issues, but it failed to tackle the root causes of wage stagnation or close the gap between salaries and the cost of living. Meanwhile, other Caribbean nations, such as The Bahamas, St Kitts and Nevis, and Barbados, have implemented policies that ensure their citizens are paid well above market averages in most roles. This has left Jamaica lagging at the bottom, a position that is both untenable and embarrassing.

THE URGENCY OF WAGE REFORM

Low salaries are not just an economic issue – they represent a social and moral failure. They perpetuate poverty, stifle workforce productivity, and force many of our brightest citizens to leave for better opportunities abroad. If the government is truly committed to national development, it must make comprehensive wage reform a top priority for the next financial year.

To address this crisis for 2025, the following actions are urgently needed:

1. Revisit and refine the compensation review

While the recent review was a step in the right direction, it failed to address the glaring inequities in pay. A follow-up review should focus on aligning wages with the regional market and ensuring they reflect the true cost of living.

2. Improve access to affordable housing

Introduce accessible mortgage programmes and incentivise the development of housing solutions under $20 million, particularly for young professionals and first-time homeowners.

3. Set progressive wage policies

Implement a minimum wage that is not just symbolic but genuinely reflective of economic realities. Encourage industries to adopt pay structures that reward skill and productivity.

4. Invest in lagging sectors

Sectors like education, childcare, and public service, identified as lagging in compensation, must be prioritised. These are critical to national development and deserve investment.

5. Strengthen workforce opportunities

Diversify the economy by attracting high-paying industries, such as technology and renewable energy, to Jamaica. Provide training programmes to equip citizens for these roles.

While the recent compensation review demonstrated the government’s awareness of the problem, it fell short in delivering meaningful change. As citizens, we must demand better. Our workforce has sacrificed and adapted for the “greater economic good” for decades, but these sacrifices must now translate into tangible benefits.

The government must act decisively in the next financial year. Wage reform and housing solutions are not luxuries – they are necessities for a stable, prosperous Jamaica. Failure to address these issues is a betrayal of the trust and hard work of the Jamaican people.

The ball is in the government’s court. Will they rise to the occasion, or will they continue to ignore the cries of their citizens? The time for action is now.

Leroy Fearon is the Acting Dean, Faculty of Education, The Mico University College, author and researcher. Email feedback to: leroyfearon85@gmail.com and editorial@gleanerjm.com