Government shifts focus on work-eligible people on the fringe of the labor force
By Jayvee Vallejera
Guam’s unemployment rate went further down last September, but there are still more than 55,000 work-eligible people who are not part of the labor force, according to the Bureau of Labor Statistics’ latest survey.
The territory’s unemployment rate slid to 3.4 percent in September 2024 from 4.1 percent in September 2023.
The report, released on Dec. 30, 2024, noted an increase in the number of persons who were out of the labor force.
BLS reported a total of 55,620 people who were not in the labor force in September 2024—an increase of 1,240 compared to the 54,380 posted in June 2023. This is also a 3,080 increase over the 52,540 recorded in June 2023.
Based on the bureau’s definition, those unemployed include everyone within the scope of the survey who did not work, but did try to find a job within the past four weeks and were available for work.
Those “not in the labor force” included all civilians within the scope of the survey, 16 years and over who are not classified as employed or unemployed. Anyone doing incidental unpaid family work (less than 15 hours) is also classified as not in the labor force.
Most of the respondents said they “did not want a job” during the survey period, while 420 said they wanted a job but did not look for work. Many of the reasons cited by those who did not look for work said they either believed that no job was available, were unable to find work, or had family responsibilities, among others.
The same report states that the labor force participation rate—the civilian labor force as a fraction of the civilian population age 16 years of age and over—decreased to 54.8 percent in September 2024 from 55.7 percent in June 2024.
In looking at the unemployed numbers, BLS noted a decrease in the total number of persons unemployed in September 2023 at 2,290.
The bureau said this continues the overall trend of fewer unemployed persons, along with lower unemployment rates since the pandemic highs of December 2020.
It also noted that Typhoon Mawar, which hit Guam on May 25, 2023, temporarily depressed employment, as well as the number of persons looking for work, so the latest numbers spell an increasing number of people finding jobs or being called back to work.
In its explanatory note, BLS said the Guam population covered by the survey totaled 123,120. This included everyone who was 16 years old and over in September 2024. The covered civilian population included those in the labor force and those not in the labor force.
The survey also included citizens of the Federated States of Micronesia, the Marshall Islands and Palau residing on Guam.
Inmates, members of the Armed Forces, civilians living in military installations and housing, persons less than 16 years old, and nonimmigrant aliens were not included.
“The drop in unemployment is a positive indicator of our economy’s resilience and the effectiveness of workforce programs,” Gov. Lou Leon Guerrero said.
“At the same time, understanding shifts in employment trends is key to ensuring all residents have access to meaningful job opportunities, and our administration remains dedicated to creating pathways that support long-term career growth and economic stability for our community,” she added.
Lt. Gov. Joshua Tenorio cited the need to focus on those “who remain on the sidelines,” and “expand the overall labor force participation by equipping individuals with the skills and support they need to thrive in Guam’s evolving economy.”'
Officials explained that “frictional unemployment” accounted for students focusing on education, retirees, and caregivers providing unpaid support at home, reflecting Guam’s “unique socio-economic landscape” that warrants “tailored approaches to workforce development.”
The Guam Department of Labor has been seeking to encourage labor participation by implementing initiatives such as the Registered Apprenticeship, Year-Round In-School Youth Program and the Dislocated Worker Program opportunities are designed to provide pathways into stable employment while addressing barriers that prevent active workforce participation.
“I understand the challenges employers face in finding skilled workers, and we’re actively collaborating with other agencies and partners to address these issues,” said David Dell’Isola, labor director.
“While some individuals may not be ready to reenter the workforce, our focus is on those eager to work—students seeking employment, individuals ready for training programs or boot camps, and others on the fringes of the labor market,” he said.
Gary Hiles, chief economist, attributed the decreased unemployment rate to “continuing economic recovery from the Covid-19 pandemic years combined with increased construction activity.”
“While low unemployment presents a more challenging situation for employers, the increased availability of jobs provides opportunity to those entering the labor force for the first time and those returning to work,” Hiles said.
“Population statistics from the 2020 census counted 11,782 people in the 15-19 year-old category, so about 2,000 people each year should become of age to enter the labor force. Graduates from the Department of Education numbered 1,527 for school year 23-24. The Guam Community College class of 2024 had 361 students receiving various certifications, and the University of Guam conferred a total of 528 undergraduate and graduate degrees,” he added.
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