Guyana’s pronounced skills gap could slow down oil sector growth – ILO Report

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While the accelerated expansion of the oil and gas operations in the Stabroek Block has earned Guyana the title of being the fastest-growing economy in the world, weaknesses in its labour force could have harmful effects on its development trajectory.

This is according to a report by the International Labour Organization titled: Prospective occupational skills needs in the Guyanese oil and gas industry, 2022-2026.  It states that Guyana lacks more than 60% of the technical skills needed to keep up with its rapid pace of development. It also stresses that the country is not churning out enough graduates to meet the growing demand.

The report states, “Accelerated expansion of the oil and gas operations has exposed a pronounced gap between the industry labour demand and the availability of skilled workers at the local level. If not addressed, the latter will likely slow down the growth of the sector and of the whole economy or, at the very least, generate inefficiencies in the firm level performance and for the economy.”

The ILO recommended that government provides public assistance that can help the private sector formalise ongoing (or introduce) traineeship schemes. Amongst others, the organisation said this will address the needs of the industry for experienced workers.

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The ILO also recommended the development of public-private partnerships for skills development. It said this is necessary to develop cooperation mechanisms between employers, government, workers’ representatives and academia, through which it is possible to structure continuous spaces for dialogue for curriculum development and promote technological development and research.

It also stressed the need for incentives to attract if needed, qualified workers from abroad. It said too that ‘creative’ solutions for incentives for Guyanese graduates to stay and offer their services are to be thought of. The report said elements such as the availability of relevant accessory services for future workers (transport, nurseries, housing, family services) may play a role to ensure retention once trained.

Furthermore, the ILO states that enticing return policies for the skilled Diaspora may be envisaged for the sector. The present study does provide a detailed overview of what profiles may be considered in designing those.

Another key recommendation pertained to promoting the participation of women in Science, Technology, Engineering and Mathematics (STEM) career paths. In this regard, the report said that an increase in women’s graduation in STEM studies, at both higher education and vocational training levels, could directly address closing some of the technical gaps in the industry.

Guyanese authorities have since acknowledged the need to augment skills capacity to meet oil sector needs as it is working to build the Guyana National Training Centre in collaboration with ExxonMobil Guyana. The institution is intended to deliver world-class training and certification to Guyanese workers in five main skills areas: electrical, mechanical, instrumentation, process operations to support the oil and gas industry, as well as civil and building construction to support the broader economy.

Government has also taken several loans from the Inter-American Development Bank as well as the World Bank this year to expand the competencies of its people.

The administration’s training arms, such as the Board of Industrial Training also partnered with the Guyana Shore Base Inc. for the implementation of a Quality Apprenticeship programme at the soonest possible time.

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