![](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2026\/01\/1768498692_752_.jpeg\")
<\/p>\nCreated: Jan 15, 2026 08:02 AM<\/p>\n
\t\t\t\t\t\t<\/p>\n
Jason Hayward, the Minister of Economy and Labour (File photograph by Akil Simmons)<\/p>\n
The island\u2019s economic expansion hit a wall during the second quarter of last year, hindered by a reduced trade balance owing to an increase in imports, the Minister of Economy and Labour announced.<\/p>\n
Jason Hayward said statistics from the Second Quarter GDP 2025 <\/a>report showed that the contraction was also driven by cuts in government spending.<\/p>\n Mr Hayward said figures showed the economy shrank by an estimated 1.2 per cent year-over-year after adjusting for inflation.<\/p>\n In the previous quarter, the economy grew by only 0.9 per cent in real terms.<\/p>\n He added: \u201cThe Government will continue to execute the strategic initiatives outlined in Bermuda\u2019s Economic Development Strategy to ensure that Bermuda experiences sustainable economic growth and development.\u201d<\/p>\n Mr Hayward highlighted that the island\u2019s economic trade balance declined by 7.1 per cent to $417.9 million during the reporting period, as growth in payments from imports of goods and services \u201coutpaced\u201d the growth of receipts for exports.<\/p>\n Exports of goods and services fell 0.9 per cent during the second quarter, while imports of good and services rose 4.8 per cent.<\/p>\n The number of firms on the local business register rose to 4,048 \u2014 a 2.3 per cent increase over the previous year \u2014 as 32 new businesses were registered in the domestic economy.<\/p>\n Workforce readiness for the big reopening<\/p>\n Jason Hayward, the Minister of Economy and Labour, asserted that the Government was working to ensure that in the short term, suitably qualified Bermudians got a fair shot at work in the Fairmont Southampton.<\/p>\n A hospitality sub-committee under the Workforce Development Advisory Board is looking at training and development initiatives in the short and long term, he added.<\/p>\n \u201cWe are working on some of those measures now,\u201d he said.<\/p>\n \u201cWe are having ongoing conversations with the hotel industry and representatives of the hotel regarding restricted job categories and the tightness of the labour market.\u201d<\/p>\n He said \u201cmeaningful conversations\u201d are being held with the Bermuda College on the continuation of hospitality training and development.<\/p>\n The reopening of the iconic resort will be \u201cextremely significant\u201d to Bermuda\u2019s economy, Mr Hayward said.<\/p>\n He said the tourism sector\u2019s overall contribution to the island\u2019s economy is less than 5 per cent.<\/p>\n In the past, he said, the figure was much higher when the hotel was operational.<\/p>\n Besides tourism, Mr Hayward said industries, such as those within the wholesale and retail sectors, will benefit from the hotel\u2019s reopening through the provision of goods and services.<\/p>\n He said the island will also benefit indirectly from the wages and salaries of employees.<\/p>\n Workforce readiness for the big reopening<\/p>\n Jason Hayward, the Minister of Economy and Labour, asserted that the Government was working to ensure that in the short term, suitably qualified Bermudians got a fair shot at work in the Fairmont Southampton.<\/p>\n A hospitality sub-committee under the Workforce Development Advisory Board is looking at training and development initiatives in the short and long term, he added.<\/p>\n \u201cWe are working on some of those measures now,\u201d he said.<\/p>\n \u201cWe are having ongoing conversations with the hotel industry and representatives of the hotel regarding restricted job categories and the tightness of the labour market.\u201d<\/p>\n He said \u201cmeaningful conversations\u201d are being held with the Bermuda College on the continuation of hospitality training and development.<\/p>\n The reopening of the iconic resort will be \u201cextremely significant\u201d to Bermuda\u2019s economy, Mr Hayward said.<\/p>\n He said the tourism sector\u2019s overall contribution to the island\u2019s economy is less than 5 per cent.<\/p>\n In the past, he said, the figure was much higher when the hotel was operational.<\/p>\n Besides tourism, Mr Hayward said industries, such as those within the wholesale and retail sectors, will benefit from the hotel\u2019s reopening through the provision of goods and services.<\/p>\n He said the island will also benefit indirectly from the wages and salaries of employees.<\/p>\n Mr Hayward said consumer spending was recorded at $841 million while household consumption increased 1 per cent over the previous year.<\/p>\n He said household consumption of services crept up by 0.1 per cent through higher expenditure on personal care and air transport services.<\/p>\n Bermuda hosted 67,687 air visitors during the second quarter of last year, up from 67,121 recorded the previous year.<\/p>\n Mr Hayward said employment income during the period was recorded at 6.4 per cent above the previous year\u2019s level.<\/p>\n Youth unemployment and artificial intelligence<\/p>\n Jason Hayward, the Minister of Economy and Labour, said the Government will monitor labour market trends to determine what measures are needed to safeguard jobs from the impact of artificial intelligence and automation.<\/p>\n \u201cAs it pertains to digitisation and automation, the Government is mindful that our population is ageing,\u201d he added.<\/p>\n \u201cWhere we find that it may become a risk to our economy, we will put measures in place to prevent the automation of some areas.<\/p>\n \u201cWe don\u2019t want to shift everything to digitisation and then we have an economy that our seniors cannot function in.\u201d<\/p>\n His response came as the International Labour Organisation warned in a labour market report<\/a> that global youth unemployment climbed to 12.4 per cent in 2025, with about 260 million young people not in education, employment or training.<\/p>\n The ILO warned that artificial intelligence and automation could exacerbate challenges, particularly for educated youth in high-income countries seeking their first job in high-skill occupations.<\/p>\n \u201cWhile the full impact of AI on youth employment remains uncertain, its potential magnitude warrants close monitoring,\u201d the report noted.<\/p>\n Mr Hayward said youth unemployment in Bermuda stood under 4 per cent, an improvement from more than 30 per cent after the pandemic.<\/p>\n He said a report from a 2025 employment survey was being compiled and will provide an overview of the latest estimates on the labour force.<\/p>\n Youth unemployment and artificial intelligence<\/p>\n Jason Hayward, the Minister of Economy and Labour, said the Government will monitor labour market trends to determine what measures are needed to safeguard jobs from the impact of artificial intelligence and automation.<\/p>\n \u201cAs it pertains to digitisation and automation, the Government is mindful that our population is ageing,\u201d he added.<\/p>\n \u201cWhere we find that it may become a risk to our economy, we will put measures in place to prevent the automation of some areas.<\/p>\n \u201cWe don\u2019t want to shift everything to digitisation and then we have an economy that our seniors cannot function in.\u201d<\/p>\n
![](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2026\/01\/1768498693_898_.jpeg\")
![](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2025\/09\/pdf.png\"\/)
<\/a><\/p>\n