Survey Unveils Strategies to Bolster USVI’s Diminishing Labor Force

A recent labor force survey in the U.S. Virgin Islands highlights several strategies to strengthen and expand the territory’s shrinking workforce.

Economic disruptions from the 2017 hurricanes, the closure of the Limetree Bay refinery, and the Covid-19 pandemic have led to a declining population, reducing the available labor pool. Currently, the unemployment rate stands at approximately 3.2 percent.

The survey results, presented to the Committee of Education and Workforce Development by Collin Perciballi, a consultant with labor market analytics firm Lightcast, identified key approaches to address these challenges. Perciballi emphasized the importance of aligning career and technical education with cross-cutting skills, advocating for a workforce trained to be flexible and capable of filling various roles. Additionally, foundational skills, including computer literacy, should be integrated into K-12 and adult education programs.

Addressing the “enrollment decline” in schools, a byproduct of population decrease, is also crucial. Lightcast recommended offering scholarships to Virgin Islander families who have moved away.

High living costs, particularly energy expenses, deter people from returning to the territory. Perciballi noted that reducing these costs could encourage repatriation and expand the workforce pipeline. Energy, healthcare, and education gaps have long been barriers for Virgin Islanders in the diaspora.

Labor Commissioner Gary Molloy described the current job market, where available positions outnumber available workers, as a “job seekers market.” With over 6,000 workers in the public sector, Lightcast’s report suggested transitioning talent to the private sector without layoffs, proposing that for every new government hire, two positions should transition to the private sector.

Lightcast also urged the territory’s leaders to facilitate entrepreneurship by removing processing delays and high fees associated with starting businesses. They recommended a comprehensive regulatory review and overhaul.

The consultants advocated for establishing a remote work culture, suggesting policies to make the Virgin Islands a remote-friendly destination. This could attract talent to the territory.

Additionally, workforce development should target forward-looking sectors such as the blue and green economy and tourism. Training in solar energy maintenance and agro-processing can support these industries. Financial services, particularly on St. John, also hold promise.

With an aging population, there will be an increased demand for retirement and healthcare services. Lightcast suggested long-term care initiatives and training nurses to support the University of the Virgin Islands’ nursing faculty shortage.

Contracted by the Virgin Islands Workforce Development Board, Lightcast’s study aims to meet U.S. Department of Labor requirements to evaluate the territory’s labor market. Board Chair Michael Carty emphasized that the territory is at a pivotal moment and that comprehensive workforce development strategies are essential for sustainable growth.

Actionable solutions, he noted, will bridge gaps, attract talent, and bolster sector resilience.