Jamaica and World Bank sign loan deal for unemployment insurance scheme

The Government has signed a US$20 million loan agreement with the World Bank for a project that will see the establishment of a national unemployment insurance scheme. 

It is part of the Social Protection for Increased Resilience and Opportunities (SPIRO) Project.

The agreement was signed at the finance ministry on June 11. 

In his remarks, Finance Minister Dr Nigel Clarke, said gaps have been identified in Jamaica's social protection system, resulting in the launch of the Social Pension Programme in 2021 which has approximately 14,000 beneficiaries to date.

He further explained that the COVID-19 experience and the economic and social impact from the loss of jobs were clear indicators that Jamaica needed to establish an unemployment insurance scheme.

“The Government is focused on improving the social safety net and providing for the most vulnerable members of our society, including those who may not be vulnerable today but who can become vulnerable because they become unemployed,” Clarke said. 

World Bank Country Director, Lilia Burunciuc, said SPIRO will support major changes in Jamaica's social protection system.

“We are especially looking forward to the strengthening of the social protection delivery systems, which includes the development of integrated, interoperable and risk informed social protection information system that will revolutionise the implementation of social assistance programmes in Jamaica,” she aid.

SPIRO comprises five components and will be executed by the Ministry of Labour and Social Security over a six-year period, ending January 2030.

Component one will enhance Jamaica's resilience through the establishment and implementation of unemployment insurance at an estimated cost of US$1.34 million.

Component two, valued US$8.75 million, will support the strengthening of employment services for employers and jobseekers, including unemployment insurance beneficiaries and vulnerable groups.

Component three, valued US$7.96 million, will focus on supporting the development and implementation of system-wide information systems, providing technical assistance to modernise key programmes, processing and collecting the evidence needed for continuous improvement and delivering capacity building to the laour ministry and other key social protection stakeholders.

The fourth component will cover project management at an estimated cost of US$1.9 million, while component five will have a zero-fund allocation for rapid access to World Bank financing for the response and immediate recovery needs during and immediately after a crisis or emergency.

- JIS News

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