The number of unemployed in Bermuda rose steeply in 2014 compared with the previous year, according to the latest labour report.

The 2014 Labour Force Survey suggests 3,486 people were out of work last year, which represents an increase of 35 per cent from 2,569 in 2013.

But Finance Minister Bob Richards was quick to urge caution over the figures saying the survey was just an “estimate by way of sampling” and did not represent a “statistically significant change”.

He also pointed towards new hotel developments, the creation of 400 jobs through a new tax initiative to reward Bermudian hires and an upswing in building permits as proof of an impending turnaround in fortunes.

“I am not saying that the loss of 511 jobs is not significant to this Government,” Mr Richards said.

“What I’m saying is that we cannot hang our hats on the accuracy of that number because of inherent sampling error.”

The survey suggests the number of black people in work dropped by 5 per cent on the previous year, while the number of white people employed increased by nearly 6 per cent from 2013.

Meanwhile, the number of Bermudians in work remained largely the same between 2013 and 2014, according to the report.

“The unemployment number here has gone up by 35 per cent but this is based on the math of small numbers,” Mr Richards added.

“The other changes to working population, males working, females working and Bermudians working are all statistically insignificant. You cannot and should not draw conclusions from them.

“Changes in the black working population and white population are indeed significant and are something of note.”

Asked to explain the trend, Mr Richards said: “Unemployment has been greatest in construction, which factors into it as opposed to the exempt company world.

“Hotels, bars and restaurants are sectors that have more black people in them than white and that accounts for most of it.”

The survey was conducted in May and June and was based on a sample of 1,500 households where each person was asked whether or not they were working during the week of May 13 to 19.

The survey found that the working population shrunk by 511 from 35,989 in 2013 to 35,478.

It also suggests that the median wage in Bermuda has dropped by nearly $2,000 from $62,211 in 2013 to $60,559 last year.

“This survey was conducted eight months ago and, even if the year-over-year changes in the numbers were statistically significant, one has to take into account the passage of time,” Mr Richards said.

“Since May and June 2014, a number of important positive developments have taken place. The latest data from the tax commissioner’s office show that 400 jobs have been created since the inception of our tax holiday for new Bermudian hires.

“Our other initiative that targeted the real estate market has also yielded positive results, with the recent report from Coldwell Banker that the property market has stabilised after having been in free fall when OBA became the Government in December 2012.

“A number of other initiatives by this Government, or those encouraged by us, have been brought to bear to improve the situation, many of them since the date of this survey. For example, new Pink Beach, the next phase of Hamilton Princess refurbishment, new St Regis in St George’s, South Beach or Sinky Bay project, Ariel Sands redevelopment, new Ritz Reserve at Morgan’s Point, new airport terminal and last, but not least, America’s Cup and the preparations for it.

Mr Richards maintained that Government had not “bitten off more than it could chew” by promising to create 2,000 jobs when it came to power and would get to “where we want to”.

He said: “The evidence of the survey showed no statistically significant erosion in job markets, although other data shows employment remained weak for the first part of the year 2014.

“This Government places very high value on the dignity of honest work, and deep concern for those unsuccessfully seeking a job is driving us to continue to work tirelessly to improve the situation.

“I am encouraged that evidence shows that the Government’s efforts to turn things around are working, even though many of the major projects have not yet kicked in. But when they do, there will be a major surge in job opportunities for Bermudians.”

• Click on the link underneath Related Media for the full survey report