Labour Day has passed once again, leaving much to ponder about the state of working people embroiled in the worst recession since the 1930s.

Recession caused both by slowdowns in international business and the steady decline of the tourism industry have contributed to unprecedented unemployment levels. When — or if — the Census is completed, it will show a reduced population overall as a result of the departure of non-Bermudians and high levels of unemployment among Bermudians.

The latter has been exacerbated by the end of the construction boom in Bermuda. With office construction now ending, and residential construction weak already, job losses in the construction sector have been especially severe. This means that far fewer unskilled or skilled labourers are being hired. Indeed the story of the skilled mason who applied to ten construction companies and only heard back from one has an explanation other than a bias against Bermudians; at least some of those companies did not respond because they are not hiring at all.

A similar problem follows in the hotel industry, which for decades provided employment to people with relatively low skill levels. As the industry has shrunk, so have the jobs available. The same thing has occurred in the retail sector.

In time, economic recovery will come. But, as with the US, it may well be a jobless one. There were signs in the second quarter that there had been an improvement in tourism from the nadir of 2009. Although air arrivals edged up by only three percent, most hotels reported stronger occupancies than a year earlier — and better revenues as the deep discounts handed out in 2009 were not repeated. But the primary reason for their success was simple supply and demand; with even more hotels closed, there were fewer rooms on offer, so even if arrivals had remained flat, occupancies would have improved.

This suggests that recovery in tourism, at least in the short term, will depend on fewer rooms, and the addition of new hotels, although welcome to the construction industry, will not necessarily help the industry as a whole. Even international business, which has been the driver of the whole economy for the better part of two decades, is somewhat stagnant, and the recently released Employment Survey for 2009 showed less employment in the sector than it had in 2008. That has not occurred in living memory, if ever.

And while there are, again, some signs of growth, no one seems to expect the kind of expansion that was occurring previously.

So what does this mean for the economy and for Bermudian workers? The answers, to amend former British Prime Minister Tony Blair's famous comment on education, are skills, skills and skills. The changing global economy and Bermuda's place in it means that this Island can only continue to enjoy its enviable standard of living — and to 98 percent of the world it is enviable — if it is willing to adapt and improve.

That requires that schools must produce a better calibre of graduate and must increase the numbers of young Bermudians going to highly regarded and recognised universities. And Bermudians already in the workplace must improve or change their skills as well. Many businesses have begun to outsource skilled jobs because they are too expensive in Bermuda. This means that the skills here must be improved in order to compete better.

Hard skills are one thing. Soft skills also need to be improved. Better customer service, more efficient delivery of services and a willingness to go the extra mile for Bermuda's customers will determine wither the Island succeeds or fails.