The number of active work permit holders in Bermuda has fallen by almost eight percent in one year.

Minister of Economy Kim Wilson yesterday said there were 10,127 people on one- to five-year work permits, 874 fewer than in 2009.

Last year there were 11,001 people on one- to five-year work permits.

The figures do not take into account the number of people on Island with temporary work permits for seasonal jobs or those awaiting full work permits. Last week Sen Wilson said term limit decisions had been made on 6,817 active work permits, 70 percent of which had received a waiver of extension.

Yesterday, she clarified that the number did not reflect the total number of active work permit holders. "To be clear, this is not the total number of work permit holders," she said. "It is rather the number that represents those applications that have been made for exemptions or extensions or wherein the Department of Immigration has confirmation that the work permit holder is subject to term limits.

"The total number of one- to five-year work permits is 10,127. The additional work permits, or the balance, is attributable, but not limited to, the judiciary, special category or parents of Bermudians, as well as those permits where no application has been made for an extension. It should be noted that this 10,127 work permits excludes temporary and periodic work permits."

Chamber of Commerce head Stephen Todd said he was not surprised by the drop in work permit holders.

"This reflects the feedback that we have been receiving from our members both in the international and domestic/local sectors," he said. "With the drop in work permits, clearly this represents a significant reduction in our overall workforce, and is having a negative impact on Government and private sector revenues across-the-board.

"This translates into lost revenue for Government in work permit fees, contributory payments such as social insurance, hospital levy, pension contributions and other fees based on services no longer being utilised by our guest workers."

Mr Todd said the loss of these workers would have a knock-on effect, with less properties being rented and less money being spent at restaurants, shops and supermarkets. The loss in Government revenues could also mean a reduction in the number of social programmes the public sector can fund. He added: "The longer term implications can have far-reaching international consequences as antisocial behaviour will grow, and will result in the primary pillars of our economy tourism and international business suffering further declines."

Bermuda Democratic Alliance spokesman for economic matters, Michael Fahy, agreed.

"The decrease in work permits is another economic indicator that all is not well in Bermuda's economy," Mr Fahy said. "There have been a fair number of people leaving the Island, many of them from the international business sector, and this will have a knock-on effect for all the businesses that support international business directly and indirectly."

Mr Fahy said he expected some of the jobs lost would be replaced by Bermudians, but that a large number would not.

"This is why we have urged Government to attract new types of business, such as fund administration," he said.

During yesterday's Upper House session Sen Wilson said Government would focus on training Bermudians to fill vacant jobs and meet Bermuda's labour needs. "The Government is confident that by placing Labour and Training, Bermuda College and the issuance of work permits, all under the Ministry of Economy, Trade and Industry, a better assessment of the workforce needs can be accomplished," she said.

"In short, the amalgamation of these departments under one ministry will better ensure that fairness and equality exists as we strive to reach the delicate balance between allowing in the appropriate cases, the contributions of our guest workers to live and work in Bermuda, whilst at the same time, taking steps to best ensure that qualified, Bermudians are not displaced in the process."