Business leaders have raised alarm that without changes to Bermuda’s restrictive immigration policy there is “a real risk that inadequate staffing becomes a material constraint on economic growth in the near term”.

A Chamber of Commerce pre-Budget statement warns: “Without proactive measures to encourage additional young and medium-age residents, alongside enhanced senior care and workforce participation, these demographic pressures will continue to strain healthcare, productivity and overall economic vitality.”

It has urged the Government to form a special multi-departmental committee, that is also populated with business representatives, in the face of a local public policy that has workforce needs and immigration efforts that are not aligned.

It has also strongly urged immigration reforms that would create a younger workforce, even with greater participation by senior workers.

The chamber published the document under the banner of “The voice of business in Bermuda”, calling for a review and reclassification of closed/restricted job categories in immigration.

It has also called for a joint committee to be formed in the months ahead to align the immigration policy with the needs of the workforce and substance-based tax credits for companies.

The chamber statement said: “Bermuda’s low unemployment rate of [under] 2 per cent demonstrates the labour shortages experienced by employers.”

The official unemployment rate of 1.4 per cent was established from the November 2024 Labour Force Survey Report, made public by the Government in December.

The island has a history of having more jobs than people, although in recent years employment numbers had fallen on hard times.

In many countries, 3 per cent unemployment is considered to be full employment, taking into account a normal percentage of people between jobs.

But given the almost non-existent unemployment, the chamber recommends this as an ideal time to make changes to immigration policy.

The statement said: “Unemployment rate is in a range that is considered to be full employment. It is recommended that the listing of closed and restricted job categories is reviewed to identify appropriate roles that should be reclassified.

“We note that over the past several years, the only role that has migrated has been that of mason.”

The chamber believes more needs to be done to address ageing workforce impacts on economic development and senior care.

Among its other sought-after tax adjustments, business leaders propose a cap on employer payroll tax at 7 per cent.

But the group stated: “Given the current constraints of the labour market and the future requirements of the workforce, a joint committee with businesses, Ministry of Economy and Labour, Ministry of Education, Workforce Development, the Bermuda College and the TRC’s Corporate Income Tax Agency could align immigration policies with the substance-based tax credit by Q3 2026, ensuring access to talent for economic growth across all industries while also ensuring that in-demand roles have access to sufficient labour pools.”