Both Opposition parties yesterday blamed poor leadership for Bermuda's falling employment levels.

And the Bermuda Democratic Alliance said the Island was on a "knife edge" in terms of international companies leaving the Island and predicted employment figures would further drop in 2010.

Last week the Department of Statistics revealed there were 39,520 jobs in Bermuda in 2009 compared to 40,213 in 2008.

The number of jobs held by Bermudians declined by 391 jobs, while positions filled by non-Bermudians decreased by 435.

It was also the first time in recent memory that the number of jobs in international business shrank.

BDA chairman Michael Fahy said the figures were hardly surprising and demonstrated that all is not well with Bermuda's economy.

"A loss of 693 jobs in the local labour market is frankly very bad," he said. "It is also unsurprising that the release cited the reason for this plummet as the global recession. Whilst it is certainly fair to say that the global economic downturn has been a major contributor to the decline in jobs in Bermuda through 2009, it would also be more fair to say that poor leadership and poor decisions leading up to the downturn has likely exacerbated the problem."

Mr. Fahy said the seven percent decline in international business was bad news for Bermuda because that industry often creates jobs for Bermudians, particularly in providing services to the companies.

"Lack of growth in this area means less Bermudians employed," he said.

He also believes the figure backs up claims both Opposition parties have made, that companies are quietly reducing the number of employees they have on the Island.

"Our information is that the payroll tax increase has seen a number of well known high profile international companies seriously consider looking elsewhere to relocate their operations," he said. "We are literally on a knife edge in terms of flight.

"Such a flight would not be one mass exodus — rather a continuing trickle which has already begun in many companies with the moving of IT professionals back onshore. Just because a company owns a building or has a long lease does not mean they need to stick around."

Mr. Fahy predicted the figures would get worse later this year particularly as the construction industry slowed down.

"Employment in tourism is also unsurprising and will only get worse — it is hardly a platinum period," he said. "The Department of Immigration can only do so much to protect Bermudians in a downturn through work permit non-renewals.

"Again this is not scaremongering. Ask around. Look around. How many of your friends have been made redundant? How many people are leaving the Island?

"We can only hope that the electorate will listen to this message and push for real change before it is too late."

United Bermuda Party MP Trevor Moniz had a similar assessment and said the figures should be troubling for all Bermudians.

"We have witnessed the first decline in international business sector jobs in nearly two decades and a continuing decline in the total jobs held by Bermudians since 2000," he said.

"The harsh reality is that under the PLP Government Bermudians are losing jobs and the economy is weakening.

"In addition, many Bermudians are suffering unnecessarily because the Government has failed to manage programmes, projects and spending in ways that could have softened the impact of recession.

"Bermuda needs to change its leadership if it is to get back on track."