The determinants of job losses due to the COVID-19 pandemic in small Island developing states

This paper investigates the determinants of job losses due to the COVID-19 in the small island developing states of the Caribbean. Utilising a survey of 1979 firms in the Caribbean and a probit regression model, the study identifies the key factors that might lead a firm to retrench staff. Two of the most important factors that impacted on job losses were the ease of doing business and innovation. Investing in the ease of doing business within the Caribbean therefore seems to be not only an economic good, but a social benefit as well. The findings of the study also support another use of innovation: as a response to crises. This study identifies the key factors influencing job losses in Caribbean small island developing states during COVID-19. It underscores the importance of strategic investments in the business environment for both economic and social benefits. The findings also highlight the role of innovation as a vital response to crises, emphasizing its capacity to mitigate job losses and enhance resilience.