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<\/p>\nDespite the increase in the total number of workers in the CNMI in 2021 and 2022\u2014as the U.S. Government Accountability Office had found\u2014the region remains at risk of a severe economic crisis with limited prospects for recovery, according to Gov. Arnold I. Palacios.<\/p>\n
Challenges such as the struggling tourism industry and the decision to shift away from the Chinese market pose significant hurdles to economic survival, said Palacios in his letter dated Jan. 17, 2024, and sent via email to GAO International Affairs and Trade acting director Nagla\u2019a El-Hodiri. The governor\u2019s letter was attached to the GAO report, which was released Wednesday.<\/p>\n
Palacios said the report further highlights the economic challenges the CNM still faces post-pandemic.<\/p>\n
According to the GAO report, U.S. workers comprised a greater portion of employed workers in the CNMI in 2022 than in 2018.<\/p>\n
In its review of the CNMI\u2019s worker data and reporting from 2018 to 2022, GAO found that the U.S. portion of CNMI workers increased and the foreign portion decreased when comparing the years 2018 and 2022.<\/p>\n
GAO also found, among other things, that the total number of workers in the CNMI decreased each year from 2018 to 2021 before increasing between 2021 and 2022.<\/p>\n
Palacios said in his comments about the GAO report that the statistics shared in this report regarding the CNMI-Only Transitional Worker (CW-1) permit applications and approvals reflect the economic realities the CNMI is navigating.<\/p>\n
\u201cWe are committed to addressing these challenges and appreciate the understanding demonstrated in the report regarding the broader economic context within which these issues arise,\u201d Palacios said.<\/p>\n
The governor expressed appreciation for the \u201cthorough analysis and recommendations\u201d presented in the GAO report on U.S. and foreign workers in the CNMI for the calendar years 2018 through 2022.<\/p>\n
He said GAO\u2019s acknowledgment of the efforts made by the CNMI government in improving the transparency of their annual worker ratio reports is encouraging.<\/p>\n
Palacios said the establishment of Standard Operating Procedures by the CNMI Department of Labor staff, aimed at enhancing transparency in the report creation process, is a significant milestone for the administration.<\/p>\n
\u201cWe are committed to building on this foundation to ensure continued improvement in the quality of our reports to the GAO,\u201d he said.<\/p>\n
The governor agreed with GAO\u2019s recommendation for the U.S. Department of the Interior to collaborate with the CNMI government and other relevant U.S. agencies to further improve the transparency of their (CNMI) analytical approach.<\/p>\n
\u201cWe are eager to engage in this collaborative effort and explore opportunities for refinement,\u201d he said.<\/p>\n
In line with their commitment to transparency and continuous improvement, Palacios said the CNMI government will take additional steps to enhance awareness among employers regarding these reporting procedures.<\/p>\n
He said the Division of Revenue and Taxation, in collaboration with the Department of Labor, plans to conduct more frequent training sessions on tax reporting procedures and compliance to ensure that all stakeholders are well-informed and can contribute to the accuracy of the data.<\/p>\n
The governor assured GAO that the CNMI government is dedicated to addressing the concerns raised in its report and working collaboratively with agencies to implement improvement and ensuring the best outcomes for the CNMI workforce and economy.<\/p>\n
<\/p>\n
Gov. Arnold I. Palacios<\/p>\n","protected":false},"excerpt":{"rendered":"
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