Yes the mic is correctly connected.
Supply Voltage 14.65

Pin Voltages
1 1.46
2. 0
3. 0.1
4. 0
5. 5.7
6. 14.3
7. 7.3
8. 1.37

Here is a photo of the circuit

 

Your wiring on pin 5 is all incorrect. The orange disc cap should be a minimum of .047uf. I don't see the mic element in the circuit. Try and eliminate a lot of those long jumper wires.

 

Nearly EVERY time a noob shows a photo of his circuit that does not work, it is built on a solderless breadboard with messy long wires all over the place and intermittent connections on the plugged in things.
The long wires have inductance and the wires and many rows of contacts have stray capacitance between them that messes up many high frequency circuits (the LM386 has an output higher than 1MHz and the stray capacitance causes it to oscillate).
Use a solderless breadboard for DC low power LED circuits.

It doesn't work because the output capacitor is not connected to the amplifier's output pin 5.

 

Thanks for all the feedback - yes this is the first time I am attempting my hands at an audio circuit and hence i have no skills nor knowledge in this area. If I shouldn't use a solderless breadboard for these types of audio circuits, what would you recommend?

I make the corrections when I get home as I have just arrived at work.

Regards
Shelton

 

I made hundreds of different prototype audio and digital circuits on stripboard where the parts and a few short jumper wires are all soldered for good connections. Each copper strip is cut short with a drill bit and the resulting circuit board is compact. It is easy to see which connects to what.

The circuits had low inductance and stray capacitance so high frequency oscillation never occurred.
Most circuits were custom designed and made where only one was needed and the stripboard looked good like a pcb so the prototype was sold and installed.

 

All audio power amplifier chips are super-ultra-cranky about power supply decoupling. There *must* be a decoupling capacitor across pins 4 and 6. Anything over 10 uf; 100 uF is better. The leads must be a short as possible. In post #22 the schematic shows a 100 uF decoupling cap, but it does not note the importance of its location in the circuit.

ak