With so many places in turmoil over claims for political reform or over austerity measures, it was somewhat odd seeing tens of thousands of people specifically protesting over unemployment in the streets and squares of Madrid. More than one in five in Spain are out of work and many in the country believe that the figure is higher, a matter that has piled up new worries to Europe in addition to those already faced by three other European Union member countries: Ireland, Greece and Portugal.
In Ireland, whose economy once earned the term Celtic Tiger for the economic boom it experienced in the late 1990s, a 26-year-old man made headlines when he launched a billboard campaign in a bid to find work after months being out of work. He spent most of the little money he had on a billboard he rented at a Dublin site for two weeks at a cost of €2,000. His message, “Save me from emigration”, struck a chord with millions across Europe. The billboard showed a graduate standing on a shore with a suitcase in hand, looking out on a horizon of famous foreign landmarks.
His plight is shared by thousands of other unemployed in countries across the continent – people who found themselves out of work in the recession that followed the credit crunch and other young people who are unable to find their place in the labour market after leaving school. The story is not very much different in the United States. Unemployment in the EU may have declined slightly now, with the average jobless figure down to 9.9 per cent from 10.2 per cent in April but even at this rate it is still high. And although the rate fell in no fewer than 17 member countries, it rose in nine, and remained stable in Luxembourg.
What is the unemployment situation in Malta? At 6.2 per cent, the figure given by Eurostat, the rate in April was the lowest recorded in 12 months and the fifth lowest among the 27 EU member states. The four countries that had a lower rate than Malta’s are the Netherlands, Austria, Luxembourg and Germany. What is particularly interesting and definitely most encouraging is that, in Malta’s case, the number of those seeking a job fell most among the young (under 25-year-olds), down from 13.6 per cent to 10.8 per cent.
According to the latest surveys, the fall in unemployment was registered across the board. The number of men out of work dropped by 0.7 per cent to 6.2 per cent and of women by 1.5 per cent to 6.4 per cent.
What is the forecast insofar as employment is concerned? According to the latest European Commission assessment, that for spring, employment is expected to increase at a more moderate pace in 2011 and next year, in line with labour supply, leaving the unemployment rate broadly unchanged.
All this, of course, depends on whether the country will be able to keep a moderately steady rhythm of economic growth, a matter that does not depend entirely on local efforts. Greater austerity measures in Europe could, for instance, affect the Maltese economy through lower sales of goods to markets hit by lower demand. Attracting new foreign direct investment is one of the keys to stepping up growth and generating employment but, in order to be able to do this, the country would have to remain competitive.