Achieving full employment should be every government’s target even in these economically challenging times. Malta has one of the lowest jobless rates in the European Union but no one should be complacent because the employment rate remains stubbornly low even if the situation is improving.

The fact that there are 10,000 job vacancies while 6,000 are claiming unemployment benefits is an indication that more needs to be done to balance the interaction of supply and demand in the labour market.

There is a risk in proposing simplistic solutions to bridge the gap between those seeking work and the jobs available on the market. Many blame the insignificant differential between the minimum wage and unemployment benefit for the alleged lack of motivation of some unemployed to fill job vacancies.

Some argue that the solution should be an increase in the minimum wage to motivate people to take up jobs on offer and discourage abuse of the benefits system. Others believe that cutting unemployment benefits is the way to go to push people back on the labour market.

However, both solutions are unlikely to bring about the desired results of reducing significantly the number of those claiming benefits.

What is needed is a labour market strategy that empowers people to find suitable employment more easily than is the case at present. Few would disagree that many registering as unemployed are, in fact, unemployable either because of their low skills or educational attainment levels or because they are considered by most employers as being too old to be of much benefit to their business.

There are long-term solutions to both of these problems. If only politicians have the will to invest in effective back-to-work policies to promote the integration of the unemployed in the market.

The educational system remains the most potent enabler for young people to acquire the skills that are demanded by today’s employers. And this is not just about continuing with one’s education beyond the secondary level. It is about encouraging young people to choose the right courses that open doors to available employment, updating the curricula of such courses to make them meaningful in today’s new economy and to provide students with opportunities for apprenticeships and on-the-job training.

This society, like most others in Europe, also suffers from symptoms of ageism. This partly explains why there are so many older unemployed workers who find it difficult to re-enter the labour market once they lose their job.

Wrong human resources management practices have meant generations of workers were denied the opportunity to update their skills and knowledge through life-long training programmes. Now they find that their skills base is obsolete and few employers are prepared to give them another chance to go back to the labour market.

An effective back-to-work strategy will include policies that reward employers who invest more in the training of their workforce. It should also include measures to promote a culture where older workers do not face discrimination simply because of their age. This is even more important in the context of the country’s deteriorating demographic dynamics.

There will always be a number of workers who find it difficult to integrate in the labour market. These people need to be supported by decent benefits.

Raising the minimum wage is also desirable as long as such an increase would result from improved economic competitiveness.

Effective back-to-work policies are the long-term solution to promote full employment.

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