Government ministers have been quick to jump on any positive economic news which every so often is published. Indeed, when compared to a number of European countries, the Maltese economy has been rather resilient. However, the impression that this government is trying to give, that as soon as it came into power only good things have happened, is false. There are areas where the government is clearly failing.
Labour market statistics are illuminating in this respect. A recent press release issued by the NSO (044/2014) shows that the average gainfully occupied in the private sector increased from 108,776 to 111,490 (+2,714) between 2011 and 2012 whereas those working in the public sector declined from 41,023 to 40,893 (-130).
This shows that, during this period, employment was generated entirely by the private sector.
Standards of living can only be sustained in the long run if jobs are created by the private sector
On the contrary, the latest published data, for October 2013, shows that the number of gainfully occupied in the private sector stood at 114,942 and those in the public sector at 42,256. The message is clear.
Compared to the average figures for 2012, the latest figures indicate that employment growth in the private sector amounted to 3,452 while employment in the public sector rose by 1,363.
The increase in private sector jobs is positive but the number of jobs being generated by the public sector, where, in many instances, no public calls were made but, rather, people were chosen primarily for their political alliances, contrasts sharply with the idea of fiscal prudence and efficiency.
Between September 2013 and October 2013, private sector employment actually declined by 852 whereas employment in the public sector increased by 366.
Let’s hope that this pattern is not repeated in future months. It is not possible to sustain jobs by creating posts in the public sector. Standards of living can only be sustained in the long run if jobs are created by the private sector.
Even though this government is trying to hide its disappointing employment performance, the number of people registering for work is still on the increase.
According to the latest press release issued by the NSO (016/2014), the number of people registering for work (under Part 1 and Part 2) has increased from 6,811 as at end December 2012 to 7,401 at the end of 2013, an increase of 8.7 per cent in a year. This is clearly a negative result.
What is even more worrying is the fact that among those who are unemployed, the largest component consists of people who have been without a job for over one year. Their number increased by 22.5 per cent on a year earlier.
What hope is this government offering to these people?
Let’s also hope that the government is not embarking on the old-style philosophy of making people believe that they have to depend on the government to offer them jobs in return for political sustain.
Insufficient jobs are being created by the private sector. Businesses only employ workers if they are confident that they will be able to produce and sell their products. In this respect, another press release by the NSO (046/2014) shows that total industrial production has declined for four consecutive months, down by 2.1 per cent, 0.7 per cent, 1.3 per cent and 0.3 per cent between October 2013 and January 2014.
What is the government doing to halt this persistent decline?
These economic statistics clearly show that although the government is still upbeat in its optimism, the hard facts are not supporting this impression. The problem is that this government talks a lot but concretely delivers much less.
It is the duty of the Opposition to scrutinise economic statistics to see through the spinning made by this government and portray the true picture, based on hard facts and not impressions.
Kristy Debono is a Nationalist MP.