Malta’s economy may be “gaining credibility”, as Joseph Muscat has said, but there is still one economic indicator, unemployment, that is causing some concern.

The government is countering criticism about the rising jobless figure by arguing that the economy is still creating new jobs; although this is true, the number of new jobs being created is not matching requirements.

In downplaying justified criticism over unemployment and accusing the Nationalist Opposition of being negative whenever it expresses concern over the jobless figure, the government is giving the impression that it wants to hide the problem.

In truth, Malta’s jobless figure is not very high when compared with that of a number of countries in the European Union but that is of little consolation to the people registering for work.

In February, the jobless figure rose by 0.5 per cent, up to 6.9 per cent. So, if the government wants to keep its head high, the figure would need to be brought down.

The economy would need to create more new jobs to absorb not only those registering for work at present but also those who will be joining the labour market after finishing their studies. This is not to mention also the need for more jobs for those who drop out of school and, equally important, for women wanting to go back to work.

The Prime Minister has said that economic results achieved so far are encouraging and he also spoke about “unprecedented” foreign direct investment in the country. He gave as an example the sale of a minority shareholding interest in Enemalta to China’s Shanghai Electric. Only time will tell how many new jobs this and the other foreign direct investment he referred to will actually generate.

What is all too clear is that the effort to attract new foreign direct investment would need to be stepped up, not only in existing lines of manufacture but possibly in new lines as well so that the economy will be diversified even further. The plan to promote the expansion of the maritime industry, for instance, is a fine example of a new effort being made in a different direction. It is another area that offers great potential for expansion and the planned utilisation of the former shipbuilding yard in Marsa as a maritime hub is an excellent idea.

Also important is to keep encouraging, through various measures, local entrepreneurs to expand their operations, either on their own or in partnership with others, and to promote further the spirit of enterprise as is already being done. Cutting administrative bureaucracy helps but there is also need to cut costs, not just for small firms but for the larger ones as well.

The Chamber of Commerce, Enterprise and Industry, for instance, has just come out arguing that utility bills need to drop by more than the promised 25 per cent as these were prohibiting economic growth. It argues that, in a small resource-constrained country like Malta, energy was becoming a limiting barrier to growth. As the plan stands now, the energy cut for industry is only expected to come into force next year.

Since the European Union is beginning to emerge from the recession, Malta is now well placed to grasp new opportunities as they arise, provided that it plays its cards well and does not make any serious slips that could dent its image in the way that the cash-for-passport scheme has done.