Malta’s economic growth is not feeding into the pockets of workers as official statistics show that the average wage increase has slowed down in the first year of a Labour government.
The average wage only grew by €100 in the first quarter of 2014, according to the labour force survey. Compare that to the average wage increase of €527 annually under the Nationalist administration at a time of international economic depression.
Workers are the ones that are suffering the pinch of this reduction in salary increases.
It is evident that this squeeze in the income of families and households will be felt more by those who are low earners and the middle class. Under Labour, families were promised a living wage but, in fact, things are moving in reverse after just over a year of Labour.
The government should sit down to analyse thoroughly the labour market situation in that it may be creating low-paid jobs but is not able to sustain an increase of better-paid jobs.
The minister responsible for employment puts the current problem down to labour mismatch in the market. This appears to be an attempt to justify the shortage of employment opportunities by raising the issues of the low skills of a category of our workers.
However, Maltese workers have always been renowned for their ability to adapt and their efficiency has always been praised by foreign investors who set up shop in Malta.
The evolving labour market scenario may be more symptomatic of a government that is struggling hard to generate better-paid jobs within an international economy which, after all, is now beginning to thrive rather than gasp for air as in previous years. The challenge now is not only to create jobs but to ensure better employment opportunities for workers.
Success in the economy and the labour market is not to be taken for granted
The other day, I met a mother who worked for more than 12 years with a renowned financial sector private company but she and her colleagues have now been made redundant. She is not registering for work with the Employment and Training Corporation but is earnestly seeking alternative employment.
She rightly expressed her concern about meeting expenses.
Sectors that were thriving even when the worst international economic recession hit are, against the trend, beginning to experience a reduction in workforce or, at best, seeing a meagre increase in employment. It is truly distressing when successful employment sectors start to suffer a slowdown precisely when the international economy is recovering and beginning to yield positive results.
The percentage fall in the jobless has not really hit the lowest ever even though there is an increase of registered employed persons. The increase in employment is also coupled with the additional workers recruited in the public sector, which is another statistic that experienced a turnaround in the first year of Labour government.
While the Nationalist government decreased the number of public service workers to sustain public expenditure, control the deficit and increase efficiency, the Labour government conveniently goes in the opposite direction with an increase of over 1,900 new public sector workers.
Employment statistics make interesting reading in relation to the socio-economic situation of every country.
Success in the economy and the labour market is not to be taken for granted. Failure in reaching our goals to have a vibrant labour market will only result in more hardship for workers and their families.
Stephen Spiteri is a Nationalist MP.