Latest employment figures show that almost half the population aged 15 and over are in employment. This may appear to be a good figure but, with the participation of women in the labour market ranking among the lowest in the European Union, it is not. In fact, the participation rate of women was by far the lowest in 2011. It is not that there has not been any improvement in the rate. There has, but, as the Finance Minister remarked so well a few days ago, Malta needs to work for a higher total employment rate.
A labour force survey indicates a three per cent rise in employment in the second quarter this year as compared to that in the second quarter of 2012. This means that the total in employment stands at 176, 862.
The employment rate for persons aged between 15 and 64 stood at 61 per cent, an increase of two percentage points over the rate in the previous year. This rate rose by three percentage points for females and one percentage point for males. The highest employment rate was recorded among persons in the 25 – 54 age bracket.
Of the total employed, more than 21,000 work on a part-time basis.
Unemployment stood at 6.7 per cent.
Working for an improved employment rate is one of the main targets of any Administration’s economic policy. Quite justifiably, the Nationalist Party boasted that creating jobs was one of its strongest points in the period it had been in government and, particularly so, in the time when this was most difficult due to the financial crisis hitting a number of EU countries.
Unemployment has been rising again and, although the Nationalists have been attacking the government over this, in truth it is still far too early to start judging Labour’s record on this score. Hopefully, it would work hard enough to further help bring about the right environment and provide the right incentives for the creation of new jobs.
Contrary to the impression that Labour may have given in its electoral campaign, there is no magic formula or road map that could ever guarantee the creation of new jobs.
Getting foreign direct investment in these difficult financial times is no easy task but, through the aggressive marketing of Malta as an ideal business location and the availability of labour trained in skills required in existing and new business areas that the island is developing, it could very well compete for new investment as it has successful done over the years.
Finance Minister Edward Scicluna has set his target high and he is right in doing so. He is arguing that Malta needs to have between 50,000 and 70,000 more people at work, a significant rise which, if it were to come about, would help turn the wheels of the economy faster than they are doing now.
He says: “The economy is moving slower than we would like it to and slower than what the country needs for more jobs to be generated.”
Working to achieve greater economic growth will not just help sustain the country’s ever expanding social welfare bill but will also bring about a higher living standard.
Besides working harder to attract new foreign direct investment, the country also needs to step up its efforts to promote local entrepreneurship as well. Only about three per cent of the youth workforce are self-employed. There is much that can yet be done to help create the right conditions for the generation of new jobs.