Recent statistics from the EU show that Malta has the second lowest birth rate in terms of the number of newborns per 1,000 of the population, at 9.2. Only the Germans perform worse in the baby-making league. Ireland, the runaway leaders, produces twice as many as we do.

Lower birth rates are traditionally associated with the more developed countries, so one can say that Malta, having seen unprecedented prosperity in the last decade or so, conforms to this trend. But only to an extent, as it is far from one of the wealthiest nations in the EU.

There appears to be a growing number of one-child families. Material expectations have grown in parallel with spending power. So many couples may deem the maintenance of their lifestyle to be more important than having more than one child. As the value of property has skyrocketed, so too have mortgages, which means there may not be too much left over to afford the financial demands of child-rearing. The greater number of women going out to work and having children late is another factor while the widespread acceptance of contraception must take its toll too.

But is the island's decline in fertility a cause for concern? Yes and no.

Let's start with the second. The population is still growing, partly thanks to immigration. It has now reached the 410,000 mark but by 2035 is projected to hit a record 429,000. It is then expected to fall but only back to slightly under present levels by 2060. The eventual decline may be a welcome thing, given pressures on land and infrastructure that exist on this densely populated island.

On the other hand, economically it is a problem. Coupled with birth rate statistics was also data showing that Malta also has one of the lowest death rates. It may be a reflection of the hardiness of the race or the success of our health service and scientific breakthroughs but it also means, as is well known, that there will be proportionately fewer workers around to financially support the health and welfare needs of the growing elderly population. That money must come from somewhere and if the labour force fails to grow through the supply of young people it must expand from another source. The answer, of course, is women. Getting more females into the world of work has been one of the government's objectives, given how low the female participation rate is compared to Europe.

There are signs that certain measures, mainly tax breaks, are starting to work. The latest labour force survey showed a two percentage point rise in female employment in the third quarter compared to the same period last year, equivalent to 4,300 more women in jobs. The fact that there are now more females at the University than males is another encouraging sign.

Getting the elderly to stay in work longer is another approach being taken, using pension-related measures to keep the so-called welfare gap from getting too wide.

The moves are in the right direction but are they robust enough? At present rates there will soon be two pensioners to every one worker, prompting Social Policy Minister John Dalli to warn recently of a looming social service crisis and of the need to reverse both the low birth and female working rates. The government may soon be forced to consider stronger measures, perhaps modelled on those in European countries, which have managed to boost fertility while encouraging mothers to work by a combination of generous childcare handouts and greater workplace flexibility.