Nurturing female participation in the workforce

It was four months ago when PKF decided to sponsor a scientific study to research the controversial topic of female participation in the workforce by engaging its own staff to carry out questionnaires and attend meetings with several related stakeholders, and in the process attempting to demystify various misconceptions on the subject. 

As was already revealed earlier this year in a number of circulars, PKF’s initiative to carry out this study was mainly influenced by the 2014 improved female activity rate in Malta. This rate has increased in the past decade, and last year’s rate was the highest ever on record in Malta, at 52.1% as registered by the National Statistics Office. Nonetheless, the island still has one of the lowest female activity rates and one of the highest gender employment gaps when compared to other European Union countries. In fact, the overall EU average for 2014 was recorded at 66.5%, which is 14.4% higher than Malta’s. In this regard, PKF tried to establish any contributing factors that are influencing these low rates. 

Amongst many other observations pointed out in the report, a particular one relates to the fact that the female activity rate of the smallest age cohort in Malta (age group 15-24) has remained largely constant over the past decade. When considering the 2014 percentage of 51.7% it was noticed that this is higher than the EU average corresponding to the same age cohort. Such an excess in this particular age group is a trend which upsets and worries readers when considering that the majority of these individuals are expected to be seeking enrolment in higher educational courses rather than joining the labour force with minimal educational qualifications. 

Furthermore,  from regression analysis  performed it resulted that early school leavers are influencing this particular rate. This result is even more worrying when considering that the rate of early school leavers in Malta is much higher than the EU average rate. This speaks volumes on the quality and level of counselling with early school leavers who unintentionally may end up in unskilled jobs. 

With this in mind, new incentives to encourage more students to pursue higher educational courses could be introduced to improve the chances of employment in comparatively higher value added jobs, especially in ICT, consultancy, science and medical careers.  The report also discovers sectors that were found to have fewer females employed within them since old habits die hard, and unfortunately certain employers still uphold the culture whereby the woman’s contribution after marriage is limited due to child rearing. 

Thus, apart from educational incentives, further counselling and discussions with young students need to be carried out at schools in order to create an information sharing culture that ultimately betters the curriculum, in this case by providing an overview of the various alternatives available to women post finishing secondary education. 

Unlike the 15-24 age cohort, the female activity rates of those aged between 25 and 54, and 55 and 64, are significantly less than the corresponding EU averages for 2014. Indeed, the Malta rate for the 25-54 age cohort in 2014 was registered as 63.3% but the EU average was 79.5%. Furthermore, the Malta rate for the 55-64 age cohort in 2014 was registered as 20.6%, while the EU average is more than double, being 48.4%. 

These national percentages constitute further worrying trends when considering that individuals in these age groups are the building blocks to sustain our economic activity. On average they are experienced and mature workers potentially with no family constraints such as child rearing. Consequently, further government schemes must be tailored in order to motivate more women within these age groups to enter the labour force. 

Returning to our comments on the 25-54 age cohort, these are either mothers or women taking care of grandchildren, and it stands to reason that the state ought to continue to improve upon, or initiate further incentives related to mothers to prove conducive to increasing the corresponding female activity rates. Furthermore, from regression analysis carried out it resulted that lifelong learning is positively affecting the female activity rates of these age groups.

Accordingly, apart from motherhood related incentives, other incentives which are not directly related to child rearing but more targeted towards women over 35 years are essential for these to seek training and other specialised courses, possibly offered by ETC, to further improve lifelong learning and digital education. 

These incentives, if properly advertised, might decrease the female activity rate of the 15-25 age group, conversely they will eventually lead to higher participation rates in the next two age cohorts. It goes without saying; the economic activity of the country stands to gain proportionately by the availability of highly educated females willing and ready to apply for top jobs.

Further efforts, apart from free child care centres, are expected to reposition the school closing hours to match with those of office or factory schedules even though, as can be expected, such reforms may be strongly resisted by Unions. Other carers may be assigned to cater for after-school hours which can be filled with fun and sport activities. A smart reform may also help mitigate the daily traffic congestion when parents drop or pick up their children at school. 

From amongst employed and unemployed women having children under the age of 16, it was established that the majority of the unemployed respondents have a high level of education consisting of Masters, Degree and Diploma qualifications. Thus, although the sample size was relatively small, it still resulted that there are quite a number of females with qualifications who are not contributing to improve the economic activity of the country, which again is negatively rooted when considering the millions allocated by government in the education of these individuals.

When asked about the reasons for unemployment, the most common reply relates to child rearing, totalling to 87.5% of all unemployed female respondents. Furthermore, when asked what will make such women consider re-entering the labour market, the three most popular selections were to do so (i) if they had their own business, (ii) if they had financial difficulties and (iii) when their children attained majority. Such responses totalled to 78.1%, 59.4% and 37.5%, respectively.

Apart from gender employment gaps in highly paid jobs and top decision-making positions, a wide gender employment gap is particularly noticeable in entrepreneurship, for which women still hesitate to embark as a career. This is also evident in many other EU countries indicating a perception held over a much wider spectrum. In order to analyse this problem, a survey specific to female entrepreneurship was commissioned as one of the objectives included in the aforementioned study.

This task was possible with the help of GRTU, who offered to disseminate an online version of PKF’s questionnaire amongst their female members.  From this survey it resulted that the majority of respondents feel that it is more challenging for mothers rather than fathers to maintain a successful business career. Indeed, 67.21% of the total entrepreneur respondents agree or strongly agree with this statement. 

Furthermore, the minority of respondents, reaching 11.48%, feel that there are enough government benefits to help women cope with both the business and the family responsibilities. Furthermore, this survey discovered a majority of the respondents stating that more incentives ought to be offered in order to facilitate participation of female entrepreneurs and even encourage family members to acquire entrepreneurship skills.

Some of the suggestions mentioned in the survey included support for female entrepreneurs with sick children, energy subsidies and more maternity leave subsidised by the government. The latter suggestion will be partly resolved through the newly initiated Maternity Leave Trust Fund. 

During the compilation of the study, several consultation meetings were held with different stakeholders to get a holistic comprehension of the current situation of female participation in Malta’s workforce. These stakeholders included Education and Employment Minister Evarist Bartolo, GRTU, Malta Chamber of Commerce, ETC and MCWO.

These have all shared their views and feedback on the subject. We are also currently meeting with these same stakeholders and others in order to present a final report with the findings and recommendations. Amongst others, we have already presented the study to NCPE and Finance Minister Edward Scicluna.

The author is a Senior Statistician at PKF Malta