MEA commends ‘comprehensive’ national employment policy

The national employment policy, which was published this morning, provides a professional analysis of the labour market issues in Malta, whilst supplying concrete actions to address any deficiencies in the labour market, according to the Malta Employers Association.

“It contains a comprehensive list of tangible measures that are all aimed at increasing the supply side of the labour market through a set of active labour market policies that target specific segments of the population,” the MEA said in a statement issued this afternoon.

The Association said that enhancing the activity rate of the Maltese was “essential for economic growth”, especially in light with an increase in foreign employees.

“(This) ultimately depends on an increase in productive hours and the value added of such effort,” MEA said, adding that most of the measures listed in the document were the result of consultations undertaken at the Jobs Plus committee and the MCESD with the involvement of the social partners.

“The acid test of the document will depend on whether the programmes within the policy will be auctioned,” it said. “And more importantly, whether the demand side of the economy will generate sufficient investment to absorb the potential increase in the labour supply.”

It said that the document was ‘optimistic’ in the sense that it realised the potential of the Maltese human resource through a set of targeted incentives. This way, it said, employment opportunities will increase correspondingly.

“Some proposals, such as free child care, are already in force and yielding positive results in terms of increased female participation,” the statement read, but went on to highlight three bones of contention in the new national policy.

It described the payment for maternity leave by government, which will itself be offset by an increase in employers’ national insurance contributions as a “last-minute addition”, stressing that further consultation with employers was necessary.

Furthermore, the MEA expressed his reservations on tapered benefits for those who have been unemployed for more than two years, and the impact of this on the labour market.

“Unless accompanied with strict enforcement, this could potentially be abused by having unemployed stretch their stay on the unemployment register to qualify for the benefits once they find employment.”

Lastly, the MEA highlighted how the policy failed to address the matter of employment levels in the public sector. In its memorandum, which was presented to political parties prior to the last elections, the Association said that it had stressed the need for a more rationalised public sector. However, during the past thirteen months, employment in the public sector had increased by 1,400 persons.

“One reason for the shortage of manpower in the private sector, particularly in low-skilled jobs, is the preference that many people on the unemployment register have for jobs in the public sector.”

“Overall the policy document contains a number of positive points which, through the sustained involvement of the social partners, could stimulate a higher participation rate to reach the EU target of 70% by 2020.”