The Next leap

The Next Leap

From Labour Market Programmes

to Active Labour Market Policy

Employment Ratio

• Malta: 2020 employment ratio (20-64) => 69.0%

• Malta’s 2012 Q1 employment ratio (20-64) => 62.8%

• EU27 2020 employment ratio

(20-64) => 72.1%

Catching Up with the EU27

Economic Growth

• Increase in total labour hours worked:

EU27 => 0.4% (p.a.)Malta => 1.2% (p.a.)

• Increase in labour productivity:EU27 => 1.0% (p.a.)Malta => 0.5% (p.a.)

Productivity Pays

Why it Pays?

• Low productivity growth reflects in lower real wage growth.

• Increase in real wages:EU27 => 0.7% (p.a.)Malta => 0.3% (p.a.)

• How can productivity be increased?

Better Skills… More Productive

Skills Deficit of Malta

Skills Convergence with EU 27• Malta lags the EU27 in terms of

quality of skills.

• At the current pace, it will take Malta 33 years to converge with the EU27, i.e. by 2045.

• Is there a way to speed up this process?

Active Labour Market Policy

• A supply-side policy that stimulates the productive side of the economy.

• Unlike demand-side policies, it influences the long-term trajectory of the economy.

• ALMP enhances employability and labour productivity.

Delivering ALMP

• Better Personal Employment Services (PES)

• Employment assistance

• Making work pay

• Human capital investment

The next leap (1)

• We need to have a coherent long-term policy and strategy.

• Improving workforce skills to increase productivity.

• More profit for business; higher wages for workers

The next leap (2)

• Multiple dividends in terms of economic growth, income generation.

• Sustainability of welfare system in the face of demographic pressures.

Points for Concrete Discussion and Action (1)

• From a passive welfare system to a proactive, positive and productive type of welfare.

Points for Concrete Discussion and Action (2)

• The investment in our workforce will help to mitigate precarious work and increase the quality of jobs.

Thank You