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