Employment over the last three years
Employment over the last three years
Lawrence Zammit
The economic data emerging in the last months show a strong performance of the economy. Employment data are always a key indicator of how the economy is performing. In fact the last Labour Force Survey (covering April-June 2007) is proof of this strong performance.
There are many, including myself, that credit this performance to Malta's membership of the European Union. We have been capable of exploiting the opportunities that EU membership has presented us with and now we are reaping the benefits.
We can see the extent of this by comparing the April-June 2007 Labour Force Survey with the April-June 2004 survey, and assess what developments have taken place over this three-year period. It might be worth remembering that April-June 2004 is the time when we joined the EU (May 1, 2004) and we started to feel the full impact of membership. There is no doubt that there will be those who would claim that more could have been achieved on the employment front, but it needs to be stated these people are the same as those who did not believe in the opportunities and benefits of EU membership.
Over this three-year period, the Labour Force Survey (which is distinct from the records of the Employment and Training Corporation) shows that the total number of persons in employment increased from 146,044 to 155,580. This represents an increase of 9536 persons; reflecting a percentage rise of 6.5 per cent. It also means a net increase in the total number of jobs of just under 3,200 per year. The employment rate among all persons aged 16 and over went up from 45.4 per cent to 47.3 per cent, an increase of 4.4 per cent.
The labour force grew from 157,573 to 166,653, an increase of 9,080 (+5.8 per cent), indicating a higher participation rate. In effect the labour force as a percentage of the population of working age (15 to 64 years) increased from 57.6 per cent to 59.6 per cent; admittedly still below the European average but getting there. With regard to participation rate in the labour force, our country has always had an issue with the female participation rate, in that it is way below what you would find in other economies with a level of gross domestic product and a social structure similar to ours. Over these three years the female labour force as a percentage of total number of females ages 15-64 years rose from 34.5 per cent to 40.3 per cent.
These positive results reflected themselves in a falling unemployment rate. The total rate of unemployment as defined by the Labour Force Survey stood at 7.3 per cent in 2004 and it fell to 6.6 per cent this year. The male unemployment rate fell from 6.9 per cent to 5.6 per cent during the same period, while the female unemployment rate rose from 8.3 per cent to 8.7 per cent. Some explain this rise in the female unemployment rate as a sign that females are today more confident of finding a job and so they would consider themselves to be active in the labour market, even though they would not be in employment. Youth unemployment (covering persons aged 15-24 years) dropped from 18.3 per cent to 14.8 per cent between 2004 and 2007, while the unemployment rate for persons aged 25 and over rose from 4.4 per cent to 4.6 per cent.
The growth in employment that has taken place has been within both the full-time employment segment and the part-time employment segment, thus killing the claim that the increase in jobs has been driven by part-time employment. The data show that full-time employment increased from 135,499 to 140,984 between 2004 and 2007.
This reflects an increase of four per cent (+5485). The increase in part-time employment has been from 10,545 to 14, 596, an additional 4,051 jobs. Self-employment went up from 20,606 to 21,492.
Our economy has not only experienced an increase in employment, but also an increase in income from employment. Again this proves that the growth that we have had in our economy has not been achieved through cheap labour, but through higher value-added activities. The average gross annual salary for employed persons for the period April-June 2004 stood at Lm5,043. The average gross annual salary for the period April-June 2007 stood at Lm5,503. This represents an increase of Lm460 over three years, an increase of 9.1 per cent.
This data evidently show that the economy has generated more jobs since the country joined the EU. This growth in jobs is supported by other positive economic data such as growth in the gross domestic product, a reduced level of inflation and a sustainable fiscal deficit.
We should not take all this for granted because EU membership alone does not guarantee jobs; it is sound economic policies that exploit the opportunities of membership that generate job creation.
Visit DiversityJobs.com for information on Diversity in the workplace
Lawrence Zammit
The economic data emerging in the last months show a strong performance of the economy. Employment data are always a key indicator of how the economy is performing. In fact the last Labour Force Survey (covering April-June 2007) is proof of this strong performance.
There are many, including myself, that credit this performance to Malta's membership of the European Union. We have been capable of exploiting the opportunities that EU membership has presented us with and now we are reaping the benefits.
We can see the extent of this by comparing the April-June 2007 Labour Force Survey with the April-June 2004 survey, and assess what developments have taken place over this three-year period. It might be worth remembering that April-June 2004 is the time when we joined the EU (May 1, 2004) and we started to feel the full impact of membership. There is no doubt that there will be those who would claim that more could have been achieved on the employment front, but it needs to be stated these people are the same as those who did not believe in the opportunities and benefits of EU membership.
Over this three-year period, the Labour Force Survey (which is distinct from the records of the Employment and Training Corporation) shows that the total number of persons in employment increased from 146,044 to 155,580. This represents an increase of 9536 persons; reflecting a percentage rise of 6.5 per cent. It also means a net increase in the total number of jobs of just under 3,200 per year. The employment rate among all persons aged 16 and over went up from 45.4 per cent to 47.3 per cent, an increase of 4.4 per cent.
The labour force grew from 157,573 to 166,653, an increase of 9,080 (+5.8 per cent), indicating a higher participation rate. In effect the labour force as a percentage of the population of working age (15 to 64 years) increased from 57.6 per cent to 59.6 per cent; admittedly still below the European average but getting there. With regard to participation rate in the labour force, our country has always had an issue with the female participation rate, in that it is way below what you would find in other economies with a level of gross domestic product and a social structure similar to ours. Over these three years the female labour force as a percentage of total number of females ages 15-64 years rose from 34.5 per cent to 40.3 per cent.
These positive results reflected themselves in a falling unemployment rate. The total rate of unemployment as defined by the Labour Force Survey stood at 7.3 per cent in 2004 and it fell to 6.6 per cent this year. The male unemployment rate fell from 6.9 per cent to 5.6 per cent during the same period, while the female unemployment rate rose from 8.3 per cent to 8.7 per cent. Some explain this rise in the female unemployment rate as a sign that females are today more confident of finding a job and so they would consider themselves to be active in the labour market, even though they would not be in employment. Youth unemployment (covering persons aged 15-24 years) dropped from 18.3 per cent to 14.8 per cent between 2004 and 2007, while the unemployment rate for persons aged 25 and over rose from 4.4 per cent to 4.6 per cent.
The growth in employment that has taken place has been within both the full-time employment segment and the part-time employment segment, thus killing the claim that the increase in jobs has been driven by part-time employment. The data show that full-time employment increased from 135,499 to 140,984 between 2004 and 2007.
This reflects an increase of four per cent (+5485). The increase in part-time employment has been from 10,545 to 14, 596, an additional 4,051 jobs. Self-employment went up from 20,606 to 21,492.
Our economy has not only experienced an increase in employment, but also an increase in income from employment. Again this proves that the growth that we have had in our economy has not been achieved through cheap labour, but through higher value-added activities. The average gross annual salary for employed persons for the period April-June 2004 stood at Lm5,043. The average gross annual salary for the period April-June 2007 stood at Lm5,503. This represents an increase of Lm460 over three years, an increase of 9.1 per cent.
This data evidently show that the economy has generated more jobs since the country joined the EU. This growth in jobs is supported by other positive economic data such as growth in the gross domestic product, a reduced level of inflation and a sustainable fiscal deficit.
We should not take all this for granted because EU membership alone does not guarantee jobs; it is sound economic policies that exploit the opportunities of membership that generate job creation.
Visit DiversityJobs.com for information on Diversity in the workplace
Labels: employment, Malta
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