Malta’s employment industry is set to be a key focus of the upcoming budget, with the government seeking to address labour market shortages in the country’s key sectors.
Lovin Malta is informed that while the government is content with current economic performance, it remains concerned that there are skill shortages in industries generating substantial wealth in Malta.
Sources said that there will be direct interventions by the government in the education sector, with the government looking to undertake a comprehensive stocktake of the skills of the Maltese workforce.
This, the government hopes, will not only help guarantee proper access to quality education but also provide state entities with a clear indication of what industries the country could attract to our shores.
The plans echo recent statements by Finance Minister Clyde Caruana in a pre-budget document meeting on 14th September, where he said that addressing the skill gap would be crucial for the government to continue investing in the employment industry.
He made it clear that measures taken during the COVID-19 pandemic helped protect the sector, with Malta recording one of the lowest employment rates in the EU, which has actually continued to drop when compared to last year.
However, sources have detailed to Lovin Malta that COVID-19 subsidies could soon fall by the wayside, with the government reportedly committed to bringing down the deficit, which increased due to growing expenditures brought on by the pandemic.
At present, growth in the employment industry remains one of the highest in the EU. However, concerns remain that while more opportunities are being created, many Maltese do not have the necessary skill set to occupy the highest roles in the most lucrative sectors.
Malta’s economic outlook for the next year seems to be positive, with a 6.8% growth expected. Still, it appears that while the effects of greylisting in the short term could be minimal, failing to get off the list by the end of the next year could be disastrous for the country’s prospects.
The budget will be presented on 11th October. It has been pitched as a budget that will create a “country you wish to leave for your children”. So far, it’s been confirmed that no new taxes will be added.
What do you think of the initiative?