Issue link: https://maltatoday.uberflip.com/i/1219206
10 maltatoday | SUNDAY • 8 MARCH 2020 NEWS JAMES DEBONO INCREASED participation of women in the labour force and the influx of younger migrants have helped Mal- ta defy a European-wide trend, which sees workforces become increasingly older. But a Central Bank report has found that this overall rejuvenation in the Maltese labour market has masked the ageing in various sectors of the econ- omy, and warns that Malta's supply of "manual workers" could further de- cline "in the absence of higher migra- tion or policies that counter the effects of ageing". Economist Aaron G Grech, chief of- ficer of the CBM's economics division, found that while the proportion of over-50s in the labour force had risen from 29% to 32% between 2014 and 2018, in Malta it had fallen from 24% to 23%. Malta and Luxembourg were the on- ly countries in the EU that saw a de- cline of the proportion of over-50s, as against countries like Italy and Greece where during the same period the pro- portion of over-50s in the labour force rose by 5 percentage points. The substantial rise in the labour par- ticipation of Maltese women comple- mented by very strong inward migra- tion flows of young workers, is deemed to be the reason for the rejuvenation of the working force. In 2005 the activity rate of Maltese women aged below 40 stood at 50%, well below the 63% rate observed in the EU. But by 2018, 73% of Maltese women aged below 40 were active in the labour force, compared to just 65% of women in the EU. "From being the country with the lowest female activity rate, Malta now boasts the fifth-highest rate in the EU," Percentage of over-50s in different jobs By employment 2008 2018 Overall 23% 22% Farmers/Fishermen 38% 40% Managers 32% 31% Elementary jobs 29% 31% Machine operators 21% 23% Professionals 21% 19% Clerks 15% 15% Armed Forces 13% 4% By sector 2008 2018 Overall 23% 22% Agriculture/Fisheries 37% 44% Construction 28% 29% Transport 26% 25% Public administration 25% 29% Education 23% 22% Accommodation 22% 20% Manufacturing 20% 21% Arts/Entertainment 15% 7% Financial 14% 16% Communications 14% 11% But more migration may be needed to offset ageing among manual workers according to Central Bank Report Women and migrants rejuvenate Maltese workforce MATTHEW VELLA THE Maltese government has contesting claims from the Eu- ropean Trade Union Confed- eration that Maltese workers were benefiting from a smaller portion of national wealth, than in 2010. According to an ETUC anal- ysis of European Commission data, workers in two-thirds of EU member states, Malta in- cluded, are receiving a smaller share of their country's GDP than they were at the beginning of the decade. Ireland saw the biggest fall in the percentage of GDP paid out in wages at 19%, ahead of Croa- tia (11%), Cyprus (6%), Portugal (5%) and Malta (5%). The data showed that wage share – a key indicator of ine- quality – has fallen in 18 mem- ber states between 2010 and 2019, ETUC said. Wage share is the part of gross domestic product allocated to wages. The Maltese government, however, says that in 2009, to- tal wages paid to Maltese work- ers were €2.5 billion; by 2019, this had doubled to €5 billion. "Compared to eurozone work- ers, Maltese workers saw an in- crease in the amount of salaries that was, relatively speaking, fourfold. Malta saw the high- est percentage increase in wag- es and salaries across the euro area between 2009 and 2018. 80% of the increase observed in wages and salaries between 2009 and 2018 occurred since 2013," a spokesperson who got in touch over the ETUC report said. The government spokesper- son, in fact, said that the Labour Force Survey shows that in Ju- ly-September 2019, the average annual basic salary in Malta amounted to €20,033, while in 2009 that was at €13,801 – to say that average wages are not falling. "This shows that between 2009 and 2018 there was an increase of 45% in the average wage of all employees... If one restricts analysis since 2013, the increase was 29% for all workers." The government also referred to data on poverty and inequal- ity compiled by Eurostat. "Across Europe nearly a tenth of those working are still at risk of poverty... in Malta the ratio is nearly half, or 6%. Where- as in 2013, 7% of those in em- ployment in Malta were in a situation of severe material deprivation, in 2018 the ratio 'Maltese workers paid more', despite drop in national income share The substantial rise in the labour participation of Maltese women complemented by very strong inward migration flows of young workers, is deemed to be the reason for the rejuvenation of the working force