Issue link: https://maltatoday.uberflip.com/i/1417022
NEWS 7 maltatoday | WEDNESDAY • 6 OCTOBER 2021 KURT SANSONE A better-skilled Maltese work- force is key to ensure higher in- comes for families, a new employ- ment policy says but Malta will continue to need foreign labour. Unveiled on Tuesday by Finance Minister Clyde Caruana, the poli- cy for the next eight years empha- sises the need for workers to be better educated and trained. But the voluminous report makes it clear that foreign work- ers will continue to be required to fill gaps created by an aging pop- ulation that has one of the lowest fertility rates in the EU. Changing population trends takes time and resources, which is why the demand for foreign work- ers will remain, Caruana said at a technical briefing for journalists before the policy was launched. "We have to improve our pro- ductivity to reduce demand for more foreign workers, which is one of the policy aims but it is easier said than done because it requires a better-skilled Maltese workforce. This is why the need for importing labour will remain if we are to sustain economic growth levels of recent years," he said. However, the policy does recog- nise some of the problems created by the exponential growth of the foreign workforce and suggests the creation of an expert group to determine whether migrant workers are truly needed and in which sectors. "Restricting labour migration programmes to sectors with actual labour shortages will better align the skills of migrant workers with labour market needs and prevent the misuse of the programmes by employers seeking to erode labour standards," the policy says. The report recognises that with 77% of those aged between 20 and 64 in work, Malta's employment ratio was already at par with the EU target set for 2030. This was the result of the employment pol- icy of the past eight years, which sought to attract more people to the labour market through a series of incentives such as free childcare and in-work benefits. However, the next challenge is to ensure that Maltese workers have better skills to be able to earn better incomes. The economic and labour mar- ket analysis that accompanies the 40 recommendations listed in the report shows how Malta has among the lowest rates of peo- ple who spend time in education across the EU. A worker spends an average of 16 years in education in Malta, whereas in Ireland the average stands at 20 years, which means people enter the labour market with a more extensive skill set. Figures show the wide disparity between the income that people with a higher education level re- ceive and earnings of those with low education attainment. "We have to up the game in ed- ucation. 20 years ago, when inter- net was still by dial-up, I was 16 and taking my O Levels and there were around 38% of young peo- ple my age who got six O Levels. Today, we have internet every- where on our mobile phones and the number of students who exit compulsory education with six O Levels is still less than 50%," Caru- ana said. He insisted that education was the key for social mobility and un- less young people continued stud- ying they would suffer from poor incomes in the future. "These words may sound con- troversial and may not go down well with some politicians and ac- ademics but they are facts borne in numbers. It is useless for the country to create modern job opportunities if our students are unable to access them because the option will then be to import for- eign labour," he insisted, adding people also had a responsibility to improve their skills. The policy also hints at the need to reintroduce trade schools for students who are less academical- ly inclined. The policy also makes the case for improved productivity and for workers to remain in the labour market beyond retirement age so as to ensure better incomes as pensioners. In this sense, it pro- poses keeping pensionable in- come and wages separate for tax purposes. Policy recommendations in- clude carrying out a national skills census, incentives for retired workers to offer training pro- grammes at their place of work or in trade schools, encourage lifelong learning and upskilling, improve career guidance, sup- port for more flexible and fami- ly-friendly working options, tax incentives to encourage contin- ued work after retirement, equiv- alence of overtime and part-time tax rates to encourage workers to work overtime with their main employer, develop a national eco- nomic migration policy, tax cred- its for creation of green jobs with- in the company, set up an expert group to determine the true need of migrant workers and in which sectors to ensure foreign labour is imported to address physical shortages and skills shortages. It also recommends "high quali- ty and timely response" from edu- cation and training institutions to future skills requirements. Economist Stephanie Fabri, who helped compile the policy, said Malta had to invest in ed- ucation and training to enable workers reach their full potential and encourage firms to engage in research and development, to ensure the country remains com- petitive. Malta wants higher skilled workers, but still needs foreign lbaour Clyde Caruana