Issue link: https://maltatoday.uberflip.com/i/1527558
MATTHEW FARRUGIA mfarrugia@mediatoday.com.mt 5 NEWS maltatoday | SUNDAY • 6 OCTOBER 2024 Expression of Interest For more info visit micas.art/get-involved or contact people@micas.art micas.art Closing at noon on Monday 14 th October 2024 Office Attendant (Retail) & Office Attendant (Visitor Services) Gozo's public sector employment weakens long-term growth GOZO'S ever-increasing num- ber of public sector employees could lead to weakened long- term growth prospects for Mal- ta's sister island, the Gozo Re- gional Development Authority has warned. It reached this assessment after a review of Gozo's pub- lic sector employment trends between 2013 and 2022. The authority acknowledged that public sector jobs are often associated with more flexi- ble working conditions, which makes them more attractive for those wanting to engage in part-time work. "Many Gozitans seek addition- al sources of income outside their main job, which can make the flexible nature of public sec- tor work more appealing," the GRDA noted. In fact, NSO data shows that secondary part-time jobs account for as much as 19% of total jobs in Gozo, compared to Malta's 11%. "A significant portion of these secondary part-time posi- tions in Gozo are attributed to self-employment," the GRDA outlined, adding that between 2013 and 2022, secondary part- time employment increased at a higher rate in Gozo than in Malta. The GRDA said the "high share of public sector employ- ment might dampen long term growth prospects." The au- thority noted how studies show that over-reliance on public sector jobs can create "distor- tionary effects" such as ineffi- cient resource allocation and lower worker productivity. Using a model, the GRDA studied the effect of a gradu- al increase of 1,000 employees over a 10-year period under two scenarios, with the first be- ing an increase in employment within the public sector, and the second being within the private sector. The exercise showed that the 1000-employee increase in the public sector would result in a 4.9% rise in GDP, while work- er productivity would decline over a decade. Meanwhile, the same rise in employees in the private sector would lead to an 8.8% increase in GDP, while worker productivity would in- crease by 3.1%. The GRDA notes that fur- ther studies show that a high share of public sector employ- ment could crowd out private investment and employment opportunities, a sentiment that is shared by a number of local social partners. In its pre-budget document, the Gozo Tourism Associa- tion (GTA) underlined that the public sector job condi- tions mean that competition between the public and private sector is unmatched. "Along the years this lack of Gozitans not interested to pursue a ca- reer in the tourism sector has been on the increase and these gaps were mitigated by the in- flux of foreign workers." This, the GTA stated, has "lessened the authenticity of the tourist's experience," add- ing that this has brought about new challenges related to lan- guage, integration and other social issues. In response, the GTA called on government to ensure, "the public sector is no longer in competition with the private sector for the recruitment of employees by offering favour- able and unmatchable working conditions." Meanwhile, the Malta Cham- ber of Commerce went a step further in its pre-budget docu- ment, stating that overstaffing in the public sector is a reality in Malta as well, as they blast- ed government for "effective- ly poaching human resources from the private sector." The Chamber's proposals on the subject include a compre- hensive review of all public sector jobs to ensure efficien- cy and eliminating half days in summer to create fairer work- ing conditions.