Issue link: https://maltatoday.uberflip.com/i/1530230
4 gozotoday | FRIDAY • 6 DECEMBER 2024 NEWS THE scope of the Gozo Business Sen- timent Survey, conducted by the Gozo Regional Development Authority and the Gozo Business Chamber, is to gain deeper insights into sectoral develop- ments and emerging trends. This business dialogue effort aims to foster regular communication with businesses operating in Gozo, gather- ing timely data on recent performance, business activity expectations, invest- ment and employment trends, and pricing dynamics. By doing so, the GBS complements official economic indicators, which are often available only with a time lag. Additionally, businesses are encour- aged to share perspectives on sec- tor-specific developments and current economic issues, providing qualitative feedback that allows both the Authori- ty and the Chamber to understand the underlying drivers of present and fu- ture economic trends. The following are some of the high- lights of the survey: Business Conditions and Expectations • Business conditions were relatively stable for businesses operating in Gozo during the six-month period from April to September 2024. Approximately 60% of businesses surveyed in September 2024 reported that their business con- ditions had remained unchanged over the prior six months, with this stability observed across all sectors. • The shortage of employees contin- ues to be the leading challenge for busi- nesses in Gozo, a reflection of the tight labour market and historically low un- employment rates. Additionally, over 40% of businesses reported challenges linked to cost pressures, largely driven by post-pandemic international price increases, and further impacted by con- flicts in Ukraine and Israel. However, concerns about cost pressures are grad- ually easing, with this issue reported as 22 percentage points lower in Septem- ber 2024 compared to a year prior. • Business activity in Gozo is expect- ed to be less optimistic over the next six months, although most businesses surveyed in September 2024 anticipate stable conditions. Specifically, 50% of respondents expect their business envi- ronment to remain unchanged during this period. In this context while the arts, recreational, and entertainment sectors are anticipating better condi- tions, the construction sector stands out predicting a decline in activity. Prices Most businesses reported that they do not anticipate a change in the prices of the products and services they offer over the next six months. Specifically, 60% of businesses expect their output prices to remain stable. Employment Half of the surveyed businesses plan to maintain their current workforce levels with the sectors most likely to expand their workforce primarily being the wholesale and retail trade, industry, and construction sectors. The survey also expanded on the theme of skills, with the skills most in demand being those related to tools, machinery, and similar areas, along with skills in communication, collabo- ration, and related fields. Investment Over the last 6 months, 44% of busi- nesses in Gozo reported making some form of investment in their operations, with the highest shares of reported in- vestment being in the following sectors: education and human health, construc- tion, arts and recreation, and industry. Reskilling and Upskilling According to the latest results from the Gozo Business Sentiment (GBS) survey, only 45% of businesses in Gozo have utilised government schemes to upskill or reskill their workforce since they began operations. The most frequently accessed initia- tives were work trial programs (includ- ing those for students), the Access to Employment (A2E) scheme, and other staff training initiatives. Those who had not utilised any gov- ernment schemes for workforce reskill- ing or upskilling were asked to explain why. The primary reason cited was that businesses felt such schemes were un- necessary. Other reasons included a lack of awareness of these schemes and con- cerns that participation would disrupt daily operations. Additional reasons for not applying included a lack of time to complete the application process, though several businesses indicated they plan to allo- cate time to apply in the future. Six-month period After the first Gozo Business Senti- ment (GBS) Survey which was pub- lished in June 2024 and which covered a period of one year, despite interview- ees being surveyed two times with an interval of a six month period, the two entities have decided to start publish- ing this survey every six months. This should give a more timely per- spective. The sampling methodology remains the same over each period, together with the sampling stratification which reflects the economic composition of the Gozitan economy. The data which is being published today reflects the results of the survey conducted in September 2024. Shortage of employees remains leading challenge for businesses in Gozo