What was the labour market situation in Malta just prior to EU membership?
During the twelve months to September 2003, the Maltese economy was characterised by an easing of labour market conditions. The labour supply expanded but the increase was marginal, whilst a contraction in the gainfully occupied population was recorded. In particular, job losses were concentrated in specific sectors of the manufacturing industry, while public sector employment also declined. On the other hand, a positive performance was registered in the private market services sector, in terms of job creation. These developments in the domestic labour market reflect the increasingly competitive environment in which the Maltese economy is operating in, both due to the process of globalisation as well as the restructuring process being undertaken domestically.
At the end of September 2003, the labour supply (based on administrative records) stood at 144,544, reflecting an increase of 84 or 0.1 per cent over September 2002. Meanwhile, the gainfully occupied population declined by 338 to reach 136,602 at the end of the Survey period. Consequently, the number of registered jobseekers increased by 462. The unemployment rate rose to 5.0 per cent from 4.6 per cent in 2002.
During the period between September 1999 and September 2003, the labour supply in general registered a gradual upward trend. The labour supply increased by 1,520 to 145,236 between September 1999 and September 2001. However, during the subsequent year, the labour supply edged down by 776 persons. Although a positive change of 84 persons was recorded during the twelve months to September 2003, it is pertinent to note that this rise is below the average expansion in the labour force recorded in recent years.
Between September 1999 and September 2003, the male labour force followed a declining trend, with the only exception being in the year ending September 2001. During this period, the male component of the labour force declined by 1,220. As a result, the proportion of males in the labour force fell from 72.5 per cent in September 1999, to 71.2 per cent in September 2003. Meanwhile, the female labour force increased by 2,048 between September 1999 and September 2003. In fact, female labour supply expanded throughout this period. Between September 2002 and September 2003, the female labour force increased by 425 to 41,611. This rise is relatively lower than the increases recorded in the previous years. The increase in the total labour supply during the year ending September 2003 was thus completely attributable to the female side of the labour force. As a result of these developments, the female share in the labour force increased from 27.5 per cent in September 1999 to 28.8 per cent in September 2003.
After increasing by 3,229 to 138,252 during the two years to September 2001, the gainfully occupied population declined by 1,312 in the following twelve months and a further decrease of 338 was recorded by September 2003. The decline in the gainfully occupied population recorded over the two years ending September 2003 is mainly due to a contraction in the male component. In fact, the male component of the gainfully occupied declined by 1,202 over the year ending September 2002 and by a further 532 over the subsequent year. Meanwhile, the female component of the gainfully occupied population contracted by 110 between September 2001 and September 2002 but in the following twelve months increased by 194 to 39,934 persons.
According to the latest Labour Force Survey covering June 2003 the number of employed persons including the self employed and part-timers stood at 148,818, showing a decrease of 215 persons, over June 2002. The number of males in employment amounted to 103,638 an increase of 783 persons or 0.8 per cent over June 2002. On the other hand, female employment fell by 998 persons, or 2.2 per cent, to 45,180. In fact the female employment rate edged down by 0.9 percentage points, to 33.4 per cent in June 2003. According to he LFS, the male unemployment rate increased by 0.1 percentage points, to 6.4 per cent in June 2003, while the female unemployment rate reached 9.9 per cent, an increase of 1.6 percentage points from 8.3 per cent in June 2002.
The majority of those employed during June 2003 worked on a full-time basis. In fact, 95.8 per cent of the male gainfully occupied population worked on full time basis, whilst among the females this figure reached 79.0 per cent. Additionally, males represented 35.4 per cent of the part-timers while the share of the females stood at 64.6 per cent.
[Source: Economy Survey January to September 2003, Ministry of Economic Services and Finance]
Sources used:
Employment & Training Corporation – Administrative Records and reports generated from this system
Employment & Training Corporation – Employment Barometer Summer-Autumn 2003
National Statistics Office - The Labour Force Survey June 2002 and 2003
Ministry for Economic Services and Finance – Economic Survey January-September 2003
Text last edited on:01/2004
(Online source: http://europa.eu.int/eures/main.jsp?catId=2788&acro=lmi&lang=en&countryId=MT®ionId=MT-NAT)
