the next leap the next leap from labour market programmes to active labour market policy

The Next leap

The Next Leap

From Labour Market Programmes

to Active Labour Market Policy

Employment Ratio

• Malta: 2020 employment ratio (20-64) => 69.0%

• Malta’s 2012 Q1 employment ratio (20-64) => 62.8%

• EU27 2020 employment ratio

(20-64) => 72.1%

Catching Up with the EU27

Economic Growth

• Increase in total labour hours worked:

EU27 => 0.4% (p.a.)Malta => 1.2% (p.a.)

• Increase in labour productivity:EU27 => 1.0% (p.a.)Malta => 0.5% (p.a.)

Productivity Pays

Why it Pays?

• Low productivity growth reflects in lower real wage growth.

• Increase in real wages:EU27 => 0.7% (p.a.)Malta => 0.3% (p.a.)

• How can productivity be increased?

Better Skills… More Productive

Skills Deficit of Malta

Skills Convergence with EU 27• Malta lags the EU27 in terms of

quality of skills.

• At the current pace, it will take Malta 33 years to converge with the EU27, i.e. by 2045.

• Is there a way to speed up this process?

Active Labour Market Policy

• A supply-side policy that stimulates the productive side of the economy.

• Unlike demand-side policies, it influences the long-term trajectory of the economy.

• ALMP enhances employability and labour productivity.

Delivering ALMP

• Better Personal Employment Services (PES)

• Employment assistance

• Making work pay

• Human capital investment

The next leap (1)

• We need to have a coherent long-term policy and strategy.

• Improving workforce skills to increase productivity.

• More profit for business; higher wages for workers

The next leap (2)

• Multiple dividends in terms of economic growth, income generation.

• Sustainability of welfare system in the face of demographic pressures.

Points for Concrete Discussion and Action (1)

• From a passive welfare system to a proactive, positive and productive type of welfare.

Points for Concrete Discussion and Action (2)

• The investment in our workforce will help to mitigate precarious work and increase the quality of jobs.

Thank You