Almost half of businesses fear they will depend on government support throughout 2021 as the economic fallout as a result of COVID-19 continues. 

Preliminary findings from a survey conducted by the Malta Employers Association, published on Wednesday, highlight employers' ongoing struggles as a result of the coronavirus pandemic. 

The survey was carried out between August 27 and September 4, with a total of 237 respondents from different sectors answering open-ended questions. 

Out of the 237 survey respondents, 22 per cent were companies that employ fewer than 10 employees, 39 per cent employ between 10-49 employees, 29 per cent employ between 50-249 employees, seven per cent employ between 250-499 employees and four per cent employ more than 500 employees.

Relying on government support

Respondents were asked if they thought they would depend on extended government support in 2021.

44 per cent said they would, while 16 per cent said they would not. A further 22 per cent said they did not know while 17 per cent did not qualify for governmental support. 

Asked whether their business’ performance had improved between June and August when compared to the previous three months, 48 per cent of the respondents said there had been improvements, while 36 per cent said business remained the same. 

A further 16 per cent said business had performed even worse.

Redundancies

Fewer than 20 per cent of the respondents said they had to make redundancies between June and August. 

Almost half, 43 per cent, have however said they might have to reduce their workforce from the current levels in the coming months. 

And looking ahead, the majority of businesses (35 per cent) believe it will be between 12 to 18 months before their business activity returns to pre-COVID-19 levels. 

Some 22 per cent said this process could take longer than 18 months. 

Others (13 per cent) said their business was already performing as it did before the pandemic hit. 

Meanwhile, on the start of the new scholastic year later in September, 40 per cent said they would be "mildly affected" if the schools do not operate normally while 38 per cent said they would be "strongly affected". A further 23 per cent would not be impacted.

Major employment-related issues as a result of COVID-19

Asked to identify their main concerns stemming from the pandemic, employers highlighted eight main issues:

• Sense of instability and uncertainty
• Demotivated employees
• Fear of returning to work
• Less cash in hand (struggling to pay salaries)
• Lack of skilled staff (recruitment issues)
• Permits of foreign nationals
• Increase in sick leave
• Quarantine leave

Read the MEA survey in full using the PDF link below.