Towards full employment

Full employment, in the modern sense of the word, has been achieved only by very few states and for rather brief periods of their economic history; so much so that many consider it as more of a utopia than a feasable target. On the contrary, it may be said that the problem of unemployment looms dark and large over many regions of the world - and our tiny country is no exception.

It is debatable whether the flexibility of wages and prices is sufficient to ensure full employment, as was once asserted by John Maynard Keynes and his followers. In the labour market, involuntary unemployment persists because of the deficient aggregate demand, and it is the duty of the government to increase this.

The truth is that notwithstanding economic progress, "the nightmare of unemployment", as it has been termed by the Pope, continues to cause deep concern and untold suffering to thousands of workers and their families, with the dire possibility of bringing about long-term damage to our society.

Unemployment means that a person's skills are neither wanted nor valued or, in rarer cases, that they are unwilling to work.

It is a loss not just for the individuals who cannot find adequate work, but also for their families and the whole community. It is not only a threat to financial security. Sometimes even emotional and physical health are jeopardised and personal relations can also deteriorate because of it.

Unemployment or underemployment, not least in our country, is a real problem. There is currently serious concern in Gozo as certain organisations seek to make themselves leaner to meet the ever growing demands of competition.

The problem affects a wide range of people: such as the young who have never had a job and are looking for one before they get married or take on other commitments. It affects the middle aged, who are shocked and at times bitterly depressed to find their careers suddenly cut short, and then they find that they are no longer regarded as "employable".

However, it would be a grave mistake to think that tackling the unemployment problem is the responsibility of the government alone - though it has a dominant share in the issue. The challenge of full employment calls for entrepreneurs and their wealth producing initiatives, it needs the cooperation of workers and their organisations.

But when everything is said and done, the government must be the first to move, and shoulder the largest part of responsibility. Without its lead, very little can be achieved.

Every effort made by the government to attract foreign investment is praiseworthy. This makes possible the setting up of new factories which in turn creates new jobs. But local investment is also to be duly encouraged even in the case of small and medium concerns, where the number of employees is not very large.

This timely help given to local entrepreneurs has proved to be a means of salvation for them when they happened to be battling against all odds, trying desperately to avoid heavy losses and stave off the threat of bankruptcy.

Healing the huge problems takes time and a lot of energy, but action is urgently needed to deal with the immediate problems of financial loss and social isolation brought about by unemployment. And this action is needed now.