It is delusional to think that sustainable economic growth can be achieved by quick fixes to structural weaknesses in the factors of production. Malta’s labour market weaknesses have been known to policymakers for some time. Recent economic growth has not been achieved primarily through improving the skills base of Maltese workers.
Employers are now beginning to articulate their concerns about the long-term risks of ignoring the structural flaws in our labour market, the educational system and students’ and business leaders’ mindsets.
The government and many businesses want more liberal policies for importing skilled and unskilled workers. Still, the solutions for bridging the skills gap must be sought through other challenging strategies that will take time to produce results.
Joseph Farrugia, the director general of the Malta Employers’ Association, sent a clear message to all stakeholders when speaking in a seminar held at the parliament building in Valletta. He argued: “We need to strengthen our capital investment so that new economic activity does not necessarily require more resources but perhaps different and adapted skills.”
For too long, Malta’s educational system has ranked among the least successful in the EU. The political rhetoric of various education ministers in the last two or three decades has generally just produced poor results.
It failed to acknowledge that the Fourth Industrial Revolution demands that our educational system creates conditions for young people to gain relevant skills and critical competencies at all stages of education and training.
A paradigm shift in educational thinking is necessary to foster creativity, an entrepreneurial mindset and mobility in education and training at all levels. Policymakers will argue that this shift is already embedded in our education strategies.
This may indeed be the case as far as the documentation of the strategy process is concerned.
But many working in the coal face of our education system know, for instance, that investment in science, technology, engineering and mathematics skills from primary to higher education and lifelong learning is still inadequate for the country’s needs.
According to the World Economic Forum, 65 per cent of children starting school today will work in jobs that do not yet exist. To prepare future generations for this significant challenge, we need to accurately identify the necessary future skills that will help today’s young people acquire the jobs that the economy will be creating.
A skills audit is the first step to encouraging and motivating individuals to take responsibility for developing their skills.
Employees also have a role to play in bridging the skills gap. They are jointly responsible with their employers for tackling the upcoming change. School-leavers need to adopt an attitude to lifelong learning as this is crucial for them to manage their careers appropriately.
Academics will continue to argue that education is not just about enhancing students’ employability skills.
Meanwhile, employers acknowledge that theoretical knowledge is not enough for prospective employees. Our educational system needs to enable students to demonstrate that they can use the knowledge acquired in the real world of work.
Career guidance is an area that needs to be improved by promoting more cooperation between businesses, students and policymakers.
Investment in human resources is not similar to investment in commodities or capital goods. It is about turning human potential and talent into a decisive factor for economic growth, improved productivity and sustainable jobs.