The latest unemployment figures from JobsPlus are very promising. Statistically and historically, 1,013 jobseekers are a very small number. Nevertheless, this does not change the fact that these 1,013 people, who may be their respective family’s sole breadwinners, are not sharing the sense of fulfilment and dignity that people derive from work.
These statistics might also lead one to believe that poverty is being eradicated due to the declining unemployment rate. However, latest official figures of the Gini coefficient, a measure of inequality of income and wealth in society, shows that the gap between the rich and the less well-off in Malta has been continuously increasing.
These results demonstrate that, despite Malta’s economic growth, the wealth being created is not being distributed equitably. High-income individuals are benefitting more than low-income individuals. The idea that a rising tide lifts all boats is untrue. The ever-growing number of people who rely on the generosity of soup kitchens to avoid hunger is proof of this.
This economic scenario requires strategic thinking about the workforce and the direction of the economy. Various economists and opinion writers in this newspaper have often expressed their view that Malta needs to implement a diversification plan.
Malta needs a more sustainable economy, it needs to become less dependent on money generated through dubious means, such as the sale of passports or be used as a tax haven or for money laundering, and move away from its obsession with unbridled construction.
Much clearer and more comprehensive economic programmes should be put in place to assimilate and integrate the sudden influx of foreign labour. Spurring economic growth by employing foreign workers on low wages in inhumane conditions is tantamount to modern-day slavery. Even though these violations take place in plain sight, the authorities don’t seem to bat an eye as long as the economy is expanding.
Pope Leo XIII’s visionary encyclical Rerum Novarum, published 102 years ago this May, outlined the rights and duties of employers and employees and called for respect for workers above all. The encyclical was written when many countries were in transition from an agrarian to an industrial society, in which people earned more money but lost their independence and became slaves to their new masters.
Low wages, long hours and poor housing plagued workers. Sadly, 102 years later, many migrant workers in our country are facing deplorable working conditions. Skills development, especially for low-income workers, is critical for a sustainable and inclusive economy that benefits all members of society.
Malta needs a more sustainable economy- Claudio Farrugia
The state must invest in training programmes to further improve the skills of our workforce. This needs to be done in partnership with NGOs that are more specialised and focused on specific issues and are better equipped to tailor their interventions to the specific needs of the communities they serve rather than the state’s one-size-fits all approach.
Language learning incentives for migrant workers and their families that help them overcome communication barriers and social isolation are crucial. Cultural awareness and community involvement can help them grasp local culture and develop social relationships, resulting in a stronger sense of belonging in their new home.
Better work-related skills can lead to more job opportunities, higher wages and greater economic security, all of which can help having a more just society.
Economic downturns are inevitable and it is only by having a workforce equipped with the required skills and knowledge to adapt to changing economic conditions that an economy can rebound quicker.
Malta must abandon its labour market expediency. Utilitarian strategies of using and disposing are doomed to fail, as evidenced by the approach taken during COVID-19, in which migrant workers were fired and forced to return to their country and, shortly after that, businesses ran into the problem of not finding enough workers to meet resurgent demand.
Sound economic principles would ensure that wealth is distributed equitably and that our country adopts long-term policies rather than short-term ones that prioritise profits over people and harm our reputation.
Claudio Farrugia is a member of Catholic Voices.