The participation rate of registered disabled people in the labour market in Malta is lower than that in the rest of the EU.

Moreover, the legislative requirement stipulating a minimum employment quota of disabled people with Maltese companies employing more than 20 people is not being fully complied with.

This was pointed out in the performance audit report issued by the auditor general (National Audit Office) last week, on Employment Opportunities for Registered Disabled People (RDPs).

The audit focused on RDPs who were seeking the Employment and Training Corporation’s assistance and were listed in its Part I Unemployment Register between 2006 and 2010. It sought to determine the extent to which initiatives being undertaken by the ETC to enhance the employment opportunities of disabled people are resulting in an increased and sustainable participation rate in the labour market.

The total number of RDPs listed was 1,263.

The report notes that the economic downturn experienced in 2008 and 2009 had a greater effect on the employment opportunities of disabled people than their mainstream counterparts.

The performance audit determined that generally the initiatives undertaken by the ETC collectively tend to positively influence the employment opportunities of disabled people. However, when these initiatives are individually analysed, areas for potential improvements emerge.

Currently, the ETC’s organisational structure provides for a specific unit to deal with issues related to supported employment, including people with disability. Such a structure was deemed to provide specialised services but it did not fully embrace the ‘inclusion’ principle. This organisational arrangement was primarily centred on registrants. Consequently, this limited the corporation’s focus on employers to the detriment of further enhancing the link to the labour market.

The ETC’s organisational structure also led to various logistical problems for disabled people since services were mainly provided through the Corporation’s main premises at Ħal Far. Moreover, such a structure was not conducive to cater for the RDPs’ increased demands and the implementation of further programmes aimed at enhancing employment opportunities. This structure also impinged on the Corporation’s management practices whereby reporting, programme evaluations and the sustaining of robust audit trails were not always given due attention.

Contrary to the resulting situation with regard to registered unemployed people in general, training courses provided by the corporation are not significantly contributing to the employment of disabled people, mainly because participants do not consider them to be of significant importance. On the other hand, the impact in terms of employment of work exposure schemes is highly evident and the National Audit Office was consequently led to ask whether the ETC is allocating the appropriate resources for broadening the participation rate.

The report meanwhile points out that the ETC is generally aware of its organisational constraints and their implications and is planning changes to its organisational structure and business process reengineering. The envisaged changes address in part many of the concerns observed through this performance audit and also aim to deal with the strategic, management and operational concerns raised.

Employment challenges

The challenges experienced by disabled people in employment may, to varying degrees, influence RDPs’ ability to retain employment. The job retention rate of people with disabilities, on average, tends to be less than two years (544 days). This statistic is based on the average employment of 578 out of 1,263 RDPs listed in the register under study.

The employment opportunities of disabled people are also influenced by various other factors which are considered to pertain to the ETC’s external environment.

A skills gap exists between the educational standards demanded by the labour market and those attained by RDPs, which tend to be lower than that of their mainstream counterparts. Physical accessibility and socio-economic issues, which may arise through ill-founded perceptions on disability, further hinder RDPs’ employment.

Additionally, some disabled people may opt to forego employment due to concerns related to reductions in social benefits received. In this regard, this year’s budget sought to address the issues brought about by the benefit trap.

ETC initiatives to improve the employability of RDPs

The ETC aims to improve the employment opportunities of disabled people through various initiatives with services provided by the RDP Unit within the Supported Employment Section.

The corporation utilises the registration period as a means of control over the receipt of unemployment benefits. More importantly, during this period it seeks to encourage unemployed people to productively utilise registration periods to enhance their skills and knowledge base. On average, RDPs spend longer periods registering in the Part I Unemployment Register than their mainstream counterparts.

An increasing trend was noted in the caseload relating to personal advisory services to RDPs. This is associated with a greater awareness of the ETC’s services. However, the audit trail related to RDP advisory services is generally limited and such a situation is considered as a risk to business continuity.

Despite scheduling courses well in advance, the participation rate by disabled people in ETC courses amounts to around 60%. However, the successful completion rate of courses where RDP attendance was above the stipulated minimum number of sessions stands at around 90%.

Nevertheless, only around a quarter (25%) of RDPs participating in courses held in 2009 were subsequently listed as employed in ETC records, following one year from course completion.

The outcome, in terms of employment, of work exposure and subsidised employment schemes was positive.

These schemes were seen as significantly increasing the employability prospects of RDPs. Following the completion of the Bridging the Gap (BTG) Scheme, nearly two-thirds (66%) of participating RDPs managed to find and retain employment for a six-month period, within a year of completion of the work exposure scheme.

Although insufficient time has elapsed to comprehensively evaluate the outcome of the Employment Aid Programme (EAP), there are strong indications that the programme targets will be attained. This is based on current participation levels and the average employment period under the scheme.

Issues hinder ETC from optimising efforts

The ETC’s business plan is aimed at empowering, assisting and training job seekers to facilitate their entry or re-entry into the active employment market, promoting workforce development through skills and competency development, as well as assisting employers in their recruitment and training needs.

Towards this end, the ETC sets specific objectives and targets which are distributed across the various departments and units within the Corporation. However, the following issues hinder the ETC from optimising its efforts to improve the employment prospects of disabled people:

• The ETC is not in a position to fully determine the abilities of disabled people seeking employment. Currently, the ETC collates information related to a person’s disability through medical and occupational therapy assessments. However, such assessments do not appropriately define the degree of disability, and consequently, the individual’s abilities cannot be accurately determined. Such circumstances arise since to date an ability assessment centre has not yet been established.

• Comprehensive research is necessary to enable the ETC to better address labour market gaps. Additionally, the Corporation has not studied potential labour market placement areas suitable for RDPs.

• The availability of research on RDPs is further hindered as the Corporation needs the appropriate automated report generating mechanisms through its IT systems. As a result, specific analysis, such as employment tracer studies, tend to either involve considerable manual input or requests for information extraction have to be made to the IT unit.

• Performance attainments of initiatives undertaken are only formally analysed in cases involving EU-funded projects. However, recommendations proposed in the relative evaluation reports such as the provision of job coaching throughout employment, have not been fully implemented.

• Locally-funded programmes are monitored by the ETC but are not subject to an in-depth analysis since the Corporation lacks the resources to undertake such exercises.

Recommendations

On the basis of the findings and conclusions emanating from the performance audit, the National Audit Office encourages the ETC to secure the resources required to implement its envisaged reorganisation. This should enhance the corporation’s efficiency and effectiveness levels to the benefit of its clients and stakeholders.

The ETC’s restructuring exercise is:

• To consider the establishment of an ability assessment centre enhancing information derived through occupational therapy assessments and suitability for specific jobs;

• To strengthen its research functions to better identify labour market requirements to address the potential skills and knowledge gaps of its clients accordingly;

• To upgrade its management information systems with regard to RDPs – a prerequisite for conducting more extensive research;

• To fine-tune its programme target and objective setting process rendering them more realistic;

• To review the outcomes of training courses provided to RDPs to address gaps between course bookings and actual participation;

• To determine the extent to which the courses are optimally addressing labour market and participants’ requirements;

Generally speaking, a concerted effort to ensure that the education and skills level of registered disabled people match those required by the labour market, is necessary.

Such an effort requires the input of all relevant stakeholders, namely government, NGOs and other stakeholders.

Consideration is to be given to fully integrate the disability registers maintained by the ETC, Department of Social Security (DSS) and National Commission for Persons with Disability (KNPD). At the outset, this entails that a single definition of disability is in place and embraced by all stakeholders. Apart from streamlining information and administration, this will facilitate and better harmonise the services provided by various entities.

The ETC and the DSS should continue their efforts to centralise the medical assessments relating to disabled people. This approach minimises the administrative burden of both organisations in cases where ‘fitness for employment’ needs to be determined. RDPs would also benefit since they would only be subjected to one assessment, which would be applicable for both DSS and ETC purposes.

Cooperation agreements between the ETC and other entities involved with the welfare of disabled people are to be sustained, and if possible broadened. These agreements ensure that RDPs receive the skills required to enable sustainable participation in the labour market.

The evaluation of programmes and other initiatives, such as courses, should encompass the reasons to justify deviations from predetermined targets.

All programmes and initiatives should also be benchmarked against outcomes and impacts, namely in terms of employment. Moreover, evaluations should be extended to include locally-funded measures, such as the BTG.