Economy Minister Chris Cardona spoke praised the latest Eurostat employment statistics which noted that Malta has the lowest rate of unemployment in Europe, at 4.0 per cent.

“Three years ago we were given a strong mandate to govern, and we set out on our goals. This is a confirmation that this government's strategy is working. We want to maximize the most valuable resource in Malta, the labour force. Fostering a climate of investment, encouraging people to enter the world of work and creating opportunities is an ongoing commitment for this government,” he said in a joint press conference addressed by himself, Education and Employment Minister Evarist Bartolo and Finance Minister Edward Scicluna.

“There are more people then ever before who have entered the world of work, improving their quality of life of as many people as possible.

“Maltese businesses are looking to expand and grow, while the government has helped through family-friendly and work-friendly measures,” Dr Cardona continued.

He then turned to a scheme being launched by the Government which seeks to assist start-up companies.

“The investment scheme being launched will help start ups facilitate their potential. These companies are at the innovation and research stages, and we want to help them progress.”

Professor Scicluna stressed that the Eurostat statistics have been collected in an efficient and straightforward way. 

"Eurostat asked a number of individuals simple questions: are you working? If not, are you looking for work?" He said that the data was collected in the same way across EU countries, allowing a like-with-like comparison. In relation to youth unemployment - at 6.9 per cent, the same can be said in that the statistics are a clear reflection of the positive economic climate in Malta, he said. He spoke of the EUs youth unemployment scheme, and urged for a further look into the groups who are not trained and unemployed.

Speaking of a meeting with Fitch ratings agency, he said that foreign workers filling in skills gap in the local work force acts as a safety valve and prevents bottle-necks. This is true for the transport and planning sectors, he said.

"We do not want to go through a boom and then a slump, but translate the current boom into the norm. This can only happen through careful planning and ongoing investment."

Referring to the American Institute of Malta, he said that investment in education, as well as in the health sector – referring to the St. Luke's Hospital investment, allows for infrastructure to keep up with the economy. He added that it allows for the economy to cater for the current boom.

Mr Bartolo compared the youth unemployment statistics from three years ago, at 14 per cent, which is now down to 6.9 per cent.

"The number of people working in the public sector is proportionally smaller, by one per cent, then the previous legislature - reflecting the booming private sector," he said.

What he is most proud of, he said, is the number of workers who have entered the work force for the first time - such as women and people with out of date skills. 

He said that not only is it important to have economic growth, but to continue releasing active labour market policies to get as many people into the workforce as possible. He said that through this the benefits of a growing economy will be felt by all.

Asked about the skills gap currently found in Malta, where foreign companies offering highly specialised job opportunities having to turn to foreign workers rather than local ones, Mr Bartolo said that the Ministry is in constant contact with information technology companies and Igaming companies about what skills they are looking for. In turn, he said, the Ministry maintains contact with the University of Malta and MCAST in order to ensure that the curriculum is up to date with current needs. He announced that this coming September, pharmaceutical students will be given a special stipend in order to attract more students to the sector.

On this note, Minister Scicluna interjected and said it is normal and healthy for small economies to have a wealth of foreign workers, as this prevents the labour force from overheating and also mitigates any bottle-necks which can emerge. 

Eurostat statistics:

Malta has the lowest unemployment rate in Europe, Eurostat figures show.

The euro area (EA19) seasonally-adjusted unemployment rate was 10.1% in June 2016, stable compared to May 2016 and down from 11.0% in June 2015. This remains the lowest rate recorded in the euro area since July 2011. The EU28 unemployment rate was 8.6% in June 2016, stable compared to May 2016 and down from 9.5% in June 2015. This remains the lowest rate recorded in the EU28 since March 2009. These figures are published by Eurostat, the statistical office of the European Union.

Eurostat estimates that 20.986 million men and women in the EU28, of whom 16.269 million were in the euro area, were unemployed in June 2016. Compared with May 2016, the number of persons unemployed decreased by 91 000 in the EU28 and by 37 000 in the euro area. Compared with June 2015, unemployment fell by 2.114 million in the EU28 and by 1.363 million in the euro area.

Member States

Among the Member States, the lowest unemployment rates in June 2016 were recorded in the Malta (4.0%), the Czech Republic (4.1%) and Germany (4.2%). The highest unemployment rates were observed in Greece (23.3% in April 2016) and Spain (19.9%).

Compared with a year ago, the unemployment rate in June 2016 fell in twenty-five Member States, remained stable in Belgium and Estonia, while it increased in Austria (from 5.7% to 6.2%). The largest decreases were registered in Cyprus (from 15.1% to 11.7%), Croatia (from 16.2% to 13.2%), Bulgaria (from 9.7% to 7.2%) and Spain (from 22.3% to 19.9%).

In June 2016, the unemployment rate in the United States was 4.9%, up from 4.7% in May 2016 and down from 5.3% in June 2015.

Youth unemployment

 

In June 2016, 4.194 million young persons (under 25) were unemployed in the EU28, of whom 2.915 million were in the euro area. Compared with June 2015, youth unemployment decreased by 492 000 in the EU28 and by 248 000 in the euro area. In June 2016, the youth unemployment rate was 18.5% in the EU28 and 20.8% in the euro area, compared with 20.6% and 22.5% respectively in June 2015. In June 2016, the lowest rates were observed in Malta (6.9%) and Germany (7.2%), and the highest in Greece (47.4% in April 2016) and Spain (45.8%).