The recently published study “Labour Market Adjusted Dependency Ratio”, funded by the European Commission, raised a number of economic, fiscal and welfare issues simmering beneath the surface of Malta’s economic edifice.

Among the many valid points raised by European Policy Centre, one particular issue continues to highlight Malta’s slow progress in attracting more people to participate in the labour market. This continued reluctance, especially among women and older people to seek gainful employment, could in the future jeopardise the very structures that have made the Maltese economy the relative success it has become over the last 20 years.

The report confirms an already accepted awareness that unless we are capable of introducing more workers into the economy, strains will appear that could not only hamper continued growth in productivity and hence consumption, but threaten the sustainability of our social and welfare system be it pensions, health services and social benefits. An aging population and a falling birth rate continue to expose this widening divide between those who contribute and those who are net receivers of tax benefits.

No one denies that this government has, during this legislature, increased its efforts to introduce measures, both fiscal and others, to persuade more women to return to the labour market, either to continue with their careers or through training them with new skills. While it is evident that many of these measures are becoming increasingly successful, Malta remains at the bottom in terms of employment rate among the 27 EU member states.

This rate of inactivity is especially stark when we compare our female rate of participation to that of our counterparts in Europe. Although each year more women are opting to enter the workplace, a number of stumbling blocks remain. For many of them the choice of jobs is more likely to be based on factors other than pay. Although some shifting of gender roles has happened, women remain overwhelmingly the primary carers of children. Whether we like it or not, women take more time off and work fewer hours often due to the unequal distribution of childcare, work, domestic labour and other family issues that tend to fall under a woman’s responsibility as per the gender roles assigned by society. There are a myriad issues surrounding this particular subject, which among them include work conditions, pay structures, career opportunities and glass ceilings that women often have to breach to better their positions. One specific topic that often comes up for discussion is that of parental leave, which remains unresolved for a number of realistic economic realities that persist especially in this stressed economic climate affecting our major trading partners.

From a purely economic aspect, it is clear that female participation in the workplace has increased and needs to be further expanded. Successive government administrations have pumped millions into our education system so that this could be achieved. I believe that this has been a runaway success and great strides forward have been made. Figures show a majority of females in tertiary education and today many skills have, by and large, become gender neutral. At face value there seems to be very little apparent gender discrimination, at least up to certain grades of career advancement. In Malta, women have been able to dent, albeit not break, quite effectively the glass ceiling that keeps them from advancing.

The anxiety seems to appear when women decide to become mothers. The reasons are complex and manifold. Some point to a lack of support systems while others to feeble legislation. The reality is that it appears as if motherhood puts the onus on women to decide. We must either be a mother or an employee. The two don’t seem to go well together. If you believe otherwise, just look at the statistics regarding female employment. Beyond the average age of 35, the number of female workers simply falls off the cliff. Another poignant statistic is the average age of mothers of first-born children in Malta. At 25.8 years it is one of the highest in the European Union. I suspect this has very much to do with the need to take care of the family and all the associated responsibilities.

It is abundantly clear that raising economic activity, especially for women, is in a transitional phase. I believe that a number of social and interpersonal issues still linger and need adjusting to Malta’s rapidly evolving economy. These things take time! A collective effort both from the State and the private sector will go a long way in continuing Malta’s economic transformation.

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