Job retention remained strong despite the country approaching twelve months of restrictions caused by an ongoing pandemic and 76% of businesses plan to keep their workforce for the coming three months. This was one of the key conclusions of a survey carried by the Malta Employers’ Association to assess the state of affairs regarding the developments related to the COVID pandemic over the past three months. The survey covered more than 200 companies from all economic sectors.
The survey confirms that some sectors have been more severely hit by the pandemic than others. Many operators in the tourism industry may not survive another dry season unless they are kept on life support by fiscal incentives.
Job retention has remained strong – 76% plan to keep their labour force stable in the coming three
months, 10% of respondents plan to reduce their workforce, and 14% replied that they may increase
employment, but not necessarily to pre-covid levels.
However, government fiscal package will likely have to be extended throughout 2021, creating a strain on public finances, as, besides the enhanced expenditure, it is likely that government revenues will fall short of what was projected for 2021.
Recovery will be slower than anticipated: Although 15% reported activity similar to pre-covid levels, and a further 16% are expecting a recovery within the coming 8 months, 24% of respondents replied that it will take up to a year to recover, and a further 45% answered that recovery will take more than
1 year.
Businesses do not feel confident to re-activate investment projects that have been placed on hold
during 2020. However, 32% of respondents replied that they have initiated investment projects which
had been postponed. Of the remainder, 92% answered that they do not foresee a reactivation of suc
projects in the coming six months.
The Association made a number of recommendations to government about the situation:
- Strict enforcement of measures to reduce the spread of Covid – the current laissez faire
attitude is endangering jobs and lives - Faster roll-out of the vaccine
- Persons who, without a valid reason, refuse to take the vaccine should not be entitled to
quarantine leave - Introduce a ‘green passport’. Employers should know who has been vaccinated or not in the
interest of the welfare of all employees.
