On Wednesday 25 January 2023, Daniel Borg, CEO of the Gozo Business Chamber participated as a panelist in a webinar on the present and future challenges of Gozitan Employers, organised by the Gozo Regional Development Authority.
During his intervention, Mr Borg explained that Gozo is at risk of falling into what is called the ‘low-skills equilibrium trap’. This is something that is troubling for the Chamber because Gozo should advance in sectors that can create high added value, and this is not possible if we do not train people to work in these sectors.
Daniel also added that another important indicator that emerges from this study is the location quotient which shows that Gozo has a specialisation in agriculture and fishing, construction, real estate and public administration. The over-reliance on sectors such as construction and real estate is worrying because these are sectors that leave wealth in a temporary and not long-term way. While the over-dependence on the public administration is securing resources that can be used more efficiently in the private sector. This shows that in Gozo we need to build sectors that can create added value in the long term.
Another important factor that emerges from this study is that when compared to the population, there are fewer jobs (job density). It also brings out the extra dependence on jobs in the public sector.
The study also reveals that the provision of adequate jobs in Gozo is not a good one. This can explain the relocation of many young people in Malta and even abroad and this is a phenomenon that Gozo experiences when young people turn 18. We must continue to work on two fronts both to continue to strengthen sectors that so far in Gozo have a small footprint such as the digital sector but also to strengthen the accessibility to Gozo so that we make it easier for those who work in Malta who can if they must decide to live in Gozo.
To access the full intervention, click here.