Malta's Tight Labour Market Will Lead To Higher Wages For Employees - EC

8th November 2018

Unemployment is projected to remain low at around 4 per cent in the next two years.

Increasing labour supply has helped keep wage pressures contained despite strong employment growth and low unemployment, according to the European Commission’s Autumn 2019 Economic Forecast.

However, as a result of the tighter labour market, wage pressures are expected to strengthen and lead to higher growth in compensation per employee.

The report said that unemployment is projected to remain low at around 4 per cent in the next two years. Employment growth is expected to remain strong, but to moderate over the forecast horizon as economic growth eases, the report said.

Growth in unit labour costs is projected to rise to 1.9 per cent in 2018 and to remain broadly stable over the forecast horizon.

The report also observed that headline inflation began to accelerate in the second quarter of 2018, following a period of moderate price pressures, partly reflecting an increase in the weight of accommodation services in the price index, as well as the rise in international oil prices.

Inflation is set to progressively rise over the forecast horizon on the back of wage growth, and should reach around 2 per cent in 2020.

8th November 2018

Business and consumer confidence indicators remain high and real GDP growth is expected to average 5.4 per cent in 2018.

7th November 2018

Malta International Airport’s (MIA) year-to-date traffic through the terminal has reached nearly six million passengers already.

7th November 2018

Flights from Malta to Amman and back are set to commence twice weekly as from April.

7th November 2018

Last year, EU citizens made a total of 1.2 billion tourist trips across the bloc.