18 September, 2021

Private Sector experiencing Drastic Employee drain to Public Sector Employment


During a meeting between the Malta Chamber of Commerce, Enterprise and Industry and the Gozo Business Chamber both organisations noted that several of their members keep reporting that they are losing their employees to public sector jobs, even when the latter often carry less pay.

Both Chambers believe that whilst it is understandable that the public sector needs staffing at certain levels, it is also evident that there is overstaffing across various strata and in various Government departments and entities. It runs contrary to business competitiveness to have a situation where Government is indirectly soliciting human capital from the private sector.

Both organisations appeal to Government to curtail this practice as it will have long-term repercussions not only on the public sector wage bill, but also on the ability of the private sector to operate due to lack of human resources. This situation is already being experienced in many sectors.

The current economic circumstances warrant an independent review of public sector employment and resourcing to build a leaner but more efficient public administration, which only enhances those sectors which require resourcing.
The Malta Chamber and the Gozo Business Chamber propose that Government should look into the possibility of secondment of underemployed resources to the private sector.

They also insist that public sector recruitment of persons who are in full-time adequately paid employment with the private sector should, to the extent possible be avoided. Given the present circumstances this should be in the interest of economic recovery and the long-term sustainability of public finances.

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