Weathering the storm

The rapidly intensifying economic effects of COVID-19 on employment across the globe are proving to be far worse than the 2008-9 financial crisis. This pandemic has already transformed into an economic and labour market shock, with all businesses, regardless of size, growingly facing serious challenges with a real threat of significant declines in revenue, insolvencies and job losses.

With Malta certainly being no exception, there is no doubt that our primary objective must focus on health protection measures to limit the direct effects of COVID-19. Nonetheless, it is clearly apparent, and will continue to be even more so as we make headway, that it is also about mitigating the indirect economic and social fallout arising from this situation.

The eventual increase in unemployment during 2020 will depend substantially on two considerations. Firstly, considerations on future developments, given the uncertainty surrounding the potential duration of the current crisis. Secondly, on government policy support measures needed to counteract against the far-reaching impact of this crisis.

For businesses to sustain their operations along with their employees, there is certainly the need...