Minister: 53% of Maldives workforce employed in ‘bloated’ public sector, posing huge challenge

The number of people employed in the public sector make for around 5-15 percent of the total workforce in larger developed countries, but the figure stands at a staggering 53 percent in the Maldives, says Finance Minister Hassan Zareer.

Zareer, who was summoned to the Parliament on Tuesday, made the remark in response to a question by North Galolhu MP Mohamed Ibrahim (Kudu), a lawmaker from the main opposition Maldivian Democratic Party (MDP).

Zareer said that the country’s t economic situation as well as how the state currently operates requires careful analysis.

He said that in Japan, public employees make for 5.9 percent of the total workforce, while the figure stands at 15 percent in the United States and European countries.

“But the employees in our public sector, including the state and all state-owned enterprises, total around 53 percent,” he said.

Zareer said that the Maldivian economy therefore lacks a proper structure.

“We have a bloated public sector right now,” he said.

Responding to a separate question by Funadhoo MP Mohamed Mamdhooh Yoonus, a lawmaker from the ruling People’s National Congress (PNC), Zareer said that the high number of public sector employees pose a huge challenge to managing the state’s expenses.

The Maldives, with a local population of around 400,000, employs over 30,000 people in the civil service alone. An additional 20,000 people are employed in various state institutions, independent institutions, and political posts, and over 41,000 in state-owned enterprises.

Economic analysts have been expressing concern for years over high number of individuals on the state payroll.