The Malta Labour Migration Policy is being launched during a period in which Malta must make very important decisions about its future. It is no secret that the performance of the Maltese economy has been extraordinary.
It has also been largely unexpected, with most professional forecasters consistently underpredicting the pace of economic growth.
As a small-open economy, Malta has excelled by competing on an international stage. This success has created a surge in demand for workers, driving unemployment to historic lows.
But, as a country with an ageing population, it was inevitable that such rapid growth will lead to a strong reliance on foreign workers to meet the country’s needs.
This is not unique to Malta; many growing economies face similar challenges, especially in essential services such as health and social care. Today, foreign workers make up a third of the Maltese workforce, highlighting the importance of an effective labour migration policy.
The Organisation for Economic Cooperation and Development, in a 2016 report titled ‘Recruiting Immigrant Workers – Europe’, says that the main purpose of labour migration policies is “…to meet labour market needs which cannot be satisfied by the domestic labour supply in a reasonable time frame, without adversely affecting the domestic labour”.
This underscores the importance of a labour migration system that strikes the right balance – meeting employers’ needs to fill vacancies that cannot be covered by the Maltese workforce while also addressing broader social objectives. The Malta Labour Migration Policy offers 32 recommendations guided by four key principles.
The first principle is retention and stability. While Malta’s small size makes it relatively straightforward to attract enough people to fill job vacancies, the real challenge lies in retaining these workers. Retention benefits everyone: employers who invest in training and developing their employees, foreign workers who gain the opportunity to integrate more fully into Maltese society, and the population who reap the rewards of a more productive and cohesive workforce.
The second principle is fairness. Research shows migrating to another country is often a challenging decision. While economic opportunities play a major role, migrants also weigh the emotional cost of leaving behind their way of life.
To attract and retain foreign workers, Malta must create an environment where they are treated fairly and with dignity. This includes taking firm action against exploitation by unscrupulous employers. Fair treatment is not just a moral obligation – it ensures a level playing field among ethical businesses. It also protects Maltese employees who are vying for the same jobs.
We must attract and retain the best talent- Ian Borg
The third principle focuses on need. Like many other countries, Malta’s labour migration system primarily reflects employers’ needs – a bottom-up approach to labour migration. However, authorities have a crucial role in managing the process, ensuring that migration serves genuine labour market needs that cannot be met by the domestic workforce. To achieve this control, it is essential for authorities to have the right tools and systems in place to evaluate applications carefully, ensuring that decisions benefit Maltese society as a whole.
And, finally, skills. Also, in line with the National Employment Policy 2021-2030 – which included the key recommendations to review Malta’s labour migration policies – this is fundamental to Malta’s success. As a country with very limited resources, Malta must be able to attract and retain the best talent and encourage training and upskilling.
Malta’s labour migration policy recommendations are closely interconnected. One penalises employers with excessive staff turnover, while another extends the renewal period for foreign workers enrolled in training and integration courses. This provides stability and reassurance for both employees and employers.
The policy places strong emphasis on integration and upskilling. Simultaneously, it focuses on control measures to ensure fairness and transparency. Jobs must be properly advertised to Maltese and EU nationals first, with priority given to the domestic workforce. Salaries for new third-country nationals must be paid via bank transfer to streamline checks and prevent exploitation, while abusive employers will be disqualified.
To balance these strict measures, a register of exemplary employers will be created, expediting applications and rewarding ethical business practices.
These recommendations aim to promote a fair, efficient and socially responsible labour migration system.
Ian Borg is an economist.