Only one in six workers is in a job that aligns with their field and level of studies, making mismatches between education and the labour market Malta’s biggest economic challenge, a study commissioned by the Malta Chamber of Commerce shows.
A third of workers in Malta have a higher level of education than that required for their occupation. On the other hand, one-fifth have a lower level of education or fewer skills than are desirable for their job.
The study, entitled ‘Skills Rush: Have we missed the Bus?’ was co-authored by professors Alexiei Dingli and Rose Marie Azzopardi from the University of Malta, as part of the Human Capital Research Project in collaboration with the HSBC Malta Foundation.
The study, which focuses on the skills gap in the workforce and the challenges faced by both students and educators, has brought to light several issues that it says need immediate attention to ensure the sustainability of Malta’s economic and educational future.
While overqualified workers feel useless and unable to use their qualification, the under-qualified feel they cannot do a job they do not have the capacity or skill to do so, the study says. It finds that half of the managerial positions display either of the two signs.
At the same time there is significant brain drain particularly in medicine, engineering and IT.
Highly skilled individuals are leaving the country, exacerbating the skills mismatch in the labour market, the study says, stressing the need for better data collection on outward migration and policies designed to attract and retain talent.
The study also points to a knowledge mismatch, with 47.6% of people with post-secondary education employed in sectors unrelated to their field of study.
The study highlights how over the past decade more people continued their studies and improved their qualifications. But this has led to a problem in overqualification, which increased from 12.5 per cent in 2012 to 20.2 per cent in 2021.
This lack of alignment between education and job market needs hinders productivity and leaves many workers feeling undervalued.
At the same time only 13.8 per cent of adult workers in Malta undertake lifelong training.
The study emphasises that while Malta has invested heavily in its education system, there are still several inefficiencies that hinder its effectiveness. The report highlights that students in the current system are well-prepared for higher education, yet there is a significant mismatch between what is taught and the skills required in the labour market.
The report criticises the current curriculum for focusing too heavily on academic achievement, often at the expense of holistic individual development.
Rote memorisation is still a significant part of the assessment process, leaving little room for creativity, critical thinking or the development of soft skills, which are increasingly demanded in the workforce.
One of the more alarming findings was the criticism of Malta’s MATSEC exams, which set the national educational standard. The study notes that around 50% of students score a D or lower, raising doubts about the effectiveness of the programme. The report calls for a re-evaluation of this system.
The study zooms into the perspectives of employers, unions and educational institutions.
It shows how employers tend to be indifferent towards training and upskilling, and view personal development as an expense rather than an investment because of poaching.
On the other hand, unions believe that the government should take the lead by campaigning for the importance of training and reskilling for future employability. They also advocate for the introduction of career paths rather than fixed job roles.
Twenty-first century educational institutions, on their part, believe that a more hands-on approach is required, that apprenticeship and exposure to the working environment is a must. They also suggest that employees’ interest in upskilling and reskilling fosters increased job mobility and flexibility.
The report provides several recommendations to address these issues. It calls for a more integrated approach to education, focusing on developing a well-rounded skill set that includes technical, emotional, social and cognitive abilities.
To combat the brain drain, the report suggests the implementation of policies to attract and retain talent, such as a national skills registry and a skills forecasting dashboard.
The study calls for a shift in the educational system’s priorities to meet future employment needs. This includes a long-term vision that promotes education as a lifelong process, the nurturing of soft skills from an early age, and a greater focus on the individual holistic development of students.
The study included consultation with employment bodies, unions, higher education institutions, foundations in education, and governmental or national authorities in education.