Lack of skills continues to dampen growth in today’s Europe – a reality that Maltese also struggle with.
Currently, local firms rank second highest in the European Union when it comes to encountering skills shortages for at least one job role within their companies, a fact confirmed by last year’s Eurobarometer survey which showed that a staggering 87% of Maltese SMEs reported challenges in locating workers possessing the requisite skills to fill available positions, placing them second only to Austrian SMEs at 88%.
Furthermore, 89% of Maltese SMEs underlined the significance of having staff with the necessary skills for their operational model, with 62% highlighting the increasing importance of digital skills. While these numbers are a mere snapshot of the situation, they are also a reflection of the big challenge ahead.
Even more worrying is a separate study by the National Statistics Office (NSO), which had concluded that more than half of workers in Malta find themselves in jobs that do not match their skill or educational level.
It is no surprise therefore that there is a big push both at an EU level and locally, to address a challenge which is hampering economic development.
Indeed, the 12-month period extending to May 2024 was designated as the European Year of Skills, as a means to highlight the significance of the challenge ahead.
The declared goal of ensuring that a minimum of 60% of adults engage in training annually is a significant ask, given that EU-wide, it is estimated that only a third of adults are actively participating in regular training programmes.
This reality is even more urgent when there is clear evidence of the need for countries to undergo a skills revolution in response to evolving demographics, digital transformation, the green transition, and other overarching trends influencing economies and societies.
In this context, the current EU funding programming period, which spans the years 2021-2027 provides substantial financial backing and technical assistance from the EU for upskilling and reskilling.
A primary avenue for such investments in human capital is the European Social Fund Plus+ (ESF+). With an allocated budget of €205 million for Malta over this timeframe.
The largest share of the budget – over €53m, is dedicated to enhancing the quality and inclusiveness of education, training and lifelong learning with key strategic priorities encompassing the reduction of early school dropout rates and the mitigation of skills shortages through the implementation of innovative teaching methods and learning tools.
Additionally, the focus is on fostering inclusive education for vulnerable groups, such as children with disabilities. Supporting the green and digital transition is, as expected, also an important priority.
One of the major funding programmes seeking to address these issues is the aptly named Investing In Skills, operated by JobsPlus. With a budget of €4m, the programme offers subsidies on training costs, wage costs and air travel during the training period, encouraging eligible employers to invest in enhancing the skills of their workforce.
Applications can be submitted until December 31, 2026 or until funds are exhausted and the deadline for the completion of all training is June 30, 2027.
In parallel, the Access to Employment Scheme is designed to offer employment support to employers in Malta and Gozo, promoting the hiring of individuals facing greater challenges among job seekers, the unemployed, and those currently inactive in the workforce. Unemployment currently stands at around 7,500 persons, according to the NSO, among the lowest rates in the European Union, with a quarter being younger than 25.
Additionally, the scheme seeks to bridge the gap between the supply and demand in the job market by contributing an increase in social cohesion.
Through these initiatives, the scheme endeavours to create a more inclusive and supportive employment landscape. Targeting the most vulnerable people, the ALMA initiative (Aim, Learn, Master, Achieve) is targeted at disadvantaged young people not in employment, education or training, to facilitate their integration into the job market and society.
Also worth a mention, is the FSMA+ scheme operated by the Malta Development Bank, which offers a financing opportunity for taking up specialised courses. Apart from covering course fees, loans extended under this financing programme can be used to cover accommodation, living and travel expenses for studies taking place beyond our shores.
Investing in skills is vital for personal and societal advancement, driving economic growth, innovation, and well-being. With technology and job markets evolving, continuous skill development is essential because a skilled workforce boosts productivity, adaptability, and resilience.
More information at https://europa.eu/make-it-work/skills.