The rapid increase of foreign labour in Malta has been the talk of the town in recent months. Unsurprisingly and unfortunately, much of this debate focuses on the visible effects of over-population, occasionally with the odd racist overture. However, a far deeper issue, or set of issues, needs to be addressed, particularly as Malta strives to overcome the post-pandemic challenges, strengthen its competitiveness and renew its brand identity.
It is no secret that Malta needs foreign employees to form part of a robust workforce that drives forth an economy which, despite the challenges of recent years, continues to outpace that of its European counterparts. The lack of manpower compounded by wide-ranging skills shortages across most of our economic sectors, perpetuates further our dependence on immigrant workers.
Data presented to the House of Representatives showed that over the last decade, Malta catered for a total flow of 190,000 foreign workers. Additionally, Jobsplus reports show how the annual flow of foreign workers increased from 15,000 in 2012 to 97,000 in 2022, including both full-timers and part-timers.
These represented 36 per cent of the 269,000 making up the workforce at the end of 2022, as reported earlier this month by the National Statistics Office.
In the private sector, the share of foreign workers is at times higher, in fact, one of the most recent MEA surveys found that one in four firms reported that more than 50 per cent of their employees are non-Maltese.
Although discussions relating to Malta’s ability to handle even more foreign nationals are understandable and needed, the MEA is concerned with the rapid transformation of the labour market and the impact that the deterioration of the quality of services offered will have in the long-term.
Changes in the workforce, both in quantity and quality, directly impact the industry’s productivity, output and our country’s competitiveness. We simply cannot afford to lose further ground.
Our country needs to ascertain that in satisfying the immediate human resource requirements identified by employers at their place of work; we are also cautious of the value-added that such human resources bring to our workforce. Foreign workers need to be selected diligently to ensure they have the right language and technical skills, as well as a general aptitude to adapt to the culture and norms of the country. Foreign workers need to also be adequately trained and upskilled.
Changes in the workforce, both in quantity and quality, directly impact the industry’s productivity, output and our country’s competitiveness
Unfortunately, the benefits of the endeavours and investments of employers in the conscientious recruitment and training of foreign workers are short-lived, as a large cohort of foreign workers does not see Malta as a long-term home.
Indeed, according to data presented recently in Parliament, one in every four foreign workers passes through Malta only for temporary employment, and half of the foreign workers who have entered the country over the past ten years stayed only for a year. Evidently, with such rapid change, it is highly unlikely that these workers have enough time to adapt and commit to their new reality.
The limited duration of foreign workers’ stays in Malta also implies a probable low level of economic integration. Studies have shown that most foreign workers rarely enhance their occupational status during their time in Malta.
This lack of mobility within our labour force is yet another hurdle to the growth of productivity, as companies frequently need to recruit new employees, losing out on the benefits acquired from on-the-job experience. Consequently, this situation might be discouraging employers from investing in staff training, contributing to this vicious cycle.
Other concerns, particularly for the logistics sector, also relate to licensing requirements and regulations. Employers and employees alike hereby expect that a level playing field is ensured such that requirements are the same for both Maltese and foreign workers.
Decisions must thereby be made which define the type and size of economy we are striving for, the sectors we are seeking to retain and attain a competitive advantage in, the number of people and types of skills needed to make those sectors viable and hence the number of foreign workers required to fill in any jobs and the skills and expertise they need to carry.
It is for this reason that the Malta Employers’ Association, as it has done on several matters, is once again bringing together all involved parties, including Government bodies, to lead the discussion at a national level on foreign workers. Given the wide-ranging issues at play in this discussion, the event shall focus specifically on the logistics sector, a critical service sector.
The Malta Employers’ Association believes that when tackling this intricate problem, all parties engaged need to set aside emotional or adversarial viewpoints and genuinely strive to comprehend the actual state of affairs. They should work together to pursue shared solutions that genuinely enhance the welfare of our nation.
As part of SME Week, the Malta Employers Association will be hosting a conference on Foreign Workers in the Logistics Industry – Addressing HR Challenges on Tuesday, October 31, 2023.
Joseph Farrugia is MEA Director General