The Maltese Approach to Labor Migration: A Balancing Act
The Maltese labor market is experiencing a dynamic shift,with a surge in foreign workers shaping its landscape. This rise has sparked crucial conversations about the need for a balanced and regulated approach to labor migration.
A decade ago, foreign workers constituted 10% of Malta’s workforce, numbering around 19,000 individuals. This figure has substantially escalated to 116,000, representing 36% of the workforce today. This trend coincides with a period of record employment growth for Maltese nationals, propelling Malta from one of the EU’s lowest employment rates to currently boasting the second-highest number of employed individuals.
This influx of foreign workers, especially those from outside the EU (TCNs), has brought about a distinct shift in the composition of the workforce. In 2013, for every worker from within the EU, there were six nationals from outside the EU. Today, this ratio has flipped, with two workers from outside the EU for every one from within the EU. A significant majority of these TCNs are male workers between the ages of 25 and 44, often filling crucial roles in manual labor sectors where Maltese nationals are harder to find.
This trend can be attributed to a demographic imbalance within malta. The country experiences a net loss of 1,500 individuals entering the workforce compared to those retiring annually.This discrepancy is influenced by several factors: an increased life expectancy, a declining birth rate, a flourishing economy with a record low unemployment rate of 3% (the lowest in the EU), a significant decrease in the number of people relying on social benefits, and the government’s firm stance against raising the retirement age. These factors, coupled with a younger generation increasingly opting for professional careers, have created a demand for a specific type of workforce that TCNs have been filling.
While some criticized the influx of TCNs in the past, their value to the Maltese economy is now increasingly recognized. The key question has shifted from “do we need tcns?” to “how many do we need and in which sectors?”. The newly implemented Malta Labor Migration Policy aims to provide clear answers to these questions.
‘This policy ensures that the labour market will remain employer-led within a regulated context,’
says Leonid McKay, CEO of the Labour Party.
this policy recognizes the need for a regulated surroundings to address the challenges brought on by unchecked market forces. McKay emphasizes that ‘the market, when left to its own steam, causes issues and problems’, citing the rapid expansion of employment in certain sectors, like food delivery, as an example. He illustrates this point with a hypothetical scenario where a company acquires 40 vehicles to meet perceived market demand, leading to an increased number of drivers, but at the expense of existing, smaller businesses who cannot compete. This, he argues, ultimately leads to exploitation and an imbalance in the system.
The 32 recommendations outlined in the policy aim to create a framework that protects workers from exploitation while ensuring a steady supply of labor for the Maltese economy.Two recommendations stand out: a closer scrutiny of employer profiles regarding layoffs and terminations prior to granting work permits, and the mandatory use of bank transfers for payments to TCNs. These measures aim to address concerns about worker abuse and ensure fair employment practices.
While acknowledging that achieving complete stability in such a dynamic system is a continuous challenge, McKay remains optimistic about the policy’s impact. ‘This leftist policy is intended to ensure better control of the market while safeguarding employees from exploitation,whoever they are,nonetheless of their nationality,’ he asserts. He emphasizes the Labour Party’s commitment to a society where ‘workers are at heart,’ and where wealth creation benefits both the economy and its people.