Background

The Maltese economy has experienced an extraordinary transformation over the past decade, registering remarkable economic growth. This rapid economic growth has brought about strong demand for labour. Employment levels have reached all-time highs. At the same, unemployment has plummeted to record lows. Participation rates, for both men and women, have hit historic peaks and have outpaced most other European countries.

Like many advanced economies, we are grappling with significant challenges stemming from an ageing population and low fertility rates, which have in turn led to a reduction in local workforce. In response, labour migration has become an integral component of the Maltese labour market, filling skills gaps and supporting our robust economic growth.

The increase in the number of foreign workers is a testament to Malta’s economic strength and competitiveness in an increasingly challenging international economic environment. It is important to note that foreign workers make up around one-third of the workforce and now play a critical role across almost every sector. Foreign workers have also brought much-needed expertise that was lacking in our labour market. They are therefore essential not only for economic growth, but also for the delivery of essential services.

However, this remarkable growth has also brought about significant challenges and pressure on our infrastructures and services. In view of this, a new Malta Labour Migration Policy is being proposed, which builds on the recommendations outlined by the Government in the National Employment Policy 2021-2030. This Policy aims to ensure that economic migration addresses future labour market needs and enhances workforce retention.

This Policy is based on four main guiding principles that prioritise the worker as an individual at their core and adopt a broad view of economic prosperity:

• First Guiding Principle: Retention and Stability;

• Second Guiding Principle: Protection of Employee Rights and Enhancing Working Conditions;

• Third Guiding Principle: Aligning Labour Migration with Labour Market Needs; and

• Fourth Guiding Principle: A Skills-Based Approach to Migration.

This Policy outlines thirty-two (32) recommendations guided by the aforementioned four principles.

Note: To ensure that replies are clear and standardized, it is kindly requested that you specify which recommendation(s) your feedback pertains to when submitting it.