Lack Of Access To Third-Country Nationals Contributes To Major Concern About Labour And Skill Shortages
Labour shortages are still a main cause of concern for employers, the Central Bank of Malta concluded, though overall business conditions have improved significantly over the past few months.
With 65% of businesses reporting they saw a higher activity than before, while only 16% said they experienced negative developments, it’s safe to say that Malta’s business sector continues to thrive.
But it isn’t all sunshine and rainbows for employers, as many firms expressed concerns about labour and skill shortages. They are finding it increasingly difficult to recruit new employees – especially in the service industry.
Companies said that this is mainly because of limited access to third-country nationals. This results in recruiting employees who work at competing companies, increased staff turnover, and higher wages.
This news comes amidst proposals to raise the minimum wage to €1000 to match the country’s living wage, depicting the actual cost of living in Malta, as well as a radical rethink of the employment sector as the government aims to close the country’s skill gap and improve wages in the process.
And while addressing Malta’s skill shortages is a priority in next year’s budget, the wages of third country nationals have remained stagnant for a whole decade, not compensating for the increasing cost of living in the country.
That contributes to the lack of labour employers face, especially in the construction industry and accommodation and food services, as almost half of those jobs are occupied by non-EU nationals.
The Employment Policy plans to address these growing issues, as developing a National Economic Migration Policy will ensure a sustainable flow of workers into the country, and there will be schemes to ensure that people stay and work in Malta long-term.
At the same time, labour migration will be restricted to sectors that have actual labour shortages, and a digital platform will support the migration cycle in the country, ensuring an effective return or reintegration back into their home country.
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