Malta’s recent Labour Migration Policy consultation document has sparked important conversations within the Human Resources (HR) community. As businesses and policymakers navigate the complexities of labour migration, a central theme has emerged: the need for a balanced and sustainable approach. Speaking with local HR professionals and members of the Malta Foundation for Human Resources Development (FHRD), a general consensus is clear—while Third-Country Nationals (TCNs) play an essential role in Malta’s economy, a streamlined and transparent employment framework is necessary to attract the right talent and support long-term growth.
the reality of labour migration in malta
Malta’s labour market is unique. Unlike larger European countries that attract a diverse pool of job seekers from within the EU, Malta faces challenges in securing sufficient local talent to meet its workforce demands. Certain sectors, particularly those in hospitality, construction, healthcare, and gaming, rely heavily on TCNs. Without them, these industries would struggle to function effectively.
Despite these realities, Malta is not always the first choice for EU nationals seeking employment. Cost of living, limited career progression, and geographic constraints make it less competitive compared to larger economies. In response, businesses have made significant investments in their HR departments, striving to manage the complexities of hiring and retaining foreign employees. The call for a more simplified, efficient hiring process is loud and clear. A system that eases employment transitions while positioning Malta as an attractive long-term destination for foreign workers is essential.
Addressing retention challenges fairly
One of the more debated aspects of the consultation document is the proposal to measure and penalise companies for low retention rates. While retention is an important metric, it is not solely the employer’s responsibility. Various external factors significantly impact TCNs’ decisions to stay, including cost of living, housing conditions, and integration opportunities. Focusing solely on employers without considering the broader quality-of-life factors is an unfair and incomplete assessment.
Moreover, certain industries naturally experience higher turnover rates due to the nature of their work. Penalising businesses for factors beyond their control could create unintended consequences, discouraging companies from hiring in critical sectors. Additionally, probationary periods serve as crucial trial phases for both employers and employees. It would be counterproductive to count terminations during probation towards a company’s attrition rate, as this period is designed precisely for mutual assessment.
A fair and effective approach to retention must be holistic. Policies should acknowledge the shared responsibility between businesses, government, and society in ensuring that Malta remains an attractive place to live and work. Rather than punitive measures, the focus should be on incentives that encourage long-term employment and integration.
investing in local talent for a sustainable future
While the reliance on TCNs is a short-term necessity, Malta’s long-term labour strategy must prioritise investment in its local workforce. The key to sustainability lies in reskilling and upskilling initiatives that align with industry needs. Employers and educational institutions must collaborate more closely to design training programs that equip Maltese citizens with the skills required for evolving job markets.
The role of automation and digital literacy cannot be overlooked. As industries embrace technological advancements, workers must be supported in adapting to new tools and processes. By investing in education and training, Malta can cultivate a robust local talent pool, gradually reducing its dependence on foreign labour while enhancing workforce stability and economic resilience.
a collaborative approach to policy development
As the President of the FHRD, I, along with my fellow board members, am committed to fostering a fair and effective labour framework. Achieving the right balance requires collaboration between businesses, policymakers, and other stakeholders. Open dialogue and shared responsibility will be crucial in crafting policies that support both economic growth and workforce well-being.
A well-structured labour migration policy should not only address immediate workforce shortages but also pave the way for sustainable development. By working together, we can create a system that benefits everyone—businesses, employees, and the Maltese economy as a whole. The ultimate goal is a labour market that is dynamic, inclusive, and future-ready, ensuring that Malta remains a competitive and thriving hub for both local and international talent.
