Malta’s Economy and Foreign Workers
Malta’s economy relies heavily on the labor of foreign workers, who fill crucial roles in various industries such as hospitality, healthcare, construction, and IT. However, a concerning trend has emerged: while Malta is successful in attracting foreign workers, it struggles to retain them.
The High Turnover Rate of Foreign Workers
A recent study by the Central Bank of Malta reveals that approximately half of foreign workers leave the country within three years. The numbers are alarming, with 10% departing within the first three months, 19% within six months, and nearly a third by the end of the first year. Among third-country nationals, who face stricter entry and residence rules, about a quarter leave Malta within their first year.
Understanding the Reasons Behind the High Turnover
This trend suggests that Malta is often seen as a stepping stone to the wider European labor market, rather than a long-term destination. But what makes a place worth staying in? A study by Filillino Lanette Kristel Dela Cruz, conducted as part of her Master’s in psychological studies, explored this question. Her research found that self-care, internal motivation, fair treatment, and work-life balance are key predictors of thriving among migrants.
Creating a Supportive Environment for Foreign Workers
In simple terms, people – whether local or foreign – want stability, freedom, respect, and purpose. Dela Cruz noted that many migrants neglect self-care, prioritizing their families’ needs over their own. However, taking care of oneself is essential to thriving. The Central Bank figures imply that many migrants feel they need to leave Malta to achieve this.
The Economic Implications of High Turnover
The numbers are staggering, with inflows of foreign workers surging from just under 10,000 in 2012 to around 42,000 in 2023. However, departures have risen sharply as well, from about 5,900 in 2012 to a peak of 23,400 in 2024. This transience means that much of the experience and skill foreign workers acquire in Malta is lost, resulting in missed productivity gains for businesses and the wider economy.
To address this issue, Malta needs to become not only a place to work but a place to live and thrive. This requires being selective about the talent we attract and ensuring that those who come here are treated as people, not just labor. Creating conditions for people to build a life in Malta, including affordable housing, fair pay packages, and a sense of community, is crucial. Workers who feel valued and settled are more likely to invest their skills, energy, and loyalty in the country.
Conclusion
Ultimately, Malta must decide what kind of relationship it wants with the foreign workers who power its economy. Does it want a workforce that sees Malta as a temporary office or a home worth committing to? The answer will determine not just the future of the labor market but the values of Maltese society. By creating a supportive environment that values and retains foreign workers, Malta can build a sustainable workforce and a thriving economy.
