Satisfying labour demand through migration in Malta

Abstract

This report describes the strategies that are being implemented in Malta to address labour market needs and shortages, including skills shortages. It also analyses the effectiveness of these strategies and make recommendations for changes. The Maltese Government’s vision and national employment policy is shaped by the need for Malta to achieve the EU’s targets in terms of overall, female and older workers employment rates and the need for the Maltese workforce to increase its level of skills to be able both to increase the flexibility of workers and to take up jobs in higher value-added sectors. In this regard, the Government has made use of European Social Fund (ESF) financing by investing in upgrading the educational and training infrastructure, while also offering more training opportunities for companies and workers to increase lifelong learning. In parallel, the Government has also taken various measures in order to make work pay so that illegal employment can be turned into formal employment. In terms of migration policy, the Government has focused on trying to stop the huge influxes of irregular migrants from North Africa on the one hand, on upgrading and increasing the capacity of local authorities to manage irregular migrants while in Malta, and on trying to re-settle the highest number of irregular migrants in other countries. More recently, given the ageing of the population combined with a low fertility rate, the Government has started taking into account that migrant workers might be a necessary option in order to sustain the growth of the economy. Currently, the policy followed by the government in order to address labour shortages is first to tap the inactive or unemployed population, then to tap into the population of beneficiaries of protection/asylum seekers which have the right to work in Malta and EU nationals simultaneously. The former category is particularly the case for low skilled jobs, seasonal and other short-term jobs. If shortages have not been solved, then employers are encouraged, through the assistance of the Malta EURES office, to try to recruit EU nationals, particularly for skilled and highly skilled jobs, and as a last resort, to recruit third-country nationals. Companies are also coping with shortages through outsourcing work or training the workforce by using the numerous ESF training programmes and schemes. Such training programmes can be set up in a few months and respond rapidly to changes in the labour market, particularly when new economic sectors come to the island in the form of FDI. In Malta, the Immigration Act and legislation there under is the main legal instrument regulating immigration. Immigration policy is coordinated by the Ministry for Justice and Home Affairs (MJHA) in consultation with other Ministries while economic migration is implemented by the Employment and Training Corporation (ETC) for work permits, the Department of Citizenship and Expatriates Affairs for the implementation of legislation and policies related to migration and the issue of residence documents and the Central Visa Unit for entry visas. [Excerpt]