Non-EU nationals could help Malta to meet its need for a larger workforce, according to an established economist.
Philip von Brockdorff, who heads the University of Malta’s Economics Department, said relaxing the restrictions on non-EU citizens seeking jobs in Malta would encourage many more to move here.
He was reacting to a report in The Sunday Times of Malta on how the government is considering ways of importing thousands of workers from countries experiencing high unemployment.
Dr von Brockdorff said the policy allowing work permits for third-country nationals had changed considerably in recent years and this led to a stream of foreign workers joining the local labour force.
“I imagine that if restrictions were relaxed even further, the presence of third-country nationals in our economy would continue to rise, given the rate of economic growth,” he said.
If restrictions were relaxed, the presence of third-country nationals would continue to rise
Dr von Brockdorff said that, in his view, the pressure from the private sector on the government to relax restrictions on third-country nationals moving to Malta would not stop, “especially in the construction and tourism sectors”.
Government sources said the Cabinet was looking into ways to facilitate the private sector’s thirst for foreign workers, both skilled and unskilled, which could even include the setting up of a new ad hoc entity.
The subject was also tackled by the director general of the Malta Employers' Association Joe Farrugia in Times Talk, where he called for a more streamlined way to process visas and permits.
Watch: More days off work are hurting employers - MEA
Proposals on Malta’s labour force requirements, drafted by the State employment agency, Jobsplus, indicate that thousands more workers are needed to meet the demand.
Dr von Brockdorff said that reliance on foreign workers was healthy for an evolving and growing economy.
More than 20,000 foreign workers have moved to Malta over the past few years, carrying out jobs that spurred the country’s economic growth.
However, the majority of the employees were transitory and have already left, which means that unless more are attracted, the economy may face problems.
“The economic growth that the country has achieved depended heavily on foreign workers.
“If it is to continue, we need to keep attracting them in large numbers,” said Clyde Caruana, the head of Jobsplus.
Dr von Brockdorff said that a striking difference between Maltese and foreign workers was that while economic migrants preferred private sector jobs, many Maltese sought employment with the State.
“I anticipate that public sector employment will remain the preferred option for Maltese workers, with the private sector increasingly becoming reliant on foreigners,” he said.
Dr von Brockdorff said the influx of foreign labour was also having an impact on salaries.
He saw no immediate risk to Maltese workers because the economy was continuing to grow. What would happen, however, if the economy slowed down had yet to be seen...
“The private sector prefers a larger supply of labour, which, in fact, results in more competitive wage costs. This also explains why wages in some economic sectors have remained low,” he said.
But could these foreign workers end up pushing the Maltese out of employment?
According to Dr von Brockdorff, the UK has experienced a problem of foreigners driving locals out of work following the 2008 economic crisis, but he saw no immediate risk to Maltese workers because the economy was continuing to grow.
What would happen, however, if the economy slowed down had yet to be seen.
“Will foreign workers return home or stay here? This will depend on how the private sector copes with a slowdown or an international crisis, should that occur,” Dr von Brockdorff said.