Growing economies need a constant supply of workers to ensure they stay on course. This is more so in economies that depend on service industries where qualified human capital is of critical importance. Major infrastructure projects also make heavy demands for technical workers if they are to be completed in time and on budget.

Malta is passing through an economic phase where demand for labour is outstripping local supply. Private industry is clamouring for a relaxation of the regulations that permit non-EU citizens to work in Malta. Demand is coming from all sectors including tourism, health, construction, IT and communication as well as accounting and other professional services.

JobsPlus head Clyde Caruana noted that the government maximised the potential of the Maltese labour force with a number of measures. But, he added, there is no doubt that thousands more foreign workers are needed to meet employers’ demands.

His statement reveals different realities that are facing the local labour market.

There is no doubt that the present substantial growth in the Maltese economy is creating pressures on limited local human resources. In the short term, this can only be mitigated by a liberal policy allowing foreign non-EU workers to work here.

But there are also less positive labour market realities. Many foreign workers who are now coming to Malta are low or medium skilled. They work in jobs that the low-skilled Maltese workers do not want to take up. Some cleaning companies are recruiting low-skilled foreign workers from the EU because they are unable to attract locals who consider such jobs as unsuitable.

Many low-skilled workers still want to join the public sector, which is not renowned for its labour productivity. Politicians who cater for the demands of such workers, especially at election time, are doing the economy no favour.

Another less positive reality is that Malta’s education system is still failing to prepare many young people for the jobs that our economy demands. It is sad that so many young people are still leaving the education system without basic skills and qualifications. Equally unacceptable is the fact that Malta has one of the lowest rates of young people who continue with tertiary education, especially in sciences, after leaving secondary school.

The wages policies of a category of workers in the public sector need to be revisited. The teaching and the paramedical professions are not attracting sufficiently motivated local young people to take up jobs in education and health. The consequence is that the country now has to import nurses and other healthcare staff mainly from Third World countries to satisfy the needs of the health sector.

Some operators in the tourism sector may also be adopting short-sighted tactics when they employ low-skilled foreign workers with low wages rather than recruiting local staff, upgrade their skills and offer more attractive wages. They fail to realise that such an expense is, in reality, an investment.

There will always be a need for foreign labour to cater for peaks in demand in the short term. However, the long-term strength of our labour market will depend on the elusive improvement of our underperforming educational system and wages polices for healthcare and teaching staff in the public sector.

Unfortunately, economic booms do not last for ever.

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