The Challenge of Quality Human Resources

Despite strong economic fundamentals, Malta risks falling short of its Vision 2050 unless we urgently prioritise the quality of Human Resources.

ACE President Michelle Muscat explains why.

Malta continues to demonstrate robust economic growth, driven by strong domestic demand and impressive export performance. Following a GDP growth of 5% in 2024, the European Commission's latest macroeconomic forecast projects Malta's economy to continue its expansion at a rate of 4.3% for both 2025 and 2026.

Furthermore, the government deficit is expected to reduce to 4% of GDP in 2024, with further decreases anticipated in subsequent years, albeit remaining slightly above the 3% threshold throughout the forecast period.

These positive projections set an optimistic tone for the year ahead, a pivotal one for the country as the government outlines its Vision 2050 - an ambitious strategic direction aiming to enhance the quality of life for all residents.

The realisation of the country’s economic vision strongly depends on human resources, a challenge that spans all of Malta's economic pillars. In the first quarter of 2024, the Labour Force Survey recorded a total employment figure of 306,571, with foreign workers comprising 28.1% of this total, as noted in the 2024/2025 Misco Salaries and Benefits Report.

This trend is particularly pronounced in sectors such as construction, healthcare, and hospitality, where the demand for skilled labour has surpassed the local supply.

Concurrently, data presented by Finance Minister Clyde Caruana in response to parliamentary inquiries reveals a significant increase in Maltese professionals in fields such as law, architecture, and accounting, growing from 12,700 to 15,300 over the past five years.

This data underscores the evolving landscape of the local workforce and highlights the necessity of incorporating these realities into the broader economic strategy - especially Vision 2050, which must prioritise human talent development.

Recognising the indispensable role of foreign talent in Malta’s economic development, the focus remains steadfastly on quality - a priority echoed in the government’s Budget 2025 and its strategic visions for tourism and the economy spanning the next decade.

Achieving this quality hinges on an education system that is responsive to contemporary needs, equipped to nurture a knowledgeable, skilled, and effective future workforce. Despite achieving its lowest rate of early school leavers at 10% in 2023, there remains a gap compared to the European average of 9.5%, signalling the need for ongoing educational enhancements.

Moreover, the government continues to champion quality within the current local workforce, addressing challenges linked not only to foreign but also local workers. Recent Eurostat figures indicate that 40.8% of the population possesses less than upper secondary education.

The government's focus in recent budgets on reskilling and upskilling, exemplified by initiatives like the Skilling Fund from Malta Enterprise, underscores a strong commitment to workforce development.

However, the journey towards a skilled workforce is a collaborative effort. The private sector is pivotal - expected to lead and actively participate in reskilling and upskilling initiatives.

Companies are encouraged to embrace and invest in in-house training programmes, supported by fiscal incentives and necessary academic or technical backing.

Associations and NGOs, including the Association of Catering Establishments, also play a crucial role in contributing to a more skilled workforce.

Ultimately, cultivating a quality labour force transcends governmental responsibility; it is a national imperative involving every sector of society.

It is incumbent upon every individual to engage, adapt, and enhance their skills to contribute effectively to Malta’s economic momentum and the realisation of Vision 2050.