A report by the European Commission has found that there is a heavy reliance on foreign workers in Malta, but also that there is no strategy in place to keep foreign workers in Malta for longer periods.

Indeed the issue with basing Malta’s economic growth on the number of foreign workers has long been a cause for concern in Malta, with the lack of foresight by the government leading to intense stress on the country’s infrastructure and green areas – given the intensified levels of construction the island has seen over the past few years. While this issue has indeed been heavily discussed in the past, the European Commission’s Semester Report shed more light on other issues facing Malta’s economic sustainability, one of which is education.

To start with the good, the report found that expansion in recent years contributed to one of the highest employment growth rates in the EU and to a drop in the overall and long-term unemployment rates over recent years. It also found that income inequality remained stable, however did say that some groups face a higher risk of poverty than others.

Indeed the Commission said that while Malta’s economic growth is expected to slow down, it will remain among the strongest in the EU.

The report noted however that a high level of early school leaving and poor education outcomes, both of which are greatly determined by the type of school a pupil attends, limit equal opportunities. Malta’s education system has been battling this particular issue for quite a while. Given Malta’s very low unemployment rate, given that the cost of living rose, more needs to be done to encourage our youths to keep attending school past compulsory level, and urge them to get better paying jobs rather than drop out early and risk a life towing the poverty line.

“Poor educational outcomes are set to impede future growth”, the Commission said. One worrying statement by the Commission was that “the average performance of Maltese pupils remains below the EU average.”

The Commission did however, note that the number of new entrants in tertiary education is accelerating. From 2013 to 2017, the number of new entrants in tertiary education increased by 23.3%, which will help address the skills shortage.

Another issue highlighted by the Commission is that there have been labour shortages. Indeed it is well known that in certain sectors businesses struggle to find employees to fill the gaps. This has resulted in a rush to recruit third country nationals (not just EU nationals) to fill in those jobs.

One issue with having an economy based on foreign workers however, is retention. A worker coming to work in Malta from abroad is likely to eventually leave, meaning that certain sectors could see a high turnover rate. Maltese are more likely to remain in Malta, and thus a Maltese worker would be more likely than a foreign workers to keep their skills in the country, than a foreign worker.

Malta needs foreign workers, there is no question about that, however what Malta needs more than that is a plan, a plan to help retain the foreign workers themselves and their skills in the country, a plan to help upskill the Maltese people in areas where the Maltese do not have much experience, but are heavily relied on by certain economic sectors. The country also needs a proper plan in terms of housing and office construction due to the large numbers of foreign workers, a plan that would not end up in a the uglification of the island through the construction of ugly buildings. If Malta becomes unattractive, if the cost of living rises too much, why would a foreigner choose to work in Malta rather than elsewhere… and then what would happen to Malta’s economy?

While foreign workers must always be welcome to come to Malta, if Malta suddenly becomes unattractive for them then the island will suffer from an even greater skills shortage. The government needs to ensure that such skills are not lost. Now the increase in the number of people entering tertiary education definitely helps, but given Malta’s diverse economy, and the aim of always attracting what is new, this will always remain a difficult task that requires constant changes and close monitoring.