Third-country nationals (TCNs) on a single work permit averaged at 17% less than the national average basic income in 2023, despite many being overqualified for their positions, the Beyond GDP II: Third-Country Nationals in Malta report showed.

The Justice and Peace Commission of the Archdiocese of Malta has published its latest report, partnered with EY and APS Bank, on the hidden struggles of third-country nationals in Malta, posing the question of whether they are sharing in Malta's economic future, or solely serving labour market interests.

Justice and Peace President Daniel Darmanin introduced the report, highlighting that 20% of the total working age population in Malta are TCNs.

He said that Beyond GDP II assesses the quality of life of foreigners in Malta, delving into their living experience and challenges, giving TCNs a voice without portraying them as victims, as well as highlighting how flawed the country's single work permit system is.

The report addresses 6 dimensions, including income, housing, education and skills, jobs, health and lifestyle, and environmental quality.

Researchers Maria Giulia Borg, economist Glenn Fenech and Senior Lecturer Ivan Cauchi presented the results of the report, which was released amidst evolving migration policies and an increasing reliance on TCNs as a key part of the Maltese economy.

The researchers said that authorities have not made labour market data publicly available since August 2023, and that is the reason why the data stops there.

Borg said that the report, which builds on the foundational work of Beyond GDP in 2020, focuses on TCNs on a single work permit which contribute to increasing GDP figures, yet their quality of life and experiences in Malta are rarely looked at.

She said that the findings present a comprehensive perspective on the economic and lived experiences of TCNs in Malta.

The study combines publicly available statistical data, as well as semi-structured interviews carried out with Identita, and stakeholders who work with TCN and TCN community leaders.

Borg said that the top six nationalities are India, Philippines, Nepal, Serbia, Albania and Colombia.

As of August 2023, TCN workers on a single work permit were predominantly young males (aged 25 to 39) employed in sectors such as administration (including temping agencies), accommodation and food services, construction, wholesale and retail, and manufacturing.

The report found that these roles were often in low-productivity or low-skilled jobs, with TCN salaries averaging 17% lower than Maltese workers, despite many being overqualified for their positions. Borg said that the system is created in such a way that pushes TCNs to such sectors, according to the country's needs.

Due to Malta's unique context which is marked by an ageing population, low fertility rates and labour shortages, and a drive for higher GDP growth, meant that bringing in TCNs was essential, and the report highlighted the importance of treating them equitably, rather than simply commodities contributing to GDP growth.

Fenech said that Malta faces a significant economic challenge with productivity, as well as a shrinking young-age cohort which are working.

He said that between 2003 and 2023, the percentage of Maltese citizens aged 65 and over increased from 12.8% to 23.5% of the total population, meaning 23.5% of Maltese are elderly.

He said that as of August 2023, TCNs represented approximately 20% of Malta's working age population, with a total number of 56,694 number of TCNs with single work permits.

TCNs between the ages of 25 and 39 accounted for 63% of TCN workers, which continues to help counterbalance the demographic trend of an ageing Maltese population.

The report also showed that some women are stepping into high-value-added economic sectors, such as health, education and even the gaming industry, the latter traditionally male-dominated.

Fenech said that there are "distinct discrepancies" between wages and salaries of TCNs and Maltese and EU nationals, highlighting the quantitative side of the report.

The growth rate in salaries for the Maltese also increases far higher than those of TCNs, he said.

There is also a high turnover within the TCN labour market, with many of them leaving. Fenech said that in 2023, 33,000 TCNs were brought into Malta, however, around 13,500 also left, either returning to their countries, or moving to other countries in the EU for better living conditions.

In fact, 45% of TCNs leave within two years, and 66.3% leave after four or five years. 22.3% leave within the first year.

Asked whether there is data available on how many of those leaving were actually deportations, or people caught illegally working during raids, the researchers acknowledged this causes a lot of fear among TCNs, mentioning raids in Marsa.

Presenting the human interpretation of challenges TCNs face, Cauchi said that TCNs are "indispensable," yet somehow, Maltese manage to treat them unfairly.

The report highlights the complexities and uncertainties of the single-work application process, the bureaucracy of paperwork which is further compounded by language barriers.

Another struggle is issues with abusive employers and landlords, who are conscious of the fact they have a single work permit, allowing for abuse and taking advantage, Cauchi said.

They also face housing challenges, both in rising rental costs, lack of knowledge on rental regulations, and living conditions, as well as issues with family reunification, the latter being a shared experience across the board for many TCN families.

Agencies are also financially exploiting the overwhelmed TCN applicants, and delays in processing permits for months on end also lead some to work illegally, leaving them vulnerable for further exploitation.

Under the single-work permit system, TCN's residency permit is dependent on the 'benevolence' of the employer, making them reluctant to report issues such as unsafe working conditions or unequal treatment for fear of termination and deportation.

Many end up living in substandard living arrangements and overcrowding, as they make the sacrifice to save money and send remittances to their families back in their country.

The report highlighted a pressing issue as stricter income requirements have led to an increase in family reunification rejections, even for children already residing in Malta or born locally.

These children are left undocumented, making them more vulnerable and invisible, and delays in processing children's IDs further hinder their school enrolment, and access to health.

Bishop Joseph Galea-Curmi thanked the Justice and Peace Commission and all participants involved in the report, for shedding light on the struggles of TCNs in Malta.

He said that every human, regardless of nationality or legal status, is created in God's image, and this foundational belief underscored the Church's call to treat TCNs with respect and dignity, and protect their lives and human rights.

"This respect must be demonstrated through attitudes, policies, and concrete actions," Galea-Curmi said.

Asked by the media on what the most urgent steps are following the report, given that it itself does not give any recommendations for policymakers, Fenech said that more updated data is needed, as there was no further publication of labour market data post August 2023.

He said that the next steps is acknowledging Malta's challenges in productivity and ageing population, as the country needs non-Maltese people to sustain their healthcare system, pensions, etc.

"We must ensure that TCNs working in Malta have a fairer and just environment to work in, a level playing field, and we should look at what other countries are doing in terms of family reunification, as it seems that we are falling behind," Fenech said.

He also said that the country could be losing skilled workers in sectors such as in healthcare, due to better family reunification conditions abroad.

A TCN from the floor thanked the researchers for giving them a voice, and highlighted how impossible it is to even acquire and upload documentation within 10 days if that worker was fired, let alone finding another job in solely 10 days.

He also said that he knows of TCN families with children who have remained home for a year, as they are yet to be documented.