The newly-elected president of the Malta Chamber of Commerce, William Spiteri Bailey, has reiterated long-standing concerns about the excessive size of Malta's public sector. Echoing the chamber's years-long stance, in an interview with this media house, he emphasised the urgent need to downsize the public sector and upskill its workforce. This is not merely a bureaucratic reshuffling, but a crucial step towards restoring balance between public and private employment, addressing labour shortages in industry, and ensuring a sustainable economic future for Malta.

Malta's public sector has long been criticised as being bloated beyond functional necessity. The chamber argues that this overextension has distorted the labour market, drawing talent away from the private sector and stifling its ability to compete, innovate, and grow. While the government has dismissed such criticism - Permanent Secretary Tony Sultana, for instance, described it as an "incorrect sweeping statement" - the facts on the ground tell a different story.

This imbalance has real consequences. With many skilled and semi-skilled workers opting for public sector employment, private enterprises are finding it increasingly difficult to fill critical roles. Spiteri Bailey's observation that the public sector is "enormous" and has "created problems" by absorbing much of the available workforce is not an exaggeration but a reality reflected in persistent private sector recruitment challenges. These staffing shortages are particularly detrimental in sectors such as construction, tourism, manufacturing, and technology - key pillars of Malta's economy that depend heavily on a dynamic, adaptable labour force.

Moreover, the over-reliance on foreign labour, as Spiteri Bailey notes, is a direct by-product of this distorted job market. While labour migration policies have indeed helped address some of the immediate workforce gaps, they are not a long-term solution. Importing talent to cover for deficiencies created by a bloated public sector is inefficient and unsustainable. It also overlooks the untapped potential within Malta's existing workforce - particularly within the public sector itself.

Downsizing the public sector should be part of a strategic reform. Spiteri Bailey rightly points out that such a transition must be paired with robust upskilling initiatives. Many public sector employees, especially those in low-wage roles, would benefit from training programmes that improve their competencies and open doors to better-paying, more productive jobs in the private sector. This would not only alleviate the pressure on public finances but also empower workers to contribute more meaningfully to Malta's economic development.

Upskilling also addresses another of Malta's systemic challenges: the scarcity of specific skill sets. The country's small population means that specialisation is naturally limited, and the pool of available talent is shallow. By investing in vocational training, digital literacy, and soft skills development, Malta can expand the capabilities of its workforce and reduce its dependence on foreign workers in the long run. In tandem with this, fostering a culture of continuous learning would better align the country's human capital with the evolving demands of global and local markets.

Spiteri Bailey also raises a societal point that cannot be ignored: many Maltese are no longer inclined to take up certain essential jobs due to rising living standards and expectations. While this is a natural socio-economic evolution, it further underscores the importance of rebalancing the labour market. By reducing public sector employment and enhancing the value of private sector roles, Malta can create a more attractive, competitive, and sustainable employment landscape.