Two recent trips to the UK and Italy starkly highlighted the growing disparities between Malta’s labour market and those abroad. As a tourist, it was impossible not to notice how different the workforce composition is. In Malta, third-country nationals (TCNs) and European Union workers dominate the private sector, whereas in other countries, locals still hold a firm presence in various industries. This observation brought back memories of a time when Maltese workers were the backbone of the retail, catering, and service sectors. Today, however, finding a Maltese worker in the private sector is a rare occurrence rather than the norm.

Until a few years ago, individuals would start at entry-level positions due to their lack of qualifications but, through hard work, loyalty, and experience, rise through the ranks. Middle-aged employees in supervisory and managerial roles were a testament to this system. Such a scenario remains common abroad—hotels, for instance, employ locals who have built their careers over time. However, in Malta, this has become the exception rather than the rule.

Instead, what we see today is a high employee turnover rate, with many supervisors in their mid-20s. The reason is simple: the exodus of the local workforce from the private sector has left no room for organic career progression among Maltese workers. The traditional pathway to upward mobility has been replaced by a system that prioritizes filling vacancies with foreign labour rather than investing in and retaining local talent.

Why This Shift Is a Concern

First and foremost, it is essential to clarify that there is nothing inherently wrong with recruiting foreign workers to address skill shortages. Throughout history, Malta has relied on foreign expertise to support its economic growth. However, issues arise when an economy becomes almost entirely dependent on TCNs.

One major repercussion is the dilution of Malta’s cultural charm, particularly in tourism. Visitors once had the opportunity to interact with Maltese employees, ask for local insights, and experience the island’s authentic hospitality. Today, the Maltese experience is fading. It has reached the point where tourists staying in hotels might not encounter a single Maltese employee. Even when they venture out to places like Valletta, Sliema, St. Julian’s, or St. Paul’s Bay, the presence of Maltese workers is minimal. Are we comfortable with losing this identity?

Secondly, the disappearance of the Maltese workforce from the private sector has coincided with a deterioration of employment conditions. This is no coincidence. With fewer Maltese workers, collective bargaining in the private sector has weakened significantly, if not vanished entirely in some industries. As a result, working conditions have worsened, wages have stagnated, and the private sector has become less attractive to locals. This vicious cycle continues: as Maltese workers exit, wages drop, further discouraging them from returning. The end result? An economy built on cheap labour rather than on quality and sustainability.

The Way Forward

Reversing this trend is not about turning back the clock—it is about making the private sector an attractive option for Maltese workers once again. Several measures can help achieve this:

  1. Improving Working Conditions and Career Progression – Employers must offer competitive salaries, clear career advancement pathways, and a better work-life balance. Investing in employee retention will reduce turnover and provide stability in the workforce.
  2. Mandatory Trade Union Membership for Low-Income Workers – A bold but necessary step, mandatory union membership for low-income employees could reignite collective bargaining. This would help secure fair wages and better conditions for all workers, not just TCNs.
  3. Fiscal Incentives for Employers – The government should offer financial incentives to businesses that invest in Maltese workers through training programs, apprenticeships, and structured career progression plans.
  4. Aid Schemes for Automation – By encouraging automation in industries that rely heavily on unskilled labour, Malta can transition away from an economy dependent on cheap labour and towards one that prioritizes efficiency and high-value employment.
  5. Strengthening Apprenticeship and Vocational Training – Secondary education must integrate more robust apprenticeship programs to prepare young Maltese workers for careers in the private sector, ensuring they view it as a viable long-term option.

Some may argue that other countries have not needed such measures to retain their local workforce in the private sector. However, Malta’s situation is unique—no other country has increased its population by over 25% in a single decade. Given the scale of this demographic shift, extraordinary measures are necessary to restore balance and protect the sustainability of the local workforce.

The question remains: do we want to continue down this path of over-reliance on foreign labour, or do we take decisive action to ensure that the Maltese workforce regains its rightful place in the private sector? The answer will determine the future of Malta’s economy and its identity for generations to come.