As Malta prepares for the 2025 budget, it is imperative that we address a critical challenge facing the nation’s future: demography. A comprehensive strategy aimed at retaining talent, boosting fertility rates, and optimizing our workforce is no longer a matter of debate – it is a necessity.

One of the most concerning trends is the steady outflow of our talented and skilled youth. Increasingly, many young Maltese are seeking opportunities abroad, lured by more attractive job markets, better wages, and improved quality of life. If we fail to act, we risk losing an entire generation of innovators, professionals, and leaders who could otherwise contribute to Malta’s growth. Our priority should be to create a fertile environment that not only encourages these individuals to stay but also entices those who have left to return. Whether through better career opportunities, competitive salaries, or improved living standards, Malta must show its youth that they can thrive here, at home.

At the same time, Malta’s fertility rate is alarmingly low, and this poses a long-term demographic threat. The fast-paced lifestyle, coupled with the rising cost of living, has made the prospect of starting a family daunting for many young couples. Housing prices, childcare costs, and financial insecurity are key deterrents to family planning. The 2025 budget should address this by offering substantial support to families, particularly young ones, in the form of tax breaks, childcare subsidies, and affordable housing initiatives. Policies that make family life more affordable and manageable will not only help to boost fertility rates but also secure Malta’s future workforce.

Moreover, the employment structure in Malta is another area that requires urgent reform. A significant portion of the workforce — about one-third — is employed by the government. While public sector employment provides job security, it also results in inefficiency and stagnation, as too many workers are not contributing effectively to national productivity. The private sector must take on a larger share of employment, and the government needs to ensure that every worker is utilized efficiently.

This restructuring will require a coordinated effort to retrain and upskill workers. Social partners must be included in this endeavour to make sure that training programs are aligned with the needs of both the current and future labour market. Malta’s economic growth will hinge on an agile workforce that is ready to adapt to changing demands, whether in technology, services, or other burgeoning sectors.

In conclusion, Malta’s 2025 budget must include a clear, long-term demographic strategy. The focus should be on retaining our talent, encouraging young families, and optimizing the workforce. By doing so, we can secure a brighter and more sustainable future for our nation. The time for action is now—this is the new leap that Malta must aspire to.