Issue link: https://maltatoday.uberflip.com/i/1495215
MATTHEW VELLA A decade of massive econom- ic growth in Malta marked by the importation of labour from overseas, has seen a decrease in Maltese workers within the low- est-paid salary bands. The data presented in the Mal- tese House of Representatives, shows that despite a growth in Maltese workers from 155,000 in 2012, to 174,000 in 2022, the actual number of workers paid less than €20,000 decreased by a sheer one-third – 29.1%. In 2012 there were 108,000 Maltese nationals earning less than €20,000 a year; a decade lat- er they fell to 77,000. In all other salary bands, there was an in- crease in the Maltese workforce. The same data suggests that many of these jobs were direct- ly filled by lower-paid migrants from outside the European Un- ion, even if these numbered just 37,000 in 2022. Indeed, so called third-coun- try nationals totalled just 3,560 in 2012, growing exponentially since then. Yet the largest in- creases in TCNs were in those salary bands that fall below €20,000: from a mere 3,000 in 2012 (85% of the TCN work- force) to 29,000 (71% of TCN workforce). The data clearly suggests the slow 'decline' in lower-paid working class jobs for Maltese nationals, was eventually taken up by workers from outside the European Union. Prof. Manwel Debono, from the Centre of Labour Studies at the University of Malta, said the data shows the emergence and strengthening of a dual labour market in which TCNs do low- paid, lower-skilled jobs which the Maltese do not want to do, while the Maltese are able to choose jobs that pay more and have better working conditions. "There are a multitude of rea- sons for the channeling of TCNs in lower-paid jobs, such as their greater readiness to accept such jobs, their lack of social con- nections, language difficulties, their low levels of unionisation, the incompatibility of their qualifications or skills with our requirements, our social struc- tures that reduce their options, and just plain discrimination," Prof. Debono told MaltaToday. "One should note that TNCs are often trapped in their work situation, without any possibility of improving," he added, point- ing out that this was a situation of concern for different reasons. "First of all, TCNs are often treated unfairly by our society. They are viewed as a commodity rather than as human beings and there is hardly any attempt at integrating them in the Maltese society. This is morally wrong." Prof. Debono adds that while many Maltese might be benefit- ing economically from this dual labour market – as employers, businesses, or landlords charg- ing rents – this growth of dispar- ity will inevitably lead to greater social difficulties and problems. "It is not in the interest of our society as a whole to continue permitting the growth of such socio-economic disparities... if TNCs suffer from lower occu- pational health and safety, they may place a greater burden on the public health system; or if TCNs families are not integrat- ed in society, this may result in greater frictions in public schools," Prof. Debono said. "I think that it is essential for our society, including our politi- cians, to consider the long-term effects of utilising an increasing number of low-paid TCNs. We must take into account the cur- rent and future consequences of this situation and implement better management strategies." Other data from JobsPlus clear- ly shows that an Asian working class taking root with workers from Nepal and India, as well as Albania in Europe, registering the sharpest percentage increase over the past five years, with non-EU workers even outnum- bering workers from the EU in most economic sectors. The increase in workers from South Asia, often recruited by agencies, reflects the rise of the gig economy that followed in the wake of the COVID pandemic, and an increased demand for health workers. Workers from India increased from 443 in 2016 to 5,817 in Sep- tember 2021; while in the same period workers from Nepal in- creased from just 29 to 2,481. Workers from Albania also in- creased sharply from 62 in 2016 to 2,037 last year. Among workers hailing from EU member states, the sharpest increase was registered among Italians, whose number in- creased from 5,724 in 2016 to 10,038 in 2021. The highest number of non-EU workers are employed in admin- istrative and support services (6,296), the construction indus- try (5,296), hotel accommoda- tion (5,502) and health (4,358). EU workers outnumber third-country nationals in sec- tors like financial services, pro- fessional jobs and the enter- tainment sector, which includes gaming. mvella@mediatoday.com.mt 3 maltatoday | SUNDAY • 19 MARCH 2023 NEWS Salary range Maltese 2012 Maltese 2022 % change TCN 2012 TCN 2022 % change €0-€10,000 43,114 29,036 -32.7 1,958 10,660 444.4 €10,001-€15,000 35,401 21,594 -39% 697 10,509 1407.7% €15,001-€20,000 30,251 26,452 -12.6% 384 7,963 1973.7% €20,001-€25,000 20,740 23,480 13.2% 195 3,620 1756.4% €25,001-€30,000 10,440 20,445 95.8% 117 1,643 1304.3% €30,001-€35,000 5,513 15,012 172.3% 49 1,105 2155.1% €35,001-€45,000 4,946 18,252 269 50 1,008 1916% €45,001-€60,000 2,448 11,124 354.4% 45 564 1153.3% €60,001-€90,000 1520 5,991 294.1% 42 334 695.2% Over €90,000 538 2,852 430.1% 23 282 1126.1% Totals 154,911 174,238 12.5% 3,560 37,688 958.7% Foreigners are new working class doing low-paid jobs Maltese no longer want Over the last decade, the portion of Maltese workers earning less than €20,000 fell by 30% to be squarely taken up by lower-paid, non-EU workers "If TNCs suffer from lower occupational health and safety, they may place a greater burden on the public health system; or if TCNs families are not integrated in society, this may result in greater frictions in public schools" – Prof. Manwel Debono