Issue link: https://maltatoday.uberflip.com/i/1533084
11 NEWS maltatoday | SUNDAY • 9 MARCH 2025 young leaving, it's rapid economic growth ta's fast-growing economy. Between 2013 and 2023, the economy nearly doubled. Manufacturing grew modest- ly (€1 billion to €1.1 billion), while IT and consultancy quadrupled to €1.4 billion. Professional, scientific, and technical activities tripled, sur- passing retail and tourism. Sectors that expanded the most, such as construction (3% of economic growth) and remote gaming (three times that), required workers with specialised skills that the do- mestic labour market struggled to provide. The largest increase in for- eign workers occurred in re- tail, transport, accommoda- tion, and food services, where Maltese employment fell by 2,751, while foreign employ- ment grew by over 30,000. In contrast, professional ser- vices saw an increase in both Maltese (+15,000) and foreign (+24,500) workers. How have Maltese workers adapted? Despite the growth in foreign employment, the number of Maltese workers also increased significantly. Between 2013 and 2023, the number of em- ployed Maltese citizens rose by more than 30,000 – the largest increase in a decade, compared to just 9,000 in the previous decade. Labour force growth was driven by rising participation among women and older work- ers. Female employment rose by 25%, while the number of older workers more than dou- bled. In 2013, workers above pen- sion age made up 6% of the Maltese workforce; by 2023, this rose to 11%. However, Malta's work- ing-age population declined by 6.2% over the decade due to ageing. While policies like raising the pension age helped mitigate this, the study suggests further human capital investment is needed to sustain long-term labour supply. The report also highlighted the impact of free childcare, introduced in 2014. Before this reform, women's employment rates dipped between child- birth and kindergarten entry. The change helped close this gap, with 6,200 more Maltese women in employment than if pre-2014 trends had contin- ued. Social benefit tapering, in- troduced in 2014, also boost- ed the labour supply by 5,300 workers, with women making up 70% of beneficiaries. Pension reforms in 2017 in- centivised later retirement by offering a pension top-up for those working beyond 61, en- couraging older workers to stay employed. The changing face of the job market Between 2013 and 2023, Malta's workforce grew from 190,000 to 317,000. Foreign working-age men increased by nearly 63,500, while foreign women rose by 37,000. Sectoral trends show that Maltese workers have moved towards higher-paying indus- tries such as public adminis- tration, education, healthcare, financial services, and IT. Meanwhile, construction, manufacturing, tourism, and retail increasingly rely on for- eign labour. Foreign nationals accounted for 75% of total employment growth since 2013. Foreign working-age men increased by nearly 63,500, while Maltese men below pension age rose by only 2,000. The report also acknowl- edged concerns regarding the rapid growth of foreign em- ployment and Malta's eco- nomic model. It suggested broadening hu- man capital investment be- yond academic education and increasing older worker partic- ipation through lifelong learn- ing. The study was carried out by Aaron G. Grech, Chief Officer of the Economics Division at the Central Bank of Malta. The number of young Maltese leaving the country declined sharply in the 10- yar period between 2012 and 2022, a new Central Bank of Malta study shows Sector Maltese Foreign Agriculture & fishing 191 444 Manufacturing -3448 7322 Construction -2479 10640 Retail, transport, accom- modation & food services -2751 30333 Information and commu- nication 1822 3225 Financial services 3229 3586 Professional services and administrative support 15087 24492 Public administration, education & health 12082 6547 Arts & entertainment, other services 4168 9446