Issue link: https://maltatoday.uberflip.com/i/1541943
5 gozotoday | FRIDAY • 12 DECEMBER 2025 NEWS CONTINUES FROM PAGE 1 The secondary sector, which includes manufacturing and construction, recorded a net positive balance of 41%. The ser- vices sector posted 32%, with ac- commodation and food services (57%) and education and health (50%) reporting the strongest overall positive sentiment. Pro- fessional, scientific, administra- tive, and support services (36%) and financial, insurance, and real estate activities (33%) also recorded positive balances. The survey highlighted ongoing challenges for firms, including shortages of suitable employees, particularly in education, health- care, tourism-related sectors, and information and communi- cation. Cost pressures affected 40% of businesses, four percent- age points higher than in March 2025, while slowing sales were mainly a concern for wholesale and retail firms (56%). Looking ahead, 61% of businesses expect stable conditions over the next six months, with the secondary sector showing the strongest net positive balance (41%). Prices and employment Despite some easing since Sep- tember 2023, cost pressures re- main significant. Around 68% of firms expect the prices of products and services essential to their operations to rise in the next six months, while 32% plan to increase selling prices. Workforce growth remains strong, with 34% of firms ex- panding staff over the past six months, and half planning to recruit more employees in the next six months. Hiring intentions are highest in the secondary sector, particularly among manufacturing firms, where nearly 90% plan to add staff. Investment Investment intentions are at a record high, with 63% of firms planning to invest in the next six months, the highest level since the survey started in 2023. Workforce diversity and inclusion The survey also examined workforce diversity and inclu- sion. Nearly 65% of businesses employ at least one non-local worker. Among these, 34% re- ported that non-local employ- ees make up to 25% of their workforce, 10% up to 50%, and 20% more than half. Firms with more than 50 employees ac- counted for the majority of the last group. Among firms em- ploying non-local workers, al- most half reported up to three different nationalities, 18% up to five, and 25% up to ten. Most businesses (80%) al- ready have diversity policies in place, such as equal oppor- tunity frameworks, cultural sensitivity training, and inte- gration measures, with 14% considering their introduction. Language barriers, cultural differences, and employee re- tention were cited as the main challenges, while training pro- grammes were considered the most valuable form of support (45%). Other support requested in- cluded clearer guidance on legal and administrative pro- cesses (22%) and financial incentives (16%). Business- es cited the main benefits of employing non-local staff as addressing labour shortag- es, accessing skills not readily available locally, and increased operational flexibility. The survey provides a de- tailed snapshot of Gozo's economic performance and emerging trends, giving both the Gozo Regional Develop- ment Authority and the Gozo Business Chamber insight into the factors shaping the island's business environment. Manufacturing and construction sector report positive business conditions Manufacturing and construction, recorded a net positive balance of 41%