Employee shortage remains top concern for Malta’s SMEs

The chronic shortage of employees remains the foremost challenge facing businesses in Malta, according to the latest SME Barometer for Q1 2025.

The quarterly survey, conducted by MISCO among 427 businesses between 7th and 18th April, reveals that 43 per cent of respondents identified employee shortages as one of the two most critical issues currently impacting their operations.

While concerns such as unfair competition (24 per cent) and excessive competition (19 per cent) also remain prominent, none have eclipsed the issue of labour supply, which has consistently topped the list across successive surveys.

In its observations, the report states that “employee shortages and difficulty sourcing skilled talent locally are causing disruptions,” reinforcing concerns that skills mismatches are becoming increasingly problematic for businesses.

The Barometer also noted that broader challenges, including rising inflation and the ease of doing business, are "spreading further and hitting closer to home", yet the labour shortage continues to dominate the concerns of local enterprises.

To address the issue, the Barometer recommends that policies tied to labour migration must better reflect Malta’s evolving economic vision. Ensuring that businesses have access to the necessary workforce will be vital for sustaining economic growth and competitiveness in the coming months.