Employers call for moratorium on public sector recruitment ahead of elections

Malta’s employer body has called for a temporary halt on non-essential public sector recruitment in the months leading up to a general election, warning that politically driven hiring risks distorting the labour market and placing additional strain on private businesses.

Addressing the 61st Annual General Meeting of Malta Employers, President Ivan Refalo urged policymakers to exercise restraint, stating that recruitment in the public sector should be “strictly limited to necessary replacements” in the 6 months preceding an election.

He cautioned that expanding public sector headcount beyond essential needs could draw talent away from the private sector at a time when businesses are already facing skills shortages and increasing competition for workers. According to Malta Employers, such practices risk undermining a level playing field and weakening overall economic competitiveness.

The remarks come amid broader concerns about labour market pressures and economic uncertainty. Refalo highlighted that global developments, including geopolitical tensions and supply chain disruptions, are contributing to rising operational costs and tighter margins for businesses. In this context, he stressed that pre-election policy proposals should remain “grounded in reality” and financially sustainable.

Beyond recruitment, Malta Employers also raised governance concerns, warning that reduced transparency obligations for public officials could erode trust. Refalo described good governance as a culture of accountability and fairness, rather than merely a legal requirement.

On labour policy, the organisation reiterated its position against the introduction of a four-day working week at this stage, citing employer feedback that such a model does not currently suit Malta’s economic structure. It also called for stronger social dialogue, expressing concern over being excluded from certain government technical committees related to employment and industrial relations.

Meanwhile, Director General Kevin J Borg described the past year as one of organisational growth and transformation, with increased member engagement and expanded services, including new support mechanisms to help businesses access EU funding.

Malta Employers’ intervention adds to the growing debate on labour market sustainability and public sector size, particularly as political activity intensifies ahead of a potential general election.