Who’s filling the jobs? Malta’s labour market transformation by the numbers

Malta’s labour market has undergone a dramatic transformation over the past decade, with employment rising from approximately 181,000 in 2013 to 301,000 by 2023.

This surge of over 120,000 jobs reflects not only economic growth but also profound demographic shifts, driven by high migration and an ageing population.

A closer look at the data reveals fascinating trends across key industries, with certain sectors thriving on the influx of foreign workers and others seeing Maltese workers depart.

Manufacturing sector sees largest decline in Maltese workers

The sharpest drop in Maltese employment was registered in the manufacturing sector, which saw 3,448 fewer locals by 2023.

While this decline paints a worrying picture for local engagement in manufacturing, the sector has witnessed robust growth among foreign workers.

Employment of EU nationals in manufacturing increased by 1,642, while third-country nationals (TCNs) saw a dramatic rise of 5,680. This trend highlights how manufacturing in Malta has become increasingly reliant on a foreign workforce to fill the void left by Maltese workers.

Wholesale, retail, and hospitality lead TCN employment growth

The wholesale, retail, transport, accommodation, and food sector has emerged as the backbone of employment for foreign workers – covering couriers, cab drivers and restaurant staff.

It registered the largest increase in TCN employment, with 24,570 additional jobs filled by these workers between 2013 and 2023. This accounts for 33.9 per cent of all TCN employment in 2023, underlining the sector’s heavy reliance on this demographic.

The same sector also employs the highest number of EU nationals, with an increase of 5,763 workers.

However, this growth contrasts with the departure of Maltese workers, as 2,751 locals left the sector over the decade – the second-largest drop after manufacturing.

This shift reflects how locals are moving away from jobs traditionally associated with industries like hospitality and retail, while foreign workers fill these critical roles.

Professional and administrative sectors flourish

Among the sectors with the largest employment growth, professional and administrative activities stand out with an impressive rise of 39,579 jobs.

This growth was largely driven by TCNs, who accounted for 19,563 of these roles, followed by EU nationals (+4,929) and Maltese workers (+15,087). The rise in employment in this sector highlights the growing demand for professional and administrative services in Malta, underpinned by a diverse and international workforce.

Arts and entertainment show strong growth

The arts, entertainment, and other services sector also saw a notable increase of 13,614 jobs over the decade.

This growth was evenly distributed, with EU nationals and TCNs contributing 5,240 and 4,206 jobs, respectively. Maltese employment in this sector also grew, indicating an overall positive trend in creative industries and related activities.

Real estate sees modest but positive growth

Real estate, although smaller in scale compared to other sectors, experienced an increase of 2,240 jobs.

This growth was driven by TCNs (+580), EU nationals (+413), and Maltese workers (+1,247). While modest in comparison to other sectors, this rise reflects a steady expansion in the property market and related services.

Employment and population dynamics: The bigger picture

The employment trends over the past decade are closely tied to Malta’s demographic shifts.

High migration flows, particularly among working-age cohorts, have significantly reshaped the labour market. In 2023, Malta’s population pyramid was dominated by the 26–45 age group, particularly within the male population. Meanwhile, the share of younger cohorts (under 15) remained significantly lower than both the working-age and older cohorts, reflecting low fertility rates and an ageing native population.

These dynamics underscore Malta’s increasing reliance on foreign workers to sustain its economic growth. Without this influx, many sectors – from construction and retail to ICT and professional services – would struggle to meet demand.