Front-facing industries have seen a complete shift away from local employees, notes Bigbon CEO

Front-facing industries like retail, hospitality, and transportation have seen a complete shift away from local employees noted Bigbon CEO Nick Spiteri Paris in his latest LinkedIn post.

"This underscores the need for a forward-thinking approach to Malta’s labour migration policy, built on a strong education pillar that equips the workforce with future-ready skills," he wrote.

The data, courtesy of economist Malcolm Bray and presented at Diagnosing the Maltese Economy – organised by The Malta Chamber and Bank of Valletta plc – shows that third-country nationals (TCNs) now make up the majority of employees in retail, hospitality, and professional and administrative sectors.

Malta’s labour market has undergone a significant transformation over the past decade. Employment surged from approximately 181,000 in 2013 to 301,000 by 2023, an increase of over 120,000 jobs. This 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 key trends across industries, with some sectors increasingly dependent on foreign workers while Maltese employees exit others.

The manufacturing sector registered the sharpest drop in Maltese employment, losing 3,448 local workers by 2023. While this decline highlights waning local engagement, employment of EU nationals in the sector rose by 1,642, and TCNs saw a dramatic increase of 5,680. This shift indicates the sector’s growing reliance on foreign workers.

The wholesale, retail, transport, accommodation, and food sectors have become the backbone of TCN employment. Between 2013 and 2023, these industries saw an increase of 24,570 TCN workers – accounting for 33.9 per cent of all TCN employment in 2023. EU nationals in these sectors also grew by 5,763 workers. However, this expansion contrasts with the departure of 2,751 Maltese workers, marking the second-largest decline after manufacturing. This shift highlights how locals are moving away from hospitality and retail roles while foreign workers fill the gaps.

Professional and administrative activities saw one of the largest employment increases, adding 39,579 jobs over the decade. TCNs accounted for 19,563 of these roles, EU nationals for 4,929, and Maltese workers for 15,087. This trend underscores the growing demand for professional and administrative services, fuelled by an increasingly international workforce.

The arts, entertainment, and other services sector experienced a notable rise of 13,614 jobs, with contributions from EU nationals (+5,240), TCNs (+4,206), and Maltese workers. This reflects a positive trend in creative industries and related fields.

Real estate saw an increase of 2,240 jobs, driven by TCNs (+580), EU nationals (+413), and Maltese workers (+1,247). Though smaller in scale, this growth indicates continued expansion in the property market and associated services.

The transformation of Malta’s labour market is closely tied to its evolving demographics. High migration flows, particularly among working-age groups, have reshaped employment patterns. By 2023, Malta’s population pyramid was dominated by the 26–45 age group, especially among males. Meanwhile, the share of younger cohorts (under 15) remained low, reflecting declining fertility rates and an ageing native population.