Malta has made remarkable strides in increasing female participation in the workforce over the past two decades, however, while participation has increased, there remains substantial room for growth, particularly in leadership roles and wage equality.

This was concluded by The Executive Board of the International Monetary Fund (IMF) in their latest report.

Female labour force participation in Malta has surged from 36 per cent two decades ago to an impressive 73 per cent today, exceeding the EU average. This remarkable progress is largely attributed to proactive Government policies throughout the 2010s that focused on enabling more women to enter and remain in the workforce.

Measures such as tax incentives for working parents, improved maternity and paternity leave policies, subsidised childcare services, and flexible working arrangements have all contributed to this upward trend. Additionally, an influx of foreign female workers has further bolstered these numbers.

Leadership representation and the gender pay gap

While Malta has made great progress in workforce inclusion, female representation in senior positions remains limited, particularly in the private sector. Despite notable advancements in public administration, many private companies still lack gender-balanced leadership teams.

This discrepancy may partly explain the persisting gender pay gap, as industries with higher male representation in senior roles tend to exhibit wider wage disparities.

To bridge this gap, further initiatives are needed to foster workplace diversity and inclusivity at all levels. Mentorship programmes, leadership training for women, and corporate policies that encourage female career progression can be instrumental in achieving this goal.

Ageing workforce and labour market dynamics

One challenge that remains is low participation among women aged 50 to 64. While overall numbers have improved, the potential for further increases in this demographic is limited. The authorities have instead focused on incentivising delayed retirement, ensuring that experienced professionals remain active in the workforce for longer.

Beyond gender equality, Malta’s broader labour market faces shortages in both technical and transversal skills.

The stagnation of STEM (Science, Technology, Engineering, and Mathematics) graduate numbers has been a particular concern. Upskilling and reskilling initiatives, along with strengthening education outcomes, are crucial for sustaining long-term economic growth and maintaining a competitive workforce.

The role of innovation and digitalisation

Innovation and digital transformation play a vital role in shaping the future of work in Malta. The adoption of emerging technologies, including artificial intelligence (AI), has the potential to improve productivity and address labour shortages in certain sectors.

However, the shift towards automation and AI-driven solutions could also lead to job displacements in administrative and clerical roles. Managing this transition effectively requires investment in retraining and lifelong learning opportunities to equip workers with the necessary skills for evolving job markets.

Recognising these challenges, Malta has implemented several initiatives, including the National Education Strategy 2024-30 and the Lifelong Learning Strategy 2023-30. These frameworks aim to improve educational outcomes, better align curricula with industry needs, and enhance adult learning programmes to ensure workforce adaptability.

Strengthening business innovation and financing

To maintain its economic momentum, Malta must continue strengthening its innovation ecosystem. The European Innovation Scoreboard indicates that the country excels in digitalisation, ICT usage, and intellectual property development. However, Malta lags behind its EU counterparts in research and development (R&D) expenditure, financing, and human capital investment.

Despite having a high enterprise birth rate, many businesses in Malta struggle to scale up. To address this, the Government has launched strategic initiatives such as the Smart Specialisation Strategy 2021–27 and the National Research and Innovation Strategic Plan 2023-27.

These frameworks focus on leveraging technology, enhancing R&D efforts, and supporting startups and scaleups through improved financing options.

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