A third of jobs in Malta can be performed by telework, Central Bank study shows

Over one-third of all jobs in Malta can be performed by telework during extraordinary times, according to a Central Bank of Malta study released today.

The study, published in the Bank’s Quarterly Review, finds that over 30% of jobs in Malta can be carried out via telework under special circumstances, while 15-25% of work can be performed from home with relative ease.

Within the study, economic sectors are divided into three scenarios: those that are highly likely to be able to telework, those that are possible to be performed by telework, and sectors less likely but still possible to telework under special circumstances. Taking into account the first scenario, 15.5% of jobs are deemed teleworkable.

These include all jobs that require minimal, if any, interaction with others, including computer programming or consultancy jobs, and legal or accounting activites.

Jobs falling under the second scenario make up 23.3% of the workforce. These include activities that are less practical to be conducted via telework, but can still be performed away from the workplace. Activities under this classification are found to have more than 70% capacity to work from home.

The third scenario incorporates sectors like education and broadcasting, which require a significant element of human interaction or use of machinery, but may still be carried out from home under abnormal circumstances as shown throughout the pandemic. In this scenario, 33.8% of jobs are considered teleworkable.

“The substantial increase in the prevalence of teleworking, which has accompanied the COVID-19 pandemic, implies that utilisation of the country’s teleworking potential was rather low before the outbreak, an observation that is confirmed by this analysis,” the Bank reports.

Prior to the pandemic, the prevalence of teleworking in Malta stood at 11.7% in 2019. However, official statistics found that 33% of all employed persons were carrying out some work from home during March and April in 2020 – on par with potential teleworking results found in the study.

CBM remarked that closing the gap between actual and potential teleworking levels post-COVID would require a cultural and organizational shift in work practices, including higher levels of work autonomy and better investment in information and technological infrastructure.

In light of the results, the Bank said that there is scope for added research on the economic impacts of teleworking, including effects on labour productivity and employee wellbeing. It pointed out that firms may set up shop locally without physical employees, causing Malta to lose out on positive spill-overs derived from domestic consumption.

“On the other hand, teleworking could make it easier for individuals living in Malta to provide services worldwide without relocating to other countries. In turn, the reduced need to be physically present in the country of employment may also give rise to issues surrounding taxation, such as the determination of the country where it should be charged.”