Government's current labour migration approach 'a panicked, directionless reaction,' PN says

The Nationalist Party has reiterated its concern at the government’s current labour migration approach, calling the policy a ‘panicked, directionless reaction to problems of its own making.’

They further accused government of ignoring the “most crucial strategic challenge for the country’s future," claiming a serious skills shortage and the lack of proper planning for the labour market and population levels.

“We are seeing patch-ups and piecemeal proposals that are not grounded in proper study, data or strategic planning. Temporary fixes that place even more pressure on the country,” the Nationalist Party spokespersons Ivan Castillo and Darren Carabott said.

They noted that this reinforces what the International Monetary Fund stated in its 2025 conclusions on Malta, when the organisation noted that “the current labour migration approach appears to be a knee-jerk reaction to short-term pressures rather than a well-coordinated workforce strategy.”

Last week, the International Monetary Fund (IMF) had noted that Malta’s labour-intensive economic growth model appears to be approaching its limits.

This week, the government also received a similar warning from the Country Risk Atlas 2026, which stated that economic growth is being hampered by a mismatch between workers’ skills and labour-market needs, as well as by demographic constraints.

According to the PN, OECD's analysis of Malta's skills and labour markets highlights that “Malta’s skills development framework is weak and fragmented,” and points out that “lack of data and forecasting hinders effective workforce planning.” The report states that “around 30% of existing jobs in Malta could be significantly affected by AI and automation,” meaning about one-third of current jobs face serious risks without preventive measures.

In its report on Malta, the IMF acknowledged Malta’s impressive economic growth but noted that the current labour-driven economic model “is reaching its limits due to infrastructure constraints, population density, and tight labour markets, underscoring the need for a strategic pivot toward productivity-driven expansion.”

The report stresses that Malta can no longer rely on a continued influx of foreign workers to sustain momentum, noting that the island now faces a population density 15 times greater than the EU average.

The party said the same report also highlights how rising wage costs and housing affordability are impacting competitiveness and how the economy is excessively dependent on foreign workers, noting that the Country Risk Atlas further criticises corruption scandals, weak enforcement of planning laws and shortcomings within Malta’s justice system.

In their statement, the Nationalist Party mentioned their own labour market policy document, stating that they have put forward a clear set of measures and direction.

In their strategy, the PN plans to invest in workers through tangible actions, such as establishing a labour market study system, mapping current skills, and forecasting future trends linked to emerging sectors and technologies.

They claim this proactive approach aims to address shortages that could worsen without action.

They further pointed out that the government’s own economic strategy has been built “on two dangerous pillars: labour-intensive, low or no-skilled work and the unplanned importation of foreign workers, without even knowing how many are needed or what skills they possess.”

They highlighted that government data shows that over 71,000 full-time workers earn less than €12,000 a year, while pressure on public services and infrastructure has continued to increase.

The PN added that it is “being proactive, proposing technology-driven initiatives to boost productivity, increase flexibility, reduce operational costs for industry, improve competitiveness, and make Malta more attractive to both local and foreign investment.”