Two-thirds of Maltese SMEs face hiring difficulties

Malta has the highest proportion of small and medium-sized enterprises struggling to recruit workers in the European Union (EU), according to a Eurobarometer survey. The findings also show Maltese businesses are more likely than any other EU counterpart to recruit workers from outside the bloc.

Malta has emerged as the EU country where small and medium-sized enterprises (SMEs) face the greatest difficulty recruiting workers, highlighting persistent labour shortages across the bloc.

The survey found that 66% of Maltese SMEs experienced difficulties finding and recruiting skilled employees, the highest rate recorded among all EU member states. The figure is well above the EU average of 46% and contrasts sharply with countries such as Italy, where only 21% of SMEs reported similar problems.

The findings point to continued pressure on Malta’s labour market despite years of economic growth and rising employment. Alongside Romania, Bulgaria and Slovakia, Malta is among a group of countries where businesses struggling to recruit outnumber those finding the process easy by a factor of four or more.

Industry and medium-sized firms hardest hit

The survey, published as Flash Eurobarometer 571, examined recruitment patterns among SMEs across the EU. It found that labour shortages are particularly acute in industrial sectors, where just over half of businesses reported difficulties filling vacancies.

Manufacturing firms also reported significant recruitment challenges, while the situation was somewhat less severe in services and retail.

Company size also appears to influence recruitment experiences. Medium-sized enterprises employing between 50 and 249 workers were the most likely to report difficulties, with 61% facing recruitment problems. By contrast, 41% of micro-enterprises reported similar challenges, although many of the smallest firms had no recruitment needs during the survey period.

Faced with a tight labour market, Maltese businesses are increasingly looking beyond the EU to fill vacancies. The survey found that 48% of Maltese SMEs had attempted to recruit workers from third countries, making Malta the most active member state in seeking labour from outside the EU.

The figure is more than three times the European average of 14%. It also far exceeds rates recorded in countries such as Hungary, where only 2% of SMEs reported trying to recruit third-country nationals. Germany and Ireland followed Malta at a considerable distance, with 25% of SMEs in both countries reporting similar efforts.

Shortages in manual and vocational jobs

The survey suggests that international recruitment is driven largely by shortages in manual and vocational occupations. Across the EU, employers recruiting from outside the bloc most frequently sought skilled construction workers, including bricklayers and carpenters.

Food preparation and processing workers, cleaners and support staff, and transport operators were also among the most sought-after categories.

Although highly skilled workers such as information technology professionals and engineers are also recruited internationally, these occupations account for a relatively small share of non-EU recruitment.

The Eurobarometer also sheds light on the barriers businesses face when considering international recruitment.

Among firms that have never hired workers from outside the EU, language requirements were the most commonly cited concern. However, companies that had actually gone through the recruitment process identified a different obstacle—lengthy and complex administrative procedures.

Nearly one-third of SMEs that recruited third-country nationals said immigration and administrative processes represented the biggest challenge. The finding suggests that firms often underestimate the bureaucratic burden involved until they engage directly with the system.

Nonetheless, Malta stands out as one of the few countries where businesses report relatively high awareness of support services related to international recruitment.

While nearly four out of five SMEs across the EU said they were unfamiliar with available support schemes, 45% of Maltese firms reported being aware of them.

Private recruitment agencies were the most commonly used source of assistance, followed by national employment services. The reliance on private agencies was particularly pronounced among firms recruiting workers from outside the EU.

Most employers report successful integration

The survey also paints a generally positive picture of what happens after non-EU workers are recruited.

A majority of employers reported that integration into the workplace is relatively straightforward, while a similar proportion said retaining these workers does not present major difficulties.

Where problems do arise, employers most often cite insufficient language proficiency and skills gaps. Even so, 61% of employers said integration was easy, while 62% reported that retaining non-EU workers did not pose a significant challenge.

The survey was conducted at the request of the European Commission between December 1 and 17, 2025 and involved 12,900 interviews with decision-makers at SMEs across all 27 EU Member States. 260 Maltese SMEs participated. The results were published recently.