Malta’s Labour Force Growth Driven by Women

Malta's labour force has undergone significant changes over the past five years, driven by increased participation, particularly among women. Between 2018 and 2023, the country's workforce aged 15-64 grew from 74.1% to 80.7%, with women playing a vital role in this expansion. This growth reflects broader social and economic shifts, with Malta aiming to align itself with EU standards while focusing on gender equality, education, and employment opportunities.

Women’s Increasing Role in Malta's Labour Market

The most striking feature of Malta’s labour force growth between 2018 and 2023 is the significant rise in female participation. Female labour force participation increased by 9.7 percentage points, far outpacing the 3.1 percentage point increase for men over the same period. This notable surge underscores the effectiveness of national policies and initiatives aimed at empowering women to enter and remain in the workforce.

The highest activity rates were recorded among individuals aged 25 to 54, where 96% of this age group was actively engaged in the labour market. Among women in this same age bracket, there was a remarkable 10-point increase in participation, showcasing the success of efforts to encourage more women to pursue professional careers. The inclusion of women at these levels has contributed to the sustained growth of Malta's economy and narrowed the gender gap in employment.

Comparison of National and EU Labour Activity Rates

Malta's overall labour force activity rate for the 15-64 age group stood at 78% in 2023, outperforming the EU-27 average by 5.7 percentage points. This higher rate indicates Malta’s progress in fostering a robust and engaged workforce. However, there is one exception to Malta's outperformance: the 55-64 age group, where EU participation is 9.6 percentage points higher than in Malta. This indicates that while Malta is succeeding in integrating younger workers and women into the workforce, there is still room for improvement in ensuring older workers remain engaged.

Employment Rate Trends from 2018 to 2023

A key factor contributing to Malta's labour force growth is the steady rise in employment rates, particularly among women. Between 2018 and 2023, the employment rate for men increased by an average of 0.7% per year, while the rate for women grew at a more rapid pace of 1.9% annually. These figures indicate that while men continue to maintain a higher overall employment rate, women are entering the workforce at an accelerating pace.

Despite the growth in female employment, gender disparities persist. Men continue to dominate the labour market in both Malta and across the EU. However, the gap between male and female employment in Malta has narrowed considerably. The largest gap in employment between Malta and the EU was recorded among young workers aged 15-24, where Malta's employment rate reached 50.4%, significantly higher than the EU-27 average of 35.2%. This suggests that Malta’s youth are entering the workforce earlier and in greater numbers than their European counterparts.

Shifts in the Age Structure of the Employed Workforce

While the employment rate has increased across all age groups, the age structure of Malta’s workforce has shifted. The 15-24 age group saw only a modest 1 percentage point increase in employment between 2018 and 2023. In contrast, the 20-64 age group experienced a more substantial increase of 6.4 percentage points over the same period. These changes reflect broader trends in Malta’s economy, where older workers and individuals in their prime working years are becoming more integral to the labour force, while the younger cohort experiences slower growth.

Reducing the Employment Gender Gap

A major success story for Malta over the past five years has been the reduction of the gender gap in employment. In 2023, Malta’s employment gender gap stood at 4.3 percentage points, slightly higher than the EU-27 average but significantly lower than previous years. Various incentives, such as flexible working conditions and policies aimed at supporting work-life balance, have encouraged women to enter or remain in the workforce. These initiatives have been essential in bridging the employment gap and enhancing gender equality in the labour market.

Growth in the Services Sector

The services sector has been the backbone of Malta's economy, and its share of employment has grown steadily over the past five years. In 2018, 57% of employed persons worked in services, a figure that rose to 63.1% by 2023. Women have been key contributors to this growth, though the female employment share in services remains 20.4 percentage points lower than the EU-27 average. Despite this, the increase in female employment in this sector indicates significant progress and highlights the sector’s role in providing job opportunities for women.

Self-Employment and Part-Time Work Trends

Self-employment has also seen an uptick in Malta, with approximately 15 out of every 100 employed persons classified as self-employed in 2023. This figure is slightly higher than the EU-27 average by 0.7 percentage points. Male self-employment accounted for 19.3% of all employed men in Malta, while the rates for female self-employment were on par with the EU-27 average.

In addition to self-employment, part-time work has become a common working arrangement in Malta, particularly among women. In 2023, 17% of female employees worked part-time, compared to 29.7% across the EU-27. For both men and women, Malta’s share of part-time workers was lower than the EU average, with the largest difference found among women, where the national share was 12.7 percentage points lower than the EU-27.

Declining Unemployment Rates

Malta’s unemployment rate has been steadily declining, reflecting the strength of the labour market. By 2023, the overall unemployment rate stood at 3.5%, with male unemployment at 3.7% and female unemployment at 3.2%. These figures highlight Malta’s success in maintaining low unemployment levels and ensuring broad participation in the labour force.

The youth unemployment ratio, specifically among individuals aged 15-24, stood at 5.1% in 2023. This figure is 0.9 percentage points lower than the EU-27 average, indicating that young people in Malta face fewer barriers to employment compared to their European peers.

Education and Lifelong Learning

Education has been a cornerstone of Malta’s labour force development. The NEET (not in education, employment, or training) rate for youths aged 15-24 was 8.2% in 2023, one point lower than the EU-27 average. This suggests that young people in Malta are more likely to be engaged in either education or employment compared to their EU counterparts.

Lifelong learning, which refers to the continuous education and skills development of adults, has also been on the rise in Malta. In 2023, 16.4% of individuals aged 25-64 participated in lifelong learning, representing a 5.5 percentage point increase from 2018. This figure is 3.6 percentage points higher than the EU-27 average, highlighting Malta’s commitment to fostering a skilled and adaptable workforce.

Tertiary Education and Employment Prospects

Tertiary educational attainment has also seen significant growth in Malta, increasing by 7.9 percentage points between 2018 and 2023. By 2023, 43.3% of the population had attained a tertiary education, putting Malta almost on par with the EU-27 average. Higher education remains a key driver of employment prospects, and the country’s continued investment in education is likely to yield positive results for future labour market participation.

Conclusion

Malta's labour force has experienced significant changes between 2018 and 2023, with a notable rise in female participation and a narrowing of the employment gender gap. The country has made impressive strides in aligning its workforce with EU standards, particularly in the areas of education, self-employment, and lifelong learning. As Malta continues to build on these successes, the country’s labour market is poised for continued growth, with women playing an increasingly central role in shaping its future.

FAQs

What is the current employment rate in Malta?
The employment rate in Malta for 2023 stood at 80.7%, with significant growth driven by female participation.

How has female participation in Malta's workforce changed?
Female participation in Malta's workforce increased by 9.7 percentage points between 2018 and 2023, outpacing the growth of male participation.

What is the gender gap in Malta's employment rates?
Malta's employment gender gap in 2023 was 4.3 percentage points, slightly higher than the EU-27 average but much lower than in previous years.

What is the main sector of employment in Malta?
The services sector dominates Malta’s employment landscape, with 63.1% of workers employed in this sector in 2023.

How does Malta’s youth employment compare to the EU?
Malta's youth employment rate was 50.4% in 2023, significantly higher than the EU-27 average of 35.2%.

What is the NEET rate in Malta?
Malta’s NEET rate (not in education, employment, or training) was 8.2% in 2023, lower than the EU-27 average.

How has self-employment evolved in Malta?
Approximately 15% of Malta's workforce was self-employed in 2023, with higher rates among men than women.

What role does lifelong learning play in Malta's workforce?
Lifelong learning has grown in importance, with 16.4% of adults aged 25-64 participating in continuous education in 2023.

What is Malta’s unemployment rate?
Malta’s unemployment rate was 3.5% in 2023, with male and female unemployment rates at 3.7% and 3.2%, respectively.

How has tertiary education attainment changed in Malta?
By 2023, 43.3% of the population had attained tertiary education, a significant increase from previous years.