Malta’s economy owes a great deal to the labour of foreign workers. They staff our hotels, care for our sick and elderly, run restaurants, build our infrastructure, support our IT sector and keep many small and large businesses functioning.
Yet, a worrying pattern has emerged: we are good at attracting workers but far less successful at keeping them.
A recent Central Bank of Malta study paints a stark picture of this high turnover. It found that around half of foreign workers in Malta leave the country within three years.
The numbers begin to fall almost immediately: 10% leave within the first three months, 19% within six months and nearly a third by the end of the first year.
Among third-country nationals – who face stricter entry and residence rules than EU citizens – about a quarter leave Malta within their first year.
This supports the view that Malta is, for many, a stepping-stone to the wider European labour market. It’s a place to start, but not to stay. The natural question is: What makes a place worth staying in?
The answer, as it turns out, is not limited to foreign workers. It’s something that affects everyone who calls Malta home.
A recent study by Filillino Lanette Kristel Dela Cruz, carried out as part of her Master’s in psychological studies at the University of Malta, explored this very question. Inspired by her own personal journey, her dissertation asked: What makes migrants thrive?
Through a survey of 436 participants from 61 nationalities, she found that self-care, internal motivation, fair treatment and work-life balance are strong predictors of thriving.
In simple terms, people – whether local or foreign – want stability, freedom, respect and purpose.
“A lot of migrants neglect self-care, as their priority is to provide for their families,” Dela Cruz said. “Some take on multiple jobs without having much rest. But the more they take care of themselves, the more they thrive.”
The Central Bank figures suggest that many migrants feel that, in order to thrive, they need to leave Malta.
The numbers underline the scale of the issue. Inflows of foreign workers have surged from just under 10,000 in 2012 to around 42,000 in 2023.
But departures have risen just as sharply, from about 5,900 in 2012 to a peak of 23,400 in 2024.
This transience means that much of the experience and skill foreign workers acquire in Malta never fully translates into productivity gains for businesses or the wider economy. Economists note that this is not simply an HR issue. It’s a national challenge – one that goes to the heart of Malta’s economic model.
If Malta wants to build a sustainable workforce, it needs to become not only a place to work but a place to live – and thrive. This means being selective about the kind of talent we attract but also ensuring that those who come here are treated as people, not just as labour.
It’s about creating the conditions for people to build a life here: affordable housing, fair pay packages and work conditions, a sense of community and the ability to spend time with family. Workers who feel valued and settled are more likely to invest their skills, energy and loyalty in the country that invests in them.
Ultimately, Malta must decide what kind of relationship it wants with those who help power its economy.
Do we want a workforce that sees Malta as a temporary office or a home worth committing to?
The answer will determine not just the future of our labour market but the values of our society.