The survey estimates that 333,682 people aged 15 and over were employed between January and March 2026, representing 65.3 per cent of the population. At the same time, 12,093 people were unemployed, while 165,082 were classified as inactive.

The activity rate among those aged 15 to 64 reached 82.6 per cent, with the highest participation recorded among individuals aged 25 to 54, where the rate stood at 91.6 per cent.

The employment rate for people aged 15 to 64 was estimated at 79.6 per cent during the quarter. Men continued to record higher employment levels, with an employment rate of 84.5 per cent compared to 73.7 per cent among women.

Workers aged between 25 and 34 represented the largest share of the employed population for both sexes. Self-employed individuals accounted for 13.2 per cent of all workers with a main job.

Most employed persons worked full-time, with 294,973 people in full-time employment, while 38,709 held part-time jobs as their primary occupation. Full-time employees worked an average of 37 hours per week, while part-time workers averaged 19.8 hours. Overall, employees worked an average of 35 hours per week, a slight decrease of 0.3 hours compared to the first quarter of 2025.

Average earnings also remained strong. The average monthly basic salary was estimated at €2,270. The Financial and Insurance Activities sector recorded the highest average monthly salary at €3,105. By occupation, managers earned the highest average salary at €3,628 per month, while workers in elementary occupations earned an average of €1,410.

Despite the strong labour market performance, the unemployment rate among persons aged 15 to 74 stood at 3.5 per cent. Women accounted for 56.9 per cent of the inactive population.

Older adults made up the largest share of inactive persons, with those aged 65 and over representing 56.8 per cent of the total inactive population. Retirement remained the primary reason for inactivity, accounting for 43 per cent of all inactive individuals.

The survey also highlighted educational attainment trends. Among the population aged 15 and over, 38.7 per cent had attained secondary education or lower. Meanwhile, 40 per cent of employed persons held a tertiary-level qualification, underlining the increasing role of higher education in Malta’s labour market.

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This is creating a “dual shock” to jobs, skills and economic resilience. In this context, social partners have to join forces to design policies that harness the potential of AI, and human resource strategies must prioritise reskilling and preparation for emerging job profiles.

Addressing the 114th International Labour Conference, Refalo highlighted how the world of work cannot be isolated from the stark reality of global conflicts, which are now at their highest level since the Second World War, affecting around two billion people and displacing more than 122 million individuals in 2025.

“Geopolitical instability is no longer external to labour market dynamics, but is actively reshaping employment conditions, migration patterns and economic resilience across countries”, Mr Refalo said.

Alongside this, Refalo pointed to the accelerating impact of artificial intelligence, describing it as a structural shift with both disruptive and generative effects on employment, adding that “this transition is generating a complex process of job destruction and also of job creation.” Citing figures from the ILO Director-General’s report, he noted that “as much as 834 million jobs will be affected through AI, with 135 million of these in Europe and Central Asia”, with significant risks of transitional unemployment if labour markets fail to adapt quickly enough.

Turning to Malta’s domestic context, Refalo acknowledged the strong economic performance in recent years, but cautioned that the current growth model, driven largely by labour migration and volume-based sectors such as tourism, is approaching structural limits. He said employers are increasingly calling for a shift towards higher value-added sectors supported by productivity growth, noting that “conditions of employment can only be improved with enhanced productivity”, particularly as wage increases are often offset by rising housing and living costs.

He also reiterated the employers position that with Malta facing a low birth rate and an ageing workforce, retaining labour supply is crucial for sustaining economic growth.

“Elderly employees need to be incentivised to extend their working lives. We advocate holistic flexible work arrangements that maximize the existing talent pool-especially women and older workers-rather than relying solely on blanket measures like a shorter work week, before economic transformation occurs. He also argued that government should prioritise greater public sector efficiency and education reform to address skills gaps, rather than competing with the private sector for an increasingly scarce pool of workers.”

The Association delegation, which also included Director General Kevin J Borg and Advisor Joseph Farrugia, also included active engagement in discussions on social dialogue. 

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The reforms are built on principles of greater dignity, less bureaucracy, and lower expenses, while strengthening the administrative system, the Ministry said. A clearer structure will be introduced within the Public Registry, separating the Sections of Insinuations and Research from Civil Status Acts, each led by a dedicated Director to ensure uniformity and stronger strategic direction.

New legal mechanisms will allow biological parents to directly register a child in cases where the mother is still legally married to another man, reducing bureaucratic hurdles and costs for affected families. Moreover, the government will remove the five-year time limit for married couples (pre-2021) to change their surname, allowing more flexibility without time restrictions.

Amendments will ensure that, in sensitive cases, the cause of death will not be publicly visible on death certificates, while still being officially recorded. The reforms address inconsistencies in adoption records to ensure proper recognition of biological parents in cases where they were incorrectly listed as adoptive parents.

Digitalisation measures include the introduction of an electronic system for notaries to submit insinuations and expanded access to electronic research services, with further rollout planned in the coming months.

Property-related registration processes will be simplified, including the removal of double fees so that the public pays a single tariff. Moreover, new legal provisions will standardise the use of Latin and Maltese characters in official acts, with transliterations required for other character sets.

Minister for Internal Affairs Byron Camilleri said that public policy must always aim to improve people’s lives and dignity, even in cases that affect only a small number of individuals but make a significant difference to them.

He emphasised that “sometimes things that may seem small make a big difference”.

Identity Malta CEO Edric Zahra said the amendments clearly show the agency’s direction towards modern, flexible public services that reflect today’s realities. He stated that the changes will lead to simpler processes, lower costs, and more accessible services, with the aim of making people’s lives easier.

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The total amount paid in contributory and non-contributory benefits was double the level recorded in 2013. Spending on contributory benefits rose by €106.3 million over the previous year to exceed €1.25 billion, while non-contributory benefits increased by more than €36 million to €362.5 million.

The number of contributory pensioners has now surpassed 100,000. When including those receiving the non-contributory old age pension, the total number of pension recipients in 2025 stood at around 106,800. Their combined income from pensions and pension bonuses increased by €103 million to €1.25 billion. This rise was largely driven by a €416 annual increase in all pensions, along with further pension improvements.

Additional increases were introduced for widowed pensioners, with reforms set to ensure that from next year they receive the same pension rate their deceased spouse would have received. Other pensioners born before 1962 also benefited from adjustments aimed at reducing disparities in maximum pensionable income, while changes to the cost-of-living bonus will result in a uniform bonus for all pensioners from next year, removing another anomaly created in 2008.

Around 13,800 people, mostly women, who are not eligible for a pension because they lack sufficient contributions, also saw increases in their annual bonus payments, with total payments reaching €10.5 million.

Families with children also benefited, with spending in this area rising by around €18 million to nearly €113 million. This was driven mainly by higher children’s allowances, increased support for children with disabilities and improvements to the In-work Benefit.

The additional COLA benefit for low- and middle-income households rose by €9.2 million to almost €52 million, benefiting 107,770 individuals or families.

Social Policy Minister Michael Falzon said the figures reflect stronger social investment made possible by economic growth, adding that the government remains focused on supporting pensioners, families and vulnerable people while addressing future challenges.

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“These are truly testing times. Political debates are heating up as parties prepare for a general election, while international developments, especially the conflict in the Middle East, are creating chaos for businesses with a combination of demand and supply-side pressures,” he begins.

Despite these challenges, Refalo points out that Malta’s economy continues to grow. “Growth is encouraging but it also brings pressures, especially on human resources,” he says. “Companies struggle to fill vacancies and competition for talent is intense. More often than not, private firms must rely on foreign workers to keep operations running.”

This, he says, ties directly into the electoral cycle.

“Malta’s competitiveness must be preserved. Political promises must be realistic and affordable. Populist pledges, like offering every type of leave imaginable, might appeal to voters but threaten long-term economic stability and put further pressure on the already increasing national debt. Policy should be evidence-based and sustainable.”

The key word for Refalo is certainty.

“While we have no control on most of the developments taking place around us, we must not fuel further uncertainty ourselves. We cannot afford surprises. Our businesses, workers and economy deserve policies grounded in reality and focused on sustainable long-term growth,” he adds.

He singles out the public sector as a particular concern. “Unfortunately, we continue to see skilled employees attracted away from the private sector for government roles where their abilities are often underused. Not to mention social media adverts that promote public sector jobs under the premise of possibly working less. This practice destabilises businesses and disrupts the labour market.

Refalo frames these concerns within a broader vision.

“We strongly support initiatives such as Malta Vision 2050, which push for sustainable, inclusive and productive growth. Every decision carries an opportunity cost. True leadership requires choosing what serves the nation’s long-term interest. We cannot afford to get it wrong; the future depends on decisions we take today.”

Refalo is particularly concerned about issues related to Malta’s human resources, especially Malta’s labour migration framework. While the policy has been welcomed as a step toward addressing workforce challenges, including skills gaps and the need to attract and retain third country national workers, it still faces practical hurdles, he says.

“We are all for initiatives that help stabilise the labour market and bring in the skills our economy needs,” he explains. “But excessive costs, unclear procedures and under-resourced regulatory bodies are creating unnecessary burdens for both employers and workers. Policies must be workable and enforceable in practice, not just ideal on paper.”

Debates over flexible working arrangements, including the idea of a four‑day week, have also grown. “Flexibility can work,” Refalo says, “but only when it is underpinned by higher productivity, technology, automation and investment in skills. Our researched position shows that most employers do not yet support the idea of a blanket four‑day measure for Malta. Labour shortages, rising costs and operational realities vary across sectors. Work‑life balance is important but solutions must be grounded in the realities of individual firms. At the same time, social dialogue remains non-negotiable. Refalo expressed disappointment at the association’s exclusion from recent government-driven, technical committees related to employment and industrial relations.

“Malta enjoys industrial stability because responsible partners engage in constructive dialogue. Excluding employers from committees discussing employment and industrial relations is unacceptable. Decisions made without our involvement risk imbalance and undermine the process.”

In conclusion, Refalo delivers a clear message: Safeguarding Malta’s economic future requires collaboration, foresight and a refusal to compromise on principles for electoral expediency.

“We stand for policies that drive sustainable growth and which are designed to strengthen the country’s competitiveness. We also stand for the acceptance and practice of core values in the advancement of our society,” Refalo continues while stressing “we are steadfast in our belief that ethical principles provide the foundation for economic and social policies that genuinely serve the national interest. In this light, we have recently commented that public officials must lead by example and demonstrate integrity, transparency and full accountability in the conduct of their duties.”

In this context, Refalo frames the association’s mission as more than advocacy, but one which serves a wider economic cause.

“Our role is to ensure that the voices of employers are heard, that labour policies work in practice, and that long-term growth is underpinned by integrity and ethical employment practice. We are committed to being a constructive partner in making those decisions count.”

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Registered full-time employment  

During October 2025, Administrative and support service activities (NACE 77-82) and Human health and social work activities (NACE 86-88) contributed mostly to the increase in full-time employment, when compared to October 2024, amounting to 2,377 and 1,400, respectively. Registered full-time employment in the private sector went up by 10,065 persons to 246,590. Public sector full-time employment increased by 2,001 persons to 55,195.

The number of persons registered as full-time self-employed rose by 871 when compared to October 2024, while the number of persons registered as employees increased by 11,195. Full-time employment for males and females went up by 4.0 per cent and 4.4 per cent respectively, over 2024 levels.

Registered part-time employment  

Registered part-time employment in October 2025 increased by 8.1 per cent when compared to the corresponding month in 2024. The sectors that contributed mostly to the overall increase were Transportation and storage (NACE 49-53) followed by Accommodation and food service activities (NACE 55-56), amounting to 885 and 785, respectively. 

The number of part-timers who also held a full-time job amounted to 49,097, up by 10.8 per cent when compared to the corresponding month in 2024. Employed persons whose part-time job was their primary occupation totalled 36,122, up by 4.7 per cent when compared to the same month in 2024.

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TalentSync will analyse skills development needs across three industries and three countries: the aviation industry in Malta, the food innovation sector in Ireland and the tourism industry in the Netherlands. Using and refining the methodology used by the National Skills Council in a pilot project focusing on the maritime industry, TalentSync will produce sector-specific reports identifying current and future skills requirements. These findings will support a better functioning labour market through more informed workforce planning, education strategies and training initiatives.

Through two study visits and a series of online workshops, employers will be able to exchange experiences with counterparts in Ireland and the Netherlands, learn from different approaches to workforce development, and explore new ways of addressing skills needs within their sectors.

Speaking during the launch, the President of Malta Employers Ivan Refalo emphasised the importance of forward-looking workforce planning. “Our economy has grown rapidly. Sustaining that growth requires us to ensure that people have the right skills for the jobs of tomorrow,” he said. “Malta has set ambitious targets through its Vision 2050. However, such goals cannot be reached without a stronger alignment between industry, education and policymakers in terms of human resource development. This project aims to bring all stakeholders to better anticipate and better manage future labour market needs.”

Malta Employers EU Helpdesk Coordinator and Project Lead Kurt Cortis highlighted the practical benefits of the initiative. “TalentSync will provide stakeholders a clearer insight into the specific sectors.  More importantly, in the longer term, it will equip Malta Employers with a template to study the needs of other industries in the years ahead,” he said. “This knowledge can help businesses plan recruitment, training and development more effectively, while also supporting workers in preparing for future opportunities.”

Funded under the Erasmus+ programme, TalentSync aims to deliver a refined and transferable methodology for analysing skills needs that can be applied across multiple sectors and countries, supporting long-term workforce development and economic resilience.

The event was also addressed by Dr Stefan Zrinzo Azzopardi, Minister for European Funds and the Implementation of the Electoral Programme and Dr Jeffrey Pullicino-Orlando, Executive Chairman of the National Skills Council.

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Adrian brings over two decades of experience advising clients on public procurement, aviation, asset financing, dispute resolution and M&A, and has played an important role in strengthening the firm’s capabilities in procurement and aviation-related matters.

James Scicluna, Managing Partner at WH Partners, commented:

“Adrian’s promotion to Partner reflects the strong impact he has made since joining the firm. I’m delighted to be able to say he is now a Partner.”

Adrian Mallia added: “The past months have given me the opportunity to work with an incredibly talented team focused on delivering concrete results, and I look forward to continuing to support the firm and its work in the months ahead.”

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The association said that it is in favour of flexible working arrangements and has an open mind about the concept of a four-day week, when this is viable for a given business. 

It maintains that decisions on working conditions, including the introduction of a four-day working week, must remain at the discretion of individual employers and aligned with the operational realities of each organisation. The Association cautioned against blanket or economy-wide measures, stressing that even businesses operating within the same sector face very different commercial and structural challenges.

“Every employer should be free to offer working conditions that are suited to the organisation and the nature of its business. No two businesses are the same, even when they operate within the same sector. For this reason, there should be no blanket measures imposed”, Ivan Refalo, President of Malta Employers, said, while addressing a conference hosted by the Association to debate the issue whilst launching its formal position paper on the subject.

“At the same time, competition for workers is already intense and the public sector should avoid introducing flexible working arrangements that are not viable within a competitive, commercial environment to ensure a level playing field in the labour market. The conference hosted by Malta Employers was not aimed at finding quick fixes but rather about achieving a win-win outcome that protects Malta’s competitiveness while maintaining the harmonious industrial relations that have characterised recent years,” he added.

The publication, Debating the Concept of a Four-Day Week in Malta, features an extensive analysis and set of recommendations prepared in response to the growing public debate around the possible introduction of a four-day working week, the MEA said.

“The paper examines reduced-hours arrangements, compressed working weeks and productivity-linked models, assessing their potential impact on productivity, labour costs, competitiveness and family life within the specific context of the Maltese economy.”

It also reviews experiences in different countries alongside studies by organisations including the ILO and the OECD. “It concludes that outcomes vary widely depending on economic structure, productivity and income levels, as well as whether changes are introduced voluntarily or through legislation.”

In this position paper, Malta Employers cautions that a four-day working week is not a universally applicable solution and that while it may work in specific company settings, Malta’s current realities and labour market constraints, presently rule out any economy-wide approach.  

Consequently, Director General Kevin J Borg noted that while the debate on working hours has intensified internationally, there is no single model that can be applied uniformly across all sectors. He cautioned that blanket reductions in working hours risk increasing labour costs, undermining competitiveness and leading to unintended consequences, including job losses or greater reliance on imported labour.

“Any meaningful reduction in working hours over the longer term must be preceded by a broader economic transition towards higher value-added activity, supported by investment in technology, digitalisation, automation, AI and skills development”, Borg added.

While acknowledging the genuine pressures faced by families, particularly dual-income households with young children, the position paper recognises the importance of work-life balance, employee well-being and family-friendly measures. However, it stresses that any discussion on a four-day week should be grounded on evidence and social dialogue rather than imposed legislative solutions underpinned by generalisations, unrealistic expectations and false assumptions, the MEA said.

As part of the analysis, Malta Employers also conducted a survey among its members, with preliminary findings pointing to notable reservations within the business community. Initial results show that 56% of employers surveyed do not believe that a four-day week is suitable for Malta at this stage. 31% of surveyed employers said they would favour a four-day week defined as a condensed 40-hour week with the same pay, while 10% favour a four-day week of 32 hours with a pro rata reduction in salary. 

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The report, led by Permanent Secretary Mark Musu, notes that the review is taking place amid rapid demographic change. Fertility has fallen to 1.06, while life expectancy continues to rise. By 2070, people aged 65 and over are expected to account for 33.6% of the population, and the Old Age Dependency Ratio – the ratio of pensioners to workers – is projected to double within the next 45 years.

These trends contrast with positive developments in the labour market, including record employment rates, higher female participation and an increase in foreign workers, it said.

The report states that recent pension reforms have improved adequacy by around five percentage points. These reforms include changes to the annual pension increase mechanism, higher pensionable income limits – including for those born before 1962 – stronger contribution credits and improvements to minimum pensions.

An incentive allowing individuals to receive an additional pension increase of up to 29% if they continue working and defer drawing their pension has attracted almost 7,900 people since 2016, it said. As a result, long-term projections show improved sustainability, with the point at which pension spending exceeds income shifting from 2051 to 2054, it said.

While no increase in the retirement age or social security contribution rate is being considered, the Pensions Strategy Group identifies several structural issues for further analysis. These include the role of migration, wage composition and job quality, the impact of child-rearing, participation in private pensions, alignment of the Guaranteed Minimum Pension Level and fertility policies.

The public is invited to submit feedback on 14 questions during a consultation period running from Monday 5 January to Friday 3 April 2026, which will inform the Group’s recommendations on the future direction of Malta’s pension system.

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