Silvan Mifsud is director of Advisory at EMCS Tax & Advisory
On Monday 13 March, the Labour Force Survey for Q4 2022 was published, which outlines interesting information.
First of all, the number of persons employed has increased by around 15,000 persons in 2022, to top the total of 290,000 people employed in Malta. Over 80% of this 15,000 increase in employed persons was in full-time employment. Considering that the amount of unemployed and inactive persons by the end of 2022 have remained almost the same as the levels registered by end 2021, it is very likely that the vast majority of this 15,000 increase in persons employed are foreigners. A year ago, by the end of 2021, the Labour Force Survey had shown that the total amount of persons employed had increased by around 13,000.
Interesting to see that the amount of added of 15,000 people employed in 2022, are split as being almost 9,000 female and almost 6,000 male. A similar trend was evident at the end of 2021. When one sees in which roles these added persons were employed one sees that the top roles that absorbed the largest amount were: 23% in elementary occupations, 20% as professionals and 16% as managers.
The sector which saw the largest increase in persons employed was the Public administration, defence, education, human health and social work activities, whereby 30% of the increase in the overall persons employed went in this sector. This was closely followed by the sector of Wholesale and retail trade, transportation and storage, accommodation and food service activities (29.5%) and Information and communication (21.99%). These three sectors covered just a bit over 80% of the 15,000 added persons that were employed in 2022. All this was slightly different than what was seen in 2021.
In 2021, the sector that saw the greatest increase in persons employed was the sector of Wholesale and retail trade, transportation and storage, accommodation and food service activities (37%), followed by Professional, scientific, technical, administration and support service activities (29%) and Public administration, defence, education, human health and social work activities (27%).
Notwithstanding the increase in persons employed, the overall average monthly basic salary increased by 8%. This was a steeper increase than that registered by the end of 2021, where the average monthly basic salary increased by 5%. The sectors that experienced the largest increase in average monthly basic salaries in 2022 were the Wholesale and retail trade, transportation and storage, accommodation and food service activities with a 25% increase followed by Construction with a 17% increase, Professional, scientific, technical, administration and support service activities with a 16% increase and Manufacturing with an 11% increase. This indicates a tight labour market, especially in these outlined sectors which saw a double-digit percentage increase in the average monthly basic salaries.