Over the past years, there was a surge in the Maltese employment ratio for the age cohort (20-64) which was mainly driven by an increase in female labour market participation. However, despite the rise in the volume of the Maltese workforce, there remains a deficit in the skills base in Malta, as opposed to other countries within the European Union. Consequently, this employment policy proposes various labour market initiatives to upgrade the skills of the Maltese workforce which would contribute to more productive jobs.
Demand-side and supply-side initiatives are targeted towards different sub-sections of the population such as immigrants, inmates, the elderly, females and youths. Investment for demand purposes serves mainly to stimulate employers’ demand for labour. The reasons why such interventions may be required include the need to compensate for low productivity among workers who have been long-term unemployed, persons with a long history of inactivity, and persons with a disability. On the other hand, investment in the supply-side addresses the employability of labour and its productivity through the enhancement of human capital; there remains a considerable number of persons who are inactive and young. Through adequate training and appropriate incentive schemes, the distance of these persons from the labour market can be diminished. In addition, the general level of human capital in the economy could be improved which is necessary for a flexible labour market. Efforts to improve national emploment prospects are expected to result in both social and economic benefits to the Maltese population.