Bridging the skills gap in an evolving work environment

Malta can draw many lessons from the EU Commission's implementation of competency frameworks.

According to the NSO Skills Mismatch Report (2022), over half of Malta’s workforce are in jobs which do not align with their educational qualifications. This same report estimates that over a third of workers (35.1%) are over-qualified for their roles, while 19.3% are under-qualified, implying an inefficient use of talent across sectors.

This is corroborated by the World Economic Forum’s Future of Work 2023 report, which highlights the pressing issue of skills disparity, projecting that within the next four years, nearly half (44%) of the essential skills for core jobs will continue evolving. This necessitates a significant shift in job prerequisites and underscores the critical need for reskilling and upskilling initiatives to bridge the gap and, ultimately, optimise workforce potential.

The Maltese education follows a traditional structure, beginning with pre-primary education and moving through compulsory primary and secondary schooling, followed by post-compulsory education, tertiary and adult education.

The educational focus is on preparing young people for the workforce. However, with the current change in skills, some may argue that the system is misaligned with market needs. This raises a critical question: Is Malta’s education system truly aligned with the evolving needs of its labour market?

As the Maltese economy continues to evolve, it is becoming increasingly clear that certain industries continue to need evolving skills, such as technology, gaming, finance, sustainability and hospitality. This growth is being driven by advancements in cognitive and technological capabilities, as well as the ability to collaborate effectively with others (soft skills). Key competencies identified for reskilling priorities include AI and big data, leadership and social influence, as well as resilience, flexibility, agility and design and user experience (World Economic Forum, Future of Jobs Survey 2023).

The government plays a pivotal role in addressing the skills mismatch present in the workforce. This is done through the formulation and implementation of education policies and strategies, such as the Get Qualified scheme, reskilling programmes and lifelong learning. Most importantly, the government may revise and update the educational curricula, allocate more resources to education, with a special focus on technology and environmental sustainability.

The private sector also has a critical role and needs to contribute to the bridging of the gap between education and employment in order to ensure that young adults acquire practical skills to thrive in the evolving world.

By engaging in partnerships with academic institutions, companies may inform curricula development fora and ensure that the skills taught are those required for future job roles. Internships and apprenticeships are also a collaborative effort to provide hands-on experience to students, while applying theoretical knowledge. These opportunities not only enhance the students’ skills and employability, but also improve a pool of talented and trained individuals within the labour market.

"The skills mismatch in Malta’s workforce requires a united effort to be jointly addressed by educational institutions, the government and the private sector"

The fostering of continuous learning is paramount, as upskilling and reskilling is becoming essential throughout one’s career. In collaboration with the educational systems, one must equip youths with literacy, numeracy and digital skills, while being able to adapt to innovative technologies.

The Future of Work report highlights the significance of soft skills, including empathy, active listening, leadership and social influence, dependability and attention to detail, resilience, flexibility and agility, motivation and curiosity ranking them within the top 10 essential skills in 2023. These skills require ongoing refinement and development to meet the demands of the evolving workplace.

Malta may draw valuable lessons from the EU Commission’s implementation of competency frameworks, which serve as a strategic tool to close skills gap across industries effectively. These frameworks outline specific skills and behaviours for various occupational roles, to create a standardised set of skill requirements.

This approach may benefit Malta by enhancing professional development and growth, aligning the educational system with the needs of the industry, while promoting continuous lifelong learning. Maltese entities can utilise these frameworks to evaluate the competencies of their workforce and encourage training to address existing gaps.

Incorporating competency frameworks into Malta’s approach to skill enhancement can strengthen the country’s competitive edge and guarantee a workforce that is robust and flexible, capable of navigating the dynamic demands of the international economy.

Additionally, countries may boost their productivity, innovation and development, when ensuring that employees possess the necessary skills. This not only enhances the stability and reliability of the workforce, but also makes it more attractive for foreign investors. Moreover, a skilled workforce is better equipped to be agile and adaptable, enabling quick responses to market changes and maintaining a competitive edge.

In conclusion, the skills mismatch in Malta’s workforce requires a united effort to be jointly addressed by  educational institutions, the government and the private sector. Malta’s education system should be updated to integrate competency frameworks and the specific needs of the current and future workforce. The continuous enhancement of government’s reskilling and upskilling incentives will continue supporting life-long learning.

The private sector, on the other hand, could continue investing and supporting Malta’s education system as well as offering internships and apprenticeships. Together, these stakeholders can generate a robust and flexible workforce, making Malta an attractive destination for foreign direct investment and ensuring sustainable competitiveness, social fairness and resilience in the global economy.

Ediana Guillaumier is senior manager, People Consulting and Learning Lead, EY Malta; Board Member, FHRD.