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The extent of labour turnover in Malta

Aaron Grech

No PP/02/2023, CBM Policy Papers from Central Bank of Malta

Abstract: Business surveys have consistently indicated that labour shortages are the main issue affecting Maltese firms. This despite that the labour supply has increased sharply during recent decades, particularly due to higher female participation and large inflows of migrant workers. Increasingly, these complaints do not focus on the gap between labour supply and demand, but rather reflect firms having to deal with increased turnover of staff. Using administrative data on engagements and terminations of employment, this note tries to quantify the extent of labour turnover in Malta. This reveals that in absolute terms, except for 2009 and 2020, labour turnover has indeed been rising, though in relative terms the trend may have slowed. Initially higher turnover reflected the fact that more women were joining the labour force, but since 2015 the main cause shifted to higher inflows of foreign workers. Turnover among the latter is around twice that among Maltese workers.

JEL-codes: E24 J61 J63 (search for similar items in EconPapers)
Pages: 17 pgs
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