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The extent of labour turnover in Malta

Author

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  • Aaron G Grech

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.

Suggested Citation

  • Aaron G Grech, "undated". "The extent of labour turnover in Malta," CBM Policy Papers PP/02/2023, Central Bank of Malta.
    • Handle: RePEc:mlt:ppaper:0223
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    File URL: https://www.centralbankmalta.org/site/Publications/Economic%20Research/2023/Labour-turnover-Malta.pdf?revcount=9114
    File Function: First version, 2023
    Download Restriction: no
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    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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