Dependency on Foreign Labor in the Information and Communication Technology Sector of the Maltese Economy

Abstract

Purpose: The main objective of this study is to provide an overview of the extent of labor and skills shortages that exist in the information and communication technology (ICT) sector in Malta and gain insights into the dependency on foreign labor. Methodology: This study draws upon primary data generated from two research instruments, namely in-depth interviews and an online questionnaire. Various in-depth interviews were conducted with key institutional actors. In addition to the interviews, six locally based companies were requested to complete an online questionnaire. Secondary data from ICT surveys, official documents were consulted. Findings: Findings emerged from this study relate to each of the four seminal thematics, namely, demand and supply, rationale for employing foreign labor, wages, and challenges of foreign labor employment. Practical Implications: This study examined the current contribution of foreign labor in the ICT sector. Unsustainable growth in the ICT sector creates a demand for skilled labor which is currently not locally available. Significance: ICT is one of the most rapidly developing economic sectors in Malta. Labor shortages can slow down economic growth, if not addressed. The annual number of ICT graduates is insufficient. For this sector to continue to thrive and further consolidate itself within the Maltese economy, there will be a continued dependency on the importation of highly skilled foreign labor.