Skills for growth: the EU’s strategy
The European Commission published a strategy entitled ‘Union of Skills’ earlier this year that aims to address skills shortages that have been persistent in the labour market for several years.
The Union of Skills is made up of three main pillars. There is a strong focus on the need to strengthen foundational skills by ensuring that educational systems provide more successful learning outcomes in literacy, numeracy, digital and STEM fields.
Another important element is that of ensuring businesses, particularly SMEs, receive the necessary support through dedicated EU funding to invest in reskilling and upskilling of their workforce. Finally, the elimination of barriers for labour mobility by improving the recognition of qualifications and attracting high-skilled individuals from third countries through smoother pathways of legal migration.
These goals are expected to be achieved through several initiatives that will be rolled out in the coming months, such as expanding the use of micro-credentials, promoting further the introduction and use of Individual Learning Accounts, a Skills Portability Initiative for EU-wide recognition of qualifications, and encouraging the establishment of EU Skills Academies through EU funding that provide specialised training in strategic sectors.
The ‘Union of Skills’ is a broadly welcome strategy as it addresses several bottlenecks, and it is also very relevant to labour market challenges experienced in Malta.
Businesses across all sectors experience labour and skills shortages. This was also reflected in the latest European Semester Country Report for Malta, which reported such widespread shortages.
Technical fields such as ICT were among the most affected, where over two-thirds of local companies reported difficulties in recruitment. In 2024, twice as many Maltese enterprises faced hiring challenges as the EU average, especially in industry and services.
On the other hand, according to the country report, educational outcomes remain a concern, with around one-third of 15-year-old students underperforming in STEM subjects. While early school leaving is on a downward trend, it still exceeds the EU average.
One of Malta’s CSRs is, in fact: “to address low educational outcomes as well as the severe shortage and mismatch of skills, in particular by fostering basic skills of students and the professional development of teachers.”
Some important steps have been taken. The establishment of the National Skills Council in 2023 was a positive move. Through the EU’s Technical Support Instrument (TSI), Malta is developing a national skills strategy, grounded in EU best practice. Meanwhile, a National Lifelong Learning Strategy and a Digital Strategy are in place to promote digital literacy and ongoing skills development across all ages.
The private sector too has a crucial role to play. Closer collaboration between businesses, vocational institutions and educational institutions are important. For example, partnerships like MCAST’s industry-driven apprenticeships or sectoral training schemes in tourism could serve as practical models to expand.
Targeted support for SMEs is crucial. Specific financial incentives under programmes such as the European Social Fund Plus, accessed through simpler processes, need to be clearly communicated and locally promoted, particularly as the next Multiannual Financial Framework takes shape.
Public entities and business representative organisations can provide clear guidance to SMEs on accessing EU tools and funding opportunities. Early and informed engagement by businesses will be crucial to integrating these resources effectively.
As part of its efforts to support awareness and engagement, the Malta Business Bureau will host an information webinar to present and discuss the EU’s Union of Skills strategy. The event, tomorrow, will include contributions from European Commission officials and key local stakeholders.
Now is the time for Malta to turn its skills challenge into an engine for inclusive growth and a sustainable and competitive economy in line with the green and digital transitions.
Daniel Debono is the permanent delegate of the Malta Business Bureau in Brussels.