Addressing ageing population in Malta : the role of migration

Abstract

Population ageing is a trend that is being felt, to a greater or lesser degree all over the world. It is happening particularly quickly in developed regions of the world, such as Europe, America, Canada, Australia, Japan and China. The process of population ageing relates to a shift in the age structure of a population, in which older age groups (65+) make up a greater portion of the age structure. A number of factors have contributed towards these changes, mainly low fertility rates and higher life expectancy, in addition to this; the baby boomers of the 1960s are also contributing to population ageing. This is due to the below replacement levels of fertility. The main objective of this study was to assess the extent to which migration can mitigate a declining Maltese workforce, as a result of population ageing. Quantitative research analysis was employed due to the nature of this objective. Based on the findings of the analyzed age structure trends, sectoral employment trends, as well as the levels of migration needed to mitigate decline under various demographic scenarios, one may conclude that migration could partially be an effective tool in order to mitigate Malta's projected decline in the workforce, however it must be used in conjunction with other policies and measures and would not be effective on its own. In addition to this, it was found that incentives for young migrant workers in non-physical sectors would ensure a more sustainable and possibly feasible mitigation of the declining Maltese workforce.