Fiji is currently addressing serious challenges stemming from a significant trend of emigration, particularly highlighted in the wake of the COVID-19 pandemic. Recent comments from Westpac Fiji’s senior economist Shamal Chand, as shared in their January 2025 quarterly economic update, reveal that emigration has influenced the country’s labor market dynamics and led to substantial withdrawals from the Fiji National Provident Fund (FNPF).
Despite a decrease in long-term resident departures — falling by approximately 31.5% last year, equating to about 2,197 permanent migrations — there has been a notable rise in short-term departures primarily for holidays and visits to friends and family. Employment and education-related emigrations have also seen declines of 18.4% and 31.4%, respectively. However, overall, total resident departures increased by 7.9%, suggesting that while some patterns may be shifting, the flow of Fijians leaving the country continues.
Chand emphasized that the high emigration figures in 2022 directly correlated with increased migration payouts from the FNPF, where the fund disbursed around $75.3 million in the 2022-2023 financial year. This figure saw a reduction to $63.6 million in the 2023-2024 period, though both amounts remain significantly high compared to past averages. Historically, from 2016 to 2019, the fund paid an average of just $27 million annually for migration withdrawals.
Research indicated that over 50% of Fijians who migrated sought new opportunities in New Zealand, while 24.8% moved to the USA and 21.5% to Australia. Recent reports from the FNPF reveal more than 2,000 members accessed migration withdrawals in the last year, significantly increasing from less than 1,500 the previous year. These withdrawals have skyrocketed from $40 million in prior years to approximately $83 million in 2023.
Chand noted that the long-term outflow of Fijians is reshaping the labor market landscape, impacting both contributions to the FNPF and the fabric of Fiji’s workforce. Despite these outflows, there may be a silver lining on the horizon, as economists predict the trends of emigration could ease further, with potential policy shifts in countries like Australia and New Zealand possibly leading to a stabilization in Fiji’s labor market.
Moreover, Fiji’s leaders are actively pursuing agreements with foreign jurisdictions to allow Fijians working abroad to maintain contributions to their retirement savings — a step that could foster long-term economic stability and support the national retirement fund.
In summary, while Fiji grapples with the repercussions of emigration, particularly through financial strains on superannuation and labor market shifts, there remains hope for recovery. With potential changes in migration policies abroad, combined with local economic adjustments, Fiji may experience an increased return of skilled workers, positively impacting the local economy and workforce in the near future. This evolving situation calls for strategic adaptations to ensure sustained growth and stability in the Fijian labor market.
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