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Fijian Exodus Slows: What’s Next for the Job Market?

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The movement of Fijian workers seeking opportunities abroad has shown signs of a significant decrease, providing some relief to the country’s recent challenges related to skills shortages. According to the latest October Economic Review published by the Reserve Bank of Fiji (RBF), emigration patterns up to September indicated a substantial annual decline of 33.3 percent, primarily concerning residents leaving for jobs, education, training, or emigration.

This decline can be attributed to the tightening of migration policies and student visa requirements by Australia and New Zealand. Earlier analyses by ANZ Bank economists suggested that an estimated 25,627 Fijians migrated overseas in 2022 and 2023—the highest recorded figure since 2005. The economists characterized this surge as a “temporary phenomenon” that would likely diminish in response to the more stringent policies in the two countries.

The review by RBF highlighted that stricter visa eligibility and obstacles to achieving permanent residency in Australia and New Zealand would contribute to a slowdown in the outflow of Fijians. Furthermore, the expiration of numerous student and work visas is expected to encourage a return of some individuals to Fiji, which could alleviate the nation’s demographic challenges over the forthcoming years.

Despite these trends, RBF noted that there is still a tepid labor market situation within Fiji, with job vacancy postings dropping by 11.3 percent in the year leading up to September. This aligns with findings from the Business Expectations Survey, which indicated diminished hiring optimism compared to earlier in the year. Employers have expressed concerns over the departure of skilled workers, thus prompting many to increase wages for existing staff in an effort to retain talent. Remarkably, wage growth has surged by 10.3 percent, alongside a 24.5 percent rise in Pay As You Earn (PAYE) collections in the year leading up to September.

In summary, while the emigration of Fijians appears to be slowing due to stricter policies abroad, the local job market continues to face challenges. However, the increase in wages could reflect a commitment among employers to improve conditions, fostering a more attractive environment for existing workers and potentially encouraging a brighter economic outlook for Fiji in the near future.

This news serves as a reminder of how changing global policies can significantly impact labor markets and demographics, reminding us of the resilience and adaptability required in such fluctuating circumstances.


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