The recent emigration of Fijian workers has shown signs of slowing down, bringing some relief to the country’s current skills shortage issue. The Reserve Bank of Fiji (RBF) reported in its October Economic Review that the overall emigration trends, cumulative to September, experienced a significant annual decrease of 33.3 percent. This decline is particularly evident in departures for employment, education, or other purposes and is attributed to stricter migration policies and international student visa requirements in Australia and New Zealand.
Earlier projections from ANZ Bank economists indicated that approximately 25,627 Fijians left for overseas opportunities over the past two years, marking the highest emigration rate since records began in 2005. They believe that the increase in Fijians seeking education and work abroad is a temporary trend, expected to mitigate as neighboring countries enforce tighter migration regulations.
These stricter visa requirements are anticipated to restrict the movement of Fijians abroad, potentially leading to a gradual return of residents back to Fiji in the next few years as their visas come up for expiration. However, the local labor market is still feeling the effects of these departures. The RBF has noted a continued softening in the job market, with job vacancies declining by 11.3 percent as of September. Additionally, employer sentiment regarding hiring has also diminished compared to earlier in the year.
Given the skills drain, many employers are raising wages to retain their current staff. This has resulted in a notable increase in wages, rising 10.3 percent, alongside a 24.5 percent increase in PAYE collections, providing some positive economic indicators.
In summary, while the slowing emigration trend offers hope for easing Fiji’s skills shortage, the local labor market continues to face challenges. The increased wages being offered reflect efforts to retain talent in the face of recent departures, suggesting a proactive approach by employers in adapting to the new reality.
Hopeful Outlook: As countries tighten immigration policies, there may be a resurgence of skills in Fiji, providing opportunities for local growth and development. This could pave the way for a stronger domestic workforce and a more robust economy in the future.
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