The recent trend of Fijian workers leaving the country for better opportunities appears to be slowing down, providing some much-needed relief amid the nation’s ongoing skills shortage. The Reserve Bank of Fiji (RBF) reported in its October Economic Review that emigration for employment, education, and other purposes saw an annual decline of 33.3 percent up until September.
This decrease is attributed to stricter migration policies and revised international student visa requirements in Australia and New Zealand. Analysts from ANZ Bank had previously indicated that the number of Fijians leaving for opportunities abroad reached an all-time high, with an estimated 25,627 individuals emigrating over 2022 and 2023, marking the largest figure since records began in 2005. They believe this surge was a temporary situation that would dissipate as both Australia and New Zealand implemented stricter migration regulations.
These changes are expected to result in a slowdown in emigration from Fiji, alongside a potential increase in local arrivals due to the expiration of student and work visas. However, this shift has not yet significantly impacted Fiji’s labor market. The RBF’s Job Advertisements Survey indicated a decline in job vacancies by 11.3 percent in the year leading up to September, signaling a softening labor market and reduced hiring sentiment among employers.
Many employers have responded to the skills drain by increasing wages for their current employees, which has led to a reported rise of 10.3 percent in wages and a 24.5 percent increase in PAYE collections during the same period.
In summary, while the trend of Fijian emigration has shown signs of easing, the local labor market is still grappling with challenges related to the loss of skilled workers. However, the measures being taken by employers to boost wages and retain staff highlight a positive adaptation to this situation, providing hope for improved stability in the labor market moving forward.
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