The significant outflow of Fijian workers seeking opportunities abroad has finally started to decline, providing some much-needed relief to the nation’s struggle with a skills shortage. According to the Reserve Bank of Fiji’s October Economic Review, the data accumulated up to September reflects a remarkable 33.3 percent annual decrease in resident departures for employment, education, and other purposes.
This decline has been attributed to stricter migration policies and heightened international student visa prerequisites in Australia and New Zealand. Earlier predictions by ANZ Bank economists noted that approximately 25,627 Fijians left for overseas work and study in 2022 and 2023, marking the highest migration figures since records began in 2005. The economists anticipated that this surge was a temporary situation, expecting it to ease by the year’s end as the two countries enforced tighter visa regulations.
The economists emphasized that stricter eligibility for visas and pathways to permanent residency in Australia and New Zealand would likely slow the exodus of Fijian nationals. They also foresee an increase in the number of returning individuals over the next couple of years, which would help mitigate the population loss.
Despite this positive trend regarding emigration, the Reserve Bank of Fiji continues to monitor a weakening local labor market, with an 11.3 percent decrease in job vacancies reported in the year leading up to September. This decline echoes findings from the August Business Expectations Survey, which indicated decreased hiring sentiments among employers. The loss of skilled and semi-skilled workers has made it challenging to find adequate replacements domestically, prompting many employers to raise wages for existing staff to retain talent. Data shows wage increases of 10.3 percent and a 24.5 percent rise in PAYE collections over the year leading to September.
In summary, while the decline in emigration is reassuring, it remains crucial for Fijian employers to adapt to the changing labor market by focusing on talent retention and attraction strategies.
This situation brings hope for Fijian workers as more strict regulations abroad might lead to a stronger local job market in the near future. As more citizens potentially return home, the labor force may find new opportunities for growth and stability.
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