The Reserve Bank of Fiji’s recent July Economic Review indicates a softening of pressures in the labor market, attributed to a decrease in the number of individuals seeking work abroad and an increase in disposable incomes. Despite this easing, the job market remains tight, with reported job vacancies declining by 1.1 percent to 7,762 during the first half of the year.
The report highlighted reduced hiring intentions across several sectors, including a four percent drop in community, social, and personal services, a 2.4 percent decline in electricity and water, a 1.3 percent decrease in wholesale and retail trade, and a one percent drop in finance and real estate.
This trend may reflect businesses recalibrating their hiring strategies in response to rising input costs. Conversely, high job openings persist in sectors such as agriculture, forestry, fisheries, construction, and transport, storage, and communication.
Additionally, a notable rise in wages, with a reported 28.6 percent increase in Pay As You Earn collections in the year leading up to June, could have played a role in retaining skilled workers in Fiji. The Reserve Bank noted a significant reduction in the number of Fijians leaving the country for employment, education, or other reasons, which fell by 32.9 percent to 6,954 on an annual basis by June. This trend of decreasing resident departures has been consistent over recent months, according to the bank’s data.