The Reserve Bank of Fiji has reported that pressures in the labor market have lessened, as fewer individuals are seeking work abroad and disposable incomes have risen, as detailed in its July Economic Review released recently.
Despite these improvements, the report highlights that conditions remain tight, with job vacancies decreasing by 1.1 percent to 7,762 in the first half of the year. Notably, there has been a decline in recruitment intentions in various sectors: community, social and personal services dropped by four percent, electricity and water by 2.4 percent, wholesale and retail trade by 1.3 percent, and finance and real estate by one percent.
The Reserve Bank of Fiji suggested that this downward trend may reflect changes in hiring strategies by businesses in response to rising input costs. Conversely, job openings in agriculture, forestry, fishery, construction, and transport, storage, and communication sectors continue to be robust.
Moreover, the increase in wages, reflected by a 28.6 percent rise in Pay As You Earn collections year-on-year as of June, may have helped to reduce the departure of Fiji’s skilled workforce, indicating retention efforts by employers.
The number of Fijians leaving for employment, education, or emigration has decreased significantly, dropping by 32.9 percent to 6,954 compared to the previous year, as reported by the RBF. Data indicates that resident departures have been steadily falling over the last few months.