Recent economic analysis from the Reserve Bank of Fiji (RBF) indicates that the labor supply situation in Fiji is improving, despite a decrease in labor demand. The report highlights a significant reduction of 27.3 percent in Fijians emigrating abroad in January compared to the previous year, largely due to stricter migration policies in Australia, which have limited job opportunities for Fijians overseas.
Alongside the drop in emigration, there has been a notable 66.5 percent decline in the number of foreign workers in Fiji when measured year-on-year in January, although there was also a remarkable increase of 31.2 percent anticipated for 2024. Furthermore, the RBF reported a significant 34.6 percent decrease in job vacancies compared to the previous year, particularly in sectors such as community services, retail, hospitality, and manufacturing.
The Fiji National Provident Fund corroborates this trend, indicating a modest two percent annual increase in formal employment last year, primarily driven by rising registrations in wholesale and retail, as well as accommodation and food services.
Historically, the labor market challenges in Fiji have been attributed to high rates of migration, with approximately 25,627 Fijians leaving the country between 2022 and 2023, the highest rate on record. However, with the tightening of immigration policies in Australia and New Zealand, the outflux of Fijians is now beginning to slow, as evidenced by a 33.1 percent decrease in resident departures since March 2024.
Employers are facing challenges in retaining skilled workers, prompting many to increase wages, which rose by an impressive 10.3 percent. This wage increase is further highlighted by a 24.5 percent rise in collections from Pay As You Earn (PAYE).
Overall, while challenges persist within Fiji’s labor market, the stabilization of labor supply in conjunction with decreased emigration may indicate a shift towards building a more resilient domestic workforce. With Fijian workers potentially returning home, there may be promising opportunities for growth and stability, painting an optimistic picture for the future of the labor market in Fiji.
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