Fiji’s Labor Market Shifts Toward Local Talent as Foreign Work Permits Decline

Fiji’s labor market is experiencing a significant downturn in demand for foreign workers, marking a transition that reflects broader hiring slowdowns across various industries. As stated in the Reserve Bank of Fiji’s October 2025 Economic Review, approved work permits have plummeted by an alarming 86 percent over the past year, spotlighting reduced reliance on overseas labor.

Additionally, temporary migration for seasonal employment has also seen a decline of 5.9 percent, while the number of residents departing Fiji has decreased by 18.6 percent, indicating less outward migration. This trend suggests that the pressures of migration are easing, even as job advertisements have dropped by 10 percent, which echoes the cautious hiring intentions expected from 60 percent of surveyed businesses over the next six to twelve months.

Despite the cooling demand for labor, there are positive indicators within the local job market, as formal employment registrations have risen by 2.3 percent, and average wages have increased by 10.7 percent as of August. These figures suggest a steady growth in income for those currently employed, contributing to a more resilient workforce.

The central bank highlights that while some sectors project a potential loss of employees in the coming years, the broader labor market is responding cautiously to the uncertain economic landscape domestically and globally. It remains crucial for employers to adjust their recruitment strategies accordingly, considering the overall softening in labor demand.

The current situation presents both challenges and opportunities for Fiji. On one hand, the reduced demand for foreign labor could stimulate more engagement with local talent, fostering a more sustainable labor market. On the other hand, the rise in wages indicates proactive efforts by employers to attract and retain existing workers, which can potentially bolster the economy in the long term. This adaptability could lead to a revitalized local workforce, ensuring future stability and growth opportunities within Fiji’s labor market.