The Reserve Bank of Fiji (RBF) has released an economic review highlighting signs of stabilization within the Fijian labor market. The report indicates a slowdown in the importation of labor, with resident departures dropping significantly—negative 42.3% for employment and negative 22.2% for education—contributing to this stabilization. Notably, the total number of foreign work permits approved until March has plummeted by 84.6%, down to just 117 from a year earlier when there was a 4.1% increase in approvals.
The RBF’s analysis also points out a slight decline in job vacancies of 0.3% cumulative to March, with the majority of sectors experiencing reduced hiring intentions, although mining, quarrying, and community services appear to be exceptions. In terms of employment numbers, the Fiji National Provident Fund reports a 2.5% growth in registered employees, alongside a rise in cumulative wages of 9.9% to February—although this is notably slower than the 12.2% wage increase recorded the previous year.
Inward remittances are providing a positive economic stimulus, totaling $342.7 million to March, while outward remittances are at $139.6 million. This results in net remittances growing by 5% to $203.1 million, helping to support local incomes.
Despite signs of stabilization, results from the RBF’s February Business Expectations Survey reveal concerns among some businesses about the potential of losing workers to migration in the upcoming year, along with challenges related to skill shortages and wage expectations.
Encouraging trends reflect a potential shift in the local labor market landscape, suggesting that as emigration slows and wage growth is recorded, there may be opportunities for skilled Fijians to return to the local workforce, potentially enhancing economic resilience. This shift could lead to a re-invigoration of Fiji’s domestic labor market, paving the way for future growth and stability.
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