LABOUR supply in Fiji, problematic not too long ago, has stabilised, according to the Reserve Bank of Fiji’s latest economic review.
In its analysis of January data, RBF said while demand for labour in the local market had moderated, supply had stabilised.
“Supply of labour has stabilised, partly due to a decline (January year-on-year: -27.3 per cent) in Fijian citizens emigrating abroad (for one year and above), as Australia tightened migration and employment policies.
“In tandem, while the number of foreign workers fell in January (y-o-y: -66.5 per cent), this is on the back of a notable annual increase of 31.2 percent in 2024,” RBF stated in its February economic review.
The leading indicator in the drop in labour demand was a 34.6 per cent decline in the number of job vacancies advertised in January compared to a year ago, with contractions noted in the community, social, and personal services; wholesale and retail trade; restaurants and hotels; electricity and water; and manufacturing sectors.
Last year, formal labour statistics provided by Fiji National Provident Fund showed an annual two per cent gain in formal employment driven by higher registrations in the wholesale and retail trade; repair of motor vehicles and motorcycles; accommodation and food; transport and storage; and administrative and support sectors.
Fiji’s acute labour shortage in recent years had been attributed to accommodative migration policy in Australia and New Zealand, as their governments looked to fill workforce gaps opened up by the closed borders over 2020 and 2021.
In an analysis released by ANZ economists Kishti Sen and Tom Kenny in February last year, they estimated that 25,627 Fijians had migrated overseas over 2022 and 2023, “the highest number since records began in 2005”.
“The need for high migration numbers in both destination countries has now run its course and will decline from here,” the economists wrote in their Pacific Insight report.
“Both have tightened visa eligibility rules and made pathways to a permanent residency visa stricter. Together, these decisions will slow the flow of people from Fiji.
“In addition, the expiration of student and work visas should see the numbers of people arriving in Fiji pick up over the next two years,” the economists wrote.
The trend they projected manifested itself during the year.
In its latest quarterly in September last year, RBF said the movement of Fijian citizens abroad continued to decline and had declined by 33.1 per cent since March 2024, following policy tightening in source countries.
“Specifically, resident departures for education and training fell by 52.5 percent (-2,379 people), while emigration declined by 28.9 percent (-703 people).
“Similarly, departures for employment dropped by 23.0 percent (-1,436 people), and departures for other purposes decreased by 26.6 percent (-476 people) compared to the same period in 2023,” RBF noted.
