THE 2026-2027 National Budget reflects a changing Fijian economy where the country’s biggest challenge is no longer creating jobs, but finding enough skilled workers to fill them, according to International Labour Organisation (ILO) official Naren Prasad.
Mr Prasad, head of education and training, research and statistics department at the ILO in Geneva, said the budget deserved credit for restoring fiscal discipline, promoting private sector-led growth and investing in skills development, but argued that Fiji’s labour market had fundamentally changed.
“Every budget is more than a financial statement,” Mr Prasad said.
“It tells us how a government sees the economy, where it believes growth will come from, and what it considers the country’s biggest priorities.”
He described the budget as “one of the most disciplined budgets Fiji had produced in years”, saying it confronted rising public debt and growing debt-servicing costs while focusing on sustainable growth rather than increased borrowing.
Drawing on data in the Budget’s Economic Supplement, Mr Prasad said formal employment continued to grow, yet job advertisements had fallen by almost a quarter while employers reported shortages in 95 occupations.
“These figures point to something much bigger than a temporary shortage of workers. They suggest Fiji has entered a different labour market.”
He said the country’s economic focus had shifted.
“For decades, our economic question was simple: How do we create enough jobs? Today another question is emerging: How do we find enough workers?”
Mr Prasad said Fiji had become part of an international labour market, with skilled workers increasingly seeking opportunities overseas.
“A nurse trained in Suva is no longer competing only for a position in Lautoka or Labasa. She is also competing for opportunities in Sydney and Auckland.
“The challenge now is ensuring that Fiji also remains an attractive place to build a career.”
While welcoming the budget’s investment in training, apprenticeships and employer-funded skills development, Mr Prasad said training alone would not solve the country’s workforce challenges.
He said while the budget laid strong foundations for future growth, Fiji’s next development challenge would be retaining the skilled workforce it had successfully developed.
“Tomorrow, success will depend not only on how many jobs we create, but also on how many of the people we train choose to fill them here. That is not simply a labour market issue. It is Fiji’s next development challenge.”
