WHILE businesses have flagged emigration as a massive problem for Fiji’s post-pandemic recovery, a senior economist said it has also reshaped the country’s labour market and taken funds from the superannuation coffers.
Westpac Fiji senior economist Shamal Chand made these comments in the institution’s January 2025 quarterly economic update released last week, where he noted long-term resident departures declining and short-term departures increasing.
Last year, emigration numbers dropped by around 31.5 percent or around 2197 permanent migrations.
Similarly last year, employment and education-related departures declined by 18.4 percent and 31.4 percent, respectively.
He said despite that, total resident departures increased by 7.9 percent last year, mostly led by Fijians going on holidays, up 23.5 percent, and visiting friends and relatives, up 13.2 percent.
“High emigration numbers in 2022 coincided with Fiji National Provident Fund paying more in migration payout, which amounted to $75.3million during their 2022-2023 financial year,” Mr Chand said.
“FNPF in its recent 2023-2024 financial year paid a lower but still historically high of $63.6m to migrating residents.”
Between 2016-2019, he said the Fund paid an average of $27m annually towards Fiji citizens migrating and $8m annually to non-resident departures.
“Not only has migration reshaped Fiji’s labour force, but it has taken funds from the superannuation coffers. Nevertheless, the burden on FNPF on these additional payouts is expected to drop in line with easing migration numbers,” Mr Chand said.
The Westpac Wave publication noted permanent migration stood at 2197 last year, of which 50.5 percent emigrated to New Zealand.
“New Zealand has been the top destination for Fijians looking for a new permanent home. The second top destination for emigration, at 24.8 percent, was the USA, followed by 21.5 percent of Fijians who migrated to Australia.”
The FNPF 2024 annual report stated changes in emigration and labour regulations in Australia and NZ presented new challenges with high labour mobility and migration as Fijians pursued opportunities abroad.
The report stated more than 2000 members accessed migration withdrawals compared to less than 1500 last year.
“Past trends indicate this withdrawal has grown from $40m to $83m in 2023 and $73m in 2024. Additionally, overseas education withdrawals have surged from $8.3m in 2023 to $11.3m in 2024 comparted to $4m or less in prior years,” Fund CEO Viliame Vodonaivalu said in the report.
“These trends suggest increasing labour migration from Fiji, which not only affects withdrawals but also contributions to the Fund.”
He said FNPF was actively pursuing agreements with jurisdictions like Australia, New Zealand and Pacific island nations to allow Fijians abroad to continue contributing to their retirement savings with FNPF.
NOTE: This article was first published in the print edition of the Fiji Times dated FEBRUARY 11, 2025.
