Labour productivity in Fiji has shown steady improvement over the past eight years, although significant challenges remain across key sectors, Parliament has been told.
Responding to a written question, Minister for Employment, Productivity and Workplace Relations said productivity growth had followed a pattern of recovery after setbacks during the COVID-19 pandemic.
“Over the last eight years, labour productivity in Fiji has generally increased overall, but with a temporary decline during the COVID-19 period, followed by a strong recovery from 2022 to 2023,” the Minister said.
He noted that prior to the pandemic, productivity growth averaged between 2.5 and 3 per cent annually, before declining sharply in 2020 as economic activity contracted. However, a rebound was recorded between 2022 and 2023, driven largely by the reopening of the tourism sector.
Currently, Fiji’s productivity level stands at about $19 per hour worked, placing the country in a mid-tier position regionally. The Minister said this was still only about 18 to 20 per cent of United States levels, highlighting room for improvement.
“Fiji’s productivity challenge is not just about working harder, but about working smarter,” he said.
The services sector, particularly tourism, transport and communications, remains the main driver of productivity gains, while manufacturing has stagnated due to high costs and limited scale. Agriculture continues to record the lowest productivity, with many workers engaged in subsistence-based activities.
The Minister also pointed to key constraints, including low capital investment, climate impacts, and a widening skills gap.
“Rising temperatures are expected to reduce labour productivity, particularly in outdoor sectors such as agriculture and construction,” he said.
He stressed that future growth would depend on stronger investment in technology, skills development, and climate resilience.
“Maintaining this upward trend will require continued reforms and smarter investments in our economy,” the Minister added.
