EMPLOYERS in Fiji are paying significantly more to retain existing staff as outward labour migration continues to drain the local workforce.
The Reserve Bank of Fiji (RBF) revealed this in its economic review for the month ended August 2026, noting labour market indicators presented mixed signals during the review period.
Despite a sharp 30.5 per cent drop in newspaper job advertisements during the first seven months of this year – driven by the Government’s public service hiring freeze and reduced vacancies in the transport, storage and communication, wholesale and retail trade, and business services sectors, the cost of labour is climbing.
The central bank’s review stated that despite softer hiring intentions, employees were added to formal employment, which expanded by 1.7 per cent to 205,596 workers by June this year, with total wages paid also rising by 7.9 per cent.
On the supply side, the RBF stated that outward labour mobility increased by 20.0 per cent to 1834 workers cumulative to July, fuelled primarily by the Pacific Australia Labour Mobility (PALM) scheme.
It stated long-term resident departures also grew by 5.9 per cent, with those leaving specifically for overseas employment jumping by 17.2 per cent, and those leaving for other purposes accounted for 21.1 per cent.
Meanwhile, strong tourism activity and remittance inflows from the expanding overseas diaspora continued to support local consumer spending.
“In the year to July, consumption-related lending grew by 1.2 per cent, driven primarily by higher lending to private individuals (14.3 per cent),” the RBF stated.
“Similarly, vehicle registrations increased by 9.9 per cent, led by growth in both new (12.9 per cent) and second-hand vehicle registrations (7.5 per cent), although higher import duties on new and second-hand vehicles announced in the FY2026-27 budget could weigh on vehicle demand going forward.”
