The Pacific Australia Labour Mobility (PALM) program has recently experienced a stall in growth, highlighted by fluctuations in the total number of PALM workers in Australia. The workforce increased from 26,185 workers in April 2022 to 34,230 by June 2024, only to slightly decline to 32,365 in November 2025. Despite these shifts in numbers, substantial turnover remains among the ten countries that send workers, which include nine Pacific Island nations and Timor-Leste.
A closer examination of these trends shows a notable shift towards diversification within the program. Vanuatu, which once dominated the worker supply, has seen its share drop to 22% of the total workers as of late 2025. Conversely, Timor-Leste has risen to occupy the second spot in worker contributions, reflecting a change in the balance of participating countries. Collectively, Vanuatu and Timor-Leste now represent only 38% of the PALM workforce, a stark decrease from 56% in early 2022 and over 70% before the pandemic.
This diversification trend is significant as it indicates changing dynamics in labor contributions. Key countries like Vanuatu, Tonga, and Samoa now account for only two-thirds of their worker numbers compared to April 2022. Conversely, nations such as Fiji, the Solomon Islands, and Timor-Leste are now contributing approximately 5,000 workers each, surpassing traditional contributors like Tonga and Samoa.
Another noteworthy development is the increase in the proportion of long-term (LT) workers, who can stay for up to four years. The percentage of these workers has surged from 27% in April 2022 to 53% in June 2024, demonstrating a shift towards more stable employment practices within the PALM framework.
This newfound balance in the distribution of PALM workers is promising, particularly for countries like Vanuatu, Tonga, and Samoa, which have historically faced labor shortages. The inclusion of nations seeking to increase their contributions marks a beneficial change. However, the Australian government now faces the challenge of implementing reforms to stimulate further growth in the PALM program, particularly for nations like the Solomon Islands and Timor-Leste, which are eager to expand their participation.
Potential reforms could involve loosening regulatory barriers for employers and focusing on sectors such as aged care and hospitality that remain underrepresented in long-term PALM arrangements. Addressing the impact of backpacker visa incentives for farm work may also open additional avenues for PALM workers.
As the government navigates these reforms, the future of the PALM program hinges on its ability to meet the needs of sending countries eager for participation. This proactive approach holds the promise of expanding economic opportunities for workers and fostering stronger ties within the Pacific region. The hope is that all Pacific nations will be able to access Australia’s labor market more fully, ultimately benefiting both the workers and their home countries.