Fiji’s labor market is facing a significant decline in demand for foreign workers, coinciding with a broader slowdown in key sectors, as reported in the Reserve Bank of Fiji’s October 2025 Economic Review. The report indicates that there has been a drastic 86 percent reduction in approved work permits year-on-year as of September, underscoring weaker demand for overseas labor.
There has also been a noticeable dip in temporary migration levels, particularly under seasonal employment schemes, which decreased by 5.9 percent. Additionally, the number of residents leaving Fiji has fallen by 18.6 percent, indicating reduced outward migration pressures. Overall, the labor market conditions are softening, reflected by a 10 percent drop in job advertisements during the same period, highlighting a lack of hiring intentions among employers.
The Reserve Bank’s survey conducted in August revealed that a striking 60 percent of businesses anticipate no changes in full-time hiring over the next six to twelve months. Despite this cooling demand for labor, the report found that formal employment registrations have risen by 2.3 percent, with average wages witnessing a 10.7 percent increase year-on-year as of August, which indicates steady income growth for those retained in the workforce.
The bank noted that while migration pressures may have eased, certain sectors still foresee losses of workers in the medium term. Employers are remaining cautious about recruitment, influenced by uncertain global and domestic economic conditions.
These shifts in Fiji’s labor market also mirror trends observed earlier this year, where the bank reported emerging signs of stabilization amid reduced emigration, driven largely by tightened international visa policies in countries like Australia and New Zealand. These changes appear to be encouraging a return of some skilled workers to Fiji and could enhance the local labor pool as pressure to migrate continues to lessen.
Although current circumstances present challenges, the increase in wages and a potential stabilization in the labor market offer a glimmer of hope for Fiji. As businesses adapt to these trends, the local economy may see renewed opportunities for growth and stability in the near future.