Fiji’s labor market is experiencing a notable decline in the demand for foreign workers, a trend that aligns with a broader slowdown in essential sectors, according to the Reserve Bank of Fiji’s October 2025 Economic Review. The report highlights a staggering 86 percent drop in approved work permits on a year-on-year basis as of September, indicating diminishing demand for overseas labor.
The review also points to a decline in temporary migration levels, particularly within seasonal employment schemes, which have seen a reduction of 5.9 percent. Additionally, the number of residents departing Fiji has decreased by 18.6 percent, suggesting a decline in outward migration pressures. Overall, the labor market appears to be softening, as evidenced by a 10 percent decrease in job advertisements during the same period, signaling a lack of hiring intentions among employers.
According to a survey conducted by the Reserve Bank in August, an alarming 60 percent of businesses expect no changes in full-time hiring in the coming six to twelve months. Despite this downturn in labor demand, the report reveals that formal employment registrations have increased by 2.3 percent, while average wages have risen by 10.7 percent year-on-year as of August, indicating stable income growth for those who remain in the workforce.
The bank has noted that while migration pressures seem to have eased, certain sectors still anticipate a loss of workers in the medium term. Employers are approaching recruitment with caution due to the uncertain global and domestic economic climate.
These developments in Fiji’s labor market reflect trends seen earlier in the year, where the bank noted early signs of stabilization amid decreased emigration, largely influenced by stricter international visa regulations in countries such as Australia and New Zealand. This shift may encourage a return of some skilled workers to Fiji, potentially enriching the local labor pool as the incentives to migrate diminish.
In light of the current challenges, the rise in wages and the possibility of stabilization in the labor market provide a hopeful outlook for Fiji. As businesses adjust to these emerging trends, there may be renewed prospects for economic growth and stability on the horizon.