Labor mobility schemes raise economic, social issues for Fiji

About 8 percent or 70,000 to 80,000 of the Fijian population has left the country from October 2022 to March this year, resulting in less tax revenue, decreased economic activities, weaker consumer spending, and a shortage in the workforce.

SUVA, Oct. 19 (Xinhua) -- For years, swarms of laborers from Pacific island nations were attracted to Australia and New Zealand by targeted labor mobility programs.

While receiving increased remittance inflows from the "wealthy neighbors," countries like Fiji are suffering exacerbated domestic labor shortages which hampered economic growth and raised social issues such as family breakdowns and discrimination.

ECONOMIC IMPACTS

In recent years, Fiji has experienced a spike in migration out of the country, with more than 40,000 net outflows per year in the past two years, according to data released by the Fiji Bureau of Statistics. This is an alarming trend for the Pacific island nation with a population of only 890,000.

According to data from the United Nations, Australia and New Zealand are the main destinations for Fijians emigrating abroad, accommodating more than 60 percent of the Fijian diaspora.

A primary driving force behind this large-scale migration is the job and education opportunities offered by the two countries. Both Australia and New Zealand have expanded their labor mobility programs targeting the Pacific region, including Australia's Pacific Australia Labor Mobility (PALM) scheme and New Zealand's Recognized Seasonal Employer scheme.

About 8 percent or 70,000 to 80,000 of the Fijian population has left the country from October 2022 to March this year, resulting in less tax revenue, decreased economic activities, weaker consumer spending, and a shortage in work forces, said Fiji's Deputy Prime Minister and Minister for Finance Biman Prasad in April.

Multiple ministries in Fiji have reported a loss of skilled workers in various sectors, mostly due to employment or education opportunities overseas. Fiji's Education Ministry said around 900 teachers applied for overseas visits in 2023, of which only 48 percent have returned.

"We have a crisis on our hands when it comes to the labor market, that is the reality and it's a tragedy," said Manoa Kamikamica, deputy prime minister and minister for trade, cooperatives, small and medium enterprises and communications.

SOCIAL CHALLENGES

Although the labor mobility schemes brought financial benefits of remittances, improper management of these funds often also leads to insufficient family support and tensions, said a study released in September by UNICEF.

After looking into the impact of the Pacific labor mobility scheme on children left behind in Fiji, Samoa, Solomon Islands and Vanuatu, the study warns that there is an urgent need to mitigate the risks of labor mobility to ensure that children left behind have access to the protection and services they need.

With children left behind, the study reveals several challenges, particularly concerning the social costs associated with labor mobility, including family breakdowns, exploitation, social isolation, and lack of care for families back home.

Statistics show that five out of every six children in Fiji are abused or neglected by their families, as revealed by Fiji's Minister for Women, Children and Social Protection Lynda Tabuya in July. "There has been an increase in children losing parents and carers due to labor mobility," she said.

Fiji's Minister for Employment, Productivity and Industrial Relations Agni Deo Singh said not only is the scheme causing a "terrible shortage" of professionals in Fiji's labor market, it is also contributing to a number of social ills affecting families.

Calling it a "matter of grave concern," Singh said,"Unfortunately, the receiving countries are not assisting us in any way."

In June, 24-year-old Christine Lewailagi who was living in Australia as part of the PALM scheme, died of a brain tumor.

In the wake of her death, Lewailagi's next of kin in Australia have revealed numerous allegations of racism and poor treatment of PALM workers, including threats of termination and accusations of restrictions around accessing health care and sick leave, equating the scheme to "modern slavery."

Members of the Fijian government are reported to visit Australia in October to investigate claims of racism, bullying, unsafe practices, and exploitation in the PALM scheme.

MEASURES TAKEN BUT EFFECT DOUBTED

The Fijian government has recognized the seriousness of the issue and is working to address the impact of labor loss on the country's economic and social development.

Measures included raising the retirement age for civil servants from 60 to 62, attracting more overseas workers and encouraging expatriates to return home.

The UNICEF study showed that Fiji has become the largest source of labor for Australia's PALM scheme. As of June, 6,379 Fijians had entered Australia under the scheme.

Nevertheless, Fiji has yet to impose any limits on the number of applicants in such programs. Samoa, another South Pacific island nation with a similar situation, has set a cap of 6,000 workers per year for labor migration to Australia and New Zealand.

Fiji's personal remittances soared to a record high of 1.25 billion Fijian dollars (about 554 million U.S. dollars) in 2023, according to data from the Westpac Banking Corporation. The figure accounted for more than 10 percent of the country's GDP.

"Whatever we do as developing countries, we will not be able to stop our people from looking for better opportunities or greener pastures, better living standards for their families," Singh said. ■