Fiji Hotel and Tourism Association, 23 October 2025 – There has been much debate recently around labour mobility, unemployment, and workforce productivity in Fiji. As FHTA CEO, I see daily the pressures employers face, and I wonder if we’ve been asking the wrong questions. Are we truly measuring unemployment, or are we overlooking deeper issues in our talent pipeline and the economic pressures that small island states like ours face differently?
Fiji’s growth is tightly tied to global conditions. Slowdowns in Australia, New Zealand, the US, and China dampen demand for exports and tourism. Geopolitical instability and trade wars disrupt supply chains and investor confidence. On top of this, climate change delivers repeated blows—cyclones, flooding, and rising seas damage infrastructure, agriculture, and livelihoods, forcing costly recovery efforts that divert resources from growth.
Domestically, our overreliance on tourism leaves us vulnerable. While it is a key driver, its volatility—exposed starkly during COVID-19—means sharp contractions when global conditions shift. Limited diversification has left manufacturing, agriculture, and ICT unable to scale enough to offset these shocks. Infrastructure and connectivity gaps, particularly in rural and maritime areas, further constrain productivity and inclusive growth.
Policy and institutional challenges compound these vulnerabilities. Structural reforms in land use, state-owned enterprises, and fiscal management have been uneven, limiting private sector expansion. Workforce development has not kept pace with industry needs, especially in emerging sectors, creating mismatches between skills and jobs. Regulatory bottlenecks—licensing, compliance, and investment approvals— remain cumbersome, particularly for SMEs and foreign investors. Add debt sustainability concerns and the pressures of being a small, import-dependent economy, and the picture becomes clearer.
Arvind Singh’s recent Fiji Times piece “Are we exporting our future?” highlights the scale of Fiji’s labour mobility challenge. Between January 2018 and August 2023, around 80,000 Fijians left for overseas employment. With a net out-migration rate of about 5% in 2023—significant for a country of under one million—this exodus is leaving clear gaps in our local labour market.
For employers, this means fewer workers available, especially in sectors needing specific skills or strong reliability. Yet many of those counted as “unemployed” are not truly available. Some are waiting on overseas contracts; others are supported by remittances or tied up with family responsibilities. Employers, meanwhile, face rife absenteeism, “Mondayitis,” and last-minute personal leave, creating a mismatch between apparent labour supply and actual usable labour.
Youth unemployment adds another layer. At 15.5% in 2024, it points to a large pool of young people disconnected from the workforce, even as the overall adult unemployment rate looks low. The issue is less about the absence of jobs and more about skills, motivation, and suitability. For many businesses, the real question is not “can I find someone” but “can I rely on them.”
Foreign workers have become part of the solution. By January 2025, about 6,460 work permits had been issued across sectors. But hiring them is costly and complex—fees, immigration processes, accommodation, and higher wage requirements mean they are only used when vacancies are otherwise crippling.
Two dynamics stand out. First, outward mobility leaves behind jobs that are often less attractive – due to pay, hours, or location. Young workers drawn to overseas markets with higher productivity standards may return early, but this churn creates knowledge gaps and instability. Second, local labour policies can unintentionally sideline workers.
For example, those selected by the National Employment Centre (NEC) for overseas schemes must remain unemployed as part of the eligibility requirements while they wait for overseas contracts, leaving businesses short-staffed despite “available” workers.
The result is a labour market paradox: unemployment rates that look low on paper, yet employers are struggling daily to fill roles with reliable, skilled staff. The challenge is not just about numbers – it’s about aligning availability, productivity, and policy to ensure Fiji has the workforce it needs for sustainable growth.
Third, the very definition of “unemployment” is shifting. Being unemployed does not mean someone is available or willing to work as businesses require. Many are in transition, caring for family, waiting on contracts, lacking skills, or simply opting out because remittances or other support reduce urgency. Crowded supermarkets and eateries in Suva suggest people have spending power despite being classified as unemployed. Perhaps our surveys are not asking the right questions.
For businesses, the consequences are real. Productivity is constrained not only by absenteeism but by the mismatch between available workers and actual needs. Skills gaps persist, costs rise, and the “easy” solution of foreign labour is limited by high fees, paperwork, and integration challenges.
What’s needed is not quick fixes but a holistic approach: re-engaging untapped labour, more effective upskilling, better worker-job matching, and a stronger productivity culture. For instance, with 63.6% of employed persons in paid jobs and the rest self employed, we must ask whether those self-employed roles connect to higher value added sectors.
On the ground, the picture is mixed. Many FHTA members have dedicated staff, but also unfilled positions and inconsistent attendance. Some workers decline local offers while waiting on overseas contracts, or leave suddenly when opportunities abroad arise. This fragility undermines training investments, delays outputs, and raises costs.
Should local employers adjust expectations compared to overseas standards? To some extent, yes. But the real issue is not just filling roles- it is ensuring workers are reliable, capable, and committed. That matters more than headline unemployment figures.
Which brings us to the paradox: why does Fiji report only 4.3% unemployment, yet employers feel stretched and skills gaps persist? Because the statistic counts only those actively job-hunting. Many of the workers most needed are in overseas programmes, in transition, or not seeking work at all. The nuance of “available and willing under employer-required conditions” is missing – and that is where the real challenge lies.
Another dimension: the ease-of-doing-business environment in Fiji matters. A business environment that makes it hard to grow, invest and recruit is a drag on productivity and employment quality. The government has acknowledged that our “Ease of Doing Business” ranking has slipped, and private-sector stakeholders say the issues persist, along with costs, increasing (rather than the expected decreasing) regulatory burdens, and the speed of execution. When doing business is tougher than it should be, the pressure on operating margins increases, and employers are less able to absorb even small productivity losses. Worse still: they may over-hire, keep contingency staff, or rely on contractors or outsourcing to hedge risk, which is not the same as building a full-time workforce committed to the mission.
So, what must we do next?
Despite persistent calls from unions for higher wages, the deeper structural issues remain unresolved. We need stronger mechanisms to match employer demand with labour supply. That means better real-time labour data, flexible training aligned to industry needs, and smarter reintegration of overseas returnees whose skills should be captured locally, not lost.
Employers and Government must work together to lift workforce standards. Attendance, dependability, and productivity are not optional – they are integral and connected to the government’s aspirations for annual 5% economic growth. Workers need clear pathways, incentives, and recognition, while employers must invest in training, career growth, and workplace culture to retain talent. These require supportive policies that understand how these mechanisms work.
Work environment, development opportunities, and job reliability matter, especially for younger workers who now have more choices in a world where employment has changed from what it was 20 years ago – overseas contracts, remote work, and gig roles. If local jobs are seen as inferior, businesses will continue to struggle. The value proposition of working locally must be raised.
We are at a crossroads. On paper, unemployment looks low, but the system is straining. Too many are waiting on overseas contracts, under-employed, or mismatched to available roles, while employers face persistent vacancies. Until we move beyond headline statistics and focus on aligning people with the right jobs, recognising productivity, and making local employment competitive, Fiji’s growth will remain constrained.
Fantasha Lockington – CEO, FHTA (Published in the Fiji Times on 23 October 2025)
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