New report finds labour migration a key economic sector for the Pacific

International labour mobility is becoming one of the “most important” income sources for Pacific Island countries, a report has found.

The World Bank released its Pacific Economic Update (PEU) in Fiji last week, which revealed that migration was “quickly becoming an important economic sector” for island nations.

The report said labour migration from the Pacific to more developed economies had intensified in recent years after New Zealand and Australia reopened their borders through their seasonal work programmes.

“This has increasingly become more accommodative to semi-skilled and low-skilled workers from the Pacific region.

“Alongside the natural resource sectors, particularly fishing and tourism, international labour mobility has been one of the most important income sources for Pacific countries, especially during the Covid-19 pandemic.

“Remittances finance essential household consumption and strengthen financial resilience in times of income shocks.

“Labour migration also enhances knowledge transfers and can be complementary to skills enhancement.”

Titled “Recovering in the Midst of Uncertainty”, the report also focused on “harnessing the benefits of Pacific migration”.

More than 2000 workers from Tonga, Kiribati and Vanuatu participated in the survey.

“In 1950, there were fewer than 15,000 Pacific-born migrants in developed countries. By 2020, there were 460,000 Pacific-born migrants residing in the Organization for Economic Cooperation and Development (OECD) countries,” the report said.

“Nearly all the Pacific diaspora is in Australia (38%), New Zealand (34%) and the United States (27%).

“While there are challenges with labour migration, on balance it offers significant benefits to those involved, the broader community, and the entire Pacific.”

Kiwi researcher Charlotte Bedford, of the Australian National University, said the Pacific labour mobility scheme had registered continued growth over the past year.

Since the reopening of borders across the region in mid-2022 following the pandemic, Bedford said there had been a “quick recovery in temporary labour migration flows to Australia and New Zealand”.

Between July 1, 2022, and June 30, 2023, about 48,000 visas were issued to workers in Australia’s PALM (Pacific Australia Labour Mobility) scheme and New Zealand’s RSE (Recognised Seasonal Employer) scheme, “virtually double the 24,975 visas issued in 2018-19, the last full year of recruitment pre-pandemic”.

Vanuatu remains the largest supplier of labour to Aotearoa and Australia at 35% (16,562) of the total visas issued during the 2022-23 financial year, Bedford said.

“The short-term PALM stream (formerly the Seasonal Worker Programme – SWP) and the RSE scheme continue to track at a similar level, despite the absence of a cap in Australia,” she said.

“In the year to June 30, 2023, 17,424 RSE workers arrived in New Zealand while Australia had 18,383 over the same period; roughly 950 more workers to Australia.

“In addition, close to 12,000 PALM visas were issued for the long-term stream (formerly the Pacific Labour Scheme (PLS), enabling workers to take up employment in Australia for up to four years.”

Australian Prime Minister Anthony Albanese said in July last year that the plan for permanent migration residency for people from the Pacific Islands was to ensure the paths were available where appropriate.

He said the idea of people migrating temporarily was not in the interests of the workers or Australia.

New Zealand’s prime minister at the time Jacinda Ardern said she was not looking to expand the scope of New Zealand’s RSE scheme amid calls to adopt Australia’s plan.

In February 2022, the Government increased the cap on Pacific workers from 14,000 to 16,000, so employers could access more labour to help with planting, maintenance, harvesting, packing and winter pruning. The cap has since increased to 19,000.

But the National Party said it planned to “double the RSE worker cap over five years to 38,000 per year and explore other countries entering the scheme”.

Australia’s Pacific Engagement Visa programme, which could pave the way for 3000 Pacific islanders to gain citizenship in Australia, is going through the parliamentary processes, High Commissioner to Fiji Ewen McDonald told The Fiji Times last weekend.

The PEU report recommended that maximising the full economic benefit of migration required “appropriate skills’ investment, access to migration pathways, protection of migrants’ welfare in host countries and management of migrants’ return and reintegration”.