This article will highlight the context that can help change the conversation about the economic and social challenges of the Pacific Australia Labour Mobility (PALM) scheme. Contextualising the magnitude of this initiative can encourage policymakers to devote more time and resources to discuss these opportunities and develop complementing policies accordingly.
Context
As of the end of 2023, more than 38,000 workers from the Pacific are here in Australia. That is more than the population of Nauru and Tuvalu and is nearly equivalent to the entire Fiji public workforce. An additional 53,000 pre-screened workers are awaiting job offers from approved PALM Scheme employers as of December 2023, so this trend may not slow down anytime soon. Economic, social and financial policies in Pacific nations would ideally have to be ready to respond to the shifts that have already started to shake the make-up of the labour market and the setup of society.
Side note: Over a third (more than 12,000) are in Queensland, which is by far the largest among the 8 States and Territories, with New South Wales second at 6,900 workers. So, while discussing the impact in the Pacific, institutions here in the Sunshine State might also want to engage more seriously in how PALM Scheme workers are critical to its industries and ensure that they continue to build a sustainable model that provides adequate support to employers and workers alike.
The Australian Federal Government, in the 2023/2024 budget, made a commitment of $168.1 million over the next four years and has streamlined its processes for better service delivery. 2024 marks the beginning of the pilot program for 200 workers to bring their families to Australia which will commence from July this year. This is crucial to ensure a steady labour supply for its industries – agriculture, meat manufacturing, aged care, hospitality, etc. The Pacific is strategically located to benefit from this program, and the familiarity, literacy levels, geography, and, in my view, our population make the Pacific the best fit and maybe the not-so-risky choice compared to initiatives like this being offered in other parts of the world.
These are unskilled and semi-skilled workers from the Pacific. There is room for research on how much of an impact these shifts have on the labour market, knowing that skilled workers in other industries are also following, although in smaller waves—telecommunication, trade, ICT, aviation, engineering, hospitality, mining, nursing, and education. The Pacific Engagement Visa recently launched and will result in an annual feat of 3,000 visas awarded to Pacific Islanders. So, as mentioned, skilled and unskilled labour migration will continue to increase…
Pros and cons
The obvious benefits which were the cornerstones of how this took off in the first place:
- More income supporting livelihoods including education, health, and living standards. For some of these workers, this changes the trajectory of their family’s wellbeing
- New skills and transition for migration
- Thrill of being overseas
There are, of course, a host of challenges, most of which have been mentioned in the ADB Blog and on financial capability highlighted in the previous article by Dr Parmendra Sharma. Government policies are all trying to catch up to how this phenomenon affects the local economy, from staff turnover of micro and small businesses to social problems like broken families and unattended responsibilities in village settings.
What’s next?
“Wind of Change” a classic rock song by the legendary Scorpions has traits of how I think we should position ourselves for this. We can begin by not fighting it, but by embracing it, being prepared, and adjusting and capitalising on the opportunity it provides. Just as we have accepted the changing climate and are learning to prepare and adapt, we must also, at all levels prepare and adjust for things that will come with labour mobility.
With change already here or on the horizon, is there a role for academia to play in providing more support? I will share three insights.
- Planning
Map out a plan on how to upskill, retool and distribute. The Pacific can be a hub that supplies Australia and New Zealand with its labour. Technical vocational curriculum and practice need to be aligned and accredited. I strongly believe that through a concerted effort, we will have the capacity and capability to supply both domestic demand for labour and those to Australia and New Zealand. This window will not be open long, especially for long-term semi-skilled work. In parallel, we must continue to evolve and prepare for other industries that our people can support.
- Preparation
Pre-departure preparation for both the employee and their families. Education and awareness on both sides, those that are leaving and family members/communities that remain. The more tools we equip them with, and conversations had, the better prepared the incumbents are, the more lessons learned, and successful stories witnessed, the less costly mistakes and pathways are refined and sustained.
- Collaboration
Identify and capitalise on synergies, clearly defining roles – Ministries, financial sector, foreign representations like High Commissions or Trade Commissions, employers, employee reps, etc. Remittances from these workers are a huge part of our small island economies rebounding post-pandemic. An estimated $104 million has been received in remittances in the Pacific and Timor-Leste from January 2022 to May 2023, which has increased dramatically from the $64 million in July 2018 to December 2021. Let’s harness that momentum. Remittances now dominate much of the Pacific foreign income earners and Governments must spend to support collaboration, not only rely on programs funded by DFAT and others.
Someone will need to be tasked to put all these things together. Governments in the Pacific with the pressing challenges of resources and capacity, function better when they are educated and convinced at the same time. A proposal having these three insights in sync is a good place to start bringing together the needs of employers, and programs offered at Technical Colleges, designing fit-for-purpose programs and becoming the catalyst for a young vibrant workforce.
In addition, we really need to do a better job coordinating regional initiatives and have in place several structures that can help scale these initiatives. We have been resilient on most other issues, and we will learn to adjust to this one. The quicker we realise that the better we can focus our efforts on preparation and execution.
In both labour demand abroad and within the Pacific, if we don’t seize the opportunity and implement enabling policies and infrastructure, others will—right in front of our doorstep.
Sakiusa Nabou, Research Assistant, PICDPR (on study leave at Griffith from Reserve Bank of Fiji).
The views expressed in this article are those of the author(s) and do not necessarily represent the position of the above-mentioned institution. For more information about Pacific Island economies, visit the Pacific Island Centre for Development and Policy Research.
