Abstract
Labour markets in the Pacific Island countries are characterized by underemployment, high levels of informality, gender disparities in employment outcomes, and a large and growing share of young people not in education, employment or training. Size and remoteness have hindered economic growth and limited positive labour market outcomes. Given the labour market challenges in the Pacific Islands, many workers have looked elsewhere for new opportunities. Emigration rates for skilled Pacific Islanders are among the world’s highest, leading to fears of a ‘brain drain’ in many of the labour-sending countries. Meanwhile, many pacific islands are heavily reliant on foreign labour, driven in part by “skills shortage” at home. This Report provides policy guidelines for improving labour market outcomes, focusing on five key areas: first, investing in underserved areas and tackling informality; second, strengthening labour market institutions to make growth more inclusive; third, adopting migration policy that works for all; fourth, addressing inequities between men and women while tackling youth unemployment; and lastly, better preparing for the future of work in the Pacific that is likely to be shaped by the need to tackle climate change.