Access To Seasonal Work In Neighbouring Economies Vital To The Pacific’s Development: World Bank

August 14, 2006 - Giving unskilled workers from the Pacific Islands access to seasonal employment in neighbouring developed economy labour markets is essential to the future development of the region, a new World Bank report has found.

The report, titled “At Home & Away: Expanding Job Opportunities for Pacific Islanders Through Labour Mobility”, advocates greater mobility for unskilled workers from the Pacific Islands to help overcome the challenges the region faces because of small economies, remoteness, growing youth populations and low jobs growth.

“We know that lack of job opportunities can contribute to social and political instability in regions like the Pacific Islands where the youth population is as high as 40 percent in some countries,” said the report’s lead author Dr Manjula Luthria, Senior Economist for the World Bank.

“This report shows that allowing some Pacific Islanders access to jobs currently unfilled in the larger economies of the region, could contribute significantly to the economic and social well being of the workers, their families and wider communities.”

Less than 10 percent of job seekers in some Pacific countries will be able to find paid work at home. Population projection figures in the report indicate that by 2015, around 270,000 people of working age in the Solomon Islands and more than 110,000 working age people in Vanuatu alone will not have access to jobs in the formal employment sector.

“Access to temporary unskilled work in a neighbouring labour market has the potential to transform lives and bring hope to entire communities,” Dr Luthria said.

The report— the first to look in detail at the development potential of labour movement schemes for the Pacific Islands—advocates temporary labour programs for unskilled workers that would see some Pacific Islanders spending a part of the year in neighbouring job markets and returning home with their savings, skills and new ideas.

It draws on lessons from temporary labour schemes around the world including a 40-year-old program between the Caribbean and Canada which has been so successful it has helped revive once ailing rural economies across Canada. Workers returning home each year to Jamaica and other Caribbean countries use their savings to improve housing, nutrition, clothing and health care for their families.

The report highlights the important contribution that remittances (funds sent back home) make to Pacific Island economies.

“Our research shows that funds saved help to reduce poverty, make income distribution more equitable in communities, support education and stimulate business activity back home.

“We have found that even modest increases in money sent home from overseas workers translates into welfare-improving outcomes for the poor.”

Dr Luthria said the report sheds new light on the potential benefits of labour mobility.

“Pacific leaders have been considering this issue and some of them have raised legitimate concerns. This report provides new evidence to address these concerns in ways that benefit sending and receiving countries.”

The report finds that a well designed scheme can be feasible by focusing on a few key areas: protecting workers’ rights; making sure workers return home once the job is done; and allowing good employees to come again if they want to.  

“There is no doubt that expanding economic opportunities for Pacific Islanders will translate into a stronger Pacific and that is in the interests of all countries in the region.”