SAMOA faces a double-edged sword as labour mobility schemes flood the economy with remittances while draining local talent.
Monthly remittances soar to $ST70 million (Samoan Tala), accounting for a staggering 35 per cent of GDP, yet the exodus of skilled workers threatens essential public services and local businesses.
Amid rising wage disparities and emotional tolls on families, the government grapples with balancing economic benefits against the stark realities of community disruption.
“The schemes began in 2007 with New Zealand seasonal work and expanded with Australian programs in 2012 and 2018, merging into PALM to cover multiple industries,” said Dr Masami Tsujita, an Associate Professor of Development Studies at the National University of Samoa.
“Rural residents make up 90 per cent of these workers, with 80% being from the informal sector, boosting household economies in villages.
“Increased remittances enable families to improve housing, education, healthcare access, and fund small businesses, strengthening rural economic activity,” she said.
As thousands seek better opportunities abroad, the tension between immediate financial gain and long-term stability intensifies.
The schemes create labour shortages and brain drain in Samoa’s local market, affecting key industries and public services.
Tsujita said over 900 private sector employees resigned in 2022, mostly from wholesale, retail, hospitality, and construction, to join overseas schemes.
“Public servants, including teachers, nurses, and police, have also left, causing concerns about brain drainage and weakening essential services,’’ she said.
“The government now prioritises unemployed individuals with more than six months of verified unemployment to reduce skilled worker loss. However, some workers quit jobs deliberately to meet the eligibility requirements, perpetuating domestic labour shortages.”
Long worker absences disrupt village life by removing young men who manage manual and agricultural tasks, harming food production and community cohesion.
This absence also causes emotional strain on families, leading to broken homes and trust issues among children.
The social cost undermines the economic benefits, revealing a tension between short-term gains and long-term community stability.
Policy Adjustments
She added that recent government actions aim to balance economic gains with social and labour market sustainability through new caps and support programs.
“In 2023, Samoa capped worker participation at 6000 annually to Australia and New Zealand to mitigate labour shortages,’’ Tsujita said.
“Recruitment now involves district councils to ensure fair access nationwide, reducing regional disparities, and Australia has launched a family support pilot under PALM, allowing workers to bring family members to reduce separation stress.
“These measures aim to build resilience for workers and their families, addressing emotional and social impacts.”
Tsujita noted that the concept of circular mobility is key to resilience, in which workers cycle between overseas employment and reinvestment at home.
“This cycle supports collective family goals and counters views of brain drain by framing migration as labour and knowledge circulation,’’ she said.
“Many local stakeholders, including postgraduate students, see the schemes as necessary for development in a country with limited opportunities.”
Wage Disparities and Structural Inequality
Wage gaps between Samoa and host countries drive worker migration but create competitive challenges for local businesses.
Minimum wage in Samoa is $ST4.84 per hour, compared to about $AUD25.90 in Australia, nearly 10 times higher.
“This large wage gap incentivises workers to leave, weakening local companies that cannot match overseas pay rates,” she said.
“Employers lose skilled staff, deepening labour shortages and undermining domestic business competitiveness.
“The extension of scheme durations from three months to up to four years in Australia reduces employers’ training costs but increases local workforce drain.”
Tsujita highlighted that these schemes perpetuate wage and power inequalities, framing them as neocolonial labour divisions.
“Pacific Islanders fill low-wage jobs locals avoid, reinforcing systemic disparities despite the workers’ economic gains.
“The original ‘win-win’ narrative is questioned due to these power imbalances and the long-term social costs to sending countries.”
Strategic Reflections on Scheme Sustainability
Samoa-based studies show that labour mobility schemes require ongoing critical evaluation to balance economic benefits with social and labour market health.
And the shift from short-term seasonal work to longer stays overseas have raised concerns that the schemes are no longer truly seasonal.
Tsujita encouraged questioning the fairness of the win-win narrative by highlighting the workers’ sacrifices and systemic inequalities.
“This perspective calls for more holistic approaches that address both economic development and social well-being in Samoa,’’ she said.
“The schemes represent a complex trade-off: families gain income and improved living standards, but local communities face labour shortages and social strains (throughout).
“Future policies must consider circular mobility, family support, and fair recruitment to sustain benefits while reducing harm.’’
She said reinvestment and skill transfer back to Samoa could help transform the schemes into genuine development tools rather than exploitative labour exports.