New challenge – Declining productivity emerges amid tightened global labour market - Voice of Asia

The global labor market continues to tighten, and Fiji has not been spared from this structural shift. Simultaneously, a new challenge is emerging: declining productivity.

Fiji's Deputy Prime Minister and Minister of Finance, Professor Biman Prasad, stated that the government is aware that many businesses have lost a significant portion of their skilled workforce, while some have successfully recruited domestically or brought in talent from abroad. However, he emphasized that addressing the issue of declining productivity is imperative.

Professor Prasad pointed out, "We all understand that productivity is a key driver of long-term economic growth, directly impacting national wealth and living standards." He stated that the future focus will be on bridging this gap through policy measures designed to promote investment in new technologies, modernized training institutions, and upgraded infrastructure.

Professor Prasad further emphasized that a robust infrastructure system—including efficient transportation networks, reliable energy, and advanced communication systems—will serve as a catalyst for increased productivity. In the meantime, the government is committed to reducing red tape, streamlining regulations, and creating a more business-friendly environment. They will continue a comprehensive review of bureaucratic processes across the economy to improve efficiency and simplify business operations.

Professor Prasad called on businesses to prioritize the well-being of their employees by promoting work-life balance, stress management, open workplace communication, continuous skills enhancement, and increased participation of women in the workforce. He believes that a motivated and well-supported workforce is essential for sustained economic progress.