Seasonal Work Helps Remittances Surpass $791 Million
Acting Prime Minister Leatinuu Wayne Sooialo.
Photo: Government Of Samoa
There was a $183.5 million increase in remittances for Samoa over a 12-month period (September 2021-September 2022) due in part to contributions from seasonal workers, said Acting Prime Minister Leatinu’u Wayne So’oialo.
Leatinu’u, the Minister of Commerce and Industry and Labour (M.C.I.L.) said the increase is “substantial” when compared to remittances for Samoa received between September 2020 and September 2021.
The acting prime minister shared data on remittances for the past two years during his keynote address on Monday morning at the Pacific Labour and Mobility Annual Meeting (P.L.M.A.M.) at the Taumeasina Island Resort.
Since the COVID-19 pandemic, labour mobility opportunities (seasonal work) became more critical to support the local economy at the household level, said Leatinu’u.
The contributions from seasonal workers are reflected in the total $791.7 million in remittances received between September 2021 and September 2022, he said.
The $791.7 million amount is a $183.5 million increase from the $607.8 million received between September 2020 and September 2021.
“Since the COVID-19 Pandemic, Labour Mobility opportunities have become even more critical to help support our economic and social recovery efforts particularly at the household level,” Leatinu’u said.
During the 12 months to September 2022, Samoa received a total of 791.7 million Remittances, a substantial increase from the $607.8 million remittances in the equivalent 12 months to September 2021,” Leatinu’u said.
“Whilst I’m sure that our Seasonal Workers had contributed significantly to this increase in Remittances into Samoa’s economy, unfortunately, I am unable to state what the actual proportion of the Remittances is accounted for by Seasonal Workers since these are not sufficiently captured yet in our national statistics.”
The M.C.I.L. minister is serving as acting prime minister in the absence of Prime Minister Fame Naomi Mata’afa and Deputy Prime Minister Tuala Tevaga Ponifasio who are both out of the country.
The three-day P.L.M.A.M. meeting is the first to be held face-to-face since the 2020 outbreak of COVID-19, said Leatinu’u.
“The contributions by Seasonal Workers to improving the standard of living of their families and Samoa’s economic recovery during these COVID times is perhaps best reflected in the substantial increase in remittances that Samoa received in the 12 months period that coincided with the implementation of our new Government,” Leatinu’u said.
Recognising that there have been “successes” in the labour mobility schemes, he added there are still “numerous challenges” which require a balanced approach that align with the nation’s development priorities..
The “brain drain” occurring with skilled and semi-skilled workers leaving their jobs in the private and public sectors for seasonal work in another country is one challenge, said Leatinu’u.
The “brain drain” is a challenge for Samoa and the Pacific countries that are supplying manpower for the labour mobility schemes that must be seriously addressed, he said.
“Despite the successes achieved to date in the Labour Mobility Schemes that Samoa partakes in, numerous challenges remain, which prompts the need for us to ensure that a balanced approach is considered in line with our other national development priorities,” Leatinu’u said.
“For instance, the concerns regarding ‘brain drain’ due to some of our semi-skilled and skilled workers being sent overseas under the Labour Mobility Schemes and the concerns raised by our local employers who have lost workers that they’ve trained and invested in their upskilling, are crucial issues that I’m certain, not only Samoa but also all our labour sending Pacific Island countries need to seriously address.”
Samoa was not immune to the impacts of the COVID-19 pandemic, he said, and the economic effects, the pressures on the local healthcare system and the overwhelming uncertainties it created were realities the nation has had to face.
“However, we have learnt to adjust our response and activities to living in a post-COVID environment,” said Leatinu’u.
The P.L.M.A.M. is a significant medium by which Samoa is advancing inclusive regional labour mobility cooperation in the Pacific, he said.
Leatinu’u acknowledged the support of P.A.C.E.R. (Pacific Agreement on Closer Economic Relations) Plus Signatories and A.L.M. (Arrangement on Labour Mobility) participants for giving Samoa the opportunity to host the P.L.M.A.M. meeting.
Samoa hosted the virtual P.L.M.A.M. this time last year.
“I thank the P.A.C.E.R. Plus Implementation Unit as the Labour Mobility Secretariat for facilitating the logistics and meeting arrangements. Thank you to the Government of Australia and the Government of New Zealand for the continuous support towards P.L.M.A.M. including support through the P.A.C.E.R. Plus Development Economic Cooperation Work Programme and the Arrangement on Labour Mobility (A.L.M.),” said Leatinu’u.
The COVID-19 Pandemic highlighted numerous vulnerabilities including the limitations of Samoa’s public health system, response to global pandemics, the nation’s dependence on tourism and challenges faced by businesses.
“For Samoa, the COVID-19 Pandemic highlighted numerous vulnerabilities such as the limitations of our public health systems and response to global pandemics; our dependence on tourism receipts which we envision will take years to recover and the challenges faced by our local businesses, to name a few,” said Leatinu’u.
“To counter the adverse effects of COVID19, the Government of Samoa had issued several stimulus packages since the year 2020, which included substantial support from our international development partners and UN agencies. In the 12 months since our new Government was deployed from September 2021 to September 2022, Stimulus packages amounting to $44.1 million Samoan tala have been disbursed to boost our businesses, especially the tourism industry as well as our communities.”
For the financial year 2022 to 2023, the Government has earmarked $62 million tala as part of its stimulus packages that are aimed at helping to revive, boost and sustain the economy, he said.
The Government of Samoa, he said, is committed to growing a diversified economy that is sustainable and resilient to global, national and local pressures.
At the same time, the government wants to ensure that support measures reflect local needs and opportunities that further enhance national resilience, said Leatinu’u.
“Expected outcomes for this key Priority area includes increased deployments, expanded numbers of labour mobility schemes and Samoa’s professional workers’ footprints in the Pacific regions increased,” said Leatinu’u.
The theme of the P.L.M.A.M. meeting is: “Reinvigorating Labour Mobility Cooperation for Development.”
It reiterates the opportunity for all labour mobility stakeholders to re- engage, reset and re-commit to advancing an effective level of cooperation that can enhance mutually beneficial development gains, he acting prime minister said.
“I believe that such level of cooperation also needs to take into account the foundations of our culture and heritage which have ensured social harmony in our Pacific Islands region. There is no denying the fact that increased levels of workers from Samoa migrating to New Zealand and Australia under the Labour Mobility schemes, have affected the very core of our families, the fabric that holds together our communities through families being separated for prolonged periods of time and other social issues that have arisen,” said Leatinu’u.
The commerce minister expects rich knowledge sharing throughout the next three days, and wished all participants “a successful meeting and an enjoyable stay in our Beautiful Samoa.”
The Pathway for the Development of Samoa 2021/2022 to 2025/2026 highlights “Increased Labour Mobility” as a key Priority area with an aspiration to expand international labour market opportunities for those living in Samoa, in a sensible and manageable way,” Leatinu’u said.
In a separate event held the evening prior, the commerce minister launched the new Samoa National Employment Policy 2021/2022-2025/2026 known as S.N.E.P. at the Tanoa Tusitala Hotel.
S.N.E.P. is a policy that provides a concerted and coherent vision and framework linking employment objectives in Samoa.
The launch was an important event as S.N.E.P. “is crucial and relevant to the economic development of our country,” said Leatinu’u.
“As we are in an era of changes…we need to design strategies and frameworks for employment that cater to the demand for labour both locally and internationally, and take into consideration the capacity to supply skilful workers, decent employment creation,” he said.
The nation must take advantage of “emerging opportunities that will form the basis for a return to pre-COVID-19 levels of employment and economic activities, in accordance with the requirements of our national Employment Policies, international standards and best practices,” Leatinu’u added.
The S.N.E.P. places emphasis on these fundamental pillars and aligns well with the Pathway for the Development of Samoa 2021/2022 – 2025/2026 which provides the strategic direction for the Government’s development initiatives over the next four years, with its focus on empowering communities, building resilience and inspiring growth, he said.
“The fact that this Policy was formulated and subject to wide consultation during a time of global uncertainty particularly with the impacts of COVID-19 on our region, economies and communities, makes it an ideal timing for its development and implementation.
The Vision of the SNEP which is to: Recover, increase and sustain Samoa’s employment numbers to pre-COVID-19 levels.
“The pressures and unpredictable nature of the Global pandemic, exacerbated by the adverse impacts of climate change and other global conflicts like the war between Russia and Ukraine which has affected global energy prices, continues to test our resolve as a nation, and we therefore, must adapt accordingly and be able to build back better and smarter,” Leatinu’u said.
“We can achieve this by being proactive to develop and implement innovative processes and practical measures, to increase the employability of our unemployed population, to boost our economy to the next level…This second SNEP will enable us to consider new potential sectors, such as green jobs creation that compliments climate change adaptation and mitigation initiatives, to promote more employment opportunities and boost productivity across all levels, and ease the constraints associated with Samoa’s remoteness from major labour markets.”
The S.N.E.P. also focuses on measures that can best be implemented through collective action by Key Implementing Agencies and Stakeholders and requires buy in from all government agencies and private entities, he said.
The Commerce Ministry in collaboration with the International Labour Organisation recently conducted a workshop with implementing agencies on the expected roles for the successful implementation of the S.N.E.P.
Leatinu’u recommends that the types of capacity building programs continue, to equip all parties involved for better awareness to include a session with all development partners.
“I acknowledge with gratitude the collaborative partnership, valuable assistance, financial and technical support provided by the International Labour Organization through the National I.L.O. Coordinator and all stakeholders for their invaluable contributions to the development of the S.N.E.P.,” said the M.C.I.L. minister.
I.L.O. Pacific Director, Mr. Matin Karimli attended the S.N.E.P. launch virtually.