Labor market in Kiribati

Kiribati's labour market combines a limited formal sector with informal employment, household production and island-based livelihoods. The 2019/20 Household Income and Expenditure Survey recorded 76,910 people aged 15 or older, a labour-force participation rate of 35.8%, 25,172 employed people and unemployment of about 8.6%. The 2020 Census used different age and measurement groups and reported a 54% participation rate for ages 15 to 64, 30,110 employed people and 11.3% unemployment. The figures are not directly interchangeable. Youth unemployment was 22.5%, and 49.8% of people aged 15 to 24 were not in employment, education or training. Informal employment accounted for 47.6% in the HIES data. Services make up about 74.2% of employment in the HIES sector classification. Agriculture, forestry and fishing account for about 16.9%, and industry for about 8.9%. The public sector is a central source of formal employment, especially in South Tarawa. Fisheries support offshore activity in Kiribati's exclusive economic zone, coastal fishing, aquaculture, processing and transshipment around Tarawa and Kiritimati. More than half of households were recorded as active in fishing in Census information. Outer islands rely more heavily on agriculture, livestock, fishing, handicrafts and subsistence-related activity. Tourism is a diversification area, but market size, transport, infrastructure and distance limit private-sector demand. South Tarawa has the largest formal and public labour market but also strong job-search pressure. The 2020 Census recorded unemployment of 15.3% in South Tarawa, compared with 9.0% in the Northern Islands, 4.5% in the Central Islands, 5.2% in the Southern Islands and 9.4% in the Line and Phoenix Islands. Kiritimati is an urban growth and infrastructure centre with opportunities linked to tourism and fisheries. Other island markets are smaller and depend strongly on local sectors and transport connections. No uniform regional wage or placement structure has been established in the available evidence. The Labour Division of the Ministry of Employment and Human Resources (MEHR) is the main public labour-market authority. Its functions include labour-market information, employment services, overseas recruitment, labour-law administration and workplace safety. The LMIM service provides labour-market information, career pathways and job-placement support. The National Coordinating Committee for Employment and related services (NCCEC) acts as a one-stop youth service through the National Employment Registry, career counselling and public employment placement. Island Councils can support registration and local selection. The Overseas Employment Unit manages recruitment for overseas schemes, while the Workers' Rights Unit covers labour law, inspections and recruitment agencies, and the Occupational Safety and Health Unit deals with workplace safety. People can register vacancies or seek placement through NCCEC services, the National Employment Registry, MEHR vacancies, Island Councils and licensed recruitment agencies. Formal access differs by employer and scheme. Recruitment agencies require a licence to recruit. A written contract of employment is required for formal employment, and regular working hours are generally limited to eight hours per day and 40 hours per week, with at least 12 hours of daily rest and 48 hours of weekly rest. Pay slips should show the wage rate, Kiribati Provident Fund contribution, tax, gross pay and net pay. Statutory deductions generally require consent and may not exceed one third of a pay period. The Employment and Industrial Relations Code 2015 sets cited minimum rates of AUD 1.30 per hour for private-sector and private construction work and AUD 3.00 per hour for foreign-funded projects and construction. These figures should be checked against the applicable rule and employment arrangement because current wage distribution is not sufficiently documented. Public-sector pay follows the Kiribati Salary Scale, but an up-to-date distribution of actual pay was not available in the research. Education and skills do not match demand evenly. Among employed people in the HIES data, 75.6% had secondary education, 7.7% tertiary education, 14.6% primary education and 1.1% less than primary education. MEHR prioritises technical and vocational education and training alongside academic study. The Kiribati Institute of Technology and the Marine Training Centre provide technical, maritime and internationally relevant qualifications. Skills shortages are reported particularly in specialised fisheries and technical work. Sponsorship, vocational guidance and information about skills supply can affect access, but no separate national recognition authority beyond the documented MEHR, KIT and Marine Training Centre functions was established. Overseas labour mobility compensates for limited domestic demand. MEHR's Overseas Employment Unit administers pathways including New Zealand's Recognised Seasonal Employer scheme, Australia's Pacific Australia Labour Mobility and Seasonal Worker Programme, and New Zealand's Sealord pathway. Documented destination sectors include aged care, agriculture, meat processing, hospitality, horticulture and fisheries. The process generally involves Island Council registration and pre-selection, Overseas Employment screening, final selection, pre-departure training at KIT or the Marine Training Centre, travel arrangements, worker contact and debriefing. An application ID is required, and incomplete applications are marked accordingly. No verified application fee was identified, but travel and mobilisation costs depend on the scheme. Worker protection and reintegration arrangements are being developed, including a planned one-stop support service for prospective, current and returning workers and their families. The cited MEHR information listed 10 Pacific Australia Labour Mobility employers over three years, 15 Seasonal Worker Programme employers for six to nine months, 13 Recognised Seasonal Employer employers for six to nine months and one Sealord employer for six to nine months. The same information listed 118 PLS workers, 359 SWP workers, 363 RSE workers and 18 Sealord workers, but did not state the page's date. Labour mobility declined during the COVID-19 border closures and later recovered in 2022 and 2023. Remittances fell from about 12% of GDP to 8%, with about 10% reported for 2023. Kiribati's 2025–2029 policy direction focuses on youth unemployment, informality, the gender gap, skills mismatch, job creation, decent work, inclusive growth, employer-led reform, transparent performance systems and dispute processes. Fisheries diversification, aquaculture, processing, digital infrastructure and outer-island livelihoods are linked to future labour-market development.