Labor market in Papua New Guinea

The labor market in Papua New Guinea is highly fragmented. ILOSTAT recorded a 52% labor-force participation rate, a 50.6% employment-to-population ratio, 2.7% unemployment and 3.8% youth unemployment in 2022. The 27.7% NEET rate and 18.7% combined underemployment and potential labor-force measure show that unemployment alone does not describe access to work. Subsistence production, unpaid household work and informal activity are only partly captured by formal statistics. About 56% of the population was under 25 in the 2022 NSO SDES, creating continuing pressure for new training places and jobs. Agriculture, forestry and fisheries remain central to household livelihoods. Mining, liquefied natural gas and oil generate exports, public revenue and some high-paid formal jobs, but their direct employment effect is limited compared with their economic value. Construction, transport and logistics, retail, hospitality, public administration, education and health create additional formal or urban demand. Resource and infrastructure projects can create temporary or project-based vacancies; Papua LNG and Wafi-Golpu indicate possible future demand rather than guaranteed mass employment. World Bank estimates of around 330,000 potentially additional formal agribusiness jobs over ten years are a forecast, not the current number of jobs. Port Moresby and the National Capital District, together with Lae in Morobe Province, are the main formal and urban employment centers. The Highlands combine agriculture, regional services and resource locations. The Islands and New Guinea Islands, as well as rural provinces, rely heavily on agriculture, fishing, trade and public services. Access changes with transport, security, electricity, digital connectivity, training availability and the presence of resource projects. The 2022 SDES covered all 22 provinces nationally, but 14 of 335 clusters could not be reached because of security and conflict conditions. Formal job matching can involve the Department of Labour and Industrial Relations (DLIR) National Employment Division and National Employment Services. These services include job-seeker registration, screening, referrals, career guidance, labour-market information and vacancy collection. Provincial Labour Offices and licensed private employment agents provide additional channels. Employers are expected under the Employment Act 1978 and Employment Placement Service Act 1966 to report vacancies to DLIR, but no single channel fully covers rural and informal work. Direct applications, employer networks and community, church or clan connections also influence access, with different practical and legal weight. Formal employers commonly assess a CV, identity documents, education or trade certificates, references and a contract. The National Apprenticeship and Trade Testing Board, established under the Apprenticeship and Trade Testing Act 1986, supports apprenticeship, trade testing, certification and skill standards. National Training Council institutions, technical colleges, TVET providers and company training offer formal routes. Practical matching often depends on certified trades, technical maintenance, construction, electrical work, mechanics, welding, ICT, logistics, health and teaching, as well as literacy, numeracy, English, Tok Pisin, digital skills and work experience. ILOSTAT recorded a statutory monthly minimum wage of PGK 728 for 2024. Its application and the current rate should be checked against the applicable order, including the Minimum Wages Board process for 2024-2025, before relying on it. Pay varies substantially with formality, sector, qualification, location, employer and connection to resource projects. Informal earnings are usually more volatile, and ILOSTAT estimated a 26.6% working-poor rate for 2024. Women, young people, people with disabilities, households in remote areas and people without certificates can face higher access barriers, although the available evidence does not support a single exclusion rate. Formal work is more likely to provide a contract and enforceable standards, while informal work generally offers weaker practical access to minimum standards, occupational safety protection and social protection. ILOSTAT recorded at least one social-protection benefit for 9.1% of the population in 2022, pension coverage above retirement age at 1.9%, and recorded unemployment benefits at 0% in 2020; these figures are definition- and year-specific and do not replace an individual eligibility check. Internal mobility commonly follows rural-to-urban, provincial and project-related routes for work, education, trade and services. International employment involves the Immigration and Citizenship Authority's work permit and employment visa processes, usually supported by an employer or sponsor, a contract, CV, education records, job description, passport, police clearance and medical information; professional registration may also apply. Treasury's Labour Mobility Unit coordinates PNG participation in programs such as Australia's PALM and New Zealand's RSE. Overseas work is one pathway, not a substitute for assessing local skills, pay, costs and job access. Transport, accommodation, documents, certification and communication can add substantial matching costs, and DLIR National Employment Services lists weekday access from 9:00 to 15:00. No single dataset or institution currently provides a complete, current and nationally comparable picture of formal, informal, subsistence and rural work.