Labor market in Vanuatu

The Vanuatu National Statistics Office recorded a working-age population of 211,922 and a labor force of 105,491 in the 2025 Labour Force Survey. The broader LU4 labor-underutilization measure, which includes unemployment and other forms of unused labor capacity, was 24.6%. Among people aged 15 to 24, 44.3% were not in employment, education or training, commonly described as NEET. Subsistence production involved 60.3% of the working-age population, so wage employment figures do not describe the whole economic activity of households. The 2019 Household Income and Expenditure Survey recorded 84,859 employed people, or 46.3% of the working-age population. Its employment structure was 49.4% services, 37.3% agriculture, forestry and fishing, and 8.9% industry. Skilled agricultural work accounted for 37.0% of occupations, service and sales work for 18.9%, professional work for 8.4%, management for 6.4% and craft work for 6.4%. Employees represented 46.7% of workers, own-account workers 44.0%, employers 2.9% and contributing family workers 1.8%. Average reported work was 33.1 hours per week. Only 41.2% of workers reported wage information, and declared employee wages were concentrated mainly between VT20,000 and VT60,000 per month. The 2019 and 2025 figures should not be treated as a direct trend because the surveys and definitions differ. Formal labor demand is concentrated in Port Vila and Shefa, and around Luganville and other parts of Sanma. In 2019, labor-force participation was 61.6% in Port Vila and 59.5% in Luganville, compared with 46.8% in Malampa, 40.8% in Sanma, 39.7% in Penama, 32.3% in Torba and 30.3% in Tafea. Shefa outside Port Vila recorded 66.8%. Urban labor-force participation was 61.2%, compared with 45.9% in rural areas. Rural women had a participation rate of 41.3%, compared with 50.5% for rural men. Outer islands rely more heavily on subsistence production, informal activity and local networks. Agriculture, fishing, forestry, kava, copra, cocoa and cattle remain central activities. Tourism and hospitality, trade, transport, construction and public services provide other major sources of work. Before COVID-19, tourism contributed about 24.6% of gross domestic product, making tourism demand a significant source of employment and a major exposure to external shocks. Climate events, disasters and transport access also affect work opportunities, especially outside the main urban centers. Qualifications influence access to formal work. In 2019, 75.1% of the labor force had primary education or less, 20.1% had secondary education and 4.2% had tertiary education. Labor-force participation rose from 25.7% among people with primary education or less to 49.9% with primary education, 58.0% with secondary education and 79.2% with tertiary education. The Vanuatu Qualifications Authority, or VQA, regulates the Vanuatu National Qualifications Framework and quality standards for post-school education and training. Providers offering accredited courses need VQA registration. A recent VQA snapshot listed 14 registered providers and 13 accredited courses. Vanuatu Skills Partnership and Skills Centres offer flexible, blended and community- or business-based training. Provincial Government Training Boards and the National Skills Development Fund can support training, although fees and co-financing depend on the provider and course. Completing training does not automatically provide a job or self-employment. The Department of Labour and Employment Services, known as DOLES, operates under the Ministry of Internal Affairs. Its Employment Service Unit supports domestic job matching and labor-mobility pathways such as Australia’s PALM scheme, New Zealand’s RSE scheme and related seasonal programs. Employment Services Vanuatu supports jobseekers, young people, graduates and returning workers. The Employment Vanuatu Portal provides free online matching for employers and jobseekers. On many islands, people also find work through family, villages, chiefs, churches and personal networks. Reliable vacancy coverage is not established across all outer islands, so an online search may not show the full local market. Ni-Vanuatu citizens can seek domestic work through employers, Employment Services Vanuatu and the Employment Vanuatu Portal. Non-citizen employment is employer-sponsored under the Labour (Work Permit) Act, and DOLES first reviews whether a suitably qualified Ni-Vanuatu worker is available. In 2025, a temporary work permit for up to four months cost VT60,000, while an exemption for up to one month cost VT30,000. A legacy Department of Labour procedure described processing of about one week, depending on the case. Seasonal recruitment uses licensed agents or permit holders, and the DOLES code prohibits charging workers a recruitment fee for a job opportunity. The National Labour Mobility Policy 2024–2027 treats overseas work as part of Vanuatu’s labor strategy while addressing worker welfare, circular migration, reintegration, recruitment records and decentralization across six provinces. In November 2025, about 7,115 Ni-Vanuatu workers were recorded in Australia’s PALM scheme; short-term placements can last up to nine months and long-term placements from one to four years. New Zealand’s RSE scheme covers eligible Pacific workers in horticulture and viticulture during the season from 1 July to 30 June, subject to allocation and an Agreement to Recruit. Overseas opportunities can increase household income and skills, but large-scale mobility can also create domestic skills shortages and protection risks. The current minimum wage is VT300 per hour, equivalent to VT52,800 using the statutory calculation of 22 days and eight hours per day. Normal working time is up to eight hours per day and 44 hours per week. From 1 January 2026, the Vanuatu National Provident Fund contribution is 12%, split equally between employee and employer. The compulsory contribution generally applies to employees aged 14 to 55 earning at least VT3,000 per month; self-employed and informal workers can join voluntarily. Annual leave is 1.25 days per month during years 1 to 6 and 1.75 days per month during years 7 to 19. After more than three months of service, sick leave is 21 working days. Maternity leave covers six weeks before and six weeks after birth at 66% pay. Severance commonly applies after 12 months where a legally recognized termination reason exists, and good-faith resignation can qualify after six years. Workers can raise complaints with a Labour Officer. The process may involve settlement, conciliation, arbitration or court proceedings, while DOLES also handles inspections, occupational safety and industrial-relations matters. The National Employment Policy 2025–2030 focuses on quality jobs, youth, women, people with disabilities, technical and vocational education, informal work, social protection and labor mobility. These priorities reflect a labor market where formal indicators cover only part of the work people perform and where location, skills, gender, transport access and overseas opportunities strongly influence available choices.