Women drive Samoa's employment
Women in Samoa have been credited for holding the fort for job creation leading to better economic growth according to a report released by ANZ Bank’s economist.
Kishti Sen and Tom Kenny in their report released last week said Samoa’s economy added 1,694 jobs in calendar year 2023 pushing the total formal sector workforce to 25,963, higher than 24,377 formal sector employment recorded in the fourth quarter of 2019 which was before the pandemic.
The report showed that 1,382 female employees joined the workforce last year. Increased female participation has seen Samoan women close the gap with male formal sector employment to 1,382 versus 3,398 in December 2019.
Women held the fort in Samoa’s labour market through the pandemic years and post-COVID. Those who lost jobs in the tourism accommodation sector due to closed borders over 2020, 2021 and the first half of 2022 were absorbed into other sectors, such as the public service, education, commerce and business services, after reskilling, often through special training programs.
“Since the border reopened on 1 August 2022, more females have joined the formal workforce, taking the total female participation to an all-time high of 11,804 at the end of 2023,” the economists say in the report.
Commerce, accommodation, public administration and education led the job creation, adding about 1,137 jobs over 2023.
The health sector lost 169 jobs. Male employment lost jobs during the pandemic, but that trend was disrupted last year with 312 males entering the workforce. This could partly be explained by a temporary halt in overseas employment opportunities in January 2023, with the Samoan government reviewing and eventually tightening its policy for temporary offshore employment.
“Now, the focus is on recruiting unemployed, low-skilled and semi-skilled people. This will likely see some stabilisation of the number of males formally registered for employment in Samoa,” said the economists.
“Overall, formal sector employment growth is forecast to slow to two per cent over the next three years. The strong employment growth in many of the labour-intensive service sectors has run its course.
“For now, the expected commencement of the new Legislative Assembly office in June will support employment growth. Major event hosting is also a positive for formal sector employment. Samoa hosted the Pacific Games in July 2019 and that contributed to a ‘one-off’ 100 odd jobs added in the September quarter.”
The 2024 Commonwealth Heads of Government Meeting will be held in Samoa later this year and that will support near-term employment growth.
However, construction sector employment has fallen off a cliff since the completion of several projects in 2019, including infrastructure works associated with the Pacific Games, a new international airport terminal and the Apia Waterfront development.
The economists suggested that stronger employment growth will coincide with the commencement of the next cluster of large projects, probably towards the end of this decade, when Samoa once again invests in its tourism industry sector by adding to its hotel and resort room inventory.