PACIFIC LABOR MOBILITY, MIGRATION, AND REMITTANCES IN TIMES OF COVID-19 FINAL REPORT 1 © 2021 International Bank for Reconstruction and Development/ License: Creative Commons Attribution CC BY 3.0 IGO The World Bank 1818 H Street NW, Washington, DC 20433 Translations – If you create a translation of this work, please add the Telephone: 202-473-1000; following disclaimer along with the attribution: This translation was Internet: www.worldbank.org not created by The World Bank and should not be considered an Some rights reserved official World Bank translation. The World Bank shall not be liable for any content or error in this translation. This work is a product of Consultants working for and the staff at The World Bank. 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Washington, DC: World Bank. doi: - 2 ACKNOWLEDGEMENTS 10 EXECUTIVE SUMMARY 12 I. INTRODUCTION 23 II. SAMPLING AND DATA COLLECTION 27 2.1 Quantitative Surveys 28 2.1.1 Sampling Strategy 28 2.1.2 Sample Description 29 2.2 Qualitative Interviews 35 III. SEASONAL AND PLS WORKERS 39 3.1 Current Seasonal Workers and PLS Workers 39 3.1.1 Visa Extension and Redeployment 39 3.1.2 Employment 40 3.1.3 Income 44 3.1.4 Saving and Consumption in Response to Reduced Income 48 3.1.5 Remittances 49 3.1.6 Satisfaction, Intention to Return Next Year, and Issues During COVID-19 56 3.2 Cancelled Seasonal Workers 58 3.2.1 Income Losses and Pre-departure Costs 58 3.2.3 Labor Market Activities and Earnings 63 3.2.4 Satisfaction 66 IV. HOUSEHOLDS 68 4.1 Income and Livelihood 68 4.2 Remittances 73 4.3 Expenditure 77 4.4 Financial Anxiety and Coping Mechanisms 80 V. EMPLOYERS 83 5.1 Labor Shortages During COVID-19 83 5.2 Contract Extensions and Redeployment During COVID-19 85 5.3 Challenges Faced by Employers During COVID-19 88 5.4 Future Demand for Seasonal Labor, Challenges, and Government Support 90 3 VI. PACIFIC DIASPORA 95 6.1 Pacific Diasporas in Australia and New Zealand 95 6.2 Pasifika Demography and Living Arrangements 98 6.3 Pacific Diasporas and Employment 99 6.4 Government Assistance and Social Safety Nets 105 6.4.1 Government Assistance 105 6.4.2 Financial Difficulties 105 6.4.3 Cultural Barriers to Accessing Assistance 108 6.5 Remittances 108 6.6 Other Impacts of COVID-19 111 6.6.1 Impacts on Individuals and Households 111 6.6.2 Impacts on Communities 113 VII. DISCUSSION AND POTENTIAL POLICY RESPONSES 116 7.1 Remittances 116 7.2 Labor Mobility During and in the Aftermath of COVID-19 119 7.3 Potential Policy Responses 121 7.3.1 Social Safety Nets 122 7.3.2 Employment Retention 123 7.3.3 Employment Promotion 123 7.3.4 Social and Health Services 124 7.3.5 Repatriation Support Measures 126 7.3.6 Reintegration Support 126 7.3.7 Worker Registry 126 REFERENCES 128 ANNEX 1. QUANTITATIVE SURVEY: DATA COLLECTION PROCEDURE 133 ANNEX 2. SAMPLE SIZE OF QUANTITATIVE SURVEYS 134 ANNEX 3. QUALITATIVE DATA ANALYSIS AND INTERVIEW PROFILE 141 ANNEX 4. TOPIC GUIDE FOR SEMI-STRUCTURED INTERVIEWS 142 ANNEX 5. QUALITATIVE INTERVIEWS: PARTICIPATING ORGANIZATIONS AND COMMUNITIES 145 4 List of Figures Figure 1: Seasonal workers/labor force ratio (2018–19) 22 Figure 2: Remittance inflows as percentage of GDP (2020) 23 Figure 3: Percent of households receiving remittances in Tonga by welfare status (2015–16) 23 Figure 4: Estimated GDP growth in PICs (2020) 25 Figure 5: Sampled current workers by gender 28 Figure 6: Sampled current workers by nationality 28 Figure 7: Surveyed current workers by age 30 Figure 8: Surveyed current workers by marital status 30 Figure 9: Surveyed current SWP workers by location 30 Figure 10: Surveyd current RSE workers by location 30 Figure 11: Surveyed cancelled workers by nationality 31 Figure 12: Surveyed PLS workers by nationality 32 Figure 13: Surveyed households by nationality 32 Figure 14: Average no. of years participating in the schemes 33 Figure 15: Average no. of seasonal workers employed per season 33 Figure 16: Changes in work hours of seasonal workers after lockdowns 40 Figure 17: Change in earnings after lockdown by workers’ profiles 42 Figure 18: Change in weekly work hours of PLS workers since lockdown 43 Figure 19: Average weekly work hours of PLS workers before and after lockdown 43 Figure 20: Change in weekly earnings of seasonal workers after lockdown 44 Figure 21: Changes in weekly earnings of seasonal workers by workers’ profiles 45 Figure 22: Percentage reduction in weekly earnings of seasonal workers 46 Figure 23: Expectation that total earnings of the work season can cover pre-departure costs 47 5 Figure 24: Change in weekly earnings of PLS workers after lockdown 47 Figure 25: Changes in savings and expenditure of seasonal workers 49 Figure 26: Change in remittances among seasonal workers 51 Figure 27: Change in remitting frequency among SWP workers 52 Figure 28: Change in remitting frequency among RSE workers 52 Figure 29: Change in remitting channels among SWP workers 53 Figure 30: Change in remitting channels among RSE workers 53 Figure 31: Money transfer operations used before and after the lockdown (in percent of workers) 53 Figure 32: Intended use of remittances (in percent of workers) 55 Figure 33: Recipients of remittances (in percent of workers) 55 Figure 34: Issues faced by seasonal workers during the COVID-19 crisis 56 Figure 35: Pre-departure costs incurred by cancelled seasonal workers 61 Figure 36: Pre-departure costs compared to household and individual monthly incomes 62 Figure 37: Financing pre-departure costs 63 Figure 38: Labor market activity on which most time was spent before and after lockdown 64 Figure 39: Current labor market activities of cancelled workers 65 Figure 40: Changes in monthly earnings of cancelled workers 65 Figure 41: Income reduction associated with COVID-19 among households of current seasonal workers 69 Figure 42: Cancelled workers impact of COVID-19 on performance of household economic activities 70 Figure 43: Main source of household income 72 Figure 44: Average remittance amount as compared to household income 74 Figure 45: Changes in remittances received 76 Figure 46: Remittance channel (before lockdown) 77 Figure 47: Total household expenditure in last month 78 Figure 48: Household budget share 79 Figure 49: Coping strategies taken by households since March 2020 61 Figure 50: Labor shortages experienced by employers 84 6 Figure 51: Demand for Pacific seasonal workers during a calendar year 84 Figure 52: Perceived reasons for labor shortage 85 Figure 53: Share of employers redeploying their stranded workers 86 Figure 54: Workers’ contribution to contract extension costs (as reported by employers) 87 Figure 55: Employers’ contribution to contract extension costs 87 Figure 56: Effect of social distancing on output 88 Figure 57: Challenges in hiring and managing SWP/RSE workers during the pandemic 89 Figure 58: Actions taken by employers in response to COVID-19 safety protocols 90 Figure 59: Employers’ intention to recruit seasonal workers in 2021 91 Figure 60: Challenges for businesses to employ Pacific or Timorese workers next year 92 Figure 61: COVID-19 has highlighted various weaknesses in the SWP/RSE schemes 92 Figure 62: Issues with labor mobility schemes perceived by employers 93 Figure 63: Support businesses wish to receive from the government 93 Figure 64: Selected Pacific diaspora groups by location in Australia (2016) 96 Figure 65: Pacific diaspora groups by selected location in New Zealand (Census 2018) 97 Figure 66: Australian and Pacific diaspora groups by level of highest educational attainment (2016) 100 Figure 67: Australian and Pacific diaspora by main occupations (2016) 100 Figure 68: New Zealand and Pacific diaspora groups by main occupations (2018) 101 Figure 69: Monthly remittance inflows to Fiji and Samoa (2020) 117 Figure 70: Cumulative remittances to Fiji and Samoa in 2020 (year to date) 117 Figure 71: Nationality of seasonal workers employed by surveyed employers 140 7 List of Tables Table 1: Cultural representation of diaspora groups contacted 35 Table 2: Locations of diaspora groups contacted in Australia and New Zealand 35 Table 3: Cultural background and representation of in-depth interview participants 36 Table 4: Location of communities represented in interviews 37 Table 5: Average change in weekly work hours of seasonal workers after lockdowns 41 Table 6: Income changes of seasonal workers compared to the period of January–February (2020) 44 Table 7: Change in weekly earnings of PLS workers since lockdown by gender 48 Table 8: Changes in remittances among seasonal workers 50 Table 9: Satisfaction rating (out of 10) of working experience in Australia and New Zealand 57 Table 10: Loss of potential income by cancelled seasonal workers 59 Table 11: Main use of remittances received 75 Table 12: Percent of households with financial anxiety score of 5 or above 80 Table 13: Contract extension for seasonal workers 86 Table 14: Annual remittance inflows (2019–20) 117 Table 15: Sample of current seasonal workers 134 Table 16: Household summary statistics 136 Table 17: Sample of cancelled workers 138 Table 18: Cancelled workers summary statistics 138 Table 19: Response rates 139 Table 20: Sample of employers 139 8 Acronyms DFAT Department of Foreign Affairs and Trade EPS Employment Permit System FCI Finance, Innovation and Competitiveness FSM Federated States of Micronesia GFC Global Financial Crisis GP Global Practice IOM International Organization for Migration LSU Labor Sending Units MTI Macroeconomic, Trade, and Investment MTO Money Transfer Operator OECD Organisation for Economic Co-operation and Development OTC Over-the-counter PICs Pacific Island Countries PLF Pacific Labour Facility PLS Pacific Labour Scheme PNG Papua New Guinea RSE Recognised Seasonal Employer SPJ Social Protection and Jobs SWP Seasonal Worker Programme 9 ACKNOWLEDGEMENTS This report is part of a broader analytical work The team is also thankful for helpful comments on program on labor mobility in the Pacific that the the survey questionnaires and support to contact World Bank has been undertaking with financial potential respondents from the Development Policy support from the Australian Department of Foreign Centre at The Australian National University. Affairs and Trade (DFAT). The report brings together The writing of this report was led by Dung Doan, analysis of primary data collected through a series of Matthew Dornan, and Kirstie Petrou. The core team phone-based quantitative surveys on Pacific seasonal included Thelma Choi, Robyn Kingston, Alexandra workers, their households and employers, Pacific Munoz, Kenia Parsons, and Soonhwa Yi. Yasser El- semi-skilled migrant workers, as well as qualitative Gammal (Practice Manager, World Bank) provided interviews with representatives of Pacific diaspora overall vision and guidance to the team. The surveys groups in Australia and New Zealand. The report also on seasonal workers, employers, and households draws on analysis undertaken by the Social Projection were implemented by a team of consultants led by and Jobs Global Practice (GP); the Finance, Innovation Dung Doan that included Crystal Ake, George Carter, and Competitiveness GP; the Macroeconomic, Trade, Glenn Finau, Patricia Fred, Robyn Kingston, Teaiaki and Investment GP; and the Poverty and Equity GP. Koae, Felix Maia, Vani Nailumu, Randall Prior, Aoniba The team would like to thank those who took part in Riaree, Seini Toufa, and Telusa Tu’I’onetoa. The the surveys and interviews. The implementation of interviews were conducted by Kirstie Petrou. Data the surveys and interviews benefited from valuable on semi-skilled migrant workers were collected by support from the Fijian National Employment the Pacific Labour Facility (PLF) using a compatible Centre; i-Kiribati Ministry of Employment and Human questionnaire, the design and implementation of Resources; Tongan Employment Division of the which could not be completed without generous Ministry of Internal Affairs; Timor-Leste Embassy in and collegial support from the PLF. Australia; Vanuatu Department of Labour; Australian The authors would like to thank Ganesh Seshan Department of Education, Skills and Employment; (Senior Economist, World Bank) and Jesse Doyle Australian Department of Foreign Affairs and Trade; (Economist, World Bank) for constructive comments New Zealand Ministry of Foreign Affairs and Trade; and advice on earlier drafts of the report. The team is New Zealand Ministry of Business, Innovation and also thankful for administrative support from Jeremy Employment; Approved Employers of Australia; Webster (Team Assistant, World Bank), technical Horticulture New Zealand; New Zealand Apples and support from Shamita Afrin, Praveen Chakkaravarthy, Pears; and the Uniting Church in Australia. Leisande Rigel Colina, and Jane Hume of the Sydney IT Help Otto (Liaison Officer, World Bank) and Akka Rimon team (World Bank), as well as helpful advice from (Liaison Officer, World Bank) provided valuable Hamish Wyatt (External Affairs Officer, World Bank). assistance to facilitate the implementation of the The report was copy edited by Angela Takats and surveys with ni-Vanuatu and i-Kiribati workers. graphically designed by Heidi Romano. 10 ACKNOWLEDGEMENTS Photo by © darrenjamesphotography.com EXECUTIVE SUMMARY Migration and labor mobility have historically played The COVID-19 crisis caused significant disruption a critical role in providing employment, income, and to Pacific labor mobility and diaspora groups, with skill acquisition opportunities for Pacific Islanders. adverse consequences on their employment and Facing limited formal job opportunities at home, a earnings. Pacific Island workers under long-term large and growing number of Pacific Islanders have visas faced the risk of becoming unemployed as migrated overseas, mostly to Australia (28 percent host economies were affected by the pandemic. of Pacific Islanders living in OECD countries), International travel restrictions aiming to curb the New Zealand (32 percent) and the United States spread of the pandemic have left thousands of (30 percent). Although small in absolute numbers, seasonal workers stranded in Australia and New the relative scale of this migration is significant: the Zealand and suspended the arrival of prospective Tongan diaspora of 53,247 people is equivalent to half workers for most of 2020. Although travel to Australia the resident Tongan population (105,139); the Samoan and New Zealand under the SWP, PLS, and RSE has diaspora of 124,400 people in 2019 is equivalent recommenced, numbers are significantly lower than to some 60 percent. In addition, large numbers of the approximately 14,000 RSE workers and 12,000 seasonal workers from the Pacific participate annually SWP workers that travelled to New Zealand and in temporary labor mobility schemes. Australia’s Australia in 2018–19. Seasonal Worker Programme (SWP) and New Zealand’s The analysis in this report employs data collected by Recognised Seasonal Employer (RSE) scheme engage the World Bank through a series of phone surveys Pacific Islanders in low-skilled jobs in the agriculture undertaken in Australia, New Zealand, Timor-Leste, sector under short-term contracts of 6–11 months. In and five PICs. Quantitative data were collected 2019, approximately 25,000 workers found jobs in the through four structured surveys between June and schemes. For Samoa, Tonga, and Vanuatu, seasonal early September 2020 which covered: (i) seasonal workers employed through these schemes accounted workers working in Australia and New Zealand for 6.0 percent, 14.7 percent, and 8.1 percent of the during the pandemic outbreak (‘current workers’); (ii) workforce in 2018–19, respectively. prospective workers who were forced to remain in their Migrant workers (both temporary and permanent) home country due to the suspension of international make an important economic contribution to travel (‘cancelled workers’); (iii) households of the Pacific Island Countries (PICs). Seven of the top 10 seasonal workers; and (iv) employers under the SWP remittance recipients by share of GDP in the East and RSE schemes. The survey covered workers from Asia and Pacific region are in the Pacific. Tonga tops Fiji, Kiribati, Samoa, Tonga, Timor-Leste, and Vanuatu. the list with remittance inflows equivalent to nearly Data on the Pacific diaspora were collected through 40 percent of its GDP in 2019. At a household level, semi-structured phone interviews with representatives remittances are an important source of income; in of diaspora groups between May and August 2020. Tonga and Samoa, four out of every five households The report also uses data on PLS workers, collected by receive remittances from abroad. the Pacific Labour Facility (PLF), based on a compatible questionnaire during the same time period. 12 EXECUTIVE SUMMARY Survey Findings FIGURE E1: Change in weekly earnings of seasonal workers after lockdown Employment and Income Effects The pandemic caused disruptions to the employment 100% of many seasonal workers. During the period from Low March until August 2020, more than 30 percent of 80% Sam SWP workers and 54 percent of RSE workers spent at least one week without any work while more Hig 60% than two-thirds of workers across both schemes reported having fewer work hours than they did 40% during the period of January and February. Those who experienced reduced work hours on average lost 18 hours per week; a 37 percent decrease from 20% 48 hours to 30 hours per week. The overall change across all workers was also negative at 11 hours per 0% SWP RSE Total week with no noticeable difference across the two schemes. Higher earnings Same earnings Lower earnings Consistent with its impact on work hours, the crisis caused a widespread and substantial reduction in Source: World Bank staff calculation based on data from the seasonal workers’ earnings on average. Overall, World Bank COVID-19 Phone Survey on Pacific Labor Mobility 68.4 percent of seasonal workers reported that their and Remittances. earnings were lower than during the January–February period, while a minority of 16.7 percent experienced an increase in earnings. The income effects of COVID-19 The magnitude of the income loss was also greater varied considerably across nationalities. Timorese, for first-timers, team members and those employed Samoan, and i-Kiribati workers were most affected, by labor hire companies (as compared to returned with approximately 71.4 percent, 87.2 percent and workers, team leaders, and workers employed by 77.8 percent seeing a decrease in weekly earnings, direct employers), although the differences were less respectively. Tongan and Fijian workers fared the pronounced than in the case of the gender gap. best, with 57 percent and 62 percent, respectively, experiencing lower earnings. Unlike seasonal workers, semi-skilled Pacific workers employed under the PLS appear to have The crisis disproportionally affected female seasonal had a relatively more positive experience during the workers. Although male workers were more likely to pandemic. About 36.1 percent of PLS workers reported see their earnings drop than their female counterparts, earning less than they did during the pre-COVID-19 when they did, the extent of reduction in their income months of January and February, which is considerably was more modest than among females (although it lower than the proportion among seasonal workers was still substantial) at 48 percent as compared to (68.4 percent). 58 percent. Part of this gap may be due to the different jobs that women and men typically occupy. This reduction in income represents a heavier burden on female workers because they earned considerably less than male workers despite working roughly the same number of hours, both pre- and post-lockdown. 13 EXECUTIVE SUMMARY Satisfaction Despite the overall negative impacts of the COVID-19 The variation between the two seasonal work schemes crisis, migrant workers remained fairly satisfied with is minor when broken down by nationality; the only their experience in Australia and New Zealand. When exception is that Tongan workers in the SWP scheme asked how satisfied they were with the scheme on a gave a markedly higher rating than Tongan RSE scale of 1 ‘not satisfied at all’ to 10 ‘extremely satisfied’, workers (9.2 compared to 7.1). Across nationalities, the average score was 8 among PLS workers, 7.8 Timorese workers gave the lowest average rating among SWP workers, and 8.2 among RSE workers at 6.9, which is likely related to the fact that they (Table E1). The vast majority (nearly 95 percent) of experienced the most severe reduction in earnings seasonal workers wished to return in 2021 (the survey during this crisis. Across demographic groups, those having been undertaken in mid-2020). who were hit harder by the crisis – females, first-timers, team members – tended to be less satisfied. Table E1: Satisfaction rating (out of 10) of working experience in Australia and New Zealand Nationality SWP RSE SWP 2015* Overall 7.8 8.2 N/A Fiji 8.2 8.3 N/A Kiribati 8.4 8.5 N/A Samoa 8.8 8.9 8.5 Timor-Leste 6.9 N/A 7.9 Tonga 9.2 7.1 9.9 Vanuatu 7.0 7.9 6.3 Male 7.9 8.3 N/A Female 7.6 7.6 N/A Returnee 8.2 8.3 N/A First-timer 7.1 7.8 N/A Team member 7.7 8.2 N/A Team leader 8.1 8.2 N/A * World Bank (2018) Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. Note: Compared with data collected by the World Bank on SWP workers in 2015 (World Bank, 2018), satisfaction levels appear mostly similar, with no clear pattern of changes. 14 EXECUTIVE SUMMARY Remittances and Household Effects The decrease in remittances, however, was markedly more modest than that in earnings, probably because Remittances from seasonal workers significantly many workers adjusted their own spending and saving decreased, which is unsurprising given the reduction behaviors to cope with income impacts and maintain in work hours and earnings. Nearly half of the the level of money sent home. While 68.4 percent surveyed workers reported that their remittances of workers saw their earnings fall, only 51.4 percent were lower than the pre-lockdown months of reported remitting less. Moreover, although workers January and February, while only about 21.3 percent who earned more tended to remit more and vice versa, reported remitting more each time as compared to the correlation between the changes in earnings and the pre-lockdown period. remittances was only moderate; 59.4 percent of those earning less remitted less, and only 30.9 percent of those making more remitted more. In other words, FIGURE E2: Change in remittances among 40.6 percent of workers whose earnings dropped seasonal workers either maintained or increased their remittances. When disaggregated by the change in earnings, the average 100% changes in remittances were also noticeably smaller Lower earnings in both absolute and relative terms, regardless of 80% whether earnings Same increased or decreased. earnings The decline Higher remittances from seasonal workers is inearnings 60% a concern given the need among sending households has increased. Income of households that is earned 40% domestically declined since the onset of COVID-19. This could be linked to household members being 20% laid off or having work hours reduced. Overall, 16 percent of households reported that someone 0% in their household had been furloughed or laid off SWP RSE Total and 38 percent reported that a household member Higher Same Lower had their work hours reduced. Similarly, 57 percent of households that operate non-farm businesses saw their business income drop and about a quarter (24.4 percent) of households engaging in agricultural 100% activities, such as farming, fishing, or raising livestock, Lower reported their agriculture income this season to be 80% lower orSame much lower as compared to last season. Higherfrom overseas seasonal employment Remittances 60% accounted for a major share of household income. In Timor-Leste, the average remittances received since 40% March amounted to 212 percent of household income in the month preceding the survey. In Vanuatu, where 20% many households reported reliance on subsistence agriculture, and economic activities have been 0% curtailed by COVID-19 impacts on the tourism Tonga Fiji Vanuatu Timor- Kiribati Samoa industry, remittances amounted to 101 percent Leste of household income. Higher Same Lower Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. 15 EXECUTIVE SUMMARY Remittances from SWP/RSE workers were Employers fundamental to financing essential household Border closure and public health measures aimed at consumption. The main uses of remittances were curbing the spread of COVID-19 created major and for everyday expenses, including food (35 percent on-going disruptions to employers under the SWP of households), school fees and other educational and RSE schemes. The suspension of international expenses (20 percent), and health care (7.5 percent). travel in March 2020 effectively stopped the arrival Qualitative feedback from surveyed households of prospective workers and left many existing revealed that some daily expenses such as bus fares workers stranded. and lunches were also related to sending children to school, hence further emphasizing the role COVID-19 also led to significant shortages of of remittances in supporting investment in child seasonal labor, especially in New Zealand. Nearly half education. It is also important to note that in areas of surveyed employers – 43.2 percent in Australia and where subsistence farming is prevalent and the cash 56.7 percent in New Zealand – reported experiencing economy is limited, remittances are often the primary at least one month of labor shortages since March source of fiat money to finance goods and services 2020. Employers attributed labor shortages to that require monetary payment, such as school border closures and social distancing measures fees, health care services, or housing renovation/ aimed at limiting the spread of the pandemic. The construction. most common causes pinpointed by both SWP and RSE employers were delays and cancellations of the arrival of prospective workers and decreases in the Cancelled Workers number of local farm workers and backpackers, who For workers who were due to travel to Australia or employers in the horticulture sector typically rely on New Zealand for employment under labor mobility during peak harvest seasons (in addition to seasonal schemes but were unable to do so due to closed Pacific workers). borders, the suspension of seasonal employment While significant and requiring business adjustments, during the COVID-19 pandemic caused significant the lack of farm labor appeared to be seasonal. losses of potential income. Household expenditure As most existing workers were stranded beyond was 17 percent higher for households with workers their seasonal employment, 46 percent of direct currently abroad as compared to the households of employers – both those having experienced labor cancelled workers. shortage and those having not – had to reduce hours In addition, more than one-third of the cancelled for their workers, mostly because there was less work workers (34 percent) had taken out loans to cover available after the harvest season had passed its their pre-departure costs, leaving them at increased peak and/or employers wanted to keep their workers vulnerability to financial hardship and future shocks. employed longer. This explains the apparent paradox On average, pre-departure costs amounted to of workers being provided with reduced work hours, 165 percent of workers’ average monthly earnings while employers at other times suffered from worker before COVID-19 and 112 percent of household shortages. income during the crisis. About 80 percent of those Movement of workers between employers has who borrowed (from either family, friends, banks, or helped to address over/under-supply of labor, but commercial lenders) had not paid off their debts at only partially. Approximately 41 percent of those with the time of the survey, and of those who were yet to stranded workers (or 36.5 percent of all surveyed repay debts, only 26 percent had been making regular employers) redeployed at least some of their Pacific/ repayments. Timorese employees, with redeployment being moderately more common among RSE employers (44 percent versus 39 percent). Redeployment was organized mostly privately. About two-thirds of the employers redeployed their workers through private arrangements with other employers. Employers incurred the major share of the costs of the contract extension and redeployment. 16 EXECUTIVE SUMMARY Providing pastoral care to seasonal workers became In New Zealand, the wage subsidy performed a similar more demanding during the crisis. Surveyed function, with employees receiving $NZ 585.80 per employers reported worsening behavioral issues week if they normally worked 20 hours or more and as workers struggled to cope with social isolation $NZ 350 per week if they normally worked part-time. and boredom (due to less work), concerns about Diaspora members reported that not all Pacific their families (especially among workers who had Islanders were eligible to receive government children at home), and uncertainties surrounding their payments, while other barriers, such as difficulty employment, income, repatriation, and infection. This in understanding the social security system, also was confirmed in discussions with diaspora groups, presented challenges to accessing COVID-19 welfare who reported increased strain and mental health payments. Many Tongans and Samoans have migrated issues among worker groups with which they had to Australia via New Zealand and still hold New contact. Employers voiced dissatisfaction with the Zealand citizenship. Whereas this would once have lack of support given to workers from governments of entitled them to Australian social security benefits, this both sending and host countries during the pandemic. changed in 2001 when the Social Security Act 1991 was amended. Now, while New Zealand citizens can still travel to Australia to live and work, they do not have The Pacific Diaspora rights as Australian citizens or permanent residents unless they apply for either citizenship or residency More than half of the Pacific diaspora members (Faleolo, 2019). As a result, many Pacific Islanders in interviewed believed that COVID-19 had impacted Australia who hold New Zealand citizenship are not their community’s employment either through job eligible to receive government welfare payments. losses or reduced hours. In the wider Australian Many people within surveyed communities, particularly population, the biggest job losses by early 2020 were Tongans and Samoans, fell into this category and thus in food and accommodation services (17.2 percent), could not access the JobKeeper payment. followed by arts and recreation services (12.7 percent). Census data confirm that in both Australia and New The impacts of the pandemic on remittances from the Zealand, a large proportion of Pasifika1 employment diaspora varied across groups. In Fiji and Vanuatu, the is concentrated in low- and medium-skilled economic impacts associated with a lack of tourism, occupations including laborers, machine operators, along with the devastation wrought by Cyclone Harold, drivers, sales, clerical, and administrative workers. meant Fijian and ni-Vanuatu communities reported that These occupations have high physical proximity scores people were remitting more than in the past. Others and are not easily transitioned to online or work from noted that remittances had been affected by job losses home settings, meaning they were more likely to be among the diaspora, with those who were struggling affected by lockdowns and social distancing measures. financially reported to be sending ‘COVID-remittances’; money was still flowing but the amounts were smaller Pasifika community members reported that than they once were. government payments provided some insulation from the real impacts of COVID-19-related job losses. In Australia, the JobKeeper payment was introduced to allow businesses impacted by the pandemic to continue paying their employees’ wages. Under JobKeeper, eligible businesses received $A 1,500 per employee every fortnight between 30 March and 28 September 2020, after which slightly lower payments were introduced based on whether employees were employed on a full- or part-time basis (Australian Government, 2020). The JobKeeper payment ended on 28 March 2021. 1. Pacific Islander migrants. 17 EXECUTIVE SUMMARY FIGURE E3: Monthly remittance inflows Remittances: to Fiji and Samoa (2020) The Macroeconomic Evidence 60% At an aggregate level, remittances to Pacific Island Tonga countries have been more resilient than expected, 40% despite a severe and abrupt decrease when the Samoa pandemic first affected the region. A sharp drop in Fiji remittance inflows was observed in Fiji, aggregate 20% Samoa, and Tonga during February–April 2020; yet between May and September 2020, inflows recovered 0% with year-to-date and monthly remittances returning to positive year-on-year growth (Figures E3 and E4). -20% World Bank estimates of the reduction in remittances to the Pacific region were consequently revised -40% downwards from 16.9 percent in April 2020 to Feb Mar Apr May Jun Jul Aug Sep 4.3 percent in October 2020.2 This better-than- expected performance is not unique to the region, Samoa Fiji Tonga having also been observed across Asia, Latin America, and Africa (Caron & Tiongson, 2021; Lopez-Calva, 2021; Oxford Economics, 2021). FIGURE E4: Cumulative remittances to Fiji and Three major factors could explain why remittances Samoa in 2020 (year to date) have remained steady despite the pandemic and its economic impacts: (i) migrants abroad have not 30% suffered from extensive job losses to the degree Tonga expected, and some have actually benefitted temporarily Samoa as a result of COVID-19 stimulus payments 20% from host governments; (ii) remittances tend to be drivenFijiby altruism, increasing when the situation in the migrants’ country of origin worsens – as is clearly 10% the situation in PICs as a result of the pandemic; (iii) a diversion from physical transportation of cash 0% across borders to sending through remittance service providers could have also contributed to the sustained remittance flows. The latter explanation is certainly -10% plausible given existing evidence from Pacific seasonal Mar Apr May Jun Jul Aug Sep workers, whose practice of carrying a large amount Samoa Fiji Tonga of cash home at the end of a working season is well documented (Maclellan & Mares, 2006; Brown et al., Source: Reserve Bank of Fiji and Central Bank of Samoa. 2015; World Bank, 2017b). 2. Data on aggregate remittance flows to the Pacific region during the second half of 2020 were unavailable at the time of this report. 18 EXECUTIVE SUMMARY Prospects for Labor Mobility The demand for Pacific seasonal workers in Australia in particular is likely to remain robust in the foreseeable The study concludes that migrant labor could play an future, given the fact that the annual cohort of important role in supporting Pacific Island economies 140,000–200,000 working holiday-makers, who make recover in the aftermath of COVID-19. The devastated up about three-quarters of the seasonal workforce tourism industry and the broader economic slowdown in Australia, has largely left the country due to the from the pandemic have further tightened the pandemic. It was reported in February 2021 that only already limited supply of formal jobs in Pacific Island around 40,000 working holiday-makers remain in countries, making employment overseas an even more Australia. Incentives put in place by governments in important source of income and livelihood. In Tonga Australia and New Zealand to encourage domestic and Vanuatu, for instance, the total number of workers workers to take up seasonal work appear to have had employed under the SWP, RSE, and PLS schemes in limited success in easing the shortage. Affirming these 2018–19 well exceeded the number of formal jobs trends, about 98 percent of employers surveyed by created annually, which were roughly 325 and 1,260 the World Bank expressed the intention to continue respectively (World Bank, 2017a). In Kiribati, seasonal employing SWP/RSE workers in 2021, with about half and PLS employment in 2018–19 was equivalent to of them wanting to increase recruitment. In the nearly a quarter of the number of formal jobs created Australian context, the absence of working holiday- domestically per year. makers, if prolonged, could potentially set the There are reasons to be optimistic about prospects foundation for Pacific labor mobility schemes to for Pacific Island migrant workers despite ongoing expand should numbers not be restricted as a result travel restrictions. The Australian, New Zealand, and of travel restrictions (and related quarantine issues). US economies are slowly recovering from the crisis In the short term, nonetheless, numbers will remain and now have moderate growth prospects. In the below pre-COVID-19 levels, with challenges relating to absence of lockdowns, employment in Australia has ongoing travel restrictions, limited quarantine places, recovered faster than anticipated and demand for flights, and testing arrangements needing to be labor is expected to more than offset the potential addressed. job losses that could result from the withdrawal of the JobKeeper benefit. The country’s GDP growth is forecasted to be 4.75 percent over 2021 and 3.5 percent over 2022. New Zealand has also Potential Policy Responses recorded a stronger than anticipated rebound, with Policy interventions to protect Pacific migrant workers positive growth of 0.4 percent in Q3 2020 and labor from the impacts of COVID-19 have been limited in shortages emerging in some sectors by May 2021. both home and host countries. Most (though not all) In the United States, real GDP increased at an annual labor sending countries have provided no support rate of 6.4 percent in Q1 2021, up from 4.3 percent to migrant workers or their households. In Tonga, in Q4 2020. In the medium term, vaccination of targeted financial support to families of seasonal populations in host countries coupled with the fact workers unable to return home was provided, however, most PICs remain ‘COVID free’ means that there is it appears that coverage at the time of the survey was some prospect of renewed travel between the Pacific low, with fewer than 10 percent of those interviewed and major migrant hosting countries. having received the benefit. In other sending countries, migrant households had received some There is also reason to be optimistic about Pacific form of social assistance as part of broader social labor mobility programs. Demand for seasonal labor assistance programs, yet this varied widely, from in the horticulture and viticulture industries in Australia 86.7 percent of surveyed Timorese households and New Zealand has remained strong despite the receiving some assistance from the government, pandemic. Significant shortages of seasonal labor to 7.5 percent in Vanuatu (the latter primarily taking have been reported in both Australia and New Zealand, the form of school fee waivers). None of the sending with an estimated shortage of 25,000 workers in 2021 households in Fiji, Kiribati, or Samoa reported in Australia and 11,000 over March–April 2021 (the receiving any social assistance. apple season) in New Zealand. 19 EXECUTIVE SUMMARY A number of potential policy responses are outlined Repatriation support measures: Many Pacific seasonal by this study, drawing on global experience and workers remain stranded in Australia and New responses to the COVID-19 pandemic. These include: Zealand. Looking forward, as labor mobility resumes at a meaningful scale, coordination between labor Social safety nets: Destination governments should, sending and host countries is needed to establish where possible, extend social assistance to migrant repatriation protocols and ensure adequate quarantine workers and diaspora populations that have lost capacity for returning workers. In some PICs, limited employment or livelihoods as a result of COVID-19. quarantine capacity acted as a bottleneck for both Migrant sending countries can also support the return of current workers and sending of new populations stranded overseas. This has occurred workers. Some countries have been able to utilize to a limited extent in PICs in response to the existing infrastructure (such as hotels for repatriation pandemic. Tonga, for instance, provided one-off quarantine), however, others have not had this option. payments to students, seasonal workers and The expansion of quarantine facilities in such cases seafarers who are overseas. should therefore be a priority, and is potentially an area Employer retention and promotion: Such support where development partners can provide support. should extend to employer retention (for example, Reintegration support: The return of migrant workers wage subsidies) and employment promotion. as a result of COVID-19 could present an additional Extension of employment retention and promotion source of pressure on the domestic labor market in services to low-skilled temporary and seasonal PICs. At the same time, the suspension of overseas migrant workers could address a number of ongoing employment for migrant workers is detrimental for challenges, such as the risk of absconding and illegal the economic wellbeing of their households, given employment. More broadly, employer promotion that remittances are a major source of income. services could facilitate the efficient reallocation of Employment support and income such as one-time labor between employers and sectors. In Australia cash benefits, loans, and provision of employment and New Zealand, permission to switch employers in public construction projects could help returning was granted to workers under the SWP, PLS, and workers and their families to cope with these changes. RSE schemes. However, results from the survey of Improved understanding of what kinds of migrant employers (Section 5.2) suggests that in the case of workers are returning home could help governments the SWP and RSE, redeployment has largely been design adequate and appropriate assistance. arranged by employers themselves. Additional support such as that provided under the PLS (and Worker registry: Establishing a database with contact internationally, under the Korean Employer Permit information for current and prospective temporary Scheme) could help facilitate such job matching. migrant workers, along with their families, would help to facilitate regular communication and outreach Social and health services: There are a range of efforts, particularly during times of crisis. Policy social and health services that should be available to interventions targeting seasonal and PLS workers migrant workers. These include: (i) access to COVID-19 by either the host or sending governments, such as testing and treatment; (ii) support for the provision of repatriation, taking stock of workers’ employment COVID-19-compliant accommodation and workplaces; status, and providing mental health and economic (iii) outreach activities aimed at migrant communities; supports, would benefit from such a database. The (iv) support for mental health services; and (v) paid database would also support future sub-population quarantine for newly arriving low- and semi-skilled studies that are of interest to Pacific labor sending migrant workers. In addition, given the ‘COVID free’ countries. At the moment, a centralized registry does status of many PICs, there is a strong case for waiving not exist. quarantine periods for workers and/or enabling on- farm quarantining with testing. In October 2021, New Zealand was set to begin quarantine free travel for RSE workers arriving from Samoa, Tonga, and Vanuatu. 20 EXECUTIVE SUMMARY 21 Photo by © Conor Ashleigh/World Bank I. INTRODUCTION Labor mobility has played a critical role in providing The number of Pacific seasonal workers in Australia employment, income, and skill acquisition or New Zealand at any given time varies, influenced opportunities for Pacific Islanders. Facing limited by the harvest seasons for different products. In formal job opportunities at home, a large and May 2020, there were approximately 8,300 Pacific growing number of seasonal workers from the seasonal workers in Australia under the SWP, and Pacific have participated in Australia’s Seasonal 9,300 in New Zealand under the RSE scheme. Since Worker Programme (SWP) or New Zealand’s mid-2018, a growing number of semi-skilled Pacific Recognised Seasonal Employer (RSE) scheme, Islanders have also worked under Australia’s Pacific engaging primarily in low-skilled jobs in the Labour Scheme (PLS), which provides employment agriculture sector under short-term contracts of for up to three years in industries such as meat 6–11 months. In 2019, approximately 25,000 workers processing, aged care, and tourism. found jobs in the schemes. For Samoa, Tonga, and Vanuatu, seasonal workers employed through these schemes accounted for 6.0 percent, 14.7 percent, and 8.1 percent of the workforce in 2018–19, respectively (Figure 1). FIGURE 1: Seasonal workers/labor force ratio (2018–19) 16% 12% 8% 4% 0% Tonga Vanuatu Samoa Kiribati Solomon Islands Fiji PNG SWP RSE PLS Source: World Bank staff calculation based on data from the Australian Department of Education, Skills and Employment; Pacific Labour Facility; Immigration New Zealand; and World Development Indicators database. 22 INTRODUCTION FIGURE 2: Remittance inflows as share In addition to temporary migrant workers, many PICs of GDP (2020) have large diaspora groups in OECD countries, mostly 40% Australia (28 percent of Pacific Islanders living in OECD countries), New Zealand (32 percent) and the United States (30 percent). The size of the diaspora 30% living in OECD countries relative to the domestic population is particularly large among Polynesian countries. In contrast, Melanesian countries tend 20% to have smaller migrant populations (Section 6.1). Migrant workers – both temporary and permanent – 10% make an important economic contribution to PICs via remittances. Seven of the top 10 remittance recipients by share of GDP in the East Asia and Pacific 0% region are in the Pacific. Tonga tops the list with Tonga Samoa RMI Kiribati Vanuatu Fiji FSM Palau Solomon Islands remittance inflows equivalent to nearly 38 percent of its GDP in 2020 (Figure 2).3 More importantly, at a disaggregate level, remittances are a common Source: Migration Data Portal. source of income for Pacific households. In Tonga and Samoa, for instance, four out of every five households receive remittances from abroad, with a similar share of households across the consumption distribution FIGURE 3: Percent of households receiving benefitting (Figure 3). Nationally representative remittances in Tonga by welfare status household data in Tonga indicates that remittances are (2015–16) equivalent to approximately 30 percent of household 100% consumption, while in Samoa they are equivalent to 8 percent of household consumption. 80% The COVID-19 crisis caused significant disruption to Pacific labor mobility and diaspora groups, with 60% adverse consequences on their employment and earnings. Pacific workers under long-term visas faced 40% the risk of becoming unemployed as host economies were affected by the pandemic. International 20% travel restrictions, aiming to curb the spread of the pandemic, left thousands of seasonal workers stranded in Australia and New Zealand and suspended the 0% arrival of prospective workers for most of 2020.4 Q1 Q2 Q3 Q4 Q5 Consumption quintile Source: Tonga Household income and expenditure survey 2015–16. 3. The other three countries are the Philippines (9.6 percent), Timor- Leste (8.7 percent), and Vietnam (5.0 percent). 4. The RSE was suspended between March and December 2020 while the SWP scheme was suspended between March and September 2020, when pilot arrangements brought a small number of ni-Vanuatu workers to work in the mango industry in Australia’s Northern Territory. 23 INTRODUCTION Although travel to Australia and New Zealand under The economic downturn was accompanied by the SWP, PLS, and RSE has recommenced, numbers unprecedented job losses across the region, are significantly lower than the approximately 14,000 especially in tourism-dependent countries. RSE workers and 12,000 SWP workers that travelled to Tourism-related employment plummeted by New Zealand and Australia in 2018–19, respectively.5 approximately 64 percent in Vanuatu in April 2020 Compliance with quarantine and COVID-19-related and unemployment claims in June 2020 nearly tripled public health requirements has also increased costs relative to their 2019 total in Fiji. Job advertisements for employers, workers, and sending governments.6 in PNG decreased by 76 percent between February In addition, COVID-19 resulted in income loss among and May 2020 as a result of lockdowns and travel migrant workers due to reduced work hours and loss restrictions (World Bank, 2020a). Flow-on effects to of employment. Uncertainties related to repatriation other industries, including retail and food services, remain for many seasonal workers who have been together with reductions in commodity prices stranded since the outbreak of the pandemic. and remittance inflows, have added to significant economic hardship across the region. The crisis affected flows of remittances to the Pacific. Changes in the frequency and volume of remittances Preliminary modelling by the World Bank projects as a result of income losses could manifest into that in a ‘moderate’ scenario, poverty rates considerable impacts on the livelihoods of labor among households involved in tourism, food, or sending households and the Pacific economies accommodation could increase by 9.3 percent in Fiji, that they support. The impact of social distancing 10.2 percent in Tonga, and 12.7 percent in Samoa7 measures on the availability of money transfer services (World Bank, 2020b). and fluctuation in exchange rates also has the potential to affect the amount and frequency with which Pacific households receive remittance income. Pacific Island economies, while largely avoiding the pandemic (with the notable exception of Papua New Guinea (PNG) and Fiji), have been devastated by the collapse of international travel and tourism, as well as the disruption of donor-financed infrastructure 5. New Zealand allowed only 2,000 RSE workers to enter between activities and lower commodity prices. Economic January and March 2021 and will allow up to 2,400 more to activities in Pacific Island economies fell well below enter between June 2021 and March 2022, whereas Australia has allowed approximately 7,000 SWP and PLS workers to enter since their pre-pandemic projected level, with September 2020. the cumulative output loss over 2020–22 estimated 6. Flight and quarantine arrangements for the SWP have varied to be around 10 percent of the 2019 level, hit harder between states and employers. Ni-Vanuatu SWP workers in the than other countries in the East Asia and Pacific Northern Territory undertook 14 days of hotel quarantine. The cost Region (Figure 4) (World Bank, 2021a). GDP contracted of this quarantine and the charter flight that brought them from Port Vila was met by the mango industry (https://www.abc.net. in 2020 in all PICs, except a mild positive growth of au/news/rural/2020-09-03/vanuatu-workers-arrive-in-darwin-to- 1.2 percent in Nauru (World Bank, 2021b). Fiji and pick-mangoes/12621234). Tongan workers in Emerald, Queensland Vanuatu, the two countries most dependent on undertook on-farm quarantine and were able to work while isolating. Approved employers covered the cost of charter flights tourism, saw double-digit contraction in their GDP at (https://www.abc.net.au/news/rural/2020-11-20/tongan-seasonal- an estimated -19.0 percent and -10.0 percent in 2020, workers-emerald-complete-on-farm-quarantine/12897008). respectively. The GDP of Solomon Islands, Samoa, and In New Zealand, RSE workers undertook 14 days of managed isolation, during which time they were paid for 30 hours work Tonga fell by an estimated 5.0 percent, 3.5 percent, per week. Employers covered the cost of this quarantine and 1.5 percent, respectively (Figure 4). (https://www.nzherald.co.nz/nz/politics/government-to-let-in- 2000-fruit-pickers-from-pacific-but-with-living-wage-catch/ VU4E6FEPJUC6XOUSOQQM74JWWI/). From October 2021, New Zealand began to allow quarantine free travel for RSE workers arriving from Samoa, Tonga and Vanuatu. In PNG, the cost of additional quarantine of workers undertaken prior to departure from PNG has been met by the national government. 7. Based on the US$5.50 per capita per day poverty line. 24 INTRODUCTION FIGURE 4: Estimated GDP growth in PICs (2020) 5% EAP average 0% EAP average (excluding China) -5% -10% PIC average -15% -20% Nauru Tuvalu Tonga Kiribati Micronesia PNG Solomon Islands Timor-Leste Vanuatu Palau Fiji Samoa Marshal Islands Source: World Bank (2021b). The near-term outlook for the region remains The section goes on to examine the impacts of highly uneven and uncertain. Economic recovery is COVID-19 on ‘cancelled’ seasonal workers in terms of expected to be uneven and fragile; the forecasted their employment, earnings, and coping strategies. GDP growth in 2021 for Fiji and Solomon Islands, for Section IV reports on the impacts of COVID-19 on instance, is modest at 2.6 and 3.2 percent, respectively the households of seasonal workers, examining their (World Bank, 2021). However, remittance-dependent labor market activities, remittance receipt and use, Samoa and Tonga are projected to continue seeing and coping mechanisms. Section V examines the negative economic growth in 2021. Sluggish domestic experiences of Australian and New Zealand employers demand is likely to be persistent, while prolonged of seasonal workers during the crisis, investigating unemployment and education disruptions – which challenges faced by employers and likely future have weakened investment and human capital demand for seasonal labor under Pacific labor mobility accumulation – could have long-lasting impacts schemes. In Section VI, the impacts of the crisis on on productivity and output potential. Pacific diasporas in Australia and New Zealand are examined through a mixture of qualitative interviews This report aims to explore the impacts of the with community leaders and analysis of existing COVID-19 crisis on employment and remittances of census data. Likely effects of the crisis on employment, Pacific and Timorese migrant workers and diasporas access to social assistance, remittances, and social in Australia and New Zealand. The report is comprised impacts are examined. Section VII brings together of an introductory section, followed by Section II issues raised in previous sections and outlines which describes the collection of primary data upon potential policy interventions that the host and labor which this report is based. Section III presents findings sending governments could consider. related to Pacific and Timorese workers under the RSE, SWP, and PLS schemes. It first considers the experiences of workers who were stranded in Australia or New Zealand in terms of employment, income, savings, and remittances. 25 INTRODUCTION 26 Photo by © World Bank II. SAMPLING AND DATA COLLECTION The analysis in this report employs data collected by A representative, quantitative survey of diaspora the World Bank through a series of phone surveys groups was not feasible as part of this study. Instead, in Australia and New Zealand. Quantitative data on qualitative interviews of community leaders and Pacific and Timorese workers under the SWP, RSE, representatives from eight Pacific Island countries and PLS schemes, their households, and seasonal were undertaken (specifically, from the Fiji, Kiribati, employers were collected through four structured Papua New Guinea, Samoa, Solomon Islands, Tonga, surveys between June and early September 2020. Tuvalu, and Vanuatu diasporas). The respondents Data on the Pacific diaspora were collected through included 42 members and leaders from Pacific Islander semi-structured phone interviews with representatives communities across Australia and New Zealand. of diaspora groups between May and August 2020. Due to the lack of formal counterfactuals, the The quantitative surveys cover four distinct groups analysis combines both self-reported changes and of respondents: (i) seasonal workers working in constructed changes in quantitative wellbeing Australia and New Zealand during the pandemic indicators and behaviors of respondents between outbreak (‘current workers’); (ii) prospective workers the pre- and post-lockdown periods to infer about who were forced to remain in their home country due impacts of the COVID-19 crisis. The period of January to the suspension of international travel (‘cancelled and February 2020 is used as the ‘baseline’ period, workers’); (iii) households of seasonal workers; and and March 2020 – when lockdowns were imposed (iv) employers under the SWP and RSE schemes. The across both host and labor sending countries – is used survey of current workers covers six countries of as the cut-off point after which COVID-19 impacts are widely different population sizes, economic conditions, assumed to appear. and extents of participation in labor mobility schemes: Fiji, Kiribati, Samoa, Tonga, Timor-Leste, and Vanuatu. The survey of cancelled workers covers the two major labor sending countries: Tonga and Vanuatu, as well as Kiribati. Survey data presented in this report were collected by the World Bank, with the exception of data on PLS workers which were collected by the PLF based on a compatible questionnaire and during the same time period. 27 SAMPLING AND DATA COLLECTION 2.1 Quantitative Surveys FIGURE 5: Sampled current workers by gender 2.1.1 Sampling Strategy 100% Fem Current Workers 80% Male A conventional sampling frame is not available for seasonal workers and their households due to the 60% lack of an extensive worker registry. Information on workers in Australia and New Zealand, including 40% their name, contact number, location, and demographic details, is fragmented; so is information on prospective workers. This renders designing a 20% sample representative of seasonal workers impractical. Instead, the samples were selected in such a way 0% SWP RSE as to balance the need for meaningful statistic inferences, the feasibility of identifying and reaching Male Female respondents, as well as time and resource constraints. Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility The sample was determined to reflect the distribution and Remittances. of workers’ nationalities and the diversity of their demographic characteristics. These characteristics included gender, age, marital status, working location, and recruitment status – for example, whether a FIGURE 6: Sampled current workers worker was a first-time participant in the schemes, by nationality whether they were a team leader of their working group, or whether they were employed by a direct 100% employer or a labor hire entity. Due to the small Van proportion of female workers participating in the labor 80% Ton mobility schemes, especially under the RSE scheme (26 percent under the SWP scheme in 2019–20 and Tim 60% 11 percent under the RSE scheme in 2016–17), the survey oversampled women to ensure reliable Sam female-specific statistics (Figure 5). The sample size 40% Kirib by nationality was first determined by probability proportional to size method. However, due to the 20% Fiji large disparity in the size of the population of workers across nationalities, the survey oversampled i-Kiribati 0% SWP Scheme SWP Sample RSE Scheme RSE Sample and Fijian workers and set a minimum sample size at 35 workers for each nationality in each scheme Fiji Samoa Tonga to ensure reliable scheme- and country-specific Kiribati Timor-Leste Vanuatu statistics while keeping the cost of the survey Source: World Bank staff calculation based on data from the manageable (Figure 6). World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. Potential respondents were identified through various channels, including: (i) sending countries’ labor sending unit and embassies in Australia and New Zealand; (ii) approved employers under the SWP and RSE schemes; (iii) recruitment agents (for ni-Vanuatu workers); (iv) civil groups in Australia that provide support to seasonal workers; and (v) the social networks of workers. 28 SAMPLING AND DATA COLLECTION The combination of these channels helped to minimize As a result, Samoan representation dropped from potential selection biases that might have occurred 19 percent in the current worker sample to just through recommendations by employers or workers’ 8 percent in the household sample (Annex 2). networks. Response rates, while varying across nationalities Employers of the workers, were relatively high by international comparison. The response rates among contacted The employer sample involved mixed sampling current workers ranged between 66.7 percent (Tonga) approaches. On the one hand, all SWP employers and 86.7 percent (Vanuatu) (Table 19). Previous phone who had active seasonal workers as of May 2020 were surveys conducted by the World Bank during the contacted; 56 percent of them participated in the Ebola pandemic, for instance, had a response rate survey. On the other hand, a sample frame for RSE of 51.9 percent in Liberia (Himelein et al., 2020) employers could not be constructed due to lack of and 51 percent over three rounds in Sierra Leone information. Instead, they were approached through (Himelein et al., 2015). Similarly, the World Bank labor sending units of sending countries and industrial Listening to LAC pilot phone survey in Peru had associations in host countries. Interviewed employers a response rate of 51 percent in its first wave were not necessarily the employers of those seasonal (Gallup, 2012). workers who were surveyed as part of this exercise. This helped to increase the diversity of responses and allowed for better triangulation of the reported Cancelled Workers experiences of workers and employers during the crisis. Cancelled workers were randomly selected from lists provided by labor sending units and recruitment agents. The list of i-Kiribati workers included all those 2.1.2 Sample Description whose trip had been cancelled – that is, the population of i-Kiribati cancelled workers – whereas the lists of Seasonal Workers Tongan and ni-Vanuatu workers covered a large part The current worker sample included 586 workers with of the population. diverse demographic characteristics and experience of labor mobility schemes. The surveyed workers were Households of Seasonal Workers between 20–68 years old, with 20–39 years old being the major group. Most of them were married or in Household-level data were collected through two a de-facto relationship (Figure 7 and Figure 8) at surveys: one was a household survey administered the time of the survey. A quarter of the sample on nominated household contacts of the current (25.4 percent) were first-time workers, while one- workers and the other was the cancelled worker survey third had participated in the schemes for five years in which the workers responded to both questions or more. Team leaders, who lead working groups at on their experience and questions related to their their place of employment and serve as a direct link households. While most current workers voluntarily between individual workers and their employer and provided contact information of an adult member in government’s labor sending unit, made up 27 percent their household during their interviews (often their of the sample. Moreover, the sample spanned across spouse, parent, or sibling), some were either unwilling regions, largely consistent with the geographical or unable to do so, often because their household distribution of the population of seasonal workers in did not have access to a workable phone or internet Australia and New Zealand (Figure 9 and Figure 10). connection. Refusal to participate by household This composition allowed the sample to capture an respondents and poor phone and internet connection extensive range of responses from seasonal workers also contributed to the attrition between the current during the COVID-19 crisis. The number of respondents workers survey and the survey of their households. by scheme and nationality was sufficiently large (at Attrition varied across countries, ranging from least 35 observations per country and scheme) for 34 percent among Timor-Leste respondents to reliable scheme- and country-specific statistics 56 percent for Samoa. (Annex 2). 29 SAMPLING AND DATA COLLECTION FIGURE 7: Surveyed current workers by age FIGURE 8: Surveyed current workers by marital status 100% 100% 50+ Wid 80% 80% 40-49 Divo 30-39 De-F 60% 60% 20-29 Mar 40% 40% Sing 20% 20% 0% 0% SWP RSE SWP RSE 20-29 30-39 40-49 50+ Single Divorced/Separated Married Widowed De-Facto Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. FIGURE 9: Surveyed current SWP workers FIGURE 10: Surveyed current RSE workers by location by location WA 1% TAS 10% 13% 14% 6% 2% 1% NA 8% 12% 49% 22% SA 1% 7% QLD 40% 14% VIC NSW ACT VIC SA WA Hawke’s Bay/ Nelson Cantebury NSW QLD TAS Gisborne North Land Auckland Marlborough ACT Bay of Plenty Other Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. 30 SAMPLING AND DATA COLLECTION FIGURE 11: Surveyed cancelled workers Similar to the sample of current workers, surveyed by nationality cancelled workers had diverse demographic characteristics including gender, age, marital 100% status, and level of experience. The cancelled Vanuatu worker sample (195 respondents) covered a 80% Tonga significant portion of i-Kiribati, Tongan, and ni-Vanuatu workers whose scheduled travel was Kiribati 60% cancelled due to COVID-19, across various locations within each country (Figure 11). The sample covered 40% 25 percent of all i-Kiribati cancelled workers, and 48 percent, and 41 percent of the lists of cancelled 20% Tongan and ni-Vanuatu workers provided by the countries’ labor sending units, respectively (see Annex 2). About 19 percent of surveyed cancelled 0% Sample sizes by nationality workers were female, 77 percent were married, and 80 percent were returning workers (workers Kiribati Tonga Vanuatu who have participated in labor mobility programs Source: World Bank staff calculation based on data from the more than once). The number of respondents was World Bank COVID-19 Phone Survey on Pacific Labor Mobility and sufficient (at least 35 observations per country) Remittances. for reliable country-specific statistics (see Annex 2). In contrast with the current worker sample, the cancelled worker sample included slightly more SWP participants than RSE participants, with 60 percent of workers scheduled to travel to Australia and 40 percent scheduled to travel to New Zealand. PLS Workers The PLS dataset included 61 PLS workers from nine Pacific countries: Fiji, Kiribati, Nauru, PNG, Samoa, Solomon Islands, Tonga, Tuvalu, and Vanuatu (Figure 12). As with the seasonal worker samples, most surveyed PLS workers were between 30–39 years old. The workers were located in the eastern part of Australia. About 52 percent of surveyed PLS workers were married and 23 percent were female, slightly higher than the 20 percent among all PLS workers in 2019–20. Due to the small sample, summary statistics on female PLS workers should be interpreted with caution. 31 SAMPLING AND DATA COLLECTION FIGURE 12: Surveyed PLS workers by nationality 2% 3% 31% 16% 2% 13% 5% 18% 10% 0% 20% 40% 60% 80% 100% Fiji Nauru Samoa Tonga Vanuatu Kiribati Papua New Guinea Solomon Islands Tuvalu Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. Households of Seasonal Workers FIGURE 13: Surveyed households by nationality Despite attrition, the household survey included 100% 271 labor sending households with a nationality Van composition that largely corresponded to the current worker sample. Ni-Vanuatu households made up the 80% Tong largest share at 40 percent (compared to 37 percent Tim in the current worker sample) (Figure 13). Nearly 60% two-thirds (64.5 percent) of the respondents to the Sam household survey were the spouse of the current 40% Kirib workers interviewed. Consequently, in converse to the worker survey, the household sample had a larger 20% Fiji proportion of female respondents at 75.5 percent. It is important to note that subsequent household analysis 0% in this report uses both data from this household Household respondends survey and household-level data from the cancelled Fiji Samoa Tonga workers survey; distinction between two groups of Kiribati Timor-Leste Vanuatu households in the analysis is made as appropriate. Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. 32 SAMPLING AND DATA COLLECTION Seasonal Employers FIGURE 14: Average number of years participating in labor mobility schemes The employer sample included 74 direct employers and labor hire companies and was diversified in 15 terms of the employer’s experience with the scheme, business size, location, and number of seasonal workers. On average, the surveyed RSE employers had participated in the scheme for 11 years. Employers 10 under the newer SWP scheme had participated for an average of 5.5 years (Figure 14). Given that the two schemes were established in 2007 and 2012, 5 respectively, this meant that most of the surveyed employers had been involved for most, if not the whole duration of the schemes’ operation, thus likely having extensive knowledge and experience 0 Overall SWP RSE Direct Labor to share. The surveyed employers came in different employer hire sizes: 41 percent of the sample employed less than company 100 seasonal workers in a season, while 20 percent Source: World Bank staff calculation based on data from the had over 1,000 seasonal workers. Pacific workers World Bank COVID-19 Phone Survey on Pacific Labor Mobility made up a significant part of their workforce and Remittances. (Figure 15). The nationality profile of workers of the surveyed employers was largely consistent with the profiles of all workers on the SWP and RSE schemes. The diversified sample ensured the data reflects the impacts of the pandemic on a broad range of employers under the two schemes. FIGURE 15: Average number of seasonal workers employed per season 1000 Ave 800 Ave 600 400 200 0 Overall SWP RSE Direct Labor employer hire company Average number of total workers Average number of pacific workers Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. 33 SAMPLING AND DATA COLLECTION BOX 1: Data collection under social distancing and information shortage Between June and September 2020, the World Online surveys were ruled out given (i) the required Bank conducted a series of four structured surveys complexity of the topics being examined; (ii) on seasonal workers, their households, and limited internet access among seasonal workers seasonal employers in the RSE and SWP schemes. and their households; and (iii) potential selection The surveys covered a wide range of respondents bias. To ensure the effectiveness of phone-based located across Australia and New Zealand, as well interviews, the questionnaires were designed to as five Pacific Island countries and Timor-Leste. In feature short and easy-to-remember options, while the context of a rapidly evolving pandemic and its taking into consideration the sensitivity of topics economic fallouts, the surveys were envisioned to such as remittances, savings, and consumption. be a rapid exercise to capture just-in-time impacts To overcome language and cultural barriers, the of the crisis on the key stakeholders in Pacific recruitment and training of enumerators followed labor mobility schemes, namely the workers, their rigorous criteria and all interviews with seasonal employers, and remittance-receiving households. workers and their households were carried out The implementation of the surveys faced in their respective languages. Enumerators were three major challenges: lack of information on mostly Pacific language/Tetum native speakers respondents; language and cultural barriers; and and, in two cases, Australians fluent in the relevant difficulties in contacting the respondents amidst language with experience in direct engagement social distancing and respondents’ limited access with seasonal workers. Strict field protocols to communication channels. In the absence of regarding interview procedure and engagement an extensive administrative registry of seasonal with respondents were in place and information on workers, the survey team engaged with various labor mobility schemes and the study’s objectives counterparts to identify potential respondents and were featured in the training of enumerators. design the survey samples. These included the Moreover, regular team meetings were organized Ministry of Employment or equivalent ministries to facilitate experience and knowledge sharing in labor sending countries; embassies and liaison among enumerators and to help them address officers in Australia and New Zealand; employers, issues that arise during fieldwork. industrial associations, and non-government Communication with workers and their households organizations involved in labor mobility schemes; was difficult due to several factors: limited as well as governmental partners in Australia access to phones and computers; poor phone and New Zealand. In addition, outreach efforts and internet connections; and restricted time were made through social media channels that availability. The connectivity to households migrant workers frequently use to expand the in Kiribati and Vanuatu was also worsened by sample coverage. Proactive liaison with identified Tropical Cyclone Harold, which in April 2020 team leaders and respondents proved useful to destroyed many phone/internet towers. To reach reach new potential respondents and encourage respondents amidst these challenges, interviews participation in the survey. were undertaken through several communication As mobility restrictions and public health measures means, including phone, WhatsApp, and Facebook rendered face-to-face interviews impractical, Messenger. Data collection was done through phone-based interviews were identified as the Computer-Assisted Personal Interview (CAPI) best alternative. software. 34 SAMPLING AND DATA COLLECTION TABLE 1: Cultural representation of diaspora 2.2 Qualitative Interviews groups contacted Interviews were conducted online and via the phone with 42 Pacific Islander community representatives PIC Australia New Zealand across Australia and New Zealand. The sampling frame Fiji 7 4 was designed to capture the variety of experiences of different cultural groups residing in various Kiribati 3 3 geographical locations. Respondents were identified via internet searches for Pasifika community groups PNG 8 2 and organizations, and snowballing from existing Samoa 11 8 contacts. In order to capture the diversity of Pacific communities, groups and individuals from a variety Solomon Islands 1 0 of cultural backgrounds were contacted, including 10 gatekeepers, 58 organizations in Australia, and Timor-Leste 3 0 38 organizations in New Zealand (Table 1). The Tonga 7 10 contacted groups and individuals were located in different regions of Australia and New Zealand Tuvalu 2 2 (Table 2), reflecting the diverse migration pathways and settlement patterns of Pacific Islanders and Vanuatu 2 3 allowing the sample to capture a wider variety of Mixed 14 5 Pacific diaspora group experiences during the crisis. Unknown 0 1 Total 58 38 TABLE 2: Locations of diaspora groups contacted in Australia and New Zealand Location of diaspora groups contacted Location of diaspora groups contacted in Australia in New Zealand ACT 1 Auckland 19 NSW 11 Canterbury 1 NT 3 Christchurch 2 QLD 12 Dunedin 2 SA 5 Hawkes Bay 1 VIC 21 Otago 5 WA 4 Wellington 2 Unknown 1 Unknown 6 Total 58 Total 38 35 SAMPLING AND DATA COLLECTION TABLE 3: Cultural background and representation of in-depth interview participants Cultural background Number of Pacific Island communities Number of of interview participants participants represented in interviews interviews Fijian 6 Fijian 3 i-Kiribati 2 i-Kiribati 2 ni-Vanuatu 3 Mixed nationalities 8 Papua New Guinean 4 Papua New Guinean 3 Samoan 6 Samoan 6 Samoan-Niuean 1 Solomon Islander 1 Samoan-Niuean-Tongan 1 Tongan 4 Solomon Islander 2 Tuvaluan 1 Tongan 6 ni-Vanuatu 2 Tuvaluan 1 Total 30 Total 32 The final qualitative sample included 30 in- depth interviews which were conducted with 328 community representatives (Table 3). Most interviews were carried out over the phone and lasted between 40 minutes to one-hour. One community representative from Vanuatu responded to interview questions via email. Topics covered related to the impacts of COVID-19 on diaspora communities’ economic and social lives.9 In addition, one group interview was held with ten representatives from the Pacific Leadership Forum and the Pacific COVID Recovery Team, both based in Auckland. This meeting was attended by representatives from the Cook Islands, Tonga, Tuvalu, and Samoa. This raised the total 8. Most interviews referred to here were attended by a single number of community representatives interviewed community representative, however two interviews were attended by two members of the community group/organization in to 42. Of the in-depth interview participants who question. represented organizations, most of these groups were 9. Full details of participant recruitment, data collection, the involved in cultural promotion and events or advocacy. topic guide and a list of Pacific community organizations who Five groups were religious organizations (churches). participated in this research can be found in Annexes 3–5. 36 SAMPLING AND DATA COLLECTION The geographical spread of interviews reflected the Semi-structured interviews allow for in-depth insights size of Pacific Islander communities, the number into sensitive issues and are particularly useful in of organizations in each location, the strength of generating hypotheses. In this instance, the data inter-organizational networks and the severity of generated from qualitative interviews has also been the pandemic (Table 4). Strong inter-organizational used to complement and triangulate findings related networks allowed for easy snowballing between to seasonal workers and their households from the diaspora groups, while communities that were the quantitative survey. Despite this diverse sample and most impacted by the pandemic were generally keen efforts to ensure satisfactory data quality, two caveats to speak about their experiences. Hence, in Australia inherent to qualitative interviews should be noted. One most interviews came from Victoria where the Pacific is that results related to diaspora groups are based on Islander community is large and represented by a small sample and informants may choose to respond many different community organizations, and where to questions selectively. The other is that qualitative the number of COVID-19 cases were the highest and analysis cannot establish causal relationships and can associated lockdowns during 2020 were both strict pose challenges in terms of the generalization and long.10 of findings. It is important to emphasize the dynamic and changing nature of the pandemic and recognize that data collected through interviews reflect the state of the pandemic at the time of the survey. Interviews were conducted between 16 June and TABLE 4: Location of communities 26 August 2020. Thus, interviews with members of the represented in interviews Papua New Guinean community occurred before July 2020 when COVID-19 had begun to spread in PNG. Location Number of interviews Community members’ perception that PNG had fared quite well during the pandemic was a reflection of NEW ZEALAND this. Interviews in Victoria were completed during Auckland 6 early July at the beginning of the state’s second outbreak, and while community representatives Dunedin 1 expressed concern over a second lockdown, the toll of a second stricter set of restrictions had not yet hit. AUSTRALIA Interviews in New Zealand straddled the end of the first outbreak (June 2020) and the beginning of the NSW 3 second (11 August 2020) and this was reflected in the more positive outlook expressed in earlier interviews. NT 1 The impacts of the pandemic on communities are far QLD 7 from static and will continue to evolve and change. SA 1 VIC 10 WA 1 Total 30 10. Two interviews took place with community leaders who technically lived in rural Victoria (1) and NSW (1), however as these communities and their representatives straddle the border, the classification of these interviews/communities as belonging to one state or the other is largely arbitrary. 37 SAMPLING AND DATA COLLECTION 38 Photo by © darrenjamesphotography.com III. SEASONAL AND PLS WORKERS The COVID-19 crisis imposed serious challenges 3.1 Current Seasonal Workers on migrant workers, both those working in host and PLS Workers countries and those due to take up their overseas employment when the pandemic broke out. 3.1.1 Visa Extension and Redeployment International border closures left thousands of The pandemic caused disruptions to the seasonal workers from the Pacific and Timor- employment of many seasonal workers. In May Leste stranded in Australia and New Zealand and 2020, there were approximately 8,300 Pacific and many prospective workers have seen their trips Timorese seasonal workers working in Australia cancelled. Early concerns related to the legality and 9,300 in New Zealand. As international borders of the stranded workers’ stay were addressed closed, many found themselves stranded when by visa extensions and redeployment options, they reached the end of their contract and visa however lack of work remained an issue in some validity. Thanks to the visa extension and permission areas given the seasonal nature of employment to switch employers granted by the Australian under the SWP and RSE schemes. Domestic border and New Zealand governments, stranded workers closures and the dependence of workers on their could remain legally in the host countries. By early employers to apply for visa extensions (in Australia), September, two-thirds of the surveyed workers as well as redeployment and transportation to new (65.9 percent) had extended their visa and more workplaces (in both Australia and New Zealand), than one-fifth (21.7 percent) had moved to a new presented additional challenges to the continuation employer as their original employers ran out of work. of workers’ employment and exposed them to risks The seasonal workers were highly dependent on of exploitation and mental distress. This section their employers to navigate these changes in visas explores both economic and non-economic impacts and employment. Of those who had their visa of the crisis on seasonal workers under the SWP and extended, 84.5 percent received help from either RSE schemes and semi-skilled workers under the PLS. their current or previous employers to make the application. Similarly, 88.2 percent of redeployment cases were arranged by employers – almost all were either the original employers or labor hire companies that had recruited workers and facilitated their travel to Australia. 39 SEASONAL AND PLS WORKERS Recruitment agents in labor sending countries played Females, first-time workers, workers who are ordinary a much smaller role, supporting only 14 percent of members of their working groups (as opposed to team visa extension cases and 3.2 percent of redeployment leaders), and those employed by direct employers cases. Only a handful of workers reported either were more vulnerable to having their work hours applying for visa extension or changing employers reduced. Not only were these groups moderately more by themselves. The significant role of employers likely to experience work hour cuts, but when they not only highlights the reliance of workers on did, the extent of reduction was larger. Most notably, employers for administrative matters, but also points work hours of female workers on average declined to the operational burdens that the crisis placed on by 16 hours per week as compared to only nine hours employers. among their male counterparts. Part of this gap could be attributed to the different tasks typically taken up by the sexes; female workers are more likely to be 3.1.2 Employment employed in packhouses while male workers are more The pandemic led to broad-based and significant likely to work in the field. As the COVID-19 outbreak decreases in employment for both SWP and RSE coincided with winter months in Australia and New workers. During the period from March until August Zealand, when there was relatively less indoor work 2020, more than 30 percent of SWP workers and (due to social distancing requirements in indoor 54 percent of RSE workers spent at least one week workplaces and in some cases closure of canning without any work while more than two-thirds of factories) but greater need for field-based work such workers across both schemes reported having fewer as winter pruning, male workers might have been work hours than they did during the period of January better placed to cope with the impacts of the crisis. and February (Figure 16). Those who experienced I-Kiribati and Timorese workers also suffered heavier reduced work hours on average lost 18 hours per cuts than workers from other PICs (Table 5). week or a 37 percent decrease from 48 hours to 30 hours per week. The overall change across all workers was also negative at 11 hours per week with no noticeable difference across the two schemes (Table 5). FIGURE 16: Changes in work hours of seasonal workers after lockdowns 100% 80% 60% 40% 20% 0% SWP RSE Male Female Returnee First-timer Labor Direct Team Team hiring employer member leader company More hours Same hours Fewer hours Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. 40 SEASONAL AND PLS WORKERS TABLE 5: Average change in weekly work hours of seasonal workers after lockdowns Pre-lockdown Post- Absolute Percentage (hours) lockdown changes change (hours) (hours) (percent) Overall 46 35 (11) (23.5) Scheme SWP 47 36 (11) (23.1) RSE 46 35 (11) (23.9) Sex Male 46 36 (9) (20.6) Female 48 32 (16) (33.6) Experience Returnees 46 36 (10) (22.5) First-timers 46 34 (12) (26.3) Recruitment Labor hire company 47 37 (10) (21.0) Type Direct employer 46 34 (12) (25.3) Role within Member 47 36 (11) (23.9) the team Leader 45 35 (10) (22.4) Nationality Fiji 42 42 (0) (0.3) Kiribati 52 35 (17) (32.8) Samoa 41 28 (13) (31.8) Timor-Leste 51 31 (20) (39.7) Tonga 46 36 (10) (21.5) Vanuatu 48 38 (10) (21.1) Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. 41 SEASONAL AND PLS WORKERS A minor but considerable proportion of seasonal Pandemic-induced labor shortages appeared to be workers benefited from the pandemic-induced labor locally based and seem to have primarily benefited shortage. Approximately 10.2 percent of SWP workers those working below full capacity pre-lockdown (likely and 12.6 percent of RSE workers reported working with employers who had yet reached peak season). more hours than they did pre-lockdown. Their average This is evidenced in several factors that are associated increase was 8.3 hours per week for SWP workers and with whether a worker experienced income gain 16.2 hours per week for RSE workers. during the crisis. Across the schemes, those reporting higher earnings originally worked considerably fewer An explanation for this is that demand for seasonal hours and made less money pre-lockdown than those labor remained strong during the pandemic. About reporting lower or unchanged earnings. In addition, half of interviewed SWP and RSE employers reported while there is little difference in the likelihood of experiencing labor shortages for at least one month changing employers between these two groups, those since March 2020. The cancellation of incoming Pacific who witnessed increased income were significantly workers and decreases in the number of backpackers, less likely to have their visa extended (Figure 17). Since international students, and local farm labor was the contracts of seasonal workers are typically aligned main reason. The shortage appeared more widespread with the seasonal demand for labor of their employers, in New Zealand, with 56.7 percent of RSE employers workers approaching the end of their contracts around reporting the issue as compared to only 43.2 percent the time of the lockdown were highly likely to be among SWP employers, potentially because the employed on farms which had passed or were about demand for farm labor in New Zealand typically to pass their peak seasons. When their contracts spikes during the period from March until June, while were extended, they likely either remained with their in Australia it is relatively more evenly distributed existing employers who no longer had much work to throughout the year. offer or moved to a new employer, which took time, leading to lower earnings than pre-lockdown. FIGURE 17: Change in earnings after lockdown by workers’ profiles 60 80 after lockdown Ex Average weekly work hours pre-lockdown Ch 60 Percent of workers 40 40 20 20 0 0 Higher earnings Same earnings Lower earnings Higher earnings Same earnings Lower earnings Pre-lockdown Post-lockdown Changed employers Extended visa Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. 42 SEASONAL AND PLS WORKERS Unlike seasonal workers, semi-skilled Pacific workers FIGURE 18: Change in weekly work hours of employed under the PLS fared relatively better after PLS workers since lockdown the onset of the pandemic, and the overall impact of 100% the crisis on PLS workers was mixed. Among surveyed Few workers, about 36 percent reported working more 80% Sam hours after the lockdown in March 2020 whereas another 28 percent reported the opposite (Figure 18). Mor 60% The corresponding figures among seasonal workers were more sobering at 11 percent and 68 percent, respectively. On average, PLS workers worked three 40% more hours per week (Figure 19), mainly driven by the increased work hours among females. 20% Female PLS workers seem to have had a largely 0% positive experience post-lockdown, with 57 percent PLS Male Female working longer hours than the January–February More hours Same hours Fewer hours period (as compared to 30 percent among their male counterparts). The average increase in work Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility hours among females was also significantly higher at and Remittances. 12 hours per week while males saw only a one-hour increase. However, due to the small number of female observations in the sample, generalizing this gender difference across all PLS workers might be premature. FIGURE 19: Average weekly work hours of PLS The more positive experience of PLS workers during workers before and after lockdown this crisis as compared to seasonal workers could be 60 attributed to two factors. One is the longer duration after- of their employment contracts. While the SWP and pre-lo RSE schemes only offer short-term employment for up to 9 months in a 12-month period, the PLS 40 provides longer-term employment between one and three years. PLS workers, thus, were less likely to have their contracts expire amidst the pandemic and 20 suspension of international travel. The other factor is the concerted intervention of the PLF, to support displaced workers during the crisis. As the managing agency of the scheme, the PLF either redeployed or 0 PLS Male Female repatriated almost all PLS workers that were stood down due to COVID-19, and provided support to Pre-lockdown Post-lockdown those that could not be redeployed or repatriated Source: World Bank staff calculation based on data from the (PLF, 2020). Redeployment and repatriation of seasonal World Bank COVID-19 Phone Survey on Pacific Labor Mobility workers, in contrast, were largely arranged privately and Remittances. among employers and hence might not have been as effective. 43 SEASONAL AND PLS WORKERS 3.1.3 Income FIGURE 20: Change in weekly earnings of seasonal workers after lockdown Consistent with its impact on work hours, the crisis caused a widespread and substantial reduction 100% in seasonal workers’ earnings, although some Low benefitted. Overall, 68.4 percent of seasonal workers 80% Sam reported that their earnings were lower than during the January–February period, while 16.7 percent High experienced an increase in earnings. Interestingly, 60% RSE workers were more likely to see their earnings fall (71.9 percent) than their SWP peers (64.8 percent) 40% (Figure 20 and Table 6). Among those reporting income losses, the reduction was approximately 20% 49.5 percent (or $A 398/week) among SWP workers and 50.6 percent (or $NZ 400/week) among RSE 0% workers. The magnitude of income gain, however, SWP RSE Total was moderately larger among SWP workers. Higher earnings Same earnings Lower earnings The income effects of COVID-19 varied considerably Source: World Bank staff calculation based on data from the across nationalities, with Timorese, Samoan, and World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. i-Kiribati workers most affected, with approximately 71.4 percent, 87.2 percent and 77.8 percent, respectively, seeing a decrease in weekly earnings. Tongan and Fijian workers fared the best, with TABLE 6: Income changes of seasonal workers 57 percent and 62 percent, respectively, compared to the period of January– experiencing lower earnings (Figure 21). The February (2020) magnitude of the impacts was varied (Figure 22), with i-Kiribati workers among those worst affected, together with Timorese and Samoan workers, Average change Higher Lower while Fijian workers, on average, experienced the in weekly earnings earnings earnings smallest earnings decrease (a 35 percent cut). It is however unclear what drove this divergence SWP Absolute 209.2 397.8 across nationalities; labor mobility scheme, ($A/week) geographical location of workplace, participation Relative (%) 68.7 49.5 status (first-timer versus returnee), gender composition, and employment duration did RSE Absolute 306.4 399.8 not appear to be contributing factors. ($NZ/week) The crisis disproportionally affected female seasonal workers. Although male workers were Relative (%) 60.9 50.6 more likely to see their earnings drop than their female counterparts, when they did, the extent of Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility reduction in their income was more modest than and Remittances. among females (although it was still substantial) at 48 percent as compared to 58 percent. Part of this gap may be due to the different jobs that women and men typically occupy, as referred to earlier.11 11. Feedback from employers suggested that some female workers refused to take field tasks during winter months, despite work in packing sheds becoming less available. 44 SEASONAL AND PLS WORKERS FIGURE 21: Changes in weekly earnings of seasonal workers by workers’ profiles 100% 100% Lower earnings Low 80% 80% Same earnings Sam Higher earnings High 60% 60% 40% 40% 20% 20% 0% 0% Tonga Fiji Vanuatu Timor-Leste Kiribati Samoa Female Male Direct employer Labor hiring company First-timer Team member Team leader Returnee Higher earnings Same earnings Lower earnings Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. Note: The figure displays average decreases in earnings among workers who reported experiencing earnings reduction between the pre-lockdown period of January–February 2020 and the month preceding their interview date. This reduction in income represents a significantly heavier burden on female workers because they earned considerably less than male workers despite working roughly the same number of hours, both pre- and post-lockdown.12 The magnitude of the income loss was also greater for first-timers, team members and those employed by labor hire companies (as compared to returned workers, team leaders, and workers employed by direct employers), although the 12. The gender pay gap among seasonal workers has been differences were less pronounced than in the case of documented in previous studies during pre-COVID-19 times the gender gap. (World Bank, 2017b). 45 SEASONAL AND PLS WORKERS FIGURE 22: Percentage reduction in weekly earnings of seasonal workers 0 0 % reduction -10 -10 -20 -20 -30 -30 -40 -40 -50 -50 -60 -60 -70 -70 Fiji Samoa Vanuatu Tonga Kiribati Timor-Leste Female Male Direct employer Labor hiring company First-timer Team member Team leader Returnee Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. Note: The figure displays average decreases in earnings among workers who reported experiencing earnings reduction between the pre-lockdown period of January–February 2020 and the month preceding their interview date. Those hit hardest in terms of income loss were more Earnings data on PLS workers suggest again that they likely to expect that their total earnings from this fared better than seasonal workers during this crisis, work season would be insufficient to cover their although the net overall income impact on them was pre-departure costs. Not surprisingly, lack of unclear. About 36.1 percent of PLS workers reported confidence in being able to cover pre-departure earning less than they did during the pre-COVID-19 costs was substantially higher among those that months of January and February, much lower than the experienced larger income loss: females, first-time proportion among seasonal workers (68.4 percent) workers, and team members. For instance, while (Figure 24). Female PLS workers again appeared more 15.1 percent of female respondents expected their likely to see higher earnings after lockdown than earnings to be insufficient to cover pre-departure their male counterparts, with almost 43 percent of costs, just 5.2 percent of male respondents shared the female workers reporting higher weekly earnings as same concern (Figure 23). Across the nationalities, compared to 32 percent of male workers (Table 7). i-Kiribati and Timorese workers had the lowest Also, among PLS workers with lower earnings post- expectation, consistent with the magnitude of their lockdown, female workers appeared to experience a loss in earnings. smaller reduction in weekly earnings than their male counterparts. Due to the small sample of PLS workers however, further data are needed to confirm these gender differences. 46 SEASONAL AND PLS WORKERS FIGURE 23: Expectation that total earnings of the work season can cover pre-departure costs 100% 100% don't know don 80% 80% no no yes yes 60% 60% 40% 40% 20% 20% 0% 0% Fiji Kiribati Samoa Timor-Leste Tonga Vanuatu SWP RSE Male Female Returnee First-timer Labor hire company Direct employer Team member Team leader Yes No Don’t know Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. FIGURE 24: Change in weekly earnings of PLS workers after lockdown 100% Lower Earnings 80% Same Earnings Higher Earnings 60% 40% 20% 0% PLS Male Female Higher earnings Same earnings Lower earnings Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. 47 SEASONAL AND PLS WORKERS 3.1.4 Saving and Consumption in A number of surveyed workers reported the costs Response to Reduced Income of their accommodation and food increased due to COVID-19 mobility restrictions, being deployed to Income losses were strongly associated with more expensive areas, or more job seekers coming substantial decreases in savings and, to a lesser into regional areas and putting pressure on local food extent, consumption among seasonal workers. prices. Adjustments in consumption behavior were Across the board, workers who saw their earnings part of the workers’ coping strategies. Some workers fall were noticeably more likely to lower their savings opted for less frequent grocery shopping, for example, (Figure 25). Of the workers whose earnings declined, buying two weeks’ worth of supplies instead of one. two-thirds reported reduced savings, while only one- One group of workers reported buying a whole pig third reported reduced expenditure. The relatively to share among themselves as it was considerably lower propensity to cut down expenditure is not cheaper than buying meat at the local butchers. surprising as workers needed to maintain their basic consumption, such as food and accommodation, even when unemployed. In addition to lower income, higher living costs also reportedly played a role in keeping workers’ expenses up and depleting their savings. TABLE 7: Change in weekly earnings of PLS workers since lockdown by gender Higher earners Same earners Lower earners Pre- Post- % Pre- Post- % Pre- Post- % lockdown lockdown change lockdown lockdown change lockdown lockdown change (USD) (USD) (USD) (USD) (USD) (USD) PLS 318 556 75% 477 477 0% 443 310 (-30%) Male 405 791 95% 645 645 0% 608 408 (-33%) Female 496 667 34% 650 650 0% 564 472 (-16%) Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. 48 SEASONAL AND PLS WORKERS FIGURE 25: Changes in savings and expenditure of seasonal workers Changes in savings by income groups Changes in expenditure by income groups 100% 100% Signi cantly Less Sign 80% 80% Less Less Same Sam 60% 60% More Mor 40% 40% Signi cantly More Sign 20% 20% 0% 0% Higher Same Lower Higher Same Lower Significantly more More Same Less Significantly less Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. Changes in savings and consumption across 3.1.5 Remittances nationalities were consistent with what was reported Given the reduction in work hours and earnings, in terms of work hours and earnings. The most severe remittances from seasonal workers, unsurprisingly, shifts in saving and spending patterns were found decreased. Nearly half of the surveyed workers among i-Kiribati and Timorese workers, with nearly reported that their remittances were lower than the two-thirds of respondents reducing their savings pre-lockdown months of January and February, while and over half cutting down their consumption. The only about 21.3 percent reported remitting more decreases in savings and spending were less drastic each time as compared to the pre-lockdown period among Fijian workers, with 36.9 percent reporting (Figure 26). Among those reporting a reduction in reduced savings and 7.7 percent reporting reduced remittances, the average amount sent each time consumption. dropped by 53 percent (or $A 478 per transaction) Among PLS workers, savings and consumption for SWP workers and 48 percent (or $NZ 305 per were largely maintained, reflecting milder adverse transaction) for RSE workers (Table 8). Overall, the impacts of the crisis on their economic wellbeing. average reduction in remittance amount across About two-thirds of surveyed PLS workers all workers in the two schemes was $A 73 per (66.7 percent) reported their consumption was transaction and $NZ 66 per transaction, respectively. unchanged post-lockdown while the proportions Across nationalities, the reduction is between of workers who reported increased and decreased 35 percent (Fijian RSE workers) and 61 percent consumption were 17.5 percent and 15.8 percent, (Timorese SWP workers). Additionally, for those who respectively. Also, 49.2 percent maintained their reported sending larger amounts per transaction, savings, 34.4 percent increased and only 16.4 percent part of the increase could be attributed to the decreased. The less severe income decreases during fact that they remitted less frequently. The high the crisis apparently helped PLS workers to stay more percentage increase in their remittance amount was resilient than their seasonal peers. also partly mechanical – during the pre-lockdown period these workers used to send much less than those who reported lower remittances, hence the percentage change in their remittances was larger. 49 SEASONAL AND PLS WORKERS TABLE 8: Changes in remittances among seasonal workers SWP RSE Workers remitted more Absolute change (dollar) A$ 550.6 NZ$ 404.6 Relative change (%) 181.7 207.1 Workers remitted less Absolute change (dollar) - A$ 478.3 - NZ$ 305.1 Relative change (%) - 53.3 - 48.1 Fiji Absolute change (dollar) - A$ 337.5 - NZ$ 264.3 Relative change (%) 45.1 -35.0 Kiribati Absolute change (dollar) - A$ 196.7 - NZ$ 210.6 Relative change (%) -54.8 -42.7 Samoa Absolute change (dollar) - A$ 118.0 - NZ$ 247.1 Relative change (%) - 38.4 -48.1 Timor-Leste Absolute change (dollar) - A$ 787.5 N/A Relative change (%) - 60.8 N/A Tonga Absolute change (dollar) - A$ 593.5 - NZ$ 302.2 Relative change (%) - 48.0 -52.7 Vanuatu Absolute change (dollar) - A$ 590.2 - NZ$ 427.4 Relative change (%) - 57.1 -50.9 All workers Absolute change (dollar) - A$ 72.5 - NZ$ 66.2 Relative change (%) 17.5* 15.0* * The positive average percentage change is mostly driven by some outliers whose remitting amount increased drastically post-lockdown. Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. 50 SEASONAL AND PLS WORKERS FIGURE 26: Change in remittances among The decrease in remittances, however, was seasonal workers markedly more modest than that in earnings, likely because many workers had adjusted their own 100% spending Lowerand saving behaviors to cope with income impacts and maintain the level of money sent home. 80% While Same 68.4 percent of workers saw their earnings fall, only 51.4 percent reported remitting less (Figure Higher 60% 26). Moreover, although workers who earned more tended to remit more and vice versa, the correlation 40% between the changes in earnings and the changes in remittances was only moderate – approximately 20% 59.4 percent of those earning less remitted less, and only 30.9 percent of those making more remitted more. In other words, 40.6 percent of workers whose 0% Total SWP RSE earnings dropped either maintained or increased their remittances. When disaggregated by the change in Higher Same Lower earnings, the average changes in remittances were also noticeably smaller than those in earnings in both absolute and relative terms, regardless of whether 100% earnings increased or decreased. Lower 80% Same Frequency Higher 60% Remittances also became less frequent among seasonal workers. Comparing remitting behaviors 40% before and after lockdowns, the share of workers remitting on a weekly or bi-weekly basis fell sharply 20% by 17 percentage points from 62.3 percent to 45.4 percent, compensated by an increase in the share 0% of workers remitting once a month or less frequently Fiji Kiribati Samoa Timor- Tonga Vanuatu (Figure 27 and Figure 28). The switch to less frequent Leste remitting was more noticeable among SWP workers. Higher Same Lower Notably, at the time of the survey, 10.4 percent had not Source: World Bank staff calculation based on data from the sent any money back since March, more than half of World Bank COVID-19 Phone Survey on Pacific Labor Mobility whom said this was due to not earning enough to do and Remittances. so, with about one-third intending to bring back cash in person at the end of the season. This indicates both a critical fall in income for their remittance-receiving families and a dynamic adjustment in remitting behaviors in response to the availability of different remittance services. 51 SEASONAL AND PLS WORKERS FIGURE 27: Change in remitting frequency Remitting Channel and Remitting Costs among SWP workers Although most Pacific workers continued to opt for 50% over-the-counter money transfer operators (MTOs), Post-lockdown there was a slight shift towards the use of online 40% transfers (Figure 29 and Figure 30). This transition Pre-lockdown towards the use of online services was likely due to 30% social distancing measures and restrictions on in- person interactions to curb the spread of COVID-19 in both remittance sending and receiving countries. For 20% example, in Samoa and Fiji some remittance service providers suspended operation during lockdown 10% while lack of liquidity was reported in Kiribati. Online services not only allowed workers to remit money 0% without the risk of going into town during the Weekly Bi-weekly Once a month Once every 2-3 months Once every 6 months Did not send money home pandemic, but also often come with lower fees than previously preferred MTOs. The shift was slightly more visible in New Zealand, where the usage of over-the- counter (OTC) services fell by 8.5 percentage points Pre-lockdown Post-lockdown as compared to 7 percentage points in Australia. While Source: World Bank staff calculation based on data from the Western Union remained the most popular choice of World Bank COVID-19 Phone Survey on Pacific Labor Mobility MTO, the transition to online services resulted in a and Remittances. slight decline in its domination as workers gravitated towards digital services like MoneyGram. FIGURE 28: Change in remitting frequency The transition toward digital transfers among seasonal among RSE workers workers was part of a broader increase in usage of digital remittance services across the PICs, with 50% monetary authorities recording a surge in digital Post-lockdown crediting in both bank accounts and other digital 40% Pre-lockdown wallets. For instance, in December 2020, the Reserve Bank of Fiji reported that from January to October 30% 2020 there was a 278.6 percent increase in remittances through mobile money platforms to F$50.4 million.13 20% Similarly, in April 2020 crediting remittances in money wallets from the US, UK, New Zealand, and Australia to 10% Fiji increased by 39, 32, 14 and 11 percent, respectively. It is also important to note that the choices of MTOs 0% varied widely across nationalities, possibly correlated Weekly Bi-weekly Once a month Once every 2-3 months Once every 6 months Did not send money home to the availability of remittance receiving services in each sending country. Fijian, Samoan, and Tongan workers were exposed to the most diverse pool of providers, while those from Timor-Leste were confined Pre-lockdown Post-lockdown to only Western Union and ANZ (Figure 31). The pool Source: World Bank staff calculation based on data from the of MTOs used and their relative dominance remained World Bank COVID-19 Phone Survey on Pacific Labor Mobility largely unchanged before and after lockdown within and Remittances. each nationality. Thus, the digital transition toward online remittance services is likely unequal across different worker groups, limited by their access to 13. Source: https://www.rbf.gov.fj/international-remittances-and-fijis- unsung-heroes-abroad-24-december-2020/ different services providers. 52 SEASONAL AND PLS WORKERS FIGURE 29: Change in remitting channels FIGURE 30: Change in remitting channels among SWP workers (in percent) among RSE workers (in percent) 80% 80% Post-lockdown Pos Pre-lockdown Pre- 60% 60% 40% 40% 20% 20% 0% 0% Online Online Over-the- Through Online Online Over-the- Through transfer transfer counter friends or transfer transfer counter friends or through through tranfers convenience through through tranfers convenience banks MTOs stores banks MTOs stores Pre-lockdown Post-lockdown Pre-lockdown Post-lockdown Source: World Bank staff calculation based on data from the Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. and Remittances. FIGURE 31: Money transfer operations used before and after lockdown (in percent of workers) 100% 80% 60% 40% 20% 0% Pre-lockdown Post-lockdown Pre-lockdown Post-lockdown Pre-lockdown Post-lockdown Pre-lockdown Post-lockdown Pre-lockdown Post-lockdown Pre-lockdown Post-lockdown Pre-lockdown Post-lockdown Fiji Kiribati Samoa Timor-Leste Tonga Vanuatu Total NAB Westpac MoneyGram Other banks ANZ Western Union RIA Money Transfer Other money transfer Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. 53 SEASONAL AND PLS WORKERS In contrast to the substantial and negative changes Intended Use of Remittances in remittances from seasonal workers, most PLS workers (71.2 percent) reported no change in terms Data on intended purposes of remittances by of amount, frequency, and money transfer services. seasonal workers confirm their significance for the Only 18 percent of surveyed PLS workers lowered livelihoods of recipient families and communities. the amount sent home each time. Moreover, while a About 90 percent of the respondents remitted to decrease in remitting frequency was observed, the cover their family’s living expenses, followed by extent of the decrease was significantly smaller than education for children (more than 50 percent) among seasonal workers. In particular, the proportion (Figure 32). Remittances were also used for building of workers remitting twice a month or more fell by or renovating houses and spending on health care 5 percentage points from 41 percent to 36.1 percent; goods and services. Ni-Vanuatu workers were most and only 3.3 percent had not sent any money home likely to highlight the importance of the seasonal since March 2020. It appears that the milder disruption income in re-building or purchasing new plots of in employment and income under the PLS translated land to build family homes after the volcanic eruption into more stable remittances in times of COVID-19. on Ambae in 2018 and the devastation of Tropical Cyclone Harold in 2020. Workers mainly remitted to Online money transfer services were significantly spouses and parents, followed by siblings (Figure 33). more popular among PLS workers than seasonal Disruption to remittance inflows in terms of either workers, and the prevalence remained virtually amount or frequency could have damaging impacts unchanged during the pandemic. Respectively, both on household wellbeing in the short term 67.8 percent and 66.7 percent sent money home (through lower daily consumption) and on longer- using online services pre- and post-lockdown, nearly term investment in education and health of household double the post-lockdown prevalence rate among members (through lower spending on schooling and seasonal workers (39.2 percent). The absence of health care and delayed dwelling improvement). a shift toward online services among PLS workers could be due to the already high prevalence before the pandemic hit. Going forward, it would be useful for future studies to explore what determines this difference across the two groups of workers and whether improvement in pre-departure training and support services for seasonal workers during employment periods could help to narrow the gap. The shift in choices of MTOs among PLS workers, however, was comparable to the pattern among their seasonal counterparts. Western Union and MoneyGram remained the two most common choices although MoneyGram gained a moderate share post- lockdown. Before the pandemic hit, 59.3 percent of PLS workers used Western Union and 27.1 percent used MoneyGram. Post-lockdown, the figures were 50 percent and 35 percent respectively, while the market share of other MTOs – ANZ, Westpac, Bendigo bank, and World Remit – remained small and largely unchanged. 54 SEASONAL AND PLS WORKERS FIGURE 32: Intended use of remittances (in percent of workers)* Paying everyday expenses Paying school fees or other educational expenses Building or renovating dwelling Paying for health expenses Donating to church Buying durable goods Putting into a savings account or other form of �inancial investment Repaying loans from banks, money leanders, family or friends Buying or starting a small business Other Buying livestock, fertilizers, or equipment for farming or �ishing Family and customary events Land purchase 0 20 40 60 80 100 * The options are not mutually exclusive. Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. FIGURE 33: Recipients of remittances (in percent of workers)* Spouse/partner Parents Siblings Cousins, uncles/aunts, or relatives Children Other 0 20 40 60 80 * The options are not mutually exclusive. Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. 55 SEASONAL AND PLS WORKERS 3.1.6 Satisfaction, Intention to Return Next Some workers reported receiving food and money Year, and Issues During COVID-19 donations from diaspora community members but not being supported by their recruitment agency while Beyond economic impacts, lockdown and social unemployed. In some instances, stressful and socially distancing were detrimental to seasonal workers’ restrictive situations led to undesirable behavior mental wellbeing. Feedback from 98 percent of such as excessive drinking, drink driving, violence, surveyed employers and Pacific diaspora groups absconding, refusing to work, and extra-marital affairs, in both Australia and New Zealand flagged that the even among workers who had no history of engaging situation had negatively affected welfare in some in such activities before. way. The predominant issues that workers faced were isolation and anxiety during lockdown, worries about their families back home, and fears of infection (Figure 34). Negative feelings were also reported 14. In addition to quantitative data, the surveys on workers, by workers14 for reasons related to redeployment employers and their households also gathered qualitative and changes in their work environment, including feedback from respondents through both open-ended questions and unprompted comments or remarks respondents voluntarily dissatisfaction with their new workplace, workplaces shared. While such feedback could not be presented in being overcrowded due to multiple teams being on quantitative terms, it provides useful and in-depth insights site, and workloads having to be shared. into the experience of the respondents during the crisis. FIGURE 34: Issues faced by seasonal workers during the COVID-19 crisis Concerns related to wellbeing of family back home SWP Isolation and anxiety due to travel restriction RSE Concerns related to infection risk Overal Concerns related to the expiration of visa and employment contract Concerns related to lack of work Other Problems with accommodation Unaware of any issue 0 20 40 60 80 100 Overall RSE SWP Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. 56 SEASONAL AND PLS WORKERS TABLE 9: Satisfaction rating (out of 10) of working Despite the overall negative impacts of the COVID-19 experience in Australia and New Zealand crisis, migrant workers remained fairly satisfied with their experience in Australia and New Zealand. When asked how satisfied they were with the scheme on a Nationality SWP RSE SWP 2015* scale of 1 ‘not satisfied at all’ to 10 ‘extremely satisfied’, the average score was 8 among PLS workers, Overall 7.8 8.2 N/A 7.8 among SWP workers and 8.2 among RSE workers Fiji 8.2 8.3 N/A (Table 9). The vast majority (nearly 95 percent) of seasonal workers wished to return in 2021 (the survey Kiribati 8.4 8.5 N/A having been undertaken in mid-2020). The variation between the two seasonal work schemes was minor Samoa 8.8 8.9 8.5 when broken down by nationality; the only exception was that Tongan workers in the SWP scheme gave Timor-Leste 6.9 N/A 7.9 a markedly higher rating than Tongan RSE workers (9.2 compared to 7.1). Across nationalities, Timorese Tonga 9.2 7.1 9.9 workers gave the lowest average rating at 6.9, which was likely related to the fact that they experienced Vanuatu 7.0 7.9 6.3 the most severe reduction in earnings during this crisis. Across demographic groups, those who were Male 7.9 8.3 N/A hit harder by the crisis – females, first-timers, team members – tended to be less satisfied. Female 7.6 7.6 N/A Compared with data collected by the World Bank on Returnee 8.2 8.3 N/A SWP workers in 2015 (World Bank, 2017b), satisfaction levels appeared mostly similar, with no clear pattern First-timer 7.1 7.8 N/A of change. One noticeable change was among Timorese workers, who saw a decrease from 7.9 to Team member 7.7 8.2 N/A 6.9, although the large time gap and different survey samples made it difficult to pinpoint what might have Team leader 8.1 8.2 N/A driven such changes. The high proportion of workers wanting to return in 2021 might also be partly driven * World Bank (2018). by the detrimental impacts of COVID-19 on their Source: World Bank staff calculation based on data from the families and domestic labor markets, which could World Bank COVID-19 Phone Survey on Pacific Labor Mobility strengthen their incentive to continue working in the and Remittances. schemes. This also highlights the demand for and the role of labor mobility in supporting employment and livelihoods among Pacific workers. 57 SEASONAL AND PLS WORKERS In addition to challenges related to loss of 3.2 Cancelled Seasonal Workers employment and income, non-economic factors likely played a role in determining satisfaction levels. 3.2.1 Income Losses and Qualitative data from the surveys revealed a wide Pre-departure Costs range of issues related to daily living and working The suspension of seasonal employment during the conditions as well as personal circumstances. Some COVID-19 pandemic represented significant losses workers reported feeling taken advantage of by their of potential income. As Australia and New Zealand employers due to the current circumstances and said closed their borders to international travellers in they were not being treated the same as in previous March 2020, many workers who were due to travel seasons. One diaspora member who works closely under the SWP and RSE schemes15 were forced with SWP workers suggested that the workers who had to remain in their home countries. On average, the highest debts (often to finance their pre-departure the workers were contracted for 6.7 months of costs) were the most stressed about losing work. employment and earnings in Australia or New Loneliness, bullying in the workplace, poor working Zealand, with two-thirds (66.2 percent) expecting conditions, having to work while feeling sick, training 6–7 months, and more than one-fifth (22.0 percent) cancellation in new workplaces, uncertainty, and expecting 8–9 months. This could be translated into inability to go home were also reported with varying significant income losses, and potentially foregone degrees of prevalence. While these problems do not savings, inability to meet expenditure costs, and appear to be widespread based on feedback from potential default on loans or purchases made on credit the surveyed workers, they highlight the complexity in anticipation of future earnings (Table 10). Many of the challenges that seasonal workers have faced respondents reported investing in home improvement during this crisis. It is also important to acknowledge or land purchases based on expected income from that these problems might have existed before the SWP/RSE wages. pandemic instead of being a result of the crisis, yet their impacts have likely been amplified by the current situation. 15. Due to the small number of PLS workers and implementational constraints, this study did not collect data on PLS workers whose trips were cancelled during the pandemic. 58 SEASONAL AND PLS WORKERS TABLE 10: Loss of potential income by cancelled seasonal workers Average length Average monthly Average amount Estimated of contract earnings pre- remitted during losses in total (months) lockdown in last working remittances due domestic market season (USD/ to cancellation (USD) month) (USD) Overall 6.7 216.9 388.4 2602.5 Scheme SWP 6.6 259.1 431.1 2845.6 RSE 7 153.4 322.7 2258.7 Nationality Kiribati 8.5 175.8 266.5 2265.2 Tonga 6.4 393.2 641.9 4107.9 Vanuatu 6.3 115.8 265.3 1671.4 Sex Male 6.9 196.4 375.7 2592.1 Female 6.2 303.7 442.3 2742.0 Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. Losing their prospective employment overseas, In this bleak context, cancelled seasonal workers cancelled workers faced the challenge of finding could be disadvantaged in finding wage/salary jobs alternative income-earnings options in tight domestic at home as their skills and experience are often markets. The economic fallout from COVID-19 has oriented toward seasonal jobs in the horticulture and caused unprecedented job losses across PICs. In viticulture industries overseas. Four in five cancelled Vanuatu, for instance, the economy is projected workers had worked in the SWP/RSE schemes for at to lose roughly 21,000 jobs overall;16 the country’s least one season before their trip in 2020 was put tourism sector, which accounts for 35 percent of off, and 40.5 percent had worked for at least three total employment is estimated to see a 70 percent seasons. While the experience and skill set that they reduction in full-time employment and a 33 percent gain overseas might help them in some agricultural reduction in part-time employment (Vanuatu Tourism activities, many workers do not engage in the type Office, 2020). In August 2020, only 21 percent of of large-scale commercial activities where such skills tourism businesses were still fully functional. In Tonga, are applicable. Certain informal work that could have new recruitment intentions in March 2020 fell by helped to sustain their living in a normal time, such as 60 percent on a Y-o-Y basis.17 selling foods at local markets, has also been limited due to mobility restrictions, leaving many cancelled workers with little earning capacity (Box 2). 16. https://www.islandsbusiness.com/breaking-news/item/2764-fiji- faced-with-a-potential-us-608-million-tourism-loss.html 17. https://www.businessadvantagepng.com/tourism-takes-a-tumble- report-finds-90-per-cent-of-2020-bookings-wiped-out-in-papua- new-guinea/ 59 SEASONAL AND PLS WORKERS BOX 2: The effects of cancelled trips on wellbeing Feedback from surveyed cancelled workers Tim, another ni-Vanuatu worker, gave up waged across countries consistently highlighted employment to join the RSE program for the bleak situations where they struggled to make first time in 2020. He used his savings to pay ends meet and generate alternative incomes. for the significant pre-departure costs. Since For these workers, the cancellation of their the outbreak of COVID-19, he had resorted to trip was associated with a severe decline in selling kava to support his family. their wellbeing, which included lower family Sam, also from Vanuatu, had hoped to cover consumption, disrupted schooling and health the cost of his recent marriage with the care for their children, depleted savings, earnings from his overseas work, which was postponed loan repayments, and deferred cancelled. During off-season he usually worked plans to improve dwelling conditions. as a bus driver in Port Vila but because there Luke* from Tonga did not hear any further were no longer any tourists, he had remained information regarding his employment overseas on his home island where life is based around after he was told that the trip was postponed. subsistence agriculture. His wife’s usual job His passport was kept at the labor sending unit. – selling food at the local market – had also Luke was not working at the time of the interview stopped due to COVID-19. While Sam’s frugal because he had to look after his one-year-old lifestyle on the island did not require much child, who had a heart disease. His wife’s work cash, he was using his savings to pay for his hours had been reduced due to COVID-19. They financial needs. were barely making ends meet. In Kiribati, several workers reported that their Alex, also from Tonga, had to pull his children households’ only income source was copra out of school because he had no land and no cutting while one reported their major source other means of earning an income to pay for of household income since March 2020 was the school fees or to sustain his livelihood. Another Senior Citizen’s Benefits that their elderly family Tongan worker reportedly harvested his kava members received from the government. prematurely for sale as he needed money. Thomas, a ni-Vanuatu worker, used all of his savings to pay the pre-departure costs for himself and four other workers. The arrangement was made under the expectation that the other workers would repay him from their income overseas. Thomas’s own family depended entirely on his remittances and savings; no other member in the family earned any income. * All names are pseudonyms. 60 SEASONAL AND PLS WORKERS In addition to missing income, cancelled workers were left with substantial yet unrecovered pre-departure costs. They paid an average of US$348 out-of-pocket in preparation for their trips, with flight tickets, domestic transportation, and purchases of personal 18. This figure is likely an underestimation of the total pre-departure items to bring to Australia or New Zealand accounting costs that workers would have incurred if their trips had not been for 61 percent of this total.18 The costs were more than cancelled, as they might have had purchases still to make. Also, twice as much for those who were due to work in the i-Kiribati workers reported lower overall costs than those from RSE scheme (US$537) as compared to those expecting Tonga or Vanuatu, but this is mostly due to the fact that they did not report any out-of-pocket payments for airfares. Interestingly, to work in the SWP scheme (US$237), driven mainly female workers in Vanuatu and Kiribati reported considerably by more expensive airfares and higher fees for visa lower pre-departure costs than their male counterparts. and medical check-ups (Figure 35).19 Across both 19. Requirements vary across schemes and countries. For example, schemes, on average, pre-departure costs amounted among Tongan seasonal workers, those participating in the RSE must receive a medical clearance from an approved panel doctor to 165 percent of workers’ average monthly earnings prior to departing, whereas for those participating in the SWP, before COVID-19 and 112 percent of household income there is no such requirement (there is for SWP workers from other during the crisis. nationalities, but not in the case of Tongans). FIGURE 35: Pre-departure costs incurred by cancelled seasonal workers 900 800 700 600 500 USD 400 300 200 100 0 Overall SWP RSE Kiribati Tonga Vanuatu Scheme Nationality Medical check-ups Police clearance Temp. accommodation Purchases Passport fees Flight Agent fees Other expenses Visa fees Transportation Government fees Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. 61 SEASONAL AND PLS WORKERS FIGURE 36: Pre-departure costs compared to household and individual monthly incomes 900 800 700 600 500 USD 400 300 200 100 0 Overall SWP RSE Kiribati Tonga Vanuatu Male Female First- Returnee No Yes timer Scheme Nationality Sex First-timer Trip leader vs. returnee Pre-departure costs Worker’s monthly income pre-lockdown Household monthly income during COVID-19 Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. The costs, when compared to the pre-COVID-19 More than one-third of the cancelled workers income of workers, were particularly burdensome (34 percent) took out loans to cover their pre- for first-time workers and members of their working departure costs, leaving them at increased groups. Workers who had previously been group vulnerability to financial hardship and future shocks. leaders had higher average monthly earnings pre- About 80 percent of those who borrowed (from COVID-19 (and relatively lower pre-departure costs) either family, friends, banks, or commercial lenders) than other workers. Returning workers also had higher had not paid off their debts and of those, only incomes on average than first-time workers. 26 percent had been making regular repayments. Financing pre-departure costs also consumed the Of the cancelled workers interviewed, only one savings of 55 percent of the cancelled workers, respondent reported receiving a refund for expenses which could have been used for more productive paid in preparation for the trip. The respondent, an purposes (Figure 37). SWP returnee worker from Tonga, reported receiving a total refund of $A 181 (about 75 percent of their total pre-departure costs, which included fees for medical checks, police clearances and personal items they intended to bring to Australia for their own use). 62 SEASONAL AND PLS WORKERS FIGURE 37: Financing pre-departure costs Money from other sources (Specify) Own savings 5.5% Sell assets or goodsgiven Money to you by church or community grou 0.9% Borrow money from family members or relatives 11.1% living in country Borrow money from family members or relatives Money given to you by family living overseas members or relatives 4.3% Borrow money from friends 2.6% 46.4% Borrow money from banks 1.3% Borrow money from other money lenders Borrow money from other money lenders 6% Money given by family members or relatives Money given by church or community group Borrow money from banks Money from other sources 14.5% 7.7% Borrow money from friends Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. Borrow money from family members or relatives liv Borrow money from family members or relatives liv 3.2.3 Labor Market Activities and Earnings Sell your While the buffering assets role goods, such oragricultural of the as tapa, electronic a sector in absorbing redundant labor during a crisis has Workers became more economically active, mostly been documented before, the return to agricultural in agricultural activities, to cope with the loss Your own savingsworkers was not activities by Pacific cancelled of potential employment and income overseas. associated with an urban-to-rural exodus. Experience Compared to the period of January–February, the during the 1997–98 Asian Financial Crisis, for instance, proportion of cancelled workers engaging in non- showed that millions of urban workers – laid off from earning activities (such as unpaid work, housework, construction, manufacturing, and services – returned taking care of family members, and resting) fell by to villages from which they had earlier migrated in more than 10 percentage points from 32.8 percent search of better jobs (Warr, 2020). India during the to 22.2 percent (Figure 38). This was largely offset by COVID-19 pandemic also witnessed a huge reversal an increase in participation in agricultural activities of rural-urban migration as cities entered lockdowns. (farming, fishing, raising livestock, or making In the case of cancelled workers, however, about handicrafts) for commercial sale (from 9.7 percent 92 percent of respondents had not changed their to 16 percent), and to a lesser extent, for family location since their trip cancellation. consumption (from 24.1 percent to 26.8 percent). Cancelled workers were also more likely to seek jobs or run their own businesses after not being able to travel overseas, but were less likely to have wage/salary jobs, which was likely an outcome of deteriorating domestic labor markets and/or the completion of the employment that they had engaged in while waiting to travel overseas for work. 63 SEASONAL AND PLS WORKERS FIGURE 38: Labor market activity on which most time was spent before and after lockdown Working for wages/salary Curren Running own business Pre-CO Agri activities mostly for sales/barter Agri activities mostly for family consumption Rest Housework/caring for family members Job seeking Unpaid work/others 0% 10% 20% 30% Percent of workers Pre-COVID-19 Current Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. This weak domestic mobility could be attributed Despite higher labor force participation rates, at least partly to occupational stickiness in non- cancelled workers experienced no clear wage jobs, particularly among those who worked improvement in their earnings and might emerge in the agricultural sector. Of those workers as a new vulnerable group (Figure 40). While the who farmed, fished, raised livestock, or made pandemic might have contributed to this sobering handicrafts to generate income post-lockdown, outcome, the occupational stickiness and stagnant 64.6 percent engaged in the same activity before income level also indicate the limited ability of the pandemic (Figure 39). The corresponding figure seasonal workers to find quality job opportunities was considerably lower among those who ran a at home should their overseas employment business (54.2 percent), engaged in unpaid work to end abruptly. Together, the loss of prospective help their family (51.4 percent), and worked in wage income and pre-departure expenses suggests that or salary jobs (44.6 percent). Data, however, were cancelled workers may be under financial strain insufficient to ascertain whether the weak mobility and need better government support to access was also because most workers were already in welfare services in their home countries. This is rural areas before the pandemic. corroborated by qualitative feedback from Pacific diaspora members in Australia and New Zealand, who maintain contact with seasonal workers, as well as a recent report by the International Organization for Migration (IOM, 2020). 64 SEASONAL AND PLS WORKERS FIGURE 39: Current labor market activities of cancelled workers Percent of workers engaged in labor market activities Did you engage in this same activity in in the week preceding the interview January–February? 50% 35% yes Farm, sh, raise livestock, or make handicrafts to gene 30% 40% Engage in unpaid work to help family no 25% Run any business activity for pro t 30% 20% Work to earn wages or salary 15% 20% 10% 10% 5% 0 0% Overall SWP RSE Kiribati Tonga Vanuatu Male Female Work to Run any Engage in Farm, �ish, earn wages business unpaid work raise livestock, Scheme Nationality or salary activity to help or make Sex for pro�it family handicrafts to generate Work to earn wages or salary income Run any business activity for profit Engage in unpaid work to help family No Yes Engaged in activity in past 7 days Farm, fish, raise livestock, or make handicrafts to generate income Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. FIGURE 40: Changes in monthly earnings of cancelled workers 35% 100% Don’t know 30% 80% 25% Higher 20% Same 60% 15% Lower 40% 10% 20% 5% 0% 0% Kiribati Tonga Vanuatu Lower Same Higher Don’t know Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. 65 SEASONAL AND PLS WORKERS The cancellation of seasonal employment due to This is higher than the average of 8 among the COVID-19 may have also exacerbated gender gaps in current workers who have gone through the crisis labor market activities. Analysis of the disaggregated while working under the schemes. Furthermore, distribution of labor market activities reveals stark 100 percent of respondents stated that they differences between male and female workers in wished to work in Australia or New Zealand in 2021, terms of responsibility for housework and caring compared to 95 percent among the current workers. for family members. Thirty-five percent of female The more upbeat responses of the cancelled workers reported spending most of their time in workers could be attributed to two factors. One January–February doing housework or caring for is that they did not experience being stranded in family members, as compared to just 13 percent of the host countries and undergoing the associated male workers. The gap widened after trip cancellation uncertainty and income and employment losses with 38 percent of female workers and 10 percent during this crisis. Two is their incentive to join the of male workers reporting this as their main activity schemes in 2021 which in turn might be at least partly since March. motivated by the adverse impacts of the pandemic on the domestic labor market and their household’s 3.2.4 Satisfaction wellbeing. This incentive might explain their responses to the question while at the same time Despite the cancellation, the majority of cancelled highlighting the demand for participation in labor workers who had participated in the labor mobility mobility schemes. schemes still expressed strong satisfaction. Four out of five cancelled workers (81.5 percent) had worked under the schemes before, most for more than one season (61.5 percent or 75.5 percent among those returnees). When asked how satisfied they had been with the experience in Australia and New Zealand on a scale from 1–10, with 1 being ‘extremely dissatisfied’ and 10 being ‘extremely satisfied’, their average response was 9. 66 SEASONAL AND PLS WORKERS 67 Photo by © darrenjamesphotography.com IV. HOUSEHOLDS The COVID-19 crisis imposed a duel set of Similarly, 57 percent of households that operated challenges on migrant sending households; the non-farm businesses saw income drop, and about economic fallouts in their home economy and the a quarter (24.4 percent) of households engaging in disruption to the overseas employment of their agricultural activities, such as farming, fishing, or migrating members. For households of the workers raising livestock, reported their agricultural income stranded overseas as the pandemic broke out, the this season to be lower or much lower as compared impact of the latter was channeled through changes to last season. Most strikingly, more than half in the remittance inflows that help support their (52.3 percent) reported gaining no money from livelihoods. As documented in Section 3, remittances their usual agricultural activities, despite most of from migrant workers largely decreased and became them (89.8 percent) still being able to perform such less frequent during the crisis. For households of the activities. A similar prevalence of no agricultural workers whose trips were cancelled due to mobility income was also observed among households of restrictions, they lost not only potential remittance cancelled workers at 48 percent (Figure 41). While income but also the money that they might have agricultural income could be irregular, depending on spent to fund the worker’s participation in the labor timing, quantity, and quality of harvests, this likely mobility scheme. This section explores impacts of reflects the subsistent nature of agriculture in which the crisis on households of both the current and households produce for their own consumption in cancelled seasonal workers under the SWP and the absence of monetary earnings. RSE schemes. COVID-19 appears to have had a negative but relatively milder impact on the income of households of cancelled workers. Compared to 4.1. Income and Livelihood current worker households, they were considerably and consistently more likely to report that income Households of current seasonal workers from different economic activities remained about experienced lower domestic income since the the same or even increased (Figure 42). Still, the onset of COVID-19. When asked to compare current proportions of households that reported earning income from different economic activities to the less than they did pre-COVID-19 were considerable income generated by those same activities at the at 31.8 percent for wage/salary income, 48 percent beginning of the year, the majority of respondents for business income and 16.7 percent for agricultural stated that income was lower. Of the households income. It is also noteworthy that cancelled worker that had at least one member working a wage/ households were more likely to experience total loss salary job, 47.9 percent reported this income of labor earnings following the pandemic onset, had fallen (Figure 41). This could be linked to especially in Kiribati – overall 19.8 percent reported household members being laid off or having work no wage/salary income, much higher than 5 percent hours reduced – overall, 16 percent of households among current worker households. reported that someone in their household had been furloughed or laid off and 38 percent reported that a household member had their work hours reduced. 68 HOUSEHOLDS FIGURE 41: Income reduction associated with COVID-19 among households of current seasonal workers Changes in income from wages and salary Overall Scheme SWP RSE Fiji Kiribati Nationality Samoa Timor Leste Tonga Vanuatu 0% 20% 40% 60% 80% 100% Changes in income from farming, fishing, or raising livestock Overall Scheme SWP RSE Fiji Kiribati Nationality Samoa Timor-Leste Tonga Vanuatu 0% 20% 40% 60% 80% 100% Much higher Higher About the same Lower Much lower No income Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. 69 HOUSEHOLDS FIGURE 41: Income reduction associated with COVID-19 among households of current seasonal workers (continued) Changes in income from household business Overall Scheme SWP RSE Fiji Kiribati Nationality Samoa Timor-Leste Tonga Vanuatu 0% 20% 40% 60% 80% 100% Much higher Higher About the same Lower Much lower No income Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. FIGURE 42: Cancelled workers impact of COVID-19 on performance of household economic activities Changes in income from wages and salary Overall SWP Scheme RSE Kiribati Nationality Tonga Vanuatu 0% 20% 40% 60% 80% 100% Higher About the same Lower Much lower No income Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. 70 HOUSEHOLDS FIGURE 42: Cancelled workers impact of COVID-19 on performance of household economic activities (continued) Changes in income from farming, fishing, or raising livestock Overall SWP Scheme RSE Kiribati Nationality Tonga Vanuatu 0% 20% 40% 60% 80% 100% Changes in income from household business Overall SWP Scheme RSE Kiribati Nationality Tonga Vanuatu 0% 20% 40% 60% 80% 100% Higher About the same Lower Much lower No income Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. 71 HOUSEHOLDS The decline in income earned domestically elevates Without expected remittances, cancelled worker the significance of remittances from labor migration. households were markedly more dependent on Among current worker households, the proportion income from domestic sources, notably family that identified remittances as their main income businesses and selling home produce, both pre- source rose by 5 percentage points since the onset and post-lockdown. Interestingly, the share of of COVID-19. The increase was most salient among cancelled worker households that had no income Timorese households at 17.4 percentage points or dropped slightly from 10.8 percent in January–February a twofold increase (Figure 43). Tongan households, to 7.7 percent since March. This was compensated who have historically been more reliant on remittance by an increase in the share of households relying on income from seasonal employment under labor family businesses as the main source of income from mobility schemes, also reported a considerable 17.9 percent to 22.1 percent. The increase was largest increase of 8 percentage points from 76 percent among i-Kiribati households, from 17.1 percent to in January–February to 84 percent after COVID-19 37.1 percent. It seems that households turned to broke out. local earning opportunities to cope with the loss of prospective employment overseas and/or the economic downturn. FIGURE 43: Main source of household income Current workers Overall SWP Scheme POST-LOCKDOWN RSE Fiji Kiribati Nationality Samoa Timor-Leste Tonga Vanuatu Overall SWP Scheme PRE-LOCKDOWN RSE Fiji Kiribati Nationality Samoa Timor-Leste Tonga Vanuatu 0% 20% 40% 60% 80% 100% Wages/salary Remittance from worker Income from business Remittance from other family members Income from selling crops etc. No income Assistance from church/community Other Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. 72 HOUSEHOLDS FIGURE 43: Main source of household income (continued) Cancelled workers Overall SWP Scheme POST-LOCKDOWN RSE Kiribati Nationality Tonga Vanuatu Overall Australia Scheme PRE-LOCKDOWN New Zealand Kiribati Nationality Tonga Vanuatu 0% 20% 40% 60% 80% 100% Wages/salary Remittance from worker Income from business Remittance from other family members Income from selling crops etc. No income Assistance from church/community Other Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. The role of remittances in supporting livelihoods 4.2 Remittances of migrant sending households was also reflected Remittances from seasonal employment overseas in the differences in household income between accounted for a major share of household income. the two groups during the pandemic. The average In Timor-Leste, the average remittances received monthly income of current worker households was since March amounted to 212 percent of household about 52 percent and 35 percent higher than that of income in the month preceding the survey. In cancelled worker households in Kiribati and Tonga, Vanuatu, where many households reported reliance on respectively. The difference however was minor in subsistence agriculture and economic activities that Vanuatu, with average income of cancelled worker were curtailed by COVID-19 impacts on the tourism households nearly 5 percent higher. industry, remittances amounted to 101 percent of household income (Figure 44). 73 HOUSEHOLDS FIGURE 44: Average remittance amount as compared to household income 1600 1400 1200 1000 800 600 400 200 0 Overall SWP RSE Fiji Kiribati Samoa Timor-Leste Tonga Vanuatu Scheme Nationality Average remittance amount received each time since March 2020 Household income last month Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. Remittances from SWP/RSE workers were A large share of households reported receiving either fundamental to financing essential household less or much less remittances from their seasonal consumption. The main uses of remittances were workers, with wide variation across schemes and for everyday expenses, including food (91 percent nationalities. RSE households were significantly of households), school fees and other educational more likely suffer from remittance income losses expenses (51 percent), and health care (19 percent)20 than their SWP counterparts (50 percent as compared (Table 11). Qualitative feedback from surveyed to 35 percent, respectively). Also, while about half of households revealed that some daily expenses such i-Kiribati and Tongan households reported decreases as bus fares and lunches were also related to sending in remittance income, 40 percent of Timorese children to school, hence further emphasizing the households reported receiving more, leading to a role of remittances in supporting investment in significant increase in the average amount that they child education. It is also important to note that in received per remittance transaction (Figure 45).21 areas where subsistence farming is prevalent and the cash economy is limited, remittances were often the primary source of fiat money to finance goods and services that require monetary payment, such 20. The uses of remittances are not mutually exclusive. as school fees, health care services or housing 22. For Timorese households, the increase in average remittance renovation/construction. Consequently, when the amount received may be due to a lack of remittances in January–February. Comparison of remittance amounts received remittance inflow is disrupted, as documented in by households in Timor-Leste before and after the lockdown Section 3, Pacific households face great challenges shows a significant increase that differs from the realities of to make ends meet. Feedback from surveyed diaspora other countries. This is further reflected in responses comparing members in Australia and New Zealand also suggests remittances received since March to those before the lockdown, in which 40 percent of Timorese households reported that that tension arose between some workers and remittances were more or significantly more than before, as their remittance receiving families as they did not opposed to an overall average of less than 10 percent reporting understand why remittances from the workers had the same opinion. However, analysis of data regarding the frequency at which these remittances were received reveals that decreased or stopped during the pandemic. a larger share of Timorese respondents reported not receiving any remittances before March, possibly accounting for the jump in numbers between the two periods. 74 HOUSEHOLDS TABLE 11: Main use of remittances received Share of household Purchase durable goods  5% Buy or start a business  6% Loan repayment  8% Other expenses  9% Purchase farming/fishing inputs  10% Savings or financial investments  12% Church donation  16% Health expenses  19% Build or renovate dwelling  29% School fees, other educational expenses  51% Foods and other daily expenses  91% Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. 75 HOUSEHOLDS FIGURE 45: Changes in remittances received Remittances received since March 2020 (compared to January—February 2020) 100% 80% 60% 40% 20% 0% Overall SWP RSE Fiji Kiribati Samoa Timor-Leste Tonga Vanuatu Significantly more More About the same Less Significantly less Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. Average amount remitted per transaction Percentage change in remittance amount remitted per transaction 1400 50 post chan 1200 40 pre 1000 30 800 20 USD 600 10 400 0 200 -10 0 -20 SWP RSE Fiji Kiribati Samoa Tonga Vanuatu Overall Timor-Leste RSE Fiji Kiribati Samoa Tonga Vanuatu SWP Timor-Leste Pre-lockdown Post-lockdown 76 HOUSEHOLDS Not only disrupting the inflows of remittances, 4.3 Expenditure COVID-19 also made it harder for remittance- Households of cancelled workers tended to have receiving households to get the funds. After lower total expenditure despite having the worker March 2020, about 29 percent of households had at home, likely driven by their income losses. difficulty receiving remittances or were unable Household expenditure was 17 percent higher to receive remittances in the same way they did for households with workers currently abroad as pre-lockdown. This was in large part due to the compared to the households of cancelled workers. low coverage of digital transfers. Only 11 percent This may be due to shifts towards subsistence received the funds directly into their own bank farming for family consumption and the fact that account as opposed to 83 percent who collected many households actively reduced expenditure once cash in person from money transfer locations. The they were informed of trip cancellations (Figure 47). use of bank accounts for receiving remittances This disparity was more pronounced for Tongan was highest in Kiribati (32 percent) whilst every households, with households of current workers Samoan respondent cited collecting cash in spending 50 percent more than those of cancelled person and by themselves (Figure 46). Surveyed workers. In Tonga, cancelled workers commented households pointed to several factors that hindered that trip postponement impacted those living in main their remittance reception, including advice to towns more than rural households who were able to stay home/movement restrictions by government, farm and fish to feed their families – prompting some money transfer operators being closed due to respondents to move back to rural areas. social distancing restrictions, or not having enough liquidity for disbursement. FIGURE 46: Remittance channel (before lockdown) 100% 80% 60% 40% 20% 0% Overall SWP RSE Fiji Kiribati Samoa Timor-Leste Tonga Vanuatu Scheme Nationality Own bank account Collect cash themselves Other Another’s bank account Ask another person to collect cash Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. 77 HOUSEHOLDS FIGURE 47: Total household expenditure in last month Current workers Cancelled workers 1200 1200 1000 1000 800 800 USD USD 600 600 400 400 200 200 0 0 SWP RSE Fiji Kiribati Samoa Tonga Vanuatu SWP RSE Kiribati Tonga Vanuatu Timor-Leste Scheme Nationality Scheme Nationality Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. For households without access to productive land, This was evident in comments made by respondents food costs accounted for a large share of total who explained how difficult it was to save because of expenditure. The importance of owning land for the responsibility to use remittances received to help subsistence agriculture was highlighted throughout community members or relatives. This was echoed the survey interviews, with respondents across all throughout the survey interviews, with respondents countries commenting on the value of self-production also commenting on the fact that these costs could for household consumption. One respondent from Fiji change at any time due to events like weddings or stated that the biggest lesson learned from COVID-19 funerals, and many cancelled workers said their wives was that the future is in farming and went on to were weaving to meet these community obligations explain that the best way to confront the present in the absence of SWP/RSE income. Expenditure circumstances was to work the land rather than rely in this category was particularly high for Timorese on formal employment. households, accounting for over half of total Even in the face of reduced earnings and income, household expenditure. community obligations remained a responsibility for households. Expenditure in this category was slightly higher for households of current workers, possibly because having a household member working abroad is associated with higher income and therefore increased obligation (Figure 48). 78 HOUSEHOLDS FIGURE 48: Household budget share Current workers Overall Scheme SWP RSE Fiji Kiribati Nationality Samoa Timor-Leste Tonga Vanuatu 0% 20% 40% 60% 80% 100% Cancelled workers Overall SWP Scheme RSE Kiribati Nationality Tonga Vanuatu 0% 20% 40% 60% 80% 100% Food Fuel Vehicle Community Other daily needs Non-durable goods Communication Loan repayment Housing Health Recreation Lottery Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. 79 HOUSEHOLDS TABLE 12: Percentage of households with 4.4 Financial Anxiety and financial anxiety score of 5 or above* Coping Mechanisms The economic fallout from COVID-19 led to Country Current worker Cancelled worker excessive financial anxiety among migrant sending households households households. On a scale of 1–10, with 1 being ‘not Fiji 32.5% N/A worried at all’ and 10 being ‘extremely worried’, most households reported an anxiety level of 5 or above Kiribati 64.3% 91.4% when asked about their finances in the next month. Excessive anxiety was acute among households of Samoa 76.2% N/A cancelled workers – 91 percent in Kiribati, nearly 90 percent in Vanuatu, and 71 percent in Tonga Timor-Leste 52.2% N/A (Table 12). Among households of current workers, the figure was well above 50 percent in all countries Tonga 82.0% 71.4% except Fiji. Vanuatu 61.5% 89.7% The taxing situation drove households to adopt various coping strategies that could damage * On a scale of 1–10, with 1 being ‘not worried at all’ and 10 their long-term wellbeing and earning prospects. being ‘extremely worried’. The three most common coping strategies were Source: World Bank staff calculation based on data from the cutting down non-food consumption, reducing food World Bank COVID-19 Phone Survey on Pacific Labor Mobility consumption, and drawing down savings (Figure 49). and Remittances. Borrowing (from either formal or informal lenders) and making purchases on credit were also common. A smaller but non-trivial share of households also opted to sell their livestock and/or assets and take their children out of school. These strategies, while helping households to make ends meet in the short term, could be detrimental to their health, disruptive to their children’s education, and drain their capital for productive activities. It is also important to acknowledge that while patterns of coping mechanisms were similar between the two groups of households, the incidence of almost all of the reported strategies were significantly higher among those of cancelled workers, which indicates their higher vulnerability in the absence of remittances. 80 HOUSEHOLDS FIGURE 49: Coping strategies taken by households since March 2020 Let children work to earn money Sell harvest in advance Take an advance payment from an employer Assistance from church Reduce number of children attending school Assistance from NGO Take out a loan Sell livestock Sell assets Delay making repayments to debts Receive a payout from a pension fund Purchase items on credit Borrow money Find ways to earn extra money Assistance from family Spend from savings Reduce food consumption Reduce non-food consumption 0% 20% 40% 60% 80% Percent of households Current worker households Cancelled worker households Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. Note: The coping strategies are not mutually exclusive; a household could report more than one coping strategy. Household coping mechanisms also highlight the The coverage of social assistance from governments importance of the informal social safety net in also varied. Approximately 86.7 percent of Timorese Vanuatu, Tonga, and Kiribati. About 26.9 percent of households reported receiving some social current worker households and 41 percent of cancelled assistance from the government, followed by worker households borrowed or received cash from 7.5 percent in Vanuatu (in the form of a school fee family or friends. In addition, about 35.8 percent waiver) and 9.7 percent in Tonga. No households of current worker households and 49.7 percent of from Fiji, Kiribati, and Samoa reported receiving cancelled worker households received other kinds of any social assistance. assistance from their informal networks. However, the incidence of informal assistance varied widely across countries, ranging from only 5 percent in Fiji, to nearly 55 percent in Vanuatu for non-cash assistance, and 5 percent again in Fiji to 52.2 percent in Timor-Leste for cash assistance. Assistance from NGOs and churches played a much smaller role, reaching roughly one in ten households overall. 81 HOUSEHOLDS 82 Photo by © World Bank V. EMPLOYERS Border closures and public health measures aimed The shortages were associated with the increase in at curbing the spread of the COVID-19 pandemic working hours among a minority of workers, especially created major and on-going disruptions to employers those who had worked below full capacity pre- under the SWP and RSE schemes. The suspension COVID-19 (as discussed in Section 3.1.2). of international travel in March 2020 effectively The labor shortages were a direct consequence of stopped the arrival of prospective workers22 and left border closures and social distancing measures many existing workers stranded. Social distancing aimed at limiting the spread of the pandemic. The requirements caused challenges for employers to most common causes pinpointed by both SWP and ensure compliance among their existing workers RSE employers were delays and cancellations of the and take care of their wellbeing under limited social arrival of prospective workers and decreases in the interactions, while limiting the ability to redeploy number of local farm workers and backpackers, who stranded workers to where they were needed. Looking employers in the horticulture sector typically rely on forward, uncertainty with respect to international during peak harvest seasons (in addition to seasonal travel, compliance with quarantine and public health Pacific workers) (Figure 52). The departure of existing requirements, and allocation of approved places to Pacific and Timorese workers due to COVID-19 and the recruit seasonal workers impose challenges to the higher cost of recruitment during the pandemic also resumption of the schemes as well as the operation played a role, although to a lesser extent. In addition, of businesses that rely on the workers. This section social distancing measures restricted employers’ explores these issues. ability to reallocate stranded workers from where they were in surplus to where they were needed. Difficulties in crossing the New South Wales–Victorian 5.1. Labor Shortages During COVID-19 border in Australia, in particular, not only hindered the transportation of workers to new employment sites but The COVID-19 pandemic led to a significant shortage also limited access to workplaces of workers who were of seasonal labor, especially in New Zealand. accommodated on one side of the border yet worked Nearly half of surveyed employers – 43.2 percent on the other. None of the surveyed employers reported in Australia and 56.7 percent in New Zealand – that their labor shortages were due to weather or reported experiencing at least one month of labor market conditions.24 shortages between March 2020 and the survey period (Figure 50). The more prevalent shortages 22. Since September 2020, seasonal workers have been allowed among RSE employers could be attributed to the to enter Australia under a special arrangement. By June 2021, timing of their seasonal recruitment, which is more about 7,500 workers have reportedly arrived in Australia to work concentrated between March and May (the winter under the SWP and PLS schemes. New Zealand is only allowing 4,400 Pacific RSE workers to arrive between January 2021 and season) and unfortunately coincided with the first March 2022 to address the shortage of seasonal labor. round of lockdowns in the country (Figure 51). Across 23. Statistics on labor hire companies are based on 15 observations, both countries, labor hire companies (that often recruit and hence, should be treated with caution. workers in larger numbers) seemed more severely 24. Only one respondent – a labor hire company – reported that affected than direct employers (73.3 percent as their labor shortage was due to an increase in demand for their compared to 42.4 percent).23 business. Another respondent reported competing demands for workers with a neighboring farm. 83 EMPLOYERS FIGURE 50: Labor shortages experienced The crisis also highlighted a heavy reliance on by employers backpackers in Australia’s horticulture sector, who are cheaper, easier to hire, and vastly outnumber 80 SWP workers in farm work by a ratio of 3 to 1.25 70 (Curtain & Howes, 2020). SWP employers were more likely to identify “fewer backpackers/local seasonal 60 Percent of employers workers” and “increased recruitment costs” as 50 contributors to the labor shortage – 42.1 percent 40 and 26.3 percent, respectively, as compared to 35.3 percent and 11.8 percent among their RSE 30 counterparts, respectively (Figure 52). 20 Responding to this supply shock, employers resorted 10 to a range of coping strategies. These included 0 seeking additional workers from new sources, SWP RSE Direct Labor hire employer company increasing work hours, and extending contracts for their existing workers.26 Data unfortunately were Source: World Bank staff calculation based on data from the insufficient to identify which strategy was more World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. common. Note: Statistics on labor hire companies are based on 15 observations, While significant and requiring business adjustments, and thus, should be treated with caution. the lack of farm labor appeared to be seasonal. As most existing workers were stranded beyond their seasonal employment, 46 percent of direct employers – both those having experienced labor shortage and those having not – had to reduce work hours for FIGURE 51: Demand for Pacific seasonal workers their workers, mostly because there was less work during a calendar year available after the harvest season had passed its peak and/or employers wanted to keep their workers 60 employed RSE longer. Unfavorable market conditions and bad weather hardly explain the reduced work 50 hours – each of these two factors was mentioned SWP Percent of employers by only two surveyed employers. This highlights the 40 heterogeneous and evolving challenges that the 30 COVID-19 crisis forced upon seasonal employers, from lack of labor during the peak harvest months 20 to maintaining employment and management of stranded workers in the following period. 10 0 January February March April May June July August September October November December All year round SWP RSE Source: World Bank staff calculation based on data from the 25. Every year, about 30,000 backpackers in Australia get a second- World Bank COVID-19 Phone Survey on Pacific Labor Mobility and year visa for working in agriculture for three months in their first Remittances. year. The total number of SWP workers in 2019–20 was 12,200 (Curtain and Howes, 2020). 60 Note: Statistics on labor hire companies are based on 15 observations, and thus, should be treated with caution. 26. Based on responses fromOverall 10 surveyed employers. 50 40 30 20 84 EMPLOYERS 10 0 5.2. Contract Extensions and A considerable proportion of employers unable Redeployment During COVID-19 to offer their workers further work redeployed them to other employers, contributing to the The pandemic not only disrupted the employment labor reallocation in response to labor shortages. of seasonal workers but also created considerable Approximately 41 percent of those with stranded burdens on employers in managing their stranded workers (or 36.5 percent of all surveyed employers) workers. Among the surveyed employers, 89 percent redeployed at least some of their Pacific/Timorese had seasonal workers unable to return home at the employees, with redeployment being moderately end of their original contract (Table 13). Approximately more common among RSE employers (44 percent 92 percent of these employers extended contracts vs. 39 percent) (Figure 53). Redeployment was for at least some of their workers. The number of mostly organized privately. About two-thirds of the contracts extended by one employer ranged from employers redeployed their workers through private under ten, up to 900. About 21 percent of employers, arrangements with the workers’ new employers; including both labor hire companies and direct and approximately a quarter utilized collective employers, extended contracts for 100 workers arrangements among several employers within the or more. scheme. In contrast, the government, industrial associations, and overseas recruitment agents played a minor role in facilitating such redeployment. FIGURE 52: Perceived reasons for labor shortage Increase in demand for your products R Existing workers left due to COVID-19 S Decrease in number of backpackers/local seasonal workers O Cancellation of Paci�ic workers due to arrive Delay in arrival of Paci�ic workers Delay/cancellation in approval of SWP/RSE places by government Increased costs recruiting farm labor 0% 10% 20% 30% 40% 50% Percent of employers Overall SWP RSE Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. 85 EMPLOYERS TABLE 13: Contract extension for Employers incurred the major share of the costs seasonal workers of the contract extension and redeployment. About 66.7 percent of employers reported that their workers Share of Share of employers did not need to pay anything to have their contracts employers that that extended extended while 55.6 percent reported that workers had stranded contracts for their incurred no cost to be redeployed (Figure 54). SWP workers stranded workers employers seemed more likely to pass at least part of the costs to their workers.27 About 77.3 percent SWP 93.2% 95.1% of RSE employers reported that their extended workers incurred no costs, markedly higher than RSE 83.3% 88.0% SWP employers (60.5 percent). Direct employer 88.1% 92.3% There were some distinctions in terms of the type of costs paid by employers and workers. For contract Labor hire 93.3% 92.9% extension, employers reportedly contributed to not only expenses directly related to contract extensions, Overall 89.2% 92.4% such as visa and administrative fees, and commission to recruitment agents or labor hire companies (in the Source: World Bank staff calculation based on data from the case of direct employers), but also workers’ travel World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. expenses and welfare support (Figure 55). Training, Note: Statistics on labor hire companies are based on 15 observations medical and insurance costs, and upgrading or and thus, should be treated with caution. extending accommodation were also mentioned by some employers, but were much less common. Although the majority of workers did not incur any cost to have their contract extended, if they did, they most often paid for police reports and visa fees. FIGURE 53: Share of employers redeploying For redeployment, employers commonly paid for their stranded workers transporting workers to their new workplace, approval from governments to change employers, as well as 70% visa extension. Workers, when they did contribute, mostly paid for transportation to new workplaces and 60% finding accommodation in the case of redeployment. 50% 40% 30% 20% 10% 0% Overall SWP RSE Direct Labor hire employer company Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. 27. Due to small sample size, statistics by labor mobility schemes related to redeployment cost are not presented. 86 EMPLOYERS FIGURE 54: Workers’ contribution to contract extension costs (as reported by employers) Commission fee Income loss Travel expenses Insurance Accommodation Visa fee Police report None 0% 10% 20% 30% 40% 50% 60% 70% 80% Percent of employers Overall SWP RSE Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. FIGURE 55: Employers’ contribution to contract extension costs Commission fee to recruitment agent or labor hire company Finding new accommodation for the workers Administrative costs Visa fee Travel expenses None Others 0% 10% 20% 30% 40% 50% 60% 70% 80% Percent of employers Overall SWP RSE Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. 87 EMPLOYERS 5.3. Challenges Faced by Employers Apart from the provision of sanitizer and soap, the During COVID-19 other responses were all more prevalent among RSE employers than among SWP ones. SWP employers, The pandemic and associated public health measures nevertheless, were more likely to provide virtual aimed at limiting infection risks adversely affected pastoral care and assist workers in finding or moving business operations and production for seasonal to less crowded accommodation (Figure 58). employers. Seventy-three percent of surveyed employers said social distancing requirements issued Providing pastoral care to seasonal workers became by the government affected the day-to-day operation more demanding during the crisis. On the one hand, of their businesses, with only a modest difference surveyed employers reported worsening behavioral across the schemes – 70.5 percent in Australia and issues as workers struggled to cope with social 76.7 percent in New Zealand. As agriculture work isolation and boredom (due to less work), concerns generally cannot be performed remotely, this is not about their families (especially among workers who a surprise. What is more critical is that 18.6 percent had children at home), and uncertainties surrounding of direct employers reported that these requirements their employment, income, repatriation, and infection. reduced their outputs – the effect appeared more The issues most commonly flagged by employers were acute in New Zealand at 22.2 percent as compared drinking, violence, and deteriorating mental health. to 15.6 percent in Australia (Figure 56). While alcohol abuse among seasonal workers has been documented before and also acknowledged by some Recruiting and managing seasonal workers during employers as a pre-existing problem, the pandemic the pandemic was also difficult. Across the schemes, appears to have aggravated it. the most prominent challenges were the processes for extending working visas, finding enough workers to meet business needs, and enforcing compliance with social distancing requirements among workers (Figure 57). Consistent with the less severe labor shortage in FIGURE 56: Effect of social distancing on output Australia, as well as more complex guidelines on visa extensions that were issued late, employers under the 100% SWP scheme were more concerned about seeking No approval for visa extension and providing enough work 80% Ou to their existing workers. In contrast, RSE employers Percent of employers were more concerned about seeking government Ou 60% approval to redeploy workers. Qualitative feedback from RSE employers also highlighted challenges 40% related to providing pastoral care to workers under social isolation. 20% Complying with social distancing requirements was another issue faced by employers, with the 0% vast majority introducing new safety and hygiene Overall SWP RSE protocols in their workplaces. Almost all surveyed Output has Output has No effect employers (96 percent) supplied hand sanitizer and decreased increased soap; 85.1 percent provided personal protective Source: World Bank staff calculation based on data from the equipment such as gloves, masks, and goggles; World Bank COVID-19 Phone Survey on Pacific Labor Mobility 82.4 percent increased physical distance in the and Remittances. workplace; and nearly two-thirds (63.5 percent) provided COVID-19-related information to their workers. 88 EMPLOYERS FIGURE 57: Challenges in hiring and managing SWP/RSE workers during the pandemic Coordinating with other employers to re-deploy workers R Other Providing health/pastoral care to S workers under social distancing conditions Providing/explaining information O related to COVID-19 protocols Seeking approval from government to re-deploy workers Providing enough work to your existing workers Finding enough workers to meet business need Ensuring workers comply with social distancing requirements outside their workplace Seeking approval from government to extend workers' visas 0% 10% 20% 30% 40% 50% 60% Percent of employers Overall SWP RSE Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. Note: Multiple choices are given, and this percentage is that of the employers who chose each answer out of the total valid respondents. FIGURE 58: Actions taken by employers in response to COVID-19 safety protocols Provide hand sanitizer or soap to seasonal workers in the workplace R Provide personal protection equipment to seasonal workers, e.g. gloves, facial S Increase physical distance among workers in the workplace O Translate and provide information related to COVID-19 or social distancing Assist seasonal workers to �ind or move to less crowded accommodation Provide virtual pastoral care services to seasonal workers Other Temporarily halt production 0% 20% 40% 60% 80% 100% Percent of employers Overall SWP RSE Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. 89 EMPLOYERS The suspension of international flights also made 5.4. Future Demand for Seasonal pre-existing behavioral and welfare problems Labor, Challenges and more apparent because workers engaging in Government Support problematic behaviors or having welfare issues (for example, pregnancy) could not be sent home. Demand for seasonal workers remained strong. The One employer of Timorese workers reported that vast majority of employers (98 percent) wanted to absconding and refusal to work had become more employ seasonal workers from the Pacific/Timor-Leste frequent during the crisis, but partly attributed the again; about 50 percent of all employers wanted to problems to the influence of people outside the increase recruitment – demand was particularly strong workplace. Some employers also raised the potential among labor hire companies (with 80 percent hoping impact of prolonged stays in the host country and to increase their intakes). This is likely to be partly the extended exposure to Western culture on workers’ result of a reduction in the number of backpackers, reintegration with their own cultures. who account for about three-quarters of seasonal farm labor in Australia. Robust demand from seasonal Employers also voiced dissatisfaction with lack of employers presents a reason to be positive about the support from governments of both sending and future of Pacific labor mobility (Figure 59). The same host countries to workers during the pandemic. The advantage might be evident in other areas, such as ni-Vanuatu government was pointed out by several semi-skilled work under the PLS, although higher employers for lack of support and communication domestic unemployment will likely dampen this related to stranded workers and repatriation plans. prospect in certain industries and in regional centers. In some cases, employers reported inconsistency between the information on repatriation coming from the Australian government and the Vanuatu High Commission. Insufficient pre-departure training and lack of ‘ownership’ when workers behaved poorly were also raised. FIGURE 59: Employers’ intention to recruit seasonal workers in 2021 100% No 80% No Percent of employers Ex 60% Ex 40% 20% 0% Overall SWP RSE Expect to employ more Pacific workers Expect to employ fewer Pacific workers No change in number No response Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. 90 EMPLOYERS Challenges remain if Pacific labor mobility programs The pilot arrangements that brought Fijian, Tonga, and are to resume at meaningful scales. Uncertainties ni-Vanuatu workers to Australia between September surrounding borders opening and international and December 2020 set the foundation for further travel, obtaining approval from the host country’s batches of workers as the effects of the pandemic government to hire seasonal workers, as well as testing continue. It remains to be seen what arrangements and quarantine requirements for arriving workers will be made in term of cross-border logistics and were the top three challenges that employers were financing flights, quarantine, testing, repatriation, worried about. Also high on the list were concerns and medical care should workers become infected about increased costs to bring seasonal workers to with the virus when the number of workers and host countries, weaker participation by workers, and diversity of their job placements increase and return potential restrictions on hiring foreign workers in favor to pre-pandemic levels. of domestic ones (Figure 60). FIGURE 60: Challenges for businesses to employ Pacific or Timorese workers next year Approved allocation from government to hire workers under SWP/RSE R Compliance with quarantine/health assessment requirements on workers' arrival Compliance with social distancing requirements among workers S Higher costs to recruit and bring workers to Australia/New Zealand Higher costs to provide O pastoral care for workers Fewer workers want to come Uncertainties related to international travel Uncertainties related to demand for business Foreign workers carry higher risk of bringing COVID-19 to the workplace Government restrictions on hiring foreign workers Mental health of workers is affected by social distancing 0% 10% 20% 30% 40% 50% 60% 70% 80% Percent of employers Overall SWP RSE Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. 91 EMPLOYERS In addition to new challenges that the pandemic To a lesser extent, lack of effective briefings to workers introduced to labor mobility, the crisis also before, during, and after their employment seasons highlighted existing weakness in the management – which employers perceived as essential to helping of the schemes. This is particularly acute in Australia workers manage their expectations and life away from where more than 52 percent of SWP employers agreed home – were also flagged. The largely similar patterns that the crisis exposed existing issues of the scheme, of responses between SWP and RSE employers in nearly double the figure among their RSE counterparts terms of the relative prominence of these issues (27 percent) (Figure 61). The most prominent issues are striking, highlighting areas for potential policy identified by employers related to the timeliness of interventions. government actions; nearly three-quarters flagged In line with these challenges, employers voiced slow approval processes to hire seasonal workers, strong demand for government support. The top three while about two-thirds pointed to slow and inflexible areas where the vast majority of surveyed employers guidelines in response to recruitment needs expressed the need for support were: (i) timely and (Figure 62). Lack of transparency in the allocation consistent guidelines related to visa and redeployment of recruitment slots and lack of training and support conditions; (ii) facilitation of communication with to workers to help them manage their finances while governments of sending countries to recruit workers; in host countries were also highlighted, especially and (iii) transparent and fast processes to apply for by SWP employers. recruitment approvals (Figure 63). FIGURE 61: COVID-19 has highlighted various weaknesses in the SWP/RSE schemes 100% No response 80% Yes Percent of employers No 60% 40% 20% 0% Overall SWP RSE No Yes No response Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. 92 EMPLOYERS FIGURE 62: Issues with labor mobility schemes perceived by employers Ineffective screening of workers' pre-existing medical conditions R Insu�icient ineffective pre-departure brie�ings Insu�icient/ineffective post-arrival brie�ings S Insu�icient or ineffective de-brie�ings in home countries O Lack of support for workers to access superannuation Lack of training/support for workers to manage �inances Lack of transparency related to allocation of approved places to employers Other Slow/in�lexible government guidelines in response to recruitment needs Slow government approval process to hire workers under the scheme 0% 10% 20% 30% 40% 50% 60% 70% 80% Percent of employers Overall SWP RSE Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. FIGURE 63: Support businesses wish to receive from the government Timely, consistent guidelines related to visa and contract conditions/re-deployment R Faciliation of communication with governments S of sending countries to recruit workers Transparent, fast process to O apply for allocation of workers Facilitation of coordination among employers to re-deploy workers when needed Other Provision of better post-arrival brie�ings to help workers prepare for life in their host country 0% 20% 40% 60% 80% 100% Percent of employers Overall SWP RSE Source: World Bank staff calculation based on data from the World Bank COVID-19 Phone Survey on Pacific Labor Mobility and Remittances. 93 EMPLOYERS 94 Photo by © darrenjamesphotography.com VI. PACIFIC DIASPORA Remittance flows to PICs from Pasifika populations By contrast, and with the exception of Fiji, the in Australia and New Zealand are significant and are Melanesian states have low rates of emigration likely to be impacted by the COVID-19 pandemic. ranging from the equivalent of 0.2 percent of the Australia and New Zealand are home to large Pacific resident population in PNG, to 0.9 percent for Islander populations, many of whom are employed Vanuatu. These differences are largely the result in low and unskilled occupations. This includes of preferential migration pathways available to occupations that have been the most susceptible the Micronesian and Polynesian states. to COVID-19-related job losses. Poor employment According to the 2016 Census, Pasifika populations outcomes for Pasifika populations will likely impact in Australia are largest in New South Wales, remittance flows to PICs. The following sections Queensland, and Victoria. Australia’s largest Pasifika examine the economic and social impacts of the populations originate from Samoa (75,755), Fiji COVID-19 pandemic on Pasifika populations in (37,001), and Tonga (32,697), and are geographically Australia and New Zealand, and the flow-on effects concentrated in New South Wales (Samoans, Fijians, for remittance sending to PICs. and Tongans), Queensland (Samoans and Papua New Guineans), and Victoria (Samoans). Nonetheless, Pasifika migrants can be found in almost every state 6.1 Pacific Diasporas in Australia and territory in Australia (Figure 64). and New Zealand In New Zealand, Pacific populations are concentrated Many PICs have diaspora populations living overseas, in the North Island, primarily in Auckland with other including large communities in OECD countries significant populations in Canterbury, Wellington, such as New Zealand (32 percent), the United States and Waikato. In 2013, 93 percent (274,806) of Pacific (30 percent), and Australia (28 percent). However, Islanders lived in the North Island whereas only the size of these diaspora populations varies widely 7 percent (21,135) lived in the South Island (Figure 65). between PICs. Micronesian and Polynesian countries have the highest rates of outmigration; emigrants are equivalent to 50.6 percent of Tonga’s resident population and 39.2 percent of the population of the Federated States of Micronesia. 95 PACIFIC DIASPORA FIGURE 64: Selected Pacific diaspora groups by location in Australia (2016) 70000 60000 50000 40000 30000 20000 10000 0 New South Victoria South Queensland Western Tasmania Northern ACT Other Wales Australia Australia Territory Territories Samoan Tongan Timorese Ni-Vanuatu Fijian Papua New Guinean Solomon Islander I-Kiribati New South Victoria South Queensland Western Tasmania Northern ACT Other Wales Australia Australia Territory Territories Samoan 27,429 17,184 416 26,740 2,752 161 284 790 8 Fijian 19,368 6,093 760 8,188 1,367 206 429 532 51 Tongan 17,888 5,557 286 6,812 1,105 114 237 686 5 Papua New Guinean 2,237 1,275 339 12,768 1,187 122 511 341 15 Timorese 2,132 4,352 175 538 633 18 1,057 54 - Solomon Islander 382 213 51 1,059 81 12 37 44 - Ni-Vanuatu 264 108 24 467 40 9 24 17 10 I-Kiribati 188 138 27 390 51 6 49 25 - Source: World Bank staff calculations based on the Census of Population and Housing, 2016, TableBuilder. Place of Usual Residence. Ancestry, multi-response. Copyright Commonwealth of Australia, 2018. ABS data licensed under Creative Commons. Note: No reliance should be placed on small cell frequency count (e.g., cells with less than 20 counts). 96 PACIFIC DIASPORA FIGURE 65: Pacific diaspora groups by selected location in New Zealand (Census 2018) 270,000 240,000 210,000 180,000 150,000 120,000 90,000 60,000 30,000 0 Auckland Canterbury Wellington Waikato Bay of Manawatu- Otago Northland Hawke's Bay Taranaki Plenty Wanganui Samoan Tongan Tokelauan I-Kiribati Papua New Guinean Cook Islands Maori Niuean Fijian Tuvaluan Ni-Vanuatu Auckland Canterbury Wellington Waikato Bay of Manawatu- Otago Northland Hawke's Taranaki Plenty Wanganui Bay Samoan 118,503 10,092 26,208 6,972 3,354 4,458 2,286 2,487 4,215 1,092 Cook Islands Maori 46,668 3,132 8,712 6,702 3,552 2,535 1,281 2,238 3,069 579 Tongan 62,403 3,192 3,330 3,606 1,965 1,785 1,437 1,257 1,053 255 Niuean 23,088 915 1,995 1,590 687 492 240 834 252 231 Tokelauan 2,406 213 4,185 444 546 312 129 114 135 48 Fijian 11,202 1,701 1,557 1,560 729 735 420 663 297 267 I-Kiribati 1,410 90 309 576 273 123 57 48 171 42 Tuvaluan 3,231 57 447 120 147 87 222 144 132 39 Papua New Guinean 372 165 111 120 75 63 78 54 27 12 Ni-Vanuatu 150 45 48 63 30 21 201 15 231 9 Source: World Bank staff calculations based on 2018 Census Dataset. Extracted from NZ.Stat 29 June 2020. Area: Regional Council/SA2. Note: No reliance should be placed on small cell frequency count (e.g., cells with less than 20 counts). 97 PACIFIC DIASPORA Many Pacific Islanders living in Australia and New 6.2 Pasifika Demography and Zealand send remittances to PICs, and in so doing Living Arrangements play an important role in providing informal social protection. PICs tend to have limited formal social Among Pasifika communities, those with smaller protection systems, and instead rely heavily on populations, access to affordable housing, and/ informal and traditional systems of social protection. or those who faced higher barriers to migration, International remittances, equivalent to a significant tended to live in smaller households. In both Australia proportion of GDP in most PICs (Figure 2), can thus and New Zealand, the community representatives contribute considerably to the welfare of recipient interviewed generally reported that community households.28 members lived in nuclear households when there were fewer relatives to support, and their incomes were According to census data, Pasifika populations in higher. This association applied to many Melanesian Australia and New Zealand tend to work in industries communities, particularly those originating from susceptible to COVID-19 job losses, with possible PNG, Vanuatu, and Solomon Islands. Tuvaluan and implications for their ability to continue remitting i-Kiribati families in Australia also tended to live in to PICs. In both Australia and New Zealand, a large nuclear households. In Darwin and Adelaide, where proportion of Pasifika employment is concentrated Pasifika populations are smaller and housing is more in low- and medium-skilled industries including affordable, the Samoan (Darwin) and Pacific Islander laborers, machine operators, drivers, sales, clerical, (Adelaide) populations in the study tended to live in and administrative workers. These occupations have nuclear households. Fijian households in both Australia high physical proximity scores and are not easily and New Zealand varied in size and could be either transitioned to online or work-from-home settings. nuclear or quite large. In addition, roles such as personal service workers may be associated with high exposure to disease and Within participating communities, Pacific Islanders infection. From this data, it seems likely that Pasifika tended to live in large households in areas where populations are more vulnerable to the impacts of housing was limited or expensive, employment COVID-19 on employment and livelihoods than the and income levels were lower, and communities general Australian population, a fact that will have were large or recently established. In New Zealand, implications for remittances. 2013 Census figures indicate that Pacific Islanders tended to live in more crowded housing than the general population; 40 percent of Pacific Islanders lived in crowded housing compared to 4 percent of the European population, 20 percent of the Maori population, and 18 percent of the Asian population.29 In Australia, Pasifika families are significantly larger than the general population, and are eight times more likely to live in a house with eight or more people. Yet the average Pacific Islander house in Australia contains only three bedrooms, and Pacific Islanders are thus probably more susceptible to living in overcrowded conditions than the general population (Ravulo, 2015). Large household sizes allow families to pool resources to pay rent, support one another, and help new migrants until they can establish themselves. 28. https://devpolicy.org/the-pacific-remittances-boom-its-for- real-20201105/ 29. https://www.mpp.govt.nz/assets/Uploads/ Contemporary-Report-Web.pdf 98 PACIFIC DIASPORA This is consistent with traditional social support As a result, Samoans and Tongans in the practices in the Pacific that rely on extended kin study commonly worked in industries such as networks and systems of reciprocity and exchange manufacturing, construction and laboring, aged (Mohanty, 2012; Monsell-Davis, 1993; Ratuva, 2006). care, cleaning, and agriculture. This was true of In this study, within larger Polynesian communities communities in Australia and New Zealand and is in Australia and New Zealand, households contained consistent with census data from both countries. as many as 10–15 people sharing a three-bedroom, Diaspora members indicated that Pacific Islanders’ one-bathroom house. This overcrowding seemed to be occupations in Australia and New Zealand were particularly prevalent in Auckland. Several community not always commensurate with skills or education representatives described how garages in Auckland levels. This is consistent with the broader literature on were not used for cars, but rather, provided an extra migrant workers who tend to work in jobs below their bedroom for large families. skill levels due to language barriers, lack of working A lack of government support for newly arrived experience in host countries, and biases against migrants seemed to contribute to overcrowded foreign degrees and migrant status (CEDA, 2021; housing. Community members reported that in New Visintin et al., 2015).32 According to 2016 Australian Zealand, migrants who arrive through the Pacific Census data, trends around Pasifika qualifications and Access Category30 do not receive government industry of employment vary by PIC. For example, support to establish themselves. This, along with compared to the wider Australian population, housing shortages and high housing prices were key Papua New Guineans have a lower proportion of contributors to overcrowded housing in Auckland. adults working in employment commensurate with Community representatives raised concerns about their education levels (Figure 66 and Figure 67). By what might happen should COVID-19 start to spread contrast, Fijians, ni-Vanuatu, Tongans, Timorese, and through these crowded households, as it had done in Samoans, have a comparatively higher proportion of some Pasifika communities in the United States.31 individuals in employment per their education levels. Nonetheless, Tongan diaspora members interviewed described how community members often did not work in the fields they were qualified for. In Tonga, 6.3 Pacific Diasporas schools follow the New Zealand syllabus and there is and Employment a strong cultural emphasis on obtaining an education. Within Pasifika communities, higher skilled However, upon arrival in New Zealand or Australia, employment seemed to depend on migration the need to earn money immediately and establish pathways and community size. The study’s qualitative themselves quickly means many Tongans accept low- interviews indicate that Pacific diaspora members skilled jobs in industries such as manufacturing, rather tend to work in higher skilled jobs when barriers to than pursuing the longer-term goals of finding work in migration are high, and their migration is linked to their areas of skills or expertise. skills. This is consistent with the literature on networks and migration; those with lower incomes are more likely to restrict their migration to areas where they have social support networks. Based on qualitative interviews, the study found that, in Australia, migrants from Melanesia (excluding Fiji), Tuvalu, and Kiribati generally fell into this category. Similarly, in places 30. The Pacific Access Category Resident Visa grants New Zealand such as Darwin and South Australia, where Pasifika residence to Pacific Islanders aged 18–45 via a ballot system. Only citizens of selected Pacific Islands are eligible to apply, and communities are smaller, and there are fewer people a quota is set for each country; Kiribati (75 visas per year), Tuvalu to support new migrants, employment tended to be (75), Tonga (250), Fiji (250). higher skilled. Many Samoans and Tongans migrate 31. https://www.theguardian.com/world/2020/jul/27/system-is-so- to Australia via New Zealand and thus face relatively broken-covid-19-devastates-pacific-islander-communities-in-us lower barriers to migration than other Pacific Islanders 32. https://ec.europa.eu/eurostat/statistics-explained/index. (Faleolo, 2019). php?title=Migrant_integration_statistics_-_over-qualification 99 PACIFIC DIASPORA FIGURE 66: Australian and Pacific diaspora groups by level of highest educational attainment (2016) 100% 80% 60% 40% 20% 0% Ni-Vanuatu Papua New Solomon I-Kiribati Fijian Samoan Tongan Timorese Australian Guinean Islander Secondary Education - Year 9 and below Certificate I & II Level Secondary Education - Year 10 and above Certificate III & IV Level Advanced Diploma and Diploma Level Bachelor Degree Level Graduate Diploma and Graduate Certificate Level Postgraduate Degree Level Source: World Bank staff calculations based on the Census of Population and Housing, 2016, TableBuilder. Place of Usual Residence. Ancestry, multi-response. Copyright Commonwealth of Australia, 2018. ABS data licensed under Creative Commons. Note: Calculations excluded persons under 15 years of age, those with no educational attainment, not stated and inadequately described. No reliance should be placed on information for Solomon Islanders, ni-Vanuatu and i-Kiribati Graduate Diploma, Postgraduate degree, and Certificate level I and II due to small cell frequency count. FIGURE 67: Australian and Pacific diaspora by main occupations (2016) 100% 80% 60% 40% 20% 0% Ni-Vanuatu Papua New Solomon I-Kiribati Fijian Samoan Tongan Timorese Australian Guinean Islander Managers Community and personal service workers Machinery operators and drivers Professionals Clerical and administrative workers Laborers Technicians and trade workers Sales workers Source: World Bank staff calculations based on the Census of Population and Housing, 2016, TableBuilder. Place of Usual Residence. Ancestry, multi-response. Copyright Commonwealth of Australia, 2018. ABS data licensed under Creative Commons. Note: Occupations using ANZCO occupation list. Calculations excluded persons under 15 years of age, unemployed persons looking for either full- time or part-time work, persons not in the labor force, persons with labor force status not stated and inadequately described. 100 PACIFIC DIASPORA Many Pacific Islanders work in low-skilled or casual Education is culturally important in Pasifika employment and community representatives communities, yet while youth are often under believed these individuals were vulnerable to job pressure to excel in education, parents are not always losses under COVID-19-related downsizing and able to provide practical support due to their own restructures. In both Australia and New Zealand, low education levels, language barriers, or cultural laborers, machine operators and drivers, and sales beliefs around education. Research suggests that and service workers comprise a significant proportion while Pasifika parents want their children to do well in of the main occupations of Pacific diaspora groups education, they believe that learning occurs at school (Figure 67 and Figure 68). Many workers in these and not at home. This is in conflict with the Australian industries cannot easily transition to work from home education system that places emphasis on parental environments, and were thus highly impacted by involvement and the home learning environment COVID-19 restrictions, making them vulnerable to job (Lee et al., 2019; Ravulo, 2015). Such findings are losses. For Pacific Islanders, this was true even where consistent with issues raised by diaspora members in individuals had worked in their position for many years. the study. For example, in the Sunraysia Mallee district, Community representatives in Auckland reported that Pasifika youth are expected to attend university and such job losses were already happening within their not follow their parents into agricultural work, one communities, and would likely worsen as government of the main employment industries in the region. wage subsidies, aimed to support individuals and However, one community leader noted that parents business during periods of lockdown, came to an end. often worked long hours and were not able to provide a supportive home learning environment for their children, for example, by assisting with homework. FIGURE 68: New Zealand and Pacific diaspora groups by main occupations (2018) 100% 80% 60% 40% 20% 0% Samoan Cook Islands Tongan Niuean Tokelauan Fijian Other Paci�ic New Zealand Maori Peoples Managers Community and personal service workers Machinery operators and drivers Professionals Clerical and administrative workers Laborers Technicians and trade workers Sales workers Source: World Bank staff calculations based on 2018 Census dataset extracted from NZ.Stat 29 June 2020. Area: Regional Council/SA2. Resident population aged 15 years and above, full-time and part-time employed. 101 PACIFIC DIASPORA These barriers may make it difficult for children to Pasifika youth sometimes drop out of education pursue higher education or training. Others noted that so that they can financially contribute to their young Pacific Islanders had low expectations of what household, and this issue was exacerbated by they could achieve and while they dreamed of working COVID-19. In Pacific communities, where young in industries such as engineering, youth tended to aim people belong to large households, the older for more technical or vocational occupations – a trend children may be under pressure to provide financial more prevalent among young men than young women, assistance to the household. This can lead to with the latter more likely to access university or early school leaving (Ravulo, 2015). Community vocational education. This is consistent with findings representatives in Australia and New Zealand from Logan, Queensland where 80 percent of Pasifika described how they often heard of young people students in Year 12 are female.33 In some pockets of who needed to end their schooling and find work to the Tongan community in New South Wales and the help pay the bills. Youth generally moved straight Samoan community in Auckland and Queensland, into low-skilled jobs such as process or laboring the younger generations were employed in similar or work. As COVID-19 increased financial strain on higher skilled work than their parents. Anecdotally, this some households, community representatives seems to be linked to parents’ education; those with noted that more youth were dropping out of formal parents who had obtained higher levels of education education or training to help support their family were more likely to pursue education themselves. financially (Box 3). 33. https://theconversation.com/pacific-islanders-and-education-is- australia-an-unlucky-country-21920 102 PACIFIC DIASPORA BOX 3: Parental health, financial strain, and school dropout rates for Pacific Islanders in Australia and New Zealand Compared to the general population, Pacific In New Zealand, Manurewa High School, which Islanders are more likely to suffer from health has a high population of Pasifika students, issues such as obesity and diabetes. In New reported that 200 senior students did not return Zealand, two out of three Pacific Islander adults to school after the first COVID-19 lockdown.36, 37 are obese, as compared to one in three people Pasifika community members interviewed said from the total population. Pacific Islander adults that financial pressures related to parents losing also have a high burden of chronic disease such jobs, along with the availability of construction as diabetes and heart disease.34 In Australia too, and similar work – perfect for young healthy Pacific Islanders are more likely to be hospitalized students but not suitable for their parents – and than the general population and carry a higher concerns over parents’ health, were leading some burden of chronic conditions such as coronary young people to abandon their studies and seek heart disease and diabetes.35 Comorbidities such employment. Talking about this school dropout as these make Pacific Islanders more susceptible rate, one community leader observed: to adverse health outcomes should they contract COVID-19. Pasifika communities were very That’s probably the worst thing I can see aware of these health issues. With many Pacific out of this [pandemic] is the future of some Islanders working in industries such as retail of our young people has been taken away. and personal service (Figure 67 and Figure 68), diaspora members reported many Pasifika youth – POLYNESIAN COMMUNITY MEMBER, NEW ZEALAND were concerned their relatives may be at high risk of exposure to COVID-19. In order to protect older relatives from COVID-19, some youths were This is consistent with wider findings that the dropping out of school to find work themselves. pandemic is impacting hard won human capital gains in education (World Bank, 2020b). More The majority of our parents and our research is needed to quantify the extent of this grandparents are Type 1, Type 2 diabetic. trend among Pasifika youth, however it is likely Or they have high blood pressure. It’s a very that targeted policy interventions will be required to ensure human capital is not affected over the common thing in our community, especially longer term. with our parents, so we’ve taken the lead to find some work because…with COVID-19 happening, if we happen to catch COVID-19 it will be more easy for us to fight rather than 34. https://www.health.govt.nz/our-work/populations/pacific- health/tagata-pasifika-new-zealand our parents. 35. https://www.health.qld.gov.au/__data/assets/pdf_ – POLYNESIAN COMMUNITY MEMBER, file/0034/388447/hlth-status-pac-isl.pdf AUSTRALIA 36. https://www.tvnz.co.nz/one-news/new-zealand/childrens- commissioner-says-too-many-kiwi-kids-leaving-school-help- wh-nau-covid-19-financial-burdens 37. https://www.rnz.co.nz/national/programmes/saturday/ audio/2018766737/aigagalefili-fepulea-i-tapua-i-speaking-up- for-south-auckland-students 103 PACIFIC DIASPORA More than half of the diaspora members interviewed Many Pacific Islanders employed in skilled or believed that COVID-19 had impacted their professional roles had the opportunity to work from community’s employment either through job losses home. Mirroring trends from the wider Australian or reduced hours. In the wider Australian population, and New Zealand populations, Pacific diaspora the biggest job losses by early 2020 were in food members employed in more ‘hands on’ jobs such and accommodation services (17.2 percent), followed as manufacturing, retail, or trades, were generally by arts and recreation services (12.7 percent).38 New unable to work from home. By contrast, those Zealand experienced job losses in similar industries, working in finance and insurance, communications, as well as construction (Stannard et al., 2020). In this administration, and support services were very likely study, communities where members’ employment to work from home (Roy Morgan, 2020).40 For some was concentrated in higher skilled jobs (including Pacific Islanders, the transition to working from administration, IT, accounting, and engineering), home was relatively easy. However, for those living in and community members could easily work from overcrowded housing or with limited or no access to home or claim government subsidies, were the least technology such as computers, laptops, or internet likely to believe COVID-19 had impacted community signals, working from home proved difficult. employment. This was common to communities from PNG, Solomon Islands, and Vanuatu. The i-Kiribati community in Australia also fell into this category. Consistent with data from the wider Some of us are working from home, a lot of Australian population,39 communities located in us with corporate jobs. And one [community] cities or regions where COVID-19 restrictions had member was telling me, the fact that she had been limited, were the least likely to report adverse to work from home…it’s like put everyone employment impacts. The Samoan communities in Darwin and Perth provide two examples of this on edge because now there’s about three or ‘regionalism’. Within studied communities, Pacific four people working from home at home, Islanders working in the essential services were having to share one computer, the internet sometimes working reduced hours but often still had is slowing down. employment. In industries such as manufacturing and agriculture, community representatives – MELANESIAN COMMUNITY MEMBER, AUSTRALIA mentioned that work had sometimes increased due to higher demand (manufacturing) (Box 4) or a smaller pool of available workers (agriculture). 38. https://www.abs.gov.au/statistics/labour/earnings-and-work-hours/ weekly-payroll-jobs-and-wages-australia/latest-release 39. https://www.abs.gov.au/statistics/labour/earnings-and-work-hours/ weekly-payroll-jobs-and-wages-australia/latest-release 40. https://www.stats.govt.nz/news/four-in-10-employed-new- zealanders-work-from-home-during-lockdown 104 PACIFIC DIASPORA BOX 4: COVID-19 and the potential issue of youth de-skilling In Auckland, the COVID-19 pandemic led to This issue of potential youth de-skilling, and increased production of medical supplies at the the longer-term impacts of the pandemic on local Fisher and Paykel factory, resulting in a employment outcomes were raised by a number number of new temporary jobs. While competition of community representatives in both Australia and for these positions was high – Fisher and Paykel New Zealand. Diaspora members spoke about the are known to be a good employer – and the work tension between the immediate need for income was sometimes specialized, these positions did and the potential longer-term impacts of moving provide employment opportunities for some into lower skilled work. Pacific Islanders who had lost jobs elsewhere. One Polynesian community member described Our grandparents migrated to get the hell how a few of her family members, who were out of a factory and now we are back! But new graduates, had lost skilled jobs and were it makes ends meet. working at the Fisher and Paykel factory. While she appreciated that they were able to earn money – POLYNESIAN COMMUNITY MEMBER, NEW ZEALAND and support their family, she expressed unease at the thought that these family members might not return to their skilled positions Due to the qualitative nature of the research, it is not possible to gauge how widespread this [They] ended up working in a factory potential de-skilling might be. However, if youth and others do not ‘get out’ of factory work after because the money was there. So I’m a little the pandemic, there are potential long-term bit nervous right now, I want them all to go implications for human capital development within back to normal, go back to their real jobs, but Pasifika communities (World Bank, 2020b). some have lost it. And obviously the factory work gets them money which, yeah, does the trick…They need to support their family, their parents lost their jobs…And we don’t want to discourage them but I just don’t want them to get comfortable, you know easy money in the factory. I do want them to go back to uni[versity] when semester starts back. So I’m a little bit nervous about that. – POLYNESIAN COMMUNITY REPRESENTATIVE, NEW ZEALAND 105 PACIFIC DIASPORA 6.4 Government Assistance and 6.4.2 Financial Difficulties Social Safety Nets Diaspora members reported that not all Pacific 6.4.1 Government Assistance Islanders were eligible to receive government payments, while other barriers, such as difficulty Pasifika community members reported that in understanding the social security system, also government payments had provided some insulation presented challenges to accessing COVID-19 welfare from the real impacts of COVID-19-related job losses. payments. Many Tongans and Samoans have migrated In Australia, the JobKeeper payment was introduced to Australia via New Zealand and still hold New to allow businesses impacted by the pandemic to Zealand citizenship. Whereas this would once have continue paying their employees’ wages. Under entitled them to Australian social security benefits, this JobKeeper, eligible businesses received $A 1,500 changed in 2001 when the Social Security Act 1991 was per employee every fortnight between 30 March and amended. Now, while New Zealand citizens can still 28 September 2020, when slightly lower payments travel to Australia to live and work, they do not have were introduced based on whether employees were rights as Australian citizens or permanent residents employed on a full- or part-time basis (Australian unless they apply for either citizenship or residency Government, 2020). The JobKeeper payment ended (Faleolo, 2019). As a result, many Pacific Islanders in on 28 March 2021. In New Zealand, the wage subsidy Australia who hold New Zealand citizenship are not performed a similar function, with employees receiving eligible to receive government welfare payments. $NZ 585.80 per week if they normally worked Many people interviewed, particularly Tongans and 20 hours or more and $NZ 350 per week if they Samoans, fell into this category and thus could not normally worked part-time.41 One diaspora member access the JobKeeper payment. This was not the interviewed between New Zealand’s first and second only barrier to accessing COVID-19 welfare services wave of infections described how the approaching however, and in both Australia and New Zealand, wage subsidy end date was beginning to create some community members simply did not know financial strain on Pasifika households. Many members what services were available. This inability to access from his community, who were employed in the government welfare payments and support could lead horticultural industry, were working reduced hours and to stress and mental health issues such as anxiety, and while they had been told by their employer that they a reliance on informal community support instead. could look for other work, with many small businesses closing, alternative employment was unavailable. In Australia, diaspora members reported that some These concerns about government payments ending Pacific Islanders had accessed their superannuation were echoed by many community members regardless (retirement) savings to ease financial strain. In of cultural background or country of residence. Australia, people who were adversely impacted by COVID-19 had the option to access up to $A 10,000 worth of superannuation.42 Thankfully there’s a wage subsidy...so an employer could apply for the wage subsidy from the government and that’s actually going to end in three weeks. So we have yet to see the real impact when the subsidy ends. – POLYNESIAN COMMUNITY MEMBER, NEW ZEALAND 40. https://www.workandincome.govt.nz/covid-19/wage-subsidy/ payments-and-processing-times.html#null 41. Source: https://www.ato.gov.au/individuals/super/in-detail/ withdrawing-and-using-your-super/covid-19-early-release-of-super/ 106 PACIFIC DIASPORA Community representatives noted that for some New This presented problems when the person ‘stuck’ in Zealand citizens living in Australia, this provided a Australia or New Zealand was the main breadwinner valuable form of financial support when they could for households in PICs. In some instances, these not access JobKeeper payments. Access to this kind individuals decided to work illegally to support of financial assistance varied geographically and themselves and contribute financially to the cost depended on community expertise; one Polynesian of their stay. community member observed that once someone For some diaspora households, the need to in the community learned about something such support extra family members with irregular as how to apply for superannuation or government migrant status placed financial strain on already payments, they shared the knowledge with others in stretched household budgets. In New Zealand, their community. there are several thousand visa overstayers from In Australia, some members of the studied the Pacific Islands. It is estimated that Tongans communities could not access JobKeeper payments (2,498) account for the largest proportion of this because they were casual employees, or because population, followed by Samoans (1,549), Fijians their employers had not registered for the JobKeeper (434), Tuvaluans (358), and i-Kiribati (96) (Immigration scheme. Casual employees were only eligible for New Zealand, 2018). In Australia there are roughly JobKeeper payments if they had been “employed on 60,000 visa overstayers, however statistics for a regular and systematic basis since 1 March 2019”.43 Pacific Islanders are unavailable.46 In New Zealand, This condition on casual employment seems to have community representatives emphasized that many impacted Pasifika communities, and most community overstayers were not new arrivals but had been living representatives associated difficulties accessing and working in New Zealand for years. Regardless JobKeeper with migration status, casual employment, of how long they had been in the country, in both or small businesses that had not applied for the Australia and New Zealand, overstayers were unable payment. In addition, for some Pacific Islanders to access government payments and some who working in industries where work from home was not did not work during the pandemic relied on family possible (for example, aged care or meat processing), members to support them during this time. In the need to quarantine either due to their own travel New Zealand, concerns over the possible health or positive COVID-19 cases at their workplace resulted implications of overstayers not accessing COVID-19 in periods of no income. Community representatives testing resulted in a petition to parliament, led by attributed this to casual employment and the the Pacific Leadership Forum, to grant amnesty individual workers probably being ineligible to receive to visa overstayers. In response, the New Zealand government payments.44 government announced that overstayers would not be penalized or deported for accessing COVID-19 According to community representatives, Pasifika testing or health facilities during the pandemic. students and temporary visitors such as tourists, who could not return home or apply for government payments, relied on kin for support and sometimes resorted to risky coping strategies such as working illegally. International students sometimes had access to emergency relief funds through their universities, however there were no regular government payments available to these students.45 Many informants knew of Pacific Islanders who had travelled to Australia or 43. Source: https://www.ato.gov.au/General/JobKeeper-Payment/In- detail/Employees--frequently-asked-JobKeeper-questions/ New Zealand as tourists, and were unable to return home when borders closed. While these individuals 44. Certain states and territories in Australia introduced payments for periods of self-isolation or quarantine, but it was not clear if these were granted visa extensions, they could not legally were available at the time of the incidents described in interviews. work in Australia or New Zealand. Tuvaluans were 45. https://www.studyinaustralia.gov.au/English/Study-in-Australia- offered financial support from their own government, student-support/financial-support but most other nationalities were reliant on family 46. https://www.abc.net.au/news/2019-05-16/federal-election-you-ask- members to support them. we-answer-visa-overstayers/11110750 107 PACIFIC DIASPORA 6.4.3 Cultural Barriers to 6.5 Remittances Accessing Assistance Pasifika community members explained that for Most community representatives highlighted many Pacific Islanders, remitting money back to that cultural factors, such as shame, could act as PICs is culturally important. For Pacific Islanders, a barrier to accessing formal support services. remitting plays a culturally important role in Writing about debt and financial strain, The Families reinforcing kinship ties and can bring social status Commission (2012) describes how Pacific Islanders and prestige (Brown & Connell, 2015; Grieco, 2003; are often ashamed to admit when they cannot Petrou, 2020). Diaspora members emphasized afford to participate in community activities such that remitting to help family in the Pacific is not as church tithings, as doing so would result in a necessarily viewed as a burden, but rather can loss of face. This was consistent with the study’s represent a privilege. For example, community qualitative findings, with interviewed community members from Melanesia spoke about how lucky representatives emphasizing that Pacific Islanders they were to be living in Australia or New Zealand, were often ashamed to ask for help or admit to and how they wanted to help family back home if financial distress. Community representatives they could. Tongan community members spoke noted that the older generation were often more about how deep their connection to Tonga was, susceptible to this shame. During COVID-19, this and how remittances were a manifestation of this reluctance to ask for help meant that community enduring connection to home. For many diaspora members might not access government or other members, remitting held cultural importance, and formal support services that were available. COVID-19 had not changed this. The impacts of COVID-19 on Pasifika employment outcomes and economic wellbeing are likely to be felt for many years to come and will potentially [Migrants are] the ones that have been kind have long-term impacts on human capital. As wage subsidies end, it is probable that financial of blessed by the family to go and get a better strain and hardship will worsen for Pacific diaspora life and then help us from where you are. communities. This may lead to more young people That’s part of it. And so those who have dropping out of education and training in order to come [to Australia or New Zealand] feel that support their families financially. Economic recovery from COVID-19 will take time. responsibility…and it’s not a burden for them. It is definitely something that they feel is their contribution to the family…of getting that sense of blessing and then sharing that with the families. – POLYNESIAN COMMUNITY MEMBER, AUSTRALIA 108 PACIFIC DIASPORA However, not all diaspora members remitted regularly to the Pacific, and this seems to be related We did have a few funerals that occurred to having fewer close family members living in PICs, migrant generation, and personal arrangements during COVID-19, and usually they’re quite with family. Literature on remittances in the Pacific big, you know large events and…it can cost suggests that those with fewer family members quite a bit of money…And I think with in PICs tend to remit less (Brown & Connell, 2015; COVID it kind of alleviated the financial Muliaina, 2003; Grieco, 2003). In addition, there is evidence that second generation migrants who feel pressure of those kinds of events…I do disconnected from home may resent the expectation anticipate going back to somewhat normal to remit (Lee, 2007). This was consistent with youth [after the pandemic] but I think we’ve learnt attitudes to remitting reported by community a lesson that things can be done in a much members in the study. Similarly, diaspora members smaller capacity. with few close family members, such as parents living in PICs, tended to remit less. A few community – POLYNESIAN COMMUNITY MEMBER, AUSTRALIA members explained how they had let their families know that money was not always available in Australia or New Zealand. These individuals felt they were able to say no when faced with unwanted or unaffordable requests. Thus, while remitting is a strong social norm, Most diaspora members reported that people in practice it varies based on personal circumstances were still remitting during the pandemic, however and relationships. As a result, not all community this was influenced by digital literacy. While many members interviewed had been remitting during diaspora members remit online using Western Union COVID-19, but this lack of remittances was not or bank transfers, some prefer to remit in person necessarily related to the pandemic. at the MTO or bank branch. During the pandemic, some community members – particularly the older In some communities, diaspora members reported generation – did not have access to or understand that COVID-19 restrictions in PICs meant events that how to remit online. Diaspora members explained would normally attract large remittances had been that younger family members or those with digital cancelled, leading to a temporary decrease in the literacy skills often helped facilitate online remitting. expectation to remit. Diaspora members commented Social distancing and lockdowns had impacted that in some communities in Samoa, lockdowns and people’s remitting practices and diaspora members the associated attendance limits placed on weddings, estimated this had probably forced a small shift to funerals, and similar events had led to a reduction in online transfers. From the qualitative data however, remittance requests. Community members described it is difficult to determine the accuracy of this this as a ‘blessing’ and the ‘best thing’ to have come speculation. Nonetheless, community members out of COVID-19, as the cultural expectation to remit commented that if money needed to be sent, people had virtually disappeared. This in turn reduced would find a way to do it, and interviewees generally financial strain on diaspora households. Nonetheless, believed that social distancing requirements had not most diaspora members believed that this was a impacted remitting significantly. temporary arrangement, and indeed within New Zealand during the brief reprieve between the first and second wave of infections, funerals within the Samoan community were reported to have returned to their former size. 109 PACIFIC DIASPORA Community members agreed that MTOs and In Fiji and Vanuatu, the economic impacts associated bank transfers can involve high fees, and many with a lack of tourism, along with the devastation appreciated that Western Union had waived these wrought by Cyclone Harold, meant Fijian and fees early in the pandemic. Globally, the average ni-Vanuatu communities were remitting more than remitting cost is 7.5 percent, however the cost of in the past. In Fiji, it is estimated that 115,000 people sending remittances to the Pacific from Australia and – roughly one-third of the Fijian workforce – either New Zealand averages 11.5 percent.47 Community lost jobs or were working reduced hours because members thus enjoyed not having to pay these high of the pandemic.48 A similar trend is evident in fees for a period. Vanuatu.49 In April 2020, Cyclone Harold hit the region, and impacted the housing and livelihoods Diaspora members agreed that financial ability of roughly 180,000 people in Fiji, with Kadavu and influenced their household’s remittance activities Lau islands particularly affected by infrastructure during the pandemic, and community members losses. In Vanuatu, Cyclone Harold affected more sometimes made sacrifices to meet remittance than 159,000 people, with Santo and other northern requests. This is consistent with research (Brown & islands receiving the brunt of the damage. Houses, Connell, 2006) which demonstrates financial ability subsistence agricultural gardens, telecommunications, influences how much diaspora members remit back and other infrastructure were decimated.50 Fijian to PICs. Many diaspora members explained that only diaspora members explained that Fiji’s reliance on people ‘who could afford to’ were remitting during tourism meant relatives at home were more in need the pandemic. Those who were struggling financially of remittances than ever. No one in the study reported joked that they were sending ‘COVID-remittances’; that Fijians were receiving more remittance requests, money was still flowing but the amounts were rather they felt it was their duty to give more during smaller than they used to be. Nonetheless, this difficult time. In Vanuatu too, the loss of jobs in community members from Samoa, Tonga, Tuvalu, tourism coupled with the impacts of Cyclone Harold and Melanesia explained that it was not possible meant many ni-Vanuatu in Australia and New Zealand to say no to remittance requests, and that people felt they should remit more than they would normally. would sometimes make sacrifices to meet these Melanesians often work in higher skilled jobs, and it is requests. As a result, remittances continued to flow possible that this influenced their ability to continue during the pandemic. remitting during the pandemic. No is not a word in the vocabulary. It’s yes, yes, yes and even if you’re in financial strife they’ll still give money. They’ll give the clothes on their back if they could…People in our community will still give. Even if they’re struggling, they’ll still give. – POLYNESIAN COMMUNITY MEMBER, AUSTRALIA 47. https://devpolicy.org/the-persistently-high-cost-of-pacific- remittances-20151117/ 48. https://www.fijivillage.com/news/PM-confirms-115000-Fijians- have-lost-their-jobs-or-have-had-their-hours-cut-as-a-result-of- COVID-19-8fxr45/ 49. https://www.abc.net.au/news/2020-07-12/vanuatu-feeling-the- pinch-as-covid-19-keeps-tourists-away/12438252 50. https://www.dfat.gov.au/crisis-hub/Pages/tropical-cyclone-harold 110 PACIFIC DIASPORA Community members indicated that social distancing There was a general perception among diaspora had a small impact on how people received members that PICs were somewhat insulated from remittances in PICs. Most diaspora members believed the financial impacts of COVID-19, as they could that social distancing either had not occurred in home fall back on subsistence agriculture if needed. countries or was not being observed as strictly as in Early evidence from Solomon Islands indicates Australia or New Zealand. Nonetheless, a minority that food systems in rural villages have significant of community members believed that in some capacity to adapt to the pandemic. However, the communities in Fiji and Samoa, reduced business ongoing nature of the pandemic may eventually opening hours made it harder for people to receive place strain on these food systems (Eriksson et al., remittances. Overall, however, it seems that COVID-19 2020). Diaspora members recognized this capacity had not significantly impacted remittance receipt in for resilience in the way they spoke about PICs; even home countries. as they acknowledged the economic difficulties facing PICs, diaspora members from Melanesia and In addition to monetary remittances, diaspora Polynesia believed that the ability of people to turn to members highlighted how COVID-19 disrupted other subsistence gardening was a blessing. Some diaspora flows of goods and people to PICs. As well as money, members even commented that this perceived return Pacific Islanders often remit goods in-kind, such as to subsistence lifestyles was a positive that had come food and other items, to families in PICs (Alexeyeff, out of the pandemic. Similarly, many community 2004; Besnier, 2004). Diaspora members described members thought that families in PICs were lucky how various in-kind remittances had stopped during to be living where they were, as most PICS had no the pandemic. In Australia, the i-Kiribati community recorded cases of COVID-19 at the time of interviews. often sends goods (such as clothing and backpacks) to Kiribati when community members travel. With borders closed, this was no longer occurring. In Australia, one member of the PNG community described how they 6.6 Other Impacts of COVID-19 often collect goods for different causes and ship them to PNG in containers. Diaspora members then travel 6.6.1 Impacts on Individuals to PNG to ensure items make it to their destination. and Households In June 2020, a container of goods intended for the Many diaspora members reported that their hospital had arrived in PNG but was unable to be communities required food relief during the distributed because no one could travel from Australia pandemic. In Auckland there was a general increase to attend to this. In Tonga, July and August are the in the need for food relief, and in August 2020 there months of big church conferences when Tongan were 29 registered food banks as compared to five diaspora members descend on the country bringing prior to the pandemic.51 Within studied communities, money and other items. In 2020 these conferences the need for food relief was less common when were cancelled. In the Samoan community, family community members worked in higher skilled reunions in Samoa have become fashionable, and employment and/or lived in smaller households; diaspora members travel from around the world to Tuvaluan, Papua New Guinean, ni-Vanuatu, and meet in Samoa but these could not occur in 2020. Solomon Islander households generally did not Just as for financial remittances, the disruption that require food relief. In large households, food can COVID-19 caused to these in-kind remittances will represent a huge expense, and communities from likely have an impact on PIC economies. Polynesia and Fiji, where members tended to live in larger households, were thus the most likely to require food relief. 51. https://www.rnz.co.nz/news/national/423952/thousands-of- aucklanders-turning-to-food-banks 111 PACIFIC DIASPORA Food relief varied from informal food sharing within Such experiences were more likely to come from the community, to the distribution of food boxes Polynesian and Fijian communities where large by Pacific Islander community organizations, to households are more common. In addition, some accessing formal food bank services. As the pandemic diaspora members believed pandemic-related progressed, the need for these services increased. financial stress was leading to increased family In Auckland, for example, one community member violence and inter-generational tension. Young sat on the board of a community trust that provided people, who are expected to respect their elders and food relief services. He described how during the not talk back, often struggled with being confined to first outbreak, they had provided food relief from their house. The pandemic has had both positive and a single location. During the second wave, they negative social impacts on Pasifika households. were operating in ‘overdrive’ from two locations. Nonetheless, and as for accessing government payments, community members were often reluctant to ask for food assistance due to shame and pride. There’s been a common trend with the impacts, especially with young people…the high levels of mental health and the high I network with other organizations and try levels of anxiety that’s been created during and get the families to go [to the food bank], this isolation process. A lot of our young but a lot of them feel ashamed to go. And I people…don’t normally speak or voice their said, ‘Look, pride does not come before you [opinions] to their parents…whenever there’s feeding your family.’ tension at home…the young person would go… somewhere that’s not inside the house. But – MELANESIAN COMMUNITY MEMBER, AUSTRALIA then now, because we’re in isolation and we’re in a lockdown…these young people are feeling they can’t go anywhere just to breathe. Some diaspora members enjoyed the opportunity to – POLYNESIAN COMMUNITY MEMBER, AUSTRALIA slow down during lockdown, while others reported large households provided a source of tension and stress. Different cities and regions have been subject to varying levels of social distancing and lockdown Pasifika community members believed that social restrictions during the pandemic. In New Zealand, media provided an important outlet for connecting where lockdown was particularly strict, one Polynesian with others during the pandemic, but online community member described Pacific Islander communication was considered inferior to face- households as ‘huge bubbles’ where extended family to-face interactions. In Australia, Pacific Islanders members could spend time together and help each tend to have a similar level of internet access as the other out. Some diaspora members described how general population (Ravulo, 2015). However, in New Pasifika communities used lockdown to do things Zealand, Pacific Islanders are less likely to have access like learn traditional storytelling techniques, while to an internet connection than households of Asian, others simply enjoyed the opportunity to drink kava European, or Maori ethnicity.52 Within the communities and relax. Positive accounts of lockdown were more in the study, online communication was not an option likely to come from communities where people lived in for those without the technical knowledge or access to less crowded housing. By contrast, some community reliable internet signals, laptops, and other equipment. representatives reported that lockdown was having a negative impact on their community’s wellbeing. 52. http://archive.stats.govt.nz/browse_for_stats/people_and_ communities/households/household-access-to-the-internet. aspx#gsc.tab=0 112 PACIFIC DIASPORA One Polynesian community representative in Auckland 6.6.2 Impacts on Communities noted that the shift to online technologies had Many community members emphasized the strength exacerbated existing inequalities around access to and resilience of Pasifika communities during the and knowledge of ICTs. In both Australia and New pandemic as they were able to draw on informal Zealand, elderly people were particularly unsure of community support networks. Informal social safety online communication, whereas youth relied heavily nets are traditionally a feature of Pacific communities upon social media as an outlet to socialize. Some (Mohanty, 2012; Monsell-Davis, 1993; Ratuva, 2006), community leaders expressed concern and unease and include ceremonial exchange, reciprocity of over not knowing what young people were ‘really’ goods and services, and philosophies based on doing on social media. generosity and selflessness (ILO, 2006). Community Concerns over the long-term mental health impacts members described how dropping off food boxes and of the pandemic, particularly for children and young knowing who to check up on were an important part people, were raised by many Pasifika communities. In of informal community support during the pandemic. New Zealand, Pacific Islanders are more likely to suffer Community representatives reported various strategies from mental health issues than the wider New Zealand for checking in on one another and different ways population; in a twelve-month period, 25 percent of of providing assistance including creating rosters to Pacific Islanders will suffer from mental health issues ensure everyone in the community received a phone as compared to 21 percent of the total New Zealand call, or checking up on people via social media. One population. Yet only 25 percent of Pacific Islanders Tongan church established a task force to informally who experience mental health issues will access assess every family in the congregation to determine professional help as compared to 58 percent of the who was most in need, and offered a small amount total New Zealand population.53, 54 Consistent with of financial assistance to those deemed to be facing this, diaspora members explained that mental health financial hardship. Community representatives issues are often stigmatized in their communities, and commonly emphasized the importance of this consequently many people will not seek professional ‘communal culture’ in dealing with the impacts help. Some diaspora members raised concerns over of the pandemic. potential increases in suicide rates as a result of rising mental health issues linked to the pandemic. In Victoria, a young Pacific Islander boy was stabbed to death in June 202055 and the community was And that’s the beauty of our culture which trying to move forward and learn from the tragedy in I think other cultures didn’t get to enjoy a positive way under social distancing restrictions. during COVID. Because we are naturally This loss, along with the lockdown situation had led family oriented so right before COVID, in to a perceived rise in youth suicides; one community member in Victoria described how they had lost three our communities, we’re all checking in on young Tongan men to suicide in a two-week period. each other. And during COVID, we don’t wait Similar concerns were raised in New Zealand, and a for government help, we just got shit done… Polynesian community member noted that because we already know who the old people are in the focus of COVID-19 responses had been on physical our church, and we just sent the message needs – for example food, warm clothes, and blankets – dealing with the mental and emotional toll of the around…‘Who’s got an old person in their street pandemic had not been a priority. that needs help?’…We fired off emails to like supermarkets…We were doing food packages. So I think we’re very lucky in that sense because 53. http://pasifikafutures.co.nz/wp-content/uploads/2015/06/PF_ HowAreWeDoing-RD2-WEB2.pdf it’s just natural for us to work together. 54. Analogous statistics for Pasifika communities in Australia are – POLYNESIAN COMMUNITY MEMBER, unavailable. NEW ZEALAND 55. https://www.abc.net.au/news/2020-06-17/charges-laid-over- solomone-taufeulungaki-stabbing-death/12363088 113 PACIFIC DIASPORA For most of the Pasifika communities in the study, In Australia, some Pasifika community organizations being unable to gather together and interact with played a key role in translating information about other members of the community face-to-face was COVID-19 and social restrictions into Pacific the most difficult part of the pandemic. The church languages. There has been some criticism in the plays an important role in Pacific Islander social Australian media about the speed and quality of life, and performs a central role in coordinating translations about COVID-19 related information.57 pastoral care and support for its members.56 One Some of the diaspora members interviewed in Micronesian community member described how Australia described how documents and information the cancellation of in-person church services had about COVID-19 had either been unavailable in Pacific made it difficult for some people to access adequate languages, or were too technical for their community pastoral care. For all communities, social distancing members to understand. In general, communities and the inability to gather as a community were in the study, such as those from PNG where people particularly difficult during funerals and other events worked in higher skilled positions, felt they did not that would usually involve emotional support from the need these translations. However, communities from extended community. This was true of communities Fiji, Tonga, and Samoa were more likely to need in both Australia and New Zealand. In addition, many translations. As a result, some of the Australian- community members struggled when illness or death based community organizations interviewed had befell family back in PICs. One member of the ni- performed translations for their members, while Vanuatu community described how it has always some drew upon resources from New Zealand. By been important to travel back to Vanuatu to mourn contrast, Pacific peoples in New Zealand generally with the family and take part in traditional ceremonies. felt the government had done a good job of providing Not being able to do so has taken an emotional toll context appropriate translations in Pacific languages. on community members. Lack of funding meant many Pasifika community organizations were limited in the financial help they could provide to members during the pandemic. And there has been that sense of struggle that When asked what their communities needed to help recover from the pandemic, many interviewees we aren’t able to gather. We aren’t able to highlighted the financial constraints that their come together at least and do community in organizations faced in trying to assist community the ways in which we are so used to. All our members. Most organizations were reliant on events, all our ceremonies, they involve the fundraising and while many applied for grants, these were generally one-off amounts rather than community. ongoing funding. Those who worked in community – POLYNESIA COMMUNITY MEMBER, AUSTRALIA service roles emphasized the need for more outreach workers to stop people ‘falling through the gaps’. Some community representatives believed that small organizations such as churches and community groups often have a better understanding of, and are better placed to access, community members in need than some of the larger organizations that receive relatively more funding. 56. https://teara.govt.nz/en/pacific-churches-in-new-zealand 57. https://www.abc.net.au/news/2020-08-13/coronavirus-messages- translated-to-nonsense-in-other-languages/12550520 114 PACIFIC DIASPORA 115 Photo by © Rachel Anna Skeates/World Bank VII. DISCUSSION AND POTENTIAL POLICY RESPONSES The COVID-19 crisis resulted in reduced incomes 7.1 Remittances and employment for many Pacific Islanders At an aggregate level, remittances to Pacific Island both at home and overseas. Impacts were felt at countries have been more resilient than expected, home as remittance flows were disrupted and job despite a severe and abrupt decrease when the opportunities in the domestic market affected. In pandemic first affected the region. A sharp drop PICs, international remittances conventionally play in aggregate remittance inflows was observed an important role as an informal safety net for many in Fiji, Samoa, and Tonga during February–April households. In the absence of strong formal social 2020; yet between May and September 2020, protection programs, any disruption to inflows inflows recovered with year-to-date and monthly of remittances from overseas is concerning. In remittances returning to positive year-on-year addition, temporary labor mobility to Australia and growth (Figures 69 and 70). New Zealand has provided employment and earning opportunities for thousands of Pacific Islanders. In World Bank estimates of the reduction in countries like Tonga, Vanuatu, and Samoa, between remittances to the Pacific region were consequently 6 to 15 percent of the total labor force is engaged in revised downwards from 16.9 percent in April these schemes. 2020 to 4.3 percent in October 2020.2 This better- than expected performance is not unique to the The suspension of labor mobility schemes and their region, having also been observed across Asia, limited resumption means that considerably fewer Latin America, and Africa (Caron & Tiongson, 2021; workers will be able to access these opportunities. Lopez-Calva, 2021; Oxford Economics, 2021). Uncertainties regarding international travel, coupled with reduced income, resulted in stress and anxiety among seasonal workers, their families, and Pasifika communities. Drawing upon available data and projections, this section discusses the ongoing impacts of the COVID-19 crisis on remittances, migrant workers, their households, and Pacific diaspora communities, as well as the outlook for the Pacific labor mobility schemes over the medium and long term. 116 DISCUSSION AND POTENTIAL POLICY RESPONSES FIGURE 69: Monthly remittance inflows to Fiji FIGURE 70: Cumulative remittances to Fiji and and Samoa (2020) Samoa in 2020 (year to date) 60% 30% Tonga To 40% Samoa Sa 20% Fiji Fij 20% Y-o-Y change 10% 0% 0% -20% -40% -10% Feb Mar Apr May Jun Jul Aug Sep Mar Apr May Jun Jul Aug Sep Samoa Fiji Tonga Samoa Fiji Tonga Source: Reserve Bank of Fiji and Central Bank of Samoa. Source: Reserve Bank of Fiji and Central Bank of Samoa. TABLE 14: Annual remittance inflows (2019–20) Remittance inflow (nominal USD million) Estimated Y-o-Y change in Country remittance inflow 2020 2019 2020e Tonga 190 194 1.7% Samoa 147 150 2.2% RMI 31 31 -1.4% Kiribati 20 19 -5.0% Vanuatu 75 76 1.3% Fiji 287 312 9.0% FSM 23 23 0.0% Solomon Islands 25 28 8.0% Palau 2 2 0.0% Timor-Leste 100 155 54.9% Source: KNOMAD (2020), KNOMAD (2021), Migration Data Portal. 117 DISCUSSION AND POTENTIAL POLICY RESPONSES Three major factors could explain why remittances (iii) A diversion from physical transportation of remained steady despite the pandemic and its cash across borders to sending through remittance economic impacts: service providers could have also contributed to the resilience of remittance flows observed in the (i) Migrants abroad have not suffered from extensive region. The practice of carrying a large amount of job losses to the degree expected, and some actually cash home at the end of a working season has long benefitted temporarily as a result of COVID-19 been documented among seasonal workers from stimulus payments from host governments, leading the Pacific (Maclellan & Mares, 2006; Brown et al., to increases in income for some (though certainly not 2015; World Bank, 2017b). Yet travel restrictions to all) migrant workers. While Pacific seasonal workers, curb the spread of COVID-19 made it more difficult concentrated in Australia, New Zealand, and the United to carry hard cash across borders, likely causing an States, have had limited access to such payments, increase in remittances through formal channels diaspora members interviewed in the study indicated and masking a decrease in the total amount being that government welfare payments in Australia and remitted. A recent study on remittances from the US New Zealand helped to insulate them from the adverse to Mexico (Dinarte et al., 2021) for instance shows that income effects of the pandemic. In addition, the the rise in remittances by Mexican migrants during economies of major host countries have slowly but the pandemic has been driven mostly by remittances steadily recovered, with unemployment in Australia originating from municipalities close to a US–Mexico and New Zealand declining since April 2020.58 border crossing. The study also finds a large and (ii) Remittances tend to be driven by altruism, disproportionate increase in the number of new increasing when the situation in the migrants’ accounts at financial institutions among municipalities country of origin worsens. In the past, when the along the border since the US implemented lockdown Pacific suffered crises such as tropical cyclones, measures. Earlier studies have also illustrated that the remittances from unaffected host countries rose as global boom in remittances to developing countries in migrants remitted more to help family through times of the 2000s was more an artefact of data collection than hardship. Given the collapse of international tourism, reality as electronic transfers became more popular the broader economic fallout from COVID-19, as well and a crackdown on money laundering post 9/11 led to as the devasting impact of Tropical Cyclone Harold more remittances being sent through formal channels on many PICs in 2020 (Fiji and Vanuatu in particular), (McKenzie, 2014; Clemens & McKenzie, 2018). altruistic and countercyclical behavior is likely to At a more disaggregate level, the dynamic nature of have played a role in sustaining remittance inflows to remittance flows across different remittance corridors the region. This argument is supported by evidence makes it difficult to pinpoint the extent to which from the Pacific diaspora and migrant workers. While different factors have influenced remittances to the migrant workers, both temporary and longer term, different PICs. While the frequency and volume of tend to remit less as their earnings decrease, many remittance transfers dropped among seasonal workers, adjusted their own savings and consumption to it is noteworthy that they account for only a small maintain or even increase the money sent home in fraction of total flows. Interviews with community response to the crisis, as discussed in Sections 3.1.5 leaders and representatives from the diaspora suggest and 6.5. Some diaspora members even explicitly that COVID-19 impacted the incomes of the diaspora emphasized the cultural importance of remitting. and demand for remittances from home communities differently for different groups. Unfortunately, there were no quantitative data on remittances from the Pacific diaspora. 58. In Australia, the unemployment rate dropped from 6.4 percent in April 2020 to 5.1 percent in May 2021. In the US, it was down to 5.8 percent in May 2021 from a staggering 14.8 percent in April 2020. In New Zealand, unemployment has remained relatively stable between 4.2 percent in Q1 2020 and 4.7 percent in Q1 2021. Source: Australia Bureau of Statistics, New Zealand Statistics, and US Bureau of Labor Statistics. 118 DISCUSSION AND POTENTIAL POLICY RESPONSES Regardless, the observed resilience of the aggregate As observed during the pandemic, remittances from remittance flows should not completely dispel seasonal workers and the diaspora helped to finance concerns regarding the potential adverse impacts essential consumption by labor sending households of disrupted remittances on households of seasonal as they coped with the domestic economic fallouts. and temporary migrant workers, most of whom have The benefits of remitted funds could also flow on low incomes. The data collected in this study suggest to boost aggregate demand and local economies. that decreases in both the amount and frequency of Ensuring continued access to labor migration remittances among seasonal workers, as well as the opportunities and low-cost money transfer channels loss of prospective remittances by cancelled workers, will be key to helping Pacific Island households were associated with high levels of financial stress, maintain their living standards and make productive lower levels of consumption, and decreases investments in an era of depressed domestic in investment in human capital. economic activity. Looking forward, the long-term prospects for There are reasons to be optimistic about prospects remittances to the region will depend in large part for Pacific Island migrant workers despite ongoing on the evolution of migration patterns and on the travel restrictions. The Australian, New Zealand, employment prospects of migrant workers, both and US economies are slowly recovering from the seasonal and longer term. These in turn will be crisis and now have moderate growth prospects. influenced by several factors; one of them is the risk In the absence of lockdowns, employment in of recurring COVID-19 outbreaks that could impede Australia has recovered faster than anticipated, migration, especially in the absence of widely available with the number of people in employment in early vaccinations. Another factor is that host countries 2021 surpassing the pre-COVID-19 level and demand might not provide the same level of fiscal stimulus as for labor expected to more than offset the potential they did in 2020. Finally, the shifts from cash to digital job losses that could result from the withdrawal of remittances and from informal to formal channels the JobKeeper benefit. The country’s GDP growth may also slow down, unless solutions are found for is forecasted to be 4.75 percent over 2021 and improving access to banking and new money transfer 3.5 percent over 2022.59 New Zealand also recorded options for migrant workers. a stronger than anticipated rebound, with positive growth of 0.4 percent in Q3 202060 and labor shortages emerging in some sectors by May 2021. In the United States, the Bureau of Economic 7.2 Labor Mobility During and Analysis estimates that real GDP increased at an in the Aftermath of COVID-19 annual rate of 6.4 percent in Q1 2021, up from Labor mobility could play an important role in 4.3 percent in Q4 2020.61 supporting Pacific Islands economies recover in the aftermath of COVID-19. The devastated tourism industry and the broader economic slowdown from the pandemic have further tightened the already limited supply of formal jobs in Pacific Island countries, 59. Source: Statement of Monetary Policy – May 2021, Reserve Bank of making employment overseas an even more important Australia. https://www.rba.gov.au/publications/smp/2021/may/pdf/ source of income and livelihood. In Tonga and statement-on-monetary-policy-2021-05.pdf Vanuatu, for instance, the total number of workers 60. Source: Monetary Policy Snapshots February 2021 and May employed under the SWP, RSE, and PLS schemes in 2021, Reserve Bank of New Zealand. https://www.rbnz.govt.nz/-/ 2018–19 well exceeded the number of formal jobs media/ReserveBank/Files/Publications/Monetary%20policy%20 statements/2021/Monetary-Policy-Statement-snapshots-feb-2021. created annually, which were roughly 325 and 1,260 pdf?revision=f6301d0f-02ab-4057-9a73-49b218e04921 respectively (World Bank, 2017a). In Kiribati, seasonal 61. Source: US Bureau of Economic Analysis. https://www.bea. and PLS employment in 2018–19 was equivalent to gov/news/2021/gross-domestic-product-first-quarter-2021- nearly a quarter of the number of formal jobs created advance-estimate#:~:text=BEA%2021%E2%80%9418-,Gross%20 domestically per year. Domestic%20Product%2C%20First%20Quarter%202021%20- (Advance%20Estimate),the%20Bureau%20of%20Economic%20 Analysis 119 DISCUSSION AND POTENTIAL POLICY RESPONSES Economic recovery in these host countries would The source of workers was also highly concentrated, bode well for the employment prospects of migrant with Vanuatu responsible for sending the majority workers, including Pacific Islanders. In the medium of new workers since the pandemic. By June 2021, term, vaccination of populations in host countries Kiribati and Tonga had not mobilized any RSE coupled with the fact most PICs remain ‘COVID workers since international borders were closed free’ means that there is some prospect of renewed in March 2020. travel between the Pacific and major migrant hosting Australia and New Zealand have addressed countries. seasonal labor shortages differently. In Australia, There is also reason to be optimistic about Pacific state governments have been involved in the SWP’s labor mobility programs. Demand for seasonal approval and allocation process, determining labor in the horticulture and viticulture industries in the number of workers that can enter their state, Australia and New Zealand has remained strong and and where and how the workers will serve their is likely to remain robust in the foreseeable future. quarantine period - an arrangement that has since In fact, significant shortages of seasonal labor have changed in some states as travel restrictions are been reported in both countries, with an estimated relaxed. This decentralized approach appears to shortage of 25,000 workers in 2021 in Australia62 have provided more flexibility for the scheme to and 11,000 workers over March–April 2021 (the apple bring in workers and contributed to the significantly season) in New Zealand.63 A key contribution to larger number of seasonal workers arriving since the this shortage is that backpackers and international recommencement of the scheme. In contrast, RSE students, a major source of seasonal labor, have workers entering New Zealand were quarantined in largely left due to the pandemic. In Australia, in centralized facilities in Auckland, with a fixed number particular, the annual cohort of working holiday- of places allocated to accommodate RSE workers makers is about 140,000–200,000 people, making per fortnight. From late 2021, new arrangements up about three-quarters of the seasonal workforce. permitted quarantine free travel for RSE workers In February 2021 only around 40,000 reportedly arriving from Samoa, Tonga, and Vanuatu. In remained.64 Incentives put in place by the Australian addition, until recently only veteran RSE workers and New Zealand governments to encourage were permitted to participate in the re-start of domestic workers to take up seasonal work appear the RSE, with new workers ineligible. to have had limited success.65 Affirming these trends, about 98 percent of employers surveyed by the World Bank expressed the intention to continue employing SWP/RSE workers in 2021, with about half of them wanting to even increase recruitment. The absence of working holiday-makers, if prolonged, could potentially set the foundation for Pacific labor mobility schemes to expand. 62. Source: https://www.theage.com.au/national/victoria/farmers- Risks and challenges remain, such as ongoing travel accuse-premier-of-ignoring-letter-after-letter-on-worker-shortage- restrictions, limited quarantine places, and issues 20210119-p56vc6.html relating to flights and testing arrangements. This 63 https://www.nzherald.co.nz/the-country/news/worker- means that employment under the seasonal SWP and shortage-a-dire-situation-for-horticulture-sector/ RSE schemes is unlikely to increase to pre-COVID-19 SMOX6KANYNWA2K67NTA3DFDPS4/ levels in the short term. Recommencement of the RSE 64. Source: https://www.theland.com.au/story/7139912/farmers-back- fruit-picker-plan/ scheme was especially slow. In June 2021, the number of RSE workers allowed to enter New Zealand between 65. For instance, an incentive by New Zealand Ministry for Social Development intended to attract unemployed New Zealanders January 2021 and March 2022 was capped at 4,400 to work in the horticulture sector had attracted just 339 people (compared to a pre-COVID-19 annual cap of 14,400). by mid-April 2021. Source: https://www.stuff.co.nz/business/ In Australia, 7,444 SWP and PLS workers arrived farming/124982177/scheme-that-offered-1000-to-relocate-to- pick-fruit-attracts-just-339-people?utm_source=Devpolicy&utm_ September 2020 and June 2021, about half of the campaign=830aaeb2ac-EMAIL_CAMPAIGN_2018_04_19_ pre-COVID-19 annual level. Number since then have COPY_01&utm_medium=email&utm_term=0_082b498f84- risen rapidly. 830aaeb2ac-312087937 120 DISCUSSION AND POTENTIAL POLICY RESPONSES Arrangements to mobilize seasonal workers in Migration programs that are conditional on the context of COVID-19 created additional costs employment, such as the Samoa Quota and Pacific to employers, especially in New Zealand. In both Access category in New Zealand, will also continue to countries, employers are required to bear part of the be impacted by the suspension of international travel. chartered flight costs and the full quarantine costs, Risks associated with the evolution of the COVID-19 including wages for workers during the isolation period pandemic also have the potential to impact Pacific and transportation to move workers to their work sites migrant workers, the diaspora, and remittance flows once quarantine is completed. New Zealand has also to the Pacific. In Australia and New Zealand, the raised the minimum wage for RSE workers to about repeated resurgences of COVID-19 highlight great 17 percent above the national minimum wage for uncertainty associated with the pandemic’s economic adults. The increased costs to employers to bring tolls, as do the evolution of more virulent strains of in seasonal workers could threaten high levels of the virus. In many other regions of the world, infection demand for workers. levels are yet to plateau. In the Pacific, while most Smaller employers are disadvantaged in this context, countries have remained largely ‘COVID free’ (with not only by the increasing costs but also by worker the important exception of PNG and Fiji), the risk of allocation requirements. In an attempt to maximize an outbreak will increase with any resumption of the benefits to workers and industries amidst labor travel and the appearance of new and more infectious shortages, the recommencement of the RSE scheme strains of the virus. It will be important that adequate required employers to share workers either across testing, quarantine arrangements and public health regions or with another employer as part of a joint measures are in place to address such risks. venture. In other words, employers could not bring workers in and keep them employed solely for their own enterprise. The SWP has also launched a Worker Portability Pilot, effective between January 2020 7.3 Potential Policy Responses and June 2022, in which employers in four regions Policy interventions to protect migrant workers in the states of New South Wales and Victoria can from the impacts of COVID-19 have been limited share seasonal workers. Large corporates, grower in both home and host countries. Most labor sending cooperatives, and large labor hire companies are countries have provided no support to migrant better positioned to adapt as they tend to have workers or their households. In Tonga, targeted arrangements in place with other approved employers, financial support to families of seasonal workers are experienced at sharing workers around to meet unable to return home was provided, however, their seasonal peaks during the pandemic, and it appears that coverage at the time of the survey operate in multiple regions. was low, with fewer than 10 percent of interviewed Pacific diaspora members may continue to feel Tongan sending households reporting having the adverse effects of COVID-19 impacts despite a received the benefit. In other sending countries, promising economic recovery. The Pacific diaspora migrant households have received some form of is predominantly employed in low- and semi-skilled social assistance as part of broader social assistance jobs with high physical proximity and limited capacity programs, yet the incidences vary widely, from for remote work. These jobs were hit particularly 86.7 percent of surveyed Timorese households hard by social distancing measures. Evidence from receiving some government assistance to 7.5 percent qualitative interviews suggests that by mid-2020, of households in Vanuatu (the latter primarily taking new employment opportunities remained limited for the form of a school fee waiver). None of the sending Pasifika community members who had experienced households in Fiji, Kiribati, or Samoa reported reduced hours or unemployment as a result of the receiving any social assistance. crisis. As social assistance measures phase out – Australia’s JobKeeper wage subsidy, for example, concluded in March 2021 – employment and income of diaspora members has the potential to suffer despite a broader economic recovery. 121 DISCUSSION AND POTENTIAL POLICY RESPONSES In Australia and New Zealand, assistance to seasonal A number of issues and potential policy responses workers was largely confined to visa extensions and are outlined below for the benefit of policymakers permission to change employers. Seasonal workers in in both Pacific Island countries and in Australia and New Zealand and in the Australian state of Tasmania New Zealand. Many of these responses draw on global were able to access cash benefits in cases where they experience during the COVID-19 pandemic, and were required to isolate, fell ill, or were unable to work are designed to support migrant workers (including due to lockdowns. RSE workers, together with other the diaspora) and their families through actions foreign nationals stranded in New Zealand, between undertaken in both sending and host countries. July and December 2020 were given access to Naturally, the relevance and appropriateness of each financial assistance to pay rent and power bills as well response varies depending on the country and visa as in-kind support including food vouchers, medicine, status/labor mobility program concerned. and warm clothing through the Visitor Care Manaaki Manuhiri scheme. In Australia, foreign workers who do not hold permanent residency are ineligible for 7.3.1 Social Safety Nets most government support. Pacific Island community Where possible, the extension of social assistance to leaders reported that limited government assistance migrant workers and diaspora populations that have was compounded by a lack of materials available in lost employment or livelihoods as a result of COVID-19 Pasifika languages, which led to a lack of awareness should be considered. Such assistance could take about available benefits and created difficulties in various forms, such as cash transfers, vouchers, or navigating the welfare system for some diaspora in-kind support. A number of migrant destination members. Informal assistance to seasonal workers countries have extended social assistance to resident was provided in some cases by employers (such as an migrant populations in response to the pandemic. In accommodation fee waiver) and the diaspora (such as Japan, for example, a cash transfer was provided to essential goods), but this has occurred on an ad hoc all registered populations who had resided in Japan basis and is of limited scale. for three months or more during the COVID-19 crisis. The state of California made a similar payment to Lack of awareness of available support appeared to undocumented migrants who were ineligible for be a prominent issue. During the crisis, the Australian unemployment insurance benefits and other disaster government granted special permission to SWP and relief measures (Moroz et al., 2020). In Korea, the PLS workers, as well as migrant workers under other repatriation cost insurance scheme and departure visa schemes, to withdraw their superannuation if guarantee insurance (which is similar to severance facing financial difficulties. However, 40.9 percent pay) were in place under the Employment Permit of SWP workers and 65.6 percent of PLS workers System (EPS), allowing EPS workers to withdraw funds surveyed were unaware of this program. Among those should they terminate their employment and return who were aware, many did not understand the details home. EPS workers who had signed up to Employment of the program nor how to access such funds. Insurance (which is voluntary) were also eligible for The challenging situation that Pacific migrant workers unemployment benefits and training during periods faced during this pandemic is unlikely to be resolved of unemployment. Targeted support can also focus on in the short term. Pacific diaspora members will vulnerable or more affected migrant worker groups. continue to face a weakened labor market in their host The survey findings presented in 3.1.3 suggest that countries, limiting their income-earning options should female and first-time workers were disproportionately they return home. Large numbers of seasonal workers affected by COVID-19. remain stranded in host countries as both repatriation flights (often chartered) and quarantine facilities in their home countries are limited. New and increasing arrivals of returning workers will require careful management to minimize the risk of infection as the pandemic continues. 122 DISCUSSION AND POTENTIAL POLICY RESPONSES Migrant sending countries can also support 7.3.3 Employment Promotion populations stranded overseas. This occurred Given the ongoing threat to job security and to a limited extent in PICs in response to the economic changes resulting from COVID-19, pandemic. Tonga, for instance, provided a one- extension of employment promotion services to off payment to students, seasonal workers, and low-skilled temporary and seasonal migrant workers seafarers who were overseas. Tuvalu also provided would help to improve their employment prospects, payments to citizens stranded overseas as a result while also reducing the risks of absconding or of the COVID-19 pandemic. Over the longer term, take-up of illegal employment, and more broadly, a more comprehensive strategy would see existing facilitating the efficient reallocation of labor between and permanent social safety net arrangements employers and sectors. In Australia and New Zealand, incorporated into labor migration policies, with a permission to switch employers was granted to view to reducing risks faced by migrant workers and workers under the SWP, PLS, and RSE schemes. At their households. Ideally, such support would target the same time, the existence of worker shortages that workers overseas and their sending households, as coincide with periods of lack of work for seasonal well as workers who have upcoming travel cancelled, workers suggests that movement of workers between given the fact that workers typically invest in employers could be more efficient. Results from the participation in labor mobility prior to departure. The survey of employers presented in 5.2 suggests that results of the survey of seasonal workers presented re-deployment was largely arranged by employers in 3.2.1 establishes that such costs are significant as a themselves. Additional support to increase the proportion of local income for participants in the SWP efficiency of such re-deployment could include: and RSE and their households. (i) Facilitation of job matching by authorities, as has effectively occurred in the case of PLS 7.3.2 Employment Retention workers and is also undertaken under the Korean Migrant workers, especially low-skilled workers, tend EPS scheme. to complement domestic workers, creating new (ii) The provision of incentives to firms to arrange jobs for high-skilled native workers and promoting and participate in job-sharing schemes for task specialization (Dadush, 2014; World Bank, migrant workers. 2015). There are therefore benefits from a whole- (iii) Provision of language training, upskilling, or of-labor market perspective from migrant workers reskilling opportunities to migrant workers who being covered by employment retainment policies are unemployed or underemployed, as has in their host countries, such as can occur through been provided in Sweden and Korea, and in wage subsidies and reductions or deferrals in social New Zealand where RSE workers have had the insurance contributions. Paid sick leave should opportunity to undertake additional training also be available for migrant workers affected by during times of reduced work hours. COVID-19 given the significant externalities associated with compliance/non-compliance with COVID-19 (iv) Promotion and facilitation of traineeships and isolation and quarantine rules. Such support has been other further study or upskilling opportunities for extended by host governments to migrant workers diaspora members (particularly youth) who may in a number of cases. Kuwait, for example, mandated have dropped out of education or training that employers pay salaries, food, and shelter to all to support their families financially. migrant workers while in quarantine (KNOMAD, 2020). New Zealand undertook a similar action, with RSE employers required to provide accommodation and pastoral care to RSE workers in self-isolation, and with workers also able to access wage subsidies should they be unable to work due to COVID-19. In contrast, employers were critical of the exclusion of SWP workers from the JobKeeper program in Australia. 123 DISCUSSION AND POTENTIAL POLICY RESPONSES Beyond such support, permanent changes to the Accommodation and Workplace Compliance design of labor mobility schemes to facilitate the with Social Distancing Requirements movement of workers between employers could both contribute to improved productivity of workers Several countries have offered housing services and reduce risks of worker exploitation associated to facilitate compliance with social distancing with visas which are tied to individual employers. requirements among migrant workers. For instance, Such changes would need to be designed and Portugal set up numerous quarantine houses for implemented with consideration in order to ensure seasonal agriculture workers who needed to isolate; pastoral care and other employer obligations were Canada mandated that housing complies with not adversely impacted. social distancing requirements (KNOMAD, 2020; Moroz et al., 2020); and local governments of Korea provided free disinfection services to migrant 7.3.4 Social and Health Services housing estates upon request. Under the SWP and RSE schemes, where employers are responsible Equitable Access to COVID-19 Testing for providing accommodation to seasonal workers, and Treatment adjustments have reportedly been made by employers COVID-19 is a global public health crisis. Free under guidance from authorities to enable workers to prevention, testing, and treatment should be limit contact outside of the workplace with the aim of available for the entire resident population, reducing COVID-19 risks. During COVID-19 lockdowns regardless of migration status. This agenda has been in New Zealand, RSE workers were required to implemented in Australia and New Zealand, with both remain in their ‘bubble’ on their worksites and in their countries aiming to vaccinate the entire resident daily travel to and from work. Similar requirements population regardless of visa or migration status. were put in place in Australia, and both countries Australia has prioritized vaccination for workers in required employers to abide by social distancing certain high-risk industries that employ PLS workers, requirements and provide a health management plan including aged care and meat processing. The US to prevent transmission of COVID-19. In areas where Families First Coronavirus Response Act mandates accommodation facilities are limited, such as certain that COVID-19 testing is free to anyone in the US, locations in rural Australia, it can nevertheless be including the uninsured, but patients can incur challenging to enforce adequate social distancing significant bills for treatment. For RSE and SWP measures. The COVID-19 pandemic may provide an workers, whose medical insurance fees are deducted opportunity to examine pre-existing supply issues from their wages, there may be additional health risks around crowding, suitability, and availability of if employment contracts end and workers cannot accommodation used by seasonal workers. afford or are unaware of how to continue paying medical insurance while still residing in their host Scale Up Outreach Activities to Keep countries. The pandemic presents an opportunity to review medical insurance arrangements for Migrant Communities Informed workers under the RSE, SWP, and PLS to ensure Low-skilled migrant workers may face information adequate coverage is provided should they become disadvantages due to their limited social networks, unemployed during their stay in the host countries. remote living and working locations, or language constraints. Diaspora members interviewed as part of this study highlighted concerns about the lack of information about COVID-19 and welfare payments available in Pasifika languages in Australia. For this reason, there is a need to increase outreach targeting migrant populations to ensure effective delivery of COVID-19 information and social support. In Australia and New Zealand, additional support for employers of RSE, SWP and PLS workers could assist them to keep their workers informed. 124 DISCUSSION AND POTENTIAL POLICY RESPONSES To date, such initiatives appear to have been limited – Given the ‘COVID free’ status of many PICs, there only about two-thirds of SWP and RSE employers that is a strong case for waiving quarantine periods for were surveyed translated and provided information workers and/or enabling on-farm quarantine. This to their workers in response to social distancing will be of particular benefit where crops need to be requirements. Pacific diaspora communities that were harvested immediately. However, such arrangements interviewed were already playing an important role are to some extent dependent on the facilities and in supporting SWP and RSE workers. Incorporating layout of places of employment. By June 2021, only the diaspora communities into official pastoral care state of Queensland, Australia allowed SWP workers arrangements could be an effective way of providing to isolate at accommodation at their work sites and culturally appropriate support services while also work during their quarantine period. Similar on-farm taking some of the burden off employers. In Australia, quarantine arrangements have been successfully used the Salvation Army has recently become involved in in Germany. At the time of writing, a pre-departure the pastoral care provision and support services for quarantine trial was underway for nations such as SWP workers. Vanuatu that already have a quarantine program. From late 2021, quarantine free travel to New Zealand was permitted for RSE workers arriving from Samoa, Tonga, Free Tests and Paid Quarantine for and Vanuatu. Newly Arriving Migrant Workers As countries look to reopen borders for labor mobility, Access to Culturally Appropriate it is important that health and safety arrangements to Mental Health Services limit the spread of COVID-19 do not increase the costs incurred by low- and semi-skilled migrant workers, Beyond the immediate financial impacts of the who tend to come from low-income backgrounds. COVID-19 pandemic, Pacific seasonal workers and The restart of the SWP and RSE schemes has seen diaspora members experienced a range of mental employers bearing the major share of transportation health challenges such as stress and anxiety arising and quarantine costs. When borders reopen to larger from, but not limited to, financial pressure, isolation, numbers of workers, it will be important to continue family separation, social distancing, and general to ensure that extra costs relating to quarantine and uncertainty about the future. Community leaders from travel are not borne by low-income workers. the diaspora reported that culturally, migrant workers and members of the diaspora can be reluctant to seek State governments in Australia have played a help for mental health issues. It is therefore important significant role in arrangements for quarantine and that culturally and language appropriate mental health work allocation for seasonal workers, consistent with services are available to such groups, and that their the country’s COVID-19 response more generally. While availability and importance is communicated. this is difficult to avoid, continued coordination among state and federal authorities aimed at harmonizing approaches as much as possible will help to reduce administrative burdens associated with movement of workers. The issuance of guidelines to employers can be of assistance, as occurred in New Zealand. 125 DISCUSSION AND POTENTIAL POLICY RESPONSES 7.3.5 Repatriation Support Measures 7.3.7 Worker Registry As migrant workers worldwide have been stranded An improved understanding of workers participating by border closures, many countries – both sending in temporary labor mobility programs is also useful and destination countries – have supported flights while workers are employed overseas. Establishing a (Norway, New Zealand, Bangladesh, and Vanuatu) database of current, prospective, and past temporary and repatriation services (Qatar and UAE). In the case migrant workers, along with their families’ details of PICs, many seasonal workers remain stranded in and their contact information would facilitate regular Australia and New Zealand. Looking forward, as labor communication and outreach efforts, particularly mobility resumes at a meaningful scale, coordination during times of crises. Policy interventions targeting between labor sending and host countries is needed to seasonal and PLS workers by either the host or sending establish repatriation protocols and ensure adequate governments, such as repatriation, taking stock of quarantine capacity for returning workers. In some workers employment status, and providing mental PICs, limited quarantine capacity has acted as a health and economic supports, would benefit from bottleneck for both the return of current workers and this database. Such a database would also support sending of new workers. For example, as part of the future studies of a sub-population that are of interest RSE restart in 2021, New Zealand mandated that all to Pacific labor sending countries. At the moment, a participating countries must have adequate quarantine centralized registry does not exist. facilities available for repatriating workers. Some countries, such as Vanuatu, have been able to utilize existing infrastructure, such as hotels, for repatriation quarantine. However, others have not had this option. The expansion of quarantine facilities in such cases should therefore be a priority, and is potentially an area where development partners can provide support. 7.3.6 Reintegration Support The return of migrant workers as a result of COVID-19 potentially presents an additional source of pressure on the domestic labor market in PICs. At the same time, the suspension of overseas employment for migrant workers is detrimental for the economic wellbeing of their households, given that remittances are a major source of income. Income and employment support can help returning workers and their families to cope with these changes. Examples of such support include one-time cash benefits (as in the Philippines and Bangladesh), loans (India and Nepal), and provision of employment in public construction projects (India). Improved understanding of what kinds of migrant workers are returning home could help governments design adequate and appropriate assistance. In this vein, the Philippine Department of Labor and Employment launched a tracking system to provide appropriate government assistance to returned Filipino workers who had lost employment (support includes testing, pick-ups, and transfers to quarantine hotels). 126 DISCUSSION AND POTENTIAL POLICY RESPONSES 127 Photo by © DFAT References Alexeyeff, K. (2004). “Love food: exchange and Caron, L., and Tiongson, E. (2021). “Immigrants are still sustenance in the Cook Islands diaspora”. The sending lots of money home despite the coronavirus Australian Journal of Anthropology, 15(1), pp68-79. job losses – for now”. The Conversation (United Accessed at: https://onlinelibrary.wiley.com/doi/ States). 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The team of 11 enumerators worked enumerator and respondent were in a quiet space remotely from Australia’s eastern states, New Zealand, where they could not be overheard to protect the and Samoa interviewing respondents from all sample privacy of the respondent. Interviews with Samoan groups across Australia, New Zealand, the Pacific RSE workers were held in person. Data was recorded Islands, and Timor-Leste. Interviews for all sample by hand on paper following cultural etiquette. groups were between 30–45 minutes in length and Employer respondents were initially contacted were carried out from 26 June 2020 through to via email and an appointment made to suit their 6 September 2020. A total of 1126 interviews were availability. conducted. In New Zealand, Samoan RSE workers In all sample groups, attempts to contact a were interviewed in person. respondent from the contact list were made up to For the worker surveys, their households and five times before declaring them a non-respondent. cancelled workers, an introductory SMS was sent to Enumerators kept a diary of each call attempt to initiate contact followed by an introductory call to keep track of the progress with each contact on their each potential respondent. Enumerators followed a list. While phone surveys can be carried out over a script (in the native language) to introduce the survey, variety of platforms, enumerators were mindful not the purpose of the call and a brief about the World to create any costs for the workers or their families, Bank. Respondents were reassured responses would and as such phone calls were made through network be kept private and confidential and a time arranged providers and not internet-based apps. for the interview (if it could not be conducted at Current Worker Sample: Contact lists were obtained that time). Since enumerators all spoke the native through a variety of sources to encourage a diverse language, they were able to build a rapport with sample pool, representative of each scheme. This each respondent which was beneficial since some included lists provided by government Labor Sending details in the interviews were sensitive and personal. Units (LSU) in Fiji, Tonga and Vanuatu; country liaison Outreach efforts to inform workers about the survey officers within Australia and New Zealand; SWP and and to encourage their voluntary participation were RSE employers with current workers; the enumerators conducted through the sending countries’ labor own network; and team leaders working on the sending units, as well as employers and governmental schemes in Australia and New Zealand. partners in Australia and New Zealand. 133 ANNEX Annex 2. Sample Size of Quantitative Surveys TABLE 15: Sample of current seasonal workers SWP sample Fiji Kiribati Samoa Timor- Tonga Vanuatu Total Leste Total number of workers 206 132 453 1448 2398 3407 8044 Completed interviews 33 30 17 35 60 109 284 Completed interviews 16.0% 22.7% 3.8% 2.4% 2.5% 3.2% 3.5% as share of total population Completed interviews 11.6% 10.6% 6.0% 12.3% 21.1% 38.4% 100.0% as share of sample RSE sample Fiji Kiribati Samoa Timor- Tonga Vanuatu Total Leste Total number of workers 460 268 2234 na 1607 3849 8418 Complete interviews 32 33 92 na 38 107 302 Completed interviews as 7.0% 12.3% 4.1% na 2.4% 2.8% 3.6% share of total population Completed interviews 10.6% 10.9% 30.5% na 12.6% 35.4% 100.0% as share of sample 134 ANNEX TABLE 15: Sample of current seasonal workers (continued) Household sample Fiji Kiribati Samoa Timor- Tonga Vanuatu Total Leste Number of current seasonal 65 63 109 35 98 216 586 workers interviewed Number of household 49 49 45 30 77 154 404 contacts provided by interviewed workers Completed interviews 40 28 21 23 50 109 271 Completed interviews 14.8% 10.3% 7.7% 8.5% 18.5% 40.2% 100.0% as of share of sample 135 ANNEX TABLE 16: Household summary statistics Frequency Percent Households of current workers Average household size 6.78 No. of working adults 0 82 30.26 1 100 36.9 2 54 19.93 3 21 7.75 4-8 14 5.17 Dependency ratio ≤0.25 29 10.7 0.26-0.5 42 15.5 0.6-0.75 39 14.39 0.76-1.0 47 17.34 1.1-1.5 29 10.7 1.6-2 47 17.34 2.1-3 23 8.49 3.1-6 15 5.54 Location Fiji 40 14.76 Kiribati 28 10.33 Samoa 21 7.75 Timor-Leste 23 8.49 Tonga 50 18.45 Vanuatu 109 40.22 136 ANNEX TABLE 16: Household summary statistics (continued) Frequency Percent Households of cancelled workers Average household size 7.23 No. of working adults 0 32 16.41 1 82 42.05 2 53 27.18 3 19 9.74 4-8 9 4.62 Dependency ratio ≤0.25 28 14.36 0.26-0.5 33 16.92 0.6-0.75 32 16.41 0.76-1.0 37 18.97 1.1-1.5 28 14.36 1.6-2 20 10.26 2.1-6 17 8.72 Location Kiribati 35 17.95 Tonga 63 32.31 Vanuatu 97 49.74 137 ANNEX TABLE 17: Sample of cancelled workers Cancelled workers Kiribati Tonga Vanuatu Total Total number of workers 141 131 237 509 Completed interviews 35 63 97 195 Completed interviews as share of population 24.8% 48.1% 40.9% 38.3% Completed interviews as share of sample 19.9% 32.3% 49.7% 100.0% TABLE 18: Cancelled workers summary statistics Frequency Percent Gender Male 158 81.03 Female 37 18.97 Participation status in labor First-timer 39 20 mobility schemes Returnee 156 80 Work position Team member 120 75.47 Team leader 39 24.53 Age group 19-29 67 34.54 30-39 80 41.24 40-49 43 22.16 50-59 4 2.06 Marital status Single 36 18.46 Married (legally or customary) 150 76.92 Divorced, separated, or widowed 9 4.62 138 ANNEX TABLE 19: Response rates* Country Current workers Cancelled workers Households of current workers Kiribati 71% 20% 56% Fiji 89% N/A 87% Samoa N/A^ N/A 50% Tonga 67% 50% 65% Timor-Leste 71% N/A 77% Vanuatu 87% 49% 73% * Defined as the number of completed interviews divided by the number of contacted workers/households. ^ Samoan respondents were interviewed both by phone and face-to-face. TABLE 20: Sample of employers Employers Direct employer Labor hire company Total Total number of SWP employers 51 26 77 Interviewed SWP employers 34 12 44 Total number of RSE employers unknown unknown unknown Interviewed RSE employers 27 3 30 139 ANNEX Employer Summary Statistics By scheme, SWP employers most commonly employed ni-Vanuatu, Tongan, and Timorese workers The nationality profile of workers employed by and RSE employers reported employing ni-Vanuatu, the sample of employers is largely consistent with Samoan, and Fijian workers most commonly. I-Kiribati the actual profiles of workers on the SWP and RSE workers represent the smallest nationality of workers schemes. The largest group of workers employed collectively nominated by the employers and are most by the sample of employers interviewed are from often employed by RSE employers. Vanuatu with 68 percent of employers saying they employed this group and specifically 86 percent of RSE employers. Workers from Fiji, Tonga, and Samoa also make up a large portion of seasonal workers with 23 percent of employers from both SWP and RSE collectively employing Fijian workers; 28 percent employing Tongan workers and 23 percent Samoan workers. FIGURE 71: Nationality of seasonal workers employed by surveyed employers 100% 80% 60% 40% 20% 0% Overall SWP RSE Direct employer Labor hire company Fiji Samoa Tonga Others Kiribati Timor-Leste Vanuatu 140 ANNEX Annex 3. Qualitative Data Analysis and Interview Profile Interview data were analyzed using thematic analysis. A mere two participants had lived in Australia or Upon completion of initial analysis, a process of New Zealand for less than ten years. Almost all reverse validation was used to verify findings. A community representatives had high levels of summary of key findings was emailed to interview education. Roughly half had completed postgraduate participants and they were invited to provide education to a Masters or Doctoral level. Only three comments and feedback with the understanding that had completed their education in high school, and no response meant they had nothing more to add. In the rest had attended vocational training or university. total, twelve responses to this email were received. As a result, only two community representatives Respondents indicated that findings were correct and worked in unskilled positions. Almost all community at most added a handful of extra comments. These representatives lived in Australia or New Zealand comments were incorporated into the final analysis. with their spouse and children. Eight community representatives had ‘most’ of their family living in the The profile of interviewees was consistent with Pacific, seven had a parent, child or siblings living what one would expect of community leaders and in PICs, and many had members of their extended representatives who have the ‘authority’ to speak family living in PICs. In sum, research participants on behalf of their community. Participants were were generally well established in Australia and generally middle-aged, well-educated and had been New Zealand, and were thus in a position to provide living in Australia or New Zealand for an extended useful insights about the wider community. The period. The ages of participants ranged from 27 World Bank team established a good rapport with to 71 years. Roughly half of all participants were these community leaders and would like to continue aged between their late thirties and fifties. Most this fruitful collaboration and engagement in future community representatives were first-generation research work. migrants, however some had moved to Australia or New Zealand as children, and had spent most of their lives there. Only six interviewees belonged to the second generation, however, roughly two-thirds of first generation migrants had spent at least twenty years living in Australia or New Zealand. 141 ANNEX Annex 4. Topic Guide for Semi-structured Interviews Information about the participant Information about Country of origin organization & community How long lived in Australia/New Zealand? Can you tell me a bit about your organization? 1st or 2nd generation? What kind of activities, events etc do you do? Location of family: is most of your family in Australia with you or still in PIC of origin? Who are your members? Age [Some of this may be available via websites etc.] Gender - How many members/size of diaspora group? Occupation - Geographical location of diaspora Education levels group members? Role in community group/organization - Represent single PIC? Multiple? How long held role Which one(s)? - Men/women/both? - Rough age of membership (youth/families/elderly etc). - Do people in your community generally live in nuclear households or extended families? Roughly how many people live together as a household? 142 ANNEX Impacts of COVID-19 - Has social distancing made it more difficult to send/receive remittances? How? Why? - What kind of jobs/industries do your members work in? Probe for industries, skilled or semi- - Are people worried about communities at home? skilled, casual/part-time/permanent/full-time. Is there a sense that they are more or less in need of remittances due to COVID-19? A lot of people have lost employment due to COVID-19. Is this true of your community in Australia/NZ? - A lot of people are feeling uncertain about the future right now. Is this true of your community in If yes Australia/NZ? Do people want to go back ‘home’ - What kinds of jobs have people lost? Has it to PICs? impacted everyone equally? Probe for job types If no (industries, skilled or semi-skilled, casual or full- time), different groups (men, women, youth, - Why do you think people haven’t been impacted newer migrants). by COVID-19 job losses? - How have people coped with this? Are they - A lot of Pacific Islanders support family at home emotionally OK? Have they been able to access with remittances. Are people still able to meet/ counselling services (government)? Does your respond to remittance requests during this organisation provide counselling etc? Probe: time? Has the amount of remittances sent home has access been impacted by English language increased overall? Are there more/less requests? ability, unfamiliarity with government systems, What do people do if they can’t meet remittance immigration status. requests? - How have people coped with this financially? Have - How do you or your community members send they been able to access government payments? remittances home? Have you noticed a difference If not already answered probe for English language in remittance fees and exchange rates since ability, unfamiliarity with government systems, March? Are these impacting remittance practices? immigration status. Are you paying more to send money? Are family members at home paying more to receive money? - Are people taking on extra work (Uber Eats, cash in hand work etc)? Are they trading skills/goods - Has social distancing made it more difficult etc informally e.g. selling cooked food? to send/receive remittances? How? Why? - A lot of Pacific Islanders support family at home - Are people worried about communities at home? with remittances. Are people still able to meet/ Is there a sense that they are more or less in need respond to remittance requests during this of remittances due to COVID-19? time? Has the amount of remittances sent home increased overall? Are there more/less requests? - A lot of people are feeling uncertain about the What do people do if they can’t meet remittance future right now. Is this true of your community in requests? Australia/NZ? Do people want to go back ‘home’ to PICs? - How do you or your community members send remittances home? Have you noticed a difference in remittance fees and exchange rates since March? Are these impacting remittance practices? Are you paying more to send money? Are family members at home paying more to receive money? 143 ANNEX Impacts of COVID-19 on organization/ Closing questions & comments community group [if not already addressed Do you have any other thoughts about how COVID-19 above] has impacted your community either in Australia/NZ Has COVID-19 impacted your organization? If so, how? or at home (PIC) that we haven’t asked about? Have there been any other impacts on your members Are there any other organizations/community leaders (i.e. not jobs or emotional)? who you think I should speak to? If so, who? Could you provide their contact details? Do you have any Have your members needed more support from your questions for me? organization? What kinds of support? Does this differ from what your organization does normally? Have Would you like us to inform you when the research you been able to meet your organization/community’s is finalized and the report is available? needs? Would you be happy for us to list your organization at Are there any organizations, churches or villages/ the end of the report? We would do this in a way so communities at ‘home’ (PIC) that your organization that the information we have discussed today is not supports? Have you been able to continue this linked to your organization. support during COVID-19? If not, why not? If yes, then have their needs changed? How? Thank for participating in research and encourage participant to get in contact if they have any questions Who currently supports/funds your organization or want to follow up on anything. (members/government grants/the church)? What kind of support does your organization need to deal with the pandemic? Contact with/support of temporary labor mobility scheme participants Does your organization/community have any contact with or provide support to Pacific islanders currently in Australia/NZ through the SWP/PLS/RSE? (probe for country, industry and numbers) If so, do you know what kinds of impacts COVID-19 has had on this group and have they approached you for extra support during the pandemic? If yes, what kind of support? (probe for financial/ emotional/food/clothing drives) Have you been able to meet their requests? What do you think the impact of COVID-19 will be on future seasonal work? Will people still want to come to Australia/NZ? 144 ANNEX Annex 5. Qualitative Interviews: Participating Organizations and Communities Many of the Pasifika community members who we Moana Research (Research Lead) spoke with represented community organizations in Australia and New Zealand. We would like to thank Pacific Connections the following organizations and communities for participating in this research and acknowledge the Pacific Islands Council of Queensland Inc time they put into responding to our questions. The Pacific Islands Council of South Australia insights and input offered by all of the community members we spoke with were invaluable for our Pacific Leadership Forum & Pacific COVID understanding of how COVID-19 has impacted Response Team Pacific Islanders in Australia and New Zealand. A Minister in the Uniting Church in Melbourne PNG Wantoks Group Victoria and Geelong area, Victoria Samoan Adventist Church Perth Canterbury Balwyn Road Uniting Church Solomon Islands Brisbane Community Congregational Christian Church Samoa Sunraysia Mallee Ethnic Communities Council in Australia (Ipswich Congregation) Sydney Wantok Association Inc. Fijian Association Victoria Tuvalu Community Brisbane Inc. Kingdom Community Life Care Victoria Samoan Advisory Council Inc. Kiribati Aotearoa Diaspora Directorate Charitable Trust Victorian Kiribati Association LeMana (Empower) Pasifika Youth Project Mana Pasifika & 3 Wiiise Group 145 ANNEX 146 Photo by © World Bank