Stopping the outmigration of Palauans is one of the biggest challenges Palau faces, President Surangel Whipps Jr. said at a press conference on Wednesday, June 26, 2024.
“More than half of the Palauan population has migrated out of Palau since the Compact of Free Association with the United States came into force,” Whipps stated. He noted that while outmigration began before the Compact, it increased after its implementation and was further exacerbated by COVID-19, which cut off jobs and pushed more people to seek opportunities in the United States.
The Compact of Free Association between Palau and the United States allows Palauans to live and work in the United States without requiring a visa or work permit, facilitating easier migration.
Under the Compact, Palauans are also eligible for U.S. educational grants such as the Pell Grant, making U.S. colleges and universities more affordable. The recent passage of the Compact Review Agreement has made Palauans eligible for in-state tuition at U.S. universities and colleges, further enhancing educational opportunities for young Palauan scholars and driving outmigration.
Encouraging Palauans to return home is a challenging task, Whipps acknowledged. He explained that conditions in the U.S., such as higher wages and a high unemployment rate following the COVID-19 pandemic, make it easier for Palauans to find jobs in the U.S. and harder to retain them in Palau.
To incentivize Palauans to return home and contribute to nation-building, Whipps emphasized the need for opportunities in Palau. This includes tasking the Ministry of Human Resources, Culture, and Tourism with helping Palauans find jobs, providing training, and ensuring decent living wages and housing.
“For our youths to stay in Palau, we have to develop a robust and resilient economy, and part of that is to develop a diversified economy,” Whipps expressed. He added, “Part of that is to find new opportunities such as in the financial sector and diversify the tourism sector.” Whipps also highlighted that having the military in Palau brings new opportunities, such as Palauan veterans returning home and jobs in military facilities.
In his message to young Palauans, Whipps said, “Palau needs you. We need you to build our nation. There’s so much that’s going to happen in the next five to six years, between now and 2030. There’s a lot of development going to happen, and we need you to come back and help the nation build.”
However, the solutions are not as simple as job opportunities, decent wages, and housing. For one young Palauan student who studied in the U.S. and stayed to work, the sense of independence and making her own life decisions keeps her there. “I love to come home to visit my family, but I feel better knowing I’ll be returning to my life here in the States,” said Sharon.
Others have invested in homes and brought their families to the U.S., making the idea of returning far-fetched. Another couple said they prefer to live in the U.S. to avoid Palauan customs. “I was there for three weeks and couldn’t believe the number of customs I had to contribute money to in that short time. It’s just unbelievable. I think I’ll just save money and send it to my family there instead of coming to live there,” said the wife who returned home for a family funeral.
Palau’s population in 2020 was 17,600, according to the census report. That number has further dropped with the resumption of travel after the COVID-19 pandemic.