KOROR, Palau — Labor remains a pressing challenge for the Palauan government as it seeks to balance the need for foreign workers with opportunities for local job seekers. Minister Ngirai Tmetuchl of the Ministry of Human Resources, Culture, Tourism & Development (HRCTD) is once again tasked with addressing these complex issues.
On Dec. 2, 2024, HRCTD issued a directive suspending the acceptance of new work permit applications from Bangladesh. The decision follows increasing complaints about employers abandoning workers, language barriers leading to workplace conflicts, and rising labor law violations.
At a press conference Wednesday, Tmetuchl confirmed a growing number of abandoned foreign workers, primarily from Bangladesh. He said HRCTD is exploring solutions, including discussions with lawmakers on potential legislative changes to strengthen labor protections.
Among the proposals under consideration is an increase in foreign labor fees to deter employers who cannot meet their obligations.
“One of the reasons we have these problems is because it is so cheap to bring in foreign labor,” Vice President Raynold Oilouch said, referring to the current $150 labor application fee.
President Surangel Whipps Jr. said a proposed increase to $500 per application could be used to fund training programs for local workers, reducing reliance on foreign labor.
According to the Division of Labor, 32 Palauans are actively seeking jobs, with only three securing employment so far. Division of Labor is still awaiting responses from the remaining applicants.
Palau’s unemployment rate stood at 1.1% in the 2020 Census. However, the COVID-19 pandemic led to an exodus of Palauans seeking opportunities abroad, particularly in the United States.
As Palau pursues economic growth while maintaining its “Palauans First” policy, managing the shrinking local workforce alongside a growing reliance on foreign labor will remain a significant challenge for the administration.