Overview:
A new U.S. Government Accountability Office report warns that the Federated States of Micronesia and the Marshall Islands are facing steep population declines as residents migrate abroad for better jobs, education and health care. The report highlights growing labor shortages, rising costs for public services and concerns over the long-term sustainability of schools, health systems and infrastructure projects across the Pacific.
PONPHEI/MAJURO, 25 MAY 2026 (PACIFIC ISLAND TIMES) — The populations of the Federated States of Micronesia (FSM) and the Marshall Islands have dropped sharply over the past decade as thousands of residents leave for better jobs, education and health care abroad, creating labor shortages and raising concerns about the long-term sustainability of essential services across the Pacific nations, according to a new U.S Government Accountability Office (GAO) report.
The report found that the Federated States of Micronesia’s population fell 26 percent between the 2010 and 2023 censuses, dropping from 102,843 to 75,817.
The Marshall Islands lost 20 percent of its population between 2011 and 2021, declining from 53,158 to 42,418 residents. Officials in both countries estimate the current populations may now be even lower.
Researchers said the migration trend has accelerated as citizens of the freely associated states relocate to the United States and its territories under the Compacts of Free Association, which allow eligible Micronesian citizens to live and work in the U.S without visas.
The report said many Micronesians are leaving in search of higher-paying jobs, improved health care and expanded educational opportunities.
“Micronesians move internally and abroad for better-paying jobs, educational opportunities and access to health services,” FSM officials told GAO investigators.
In the Marshall Islands, officials said economic constraints on outer islands have become a major factor driving residents to leave for overseas destinations or to urban centres such as Majuro and Ebeye.
“Few jobs are available in the outer islands, and full-time opportunities are usually limited to teacher or health-assistant positions,” the report stated.
The report found that migration is now reshaping the economies and public services of both countries.
In FSM and the Marshall Islands, shrinking populations have contributed to shortages of teachers, health workers and skilled construction labor, according to government officials interviewed by GAO.
Some infrastructure projects funded through the compact agreements have struggled to find enough qualified local workers, forcing governments and contractors to recruit labor from countries such as the Philippines and Fiji.
Officials also warned that continued migration is increasing the cost of maintaining basic government services.
According to the report, some schools in the Marshall Islands’ outer islands now have fewer than 10 students due to population decline. Government officials said the country has started using multigrade classrooms as teacher shortages worsen.
The Asian Development Bank (ADB) told investigators that population loss creates a cycle that becomes difficult to reverse. As populations decline, the cost of delivering education and health services rises, which can reduce service quality and encourage even more migration.
Despite population losses in FSM and the Marshall Islands, Palau’s population remained relatively stable between 2012 and 2020 at around 17,500 residents. Palau officials told GAO that stronger economic activity and tourism helped encourage residents to stay.
The GAO analysis of U.S Customs and Border Protection data found that from 2017 through 2024, nearly 48,000 more citizens from the freely associated states entered the U.S and its territories than departed. Most of those migrants came from FSM.
The report said migration continued even during periods when travel restrictions were in place during the pandemic.
The findings come as the United States continues implementing renewed Compact of Free Association agreements signed in 2023 with FSM, the Marshall Islands and Palau. The agreements extend U.S economic assistance for another 20 years and provide more than $6 billion collectively through 2043 for education, health care, infrastructure and trust funds.
The report found that all three countries plan to prioritise health and education spending with compact funding, but implementation has faced obstacles, including labor shortages, construction delays, inflation, and logistical challenges tied to the region’s geographic isolation.
In FSM, compact-funded projects include new schools, medical dispensaries and upgrades to transportation infrastructure. In the Marshall Islands, planned projects include outer island schools, hospital repairs and sea wall construction.
Palau plans to use compact funding for school construction and hospital repairs.
But officials warned that population decline could complicate long-term planning for those projects.
According to the report, shrinking populations are already affecting how governments allocate compact funding, especially in outer islands, where schools and health facilities serve fewer residents.
The report also noted that migration has financial consequences for governments. Fewer residents can mean lower tax revenue and reduced economic activity, even as governments continue facing high costs to maintain services across remote island chains.
At the same time, U.S. and Pacific officials said the compact agreements remain strategically important because they provide the United States with military access across much of the Pacific region…. PACNEWS