Labor market in Solomon Islands

The labor market in Solomon Islands is highly fragmented. The Labour Division and Commissioner of Labour, the Ministry of Commerce, Industry, Labour and Immigration (MCILI), the Solomon Islands National Statistics Office (SINSO), the National Employment and Economic Council (NEEC) and other institutions support different parts of the system. There is no single current national labor-force survey or complete job-matching database covering every form of work. The 2019 Population and Housing Census remains the latest nationwide labor-force basis. Among people aged 12 and above, labor-force participation was 55.4%: 58.6% for men and 52.2% for women. Participation was 56.7% in rural areas and 52.5% in urban areas. Rennell and Bellona, Isabel and Western recorded the highest participation, while Honiara and Malaita recorded lower rates. More than one third of people aged 12 and above were outside the labor force, commonly because of school, household work, age, retirement, disability or health. The official unemployment rate in 2019 was 7.9%, but it varied widely. It was 12.06% in urban areas, 6.25% in rural areas and 13.5% in Honiara. The expanded measure reached 21.6% in Honiara because it also captures some discouraged workers and people with weak labor-market attachment. Unemployment figures therefore do not show the full extent of underemployment, subsistence work or people who want work but are not actively searching. Agriculture, including subsistence production, is economically central; the World Bank estimated that agricultural workers represented 68% of employment in 2019. In the adjusted 2019 non-agricultural data, education accounted for 16.0% of employment, wholesale and retail for 14.1%, construction for 11.7%, public administration for 9.2%, public safety for 9.2%, transport and storage for 8.7%, manufacturing for 7.2%, health for 4.5% and mining and quarrying for 1.3%. Professionals and technicians together represented only about one tenth of workers. Employment statistics require careful interpretation. In the adjusted 2019 non-agricultural sample, 68,725 people were employed, including 65,708 in formal work and 3,017 in informal work. An unadjusted measure produced a different picture because it included categories in which informal work was dominant. The 2024 NEEC census recorded 22,567 establishments, of which 11,991 were formal and 10,576 informal, together employing 36,275 recorded workers. Trade represented 78.3% of the establishments and 71.2% of recorded workers. Manufacturing represented 10.3% of establishments, and accommodation and food services 4.8%. These figures exclude much subsistence production and several mobile, household-based or unregistered activities, including hawkers and individual taxi, truck and boat operators. Honiara is the main center for formal jobs and public administration, but it also has the highest recorded urban unemployment. Rural-to-urban movement is linked to access to jobs, education and health services. In the 2024 NEEC data, Malaita had 6,697 establishments, Honiara 4,991 and Guadalcanal 3,307; together they accounted for 66.4% of recorded establishments. Recorded workers numbered 15,911 in Honiara, 10,185 in Guadalcanal and 9,912 in Malaita. Distance between islands, transport costs and limited internet access make recruitment and job matching more difficult outside major centers. Around 9,000 young Solomon Islanders are estimated to enter the labor force each year, compared with about 2,100 new formal jobs. Economic growth was projected at about 2.8% in 2026 and was strongly influenced by mining. Mining accounted for more than half of exports in 2025, compared with 4% in 2019, but its export importance does not translate into a similar number of jobs. Higher-value agriculture, fisheries, tourism, renewable energy, infrastructure, digital services and private-sector development offer broader employment potential, although the benefits are likely to differ by province. Training and job access include SINU TAFE Certificates II, III and IV, Rural Training Centres, APTC courses, NTTT trade testing and the National Apprenticeship and Training programme (NAT), which combines classroom learning with employment. NAT programmes can last four years. There were 102 new apprentices in 2024, and an MCILI expression-of-interest process for the first semester of 2027 listed six trades with 30 places each. The 2026 National TVET Policy and its 2026–2031 implementation framework emphasize employer involvement, quality and progression. The SIG Vacancy Portal and the Ministry of Public Service recruitment process provide a formal public-service channel using an application form or CV and copies of qualifications. Private and informal matching is more decentralized and commonly involves small companies, family or community networks and direct contact with employers. The Labour Act, Cap. 73 allows the responsible minister to set minimum wages by occupation, area or province after consultation. A national order effective from 1 August 2019 set SBD 8 per hour for other sectors and SBD 7.20 per hour for agriculture, plantations and fishing. Employers must not pay below the applicable minimum, and breaches can attract sanctions. The supplied evidence does not establish a newer nationwide wage order or a reliable current median-wage statistic, so nominal pay should be compared with inflation and the real cost of living. The Labour Division and MCILI administer laws covering employment, wages, disputes, unfair dismissal, workmen’s compensation, workplace safety and trade unions. Occupational safety rules cover full-time, part-time, permanent, temporary and casual workers, home-based workers, volunteers and apprentices. Employers must provide safe work, information, instruction and training. A work accident causing more than three days of incapacity must be reported within seven days. A complaint about unfair dismissal must be submitted to the Trade Disputes Panel within three months. The panel can provide conciliation and arbitration. Equal remuneration, protection against discrimination and freedom of association are part of the local labor standards. Non-citizens generally need a work permit, a separate entry or residence permit and supporting documents such as a contract, CV, qualifications, references, an organization chart, a localization training programme and evidence of a local job advertisement and rejected applicants. The employer must show that no suitable and available trained Solomon Islander could fill the position. Processing is approximately seven days for investors and 14 days for foreign workers. The listed fees include SBD 5 for the form, SBD 200 for the application, SBD 150 for approval for less than three months and SBD 1,100 for approval lasting 20 to 24 months; appeals and variations cost SBD 500. The Commissioner can cancel a permit for non-compliance. The MFAET Labour Mobility Unit manages Solomon Islands participation in Australia’s Pacific Australia Labour Mobility scheme and New Zealand’s Recognised Seasonal Employer scheme. PALM placements may be seasonal for up to nine months or long-term for one to four years. RSE placements concern horticulture and viticulture and may last up to seven months in an 11-month period. Labour mobility can provide income, skills and remittances; Solomon Islander labour-mobility remittances were estimated at about AUD 80 million in 2024. Recruitment quality, worker welfare, compliance, family arrangements and return planning affect the results. These overseas pathways complement rather than replace domestic job creation.