Employing Workers from the Pacific Islands and Timor-Leste: Webinar

Pacific Labour Mobility at a Crossroads

The Pacific Australia Labour Mobility (PALM) scheme has evolved from a seasonal fix for agriculture into a semi-permanent labour source across regional Australia. Workers from nine Pacific Island countries and Timor-Leste fill roles in horticulture, meat processing, and increasingly in health care and accommodation, with numbers hovering around 28,500 in late 2025 after peaking at nearly 35,000 in 2023.

Australian industries rely on this labour amid persistent shortages, particularly in rural areas where local workers prove hard to attract. Remittances from PALM participants reached A$450 million in 2024-25, averaging A$1,500 per worker monthly, funding essentials like food, education, and housing in home countries while building skills for returnees.

Yet the scheme faces growing scrutiny. Reports highlight exploitation risks under employer-tied visas, where workers fear speaking out about poor conditions due to limited job mobility. Critics argue Australia captures most economic value—close to A$1 billion in some estimates—while Pacific nations risk over-dependence on temporary migration flows that may drain talent without sufficient 'brain gain' returns.

Policy adjustments reflect these pressures. The government extended the minimum 120 hours over four weeks requirement for short-term workers indefinitely past March 31, 2026, following consultations with employers, unions, workers, and partner countries. This aims to secure income stability amid disruptions like natural disasters, but it leaves broader reforms—like portable employment or family accompaniment pilots—under debate.

Non-obvious trade-offs include employers shifting back to backpackers for short-term seasonal work, seen as less regulated and cheaper, contributing to declining short-term PALM recruitment despite steady long-term numbers. Meanwhile, Pacific leaders warn of excessive reliance on such schemes, as benefits skew toward Australia and New Zealand, prompting calls for rebalancing to ensure genuine mutual gains.