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Palau President Surangel Whipps Jr. said at a press conference on Wednesday, June 26, 2024, that preventing Palauans from migrating out of the country is one of the biggest challenges facing Palau.
“Since the Compact of Free Association came into effect, more than half of Palau’s population has emigrated,” Whipps said. He pointed out that although the phenomenon of emigration began before the Compact of Free Association came into effect, it increased after the implementation of the Compact of Free Association, and the COVID-19 pandemic has further exacerbated this phenomenon, as the pandemic has led to a reduction in job opportunities and forced 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 a visa or work permit, making immigration easier.
Under the agreement, Palauans are also eligible for educational grants such as Pell Grants in the U.S., making tuition at U.S. colleges and universities more affordable. The recently adopted Agreement to Review the Agreement makes Palauans eligible for in-state tuition at U.S. colleges and universities, further increasing educational opportunities for young Palauan scholars and boosting outmigration.
Whipps acknowledged that encouraging Palauans to return home is a difficult task, explaining that higher wages in the United States and higher unemployment rates in the wake of the coronavirus pandemic make it easier for Palauans to find jobs in the United States and harder to stay in Palau.
To motivate Palauans to return home and contribute to nation-building, Whipps stressed the need for Palau to create opportunities. This includes tasking the Ministry of Human Resources, Culture and Tourism to help Palauans find jobs, provide training, and ensure a decent living wage and housing.
“In order to keep our young people in Palau, we have to develop a strong and resilient economy, and part of that is developing a diversified economy,” Whipps said. “Part of that is finding new opportunities, such as in the financial sector, and diversifying the tourism industry,” he added. Whipps also stressed that the military presence in Palau has brought new opportunities, such as Palauan veterans returning home and working in military facilities.
In a message to Palau’s youth, Whipps said: “Palau needs you. We need you to build our country. A lot is going to happen in the next five or six years between now and 2030. A lot of development is going to happen and we need you to come back and help build the country.”
However, the solution is not as simple as job opportunities, decent wages and housing. For one young Palauan student who studied and stayed in the United States to work, it was the sense of independence and making decisions about her life that kept her in the U.S. “I love going home to visit my family, but I feel better knowing that I will be back living in the U.S.,” Sharon said.
Others have invested in property and brought their families to the U.S., making the thought of returning home seem out of reach. Another couple said they preferred to live in the U.S. to avoid Palau customs. “I was there for three weeks and I couldn’t believe I had to pay so much for customs in such a short time. It’s unbelievable. I think I’ll save some money to send to my family there instead of coming to live there,” said the wife, who returned to attend a family funeral.
According to the census report, Palau’s population in 2020 was 17,600. As travel resumed after the COVID-19 pandemic, that number has dropped further.
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