Employment in Papua New Guinea
An overview of employment in Papua New Guinea, including formal/informal sector employment, employment figures by industry and relevant organisations.
Credit: R D Tuna Canners
The vast majority of Papua New Guineans are employed in the informal sector, mainly in subsistence agriculture. Participation in the formal sector is estimated at only about 15 per cent of PNG’s total workforce.
Informal sector employment is particularly widespread in the youth population (approximately 43 per cent of Papua New Guineans are under the age of 18). Young people are under-represented in the formal sector. According to the World Bank, those aged between 15 and 24 account for only two per cent of formal sector employment (and only 1.5 per cent in rural areas). Twice as many men as women are employed in the formal sector.
Total formal employment has risen 68 per cent between 2002 and 2025, according to a Bank of PNG index in which March 2002 figures represent a score of 100. The rise in overall employment reflects roughly the same percentage increase in population in the same period. Employment in the mineral (mining, petroleum and gas) sector rose more than four-fold in that period, while employment in the manufacturing sector more than doubled. On the other hand, formal employment in the construction sector was lower in 2025 than in 2002, and fell by two-thirds in 2025 from its 2014-15 peak.
Employment growth by sector, from 2015 to 2025
| Sector | Increase/decrease |
|---|---|
| Retail | down 9% |
| Wholesale | down 20% |
| Manufacturing | up 26% |
| Building and construction | down 62% |
| Transportation | up 13% |
| Agriculture/forestry/fisheries | up 7% |
| Financial/Business services | down 8% |
| Minerals | up 73% |
| Total | up 3.6% |
| Total (non-minerals) | up 1.2% |
Source: Bank of PNG
The informal sector employs the majority of the working-age population, mostly in low-productivity subsistence agriculture.
PNG’s National Minimum Wage is set by the Minimum Wages Board. After almost a decade of no increase, the board announced an increase in the minimum wage from K3.50 to K5 per hour on 1 January 2026, with further increases to K5.25 per hour in January 2027 and K5.50 per hour in January 2028.
According to the World Bank, children born in Papua New Guinea will be only 43 per cent as productive when they grow up as they would have been if they enjoyed a complete education and full health. Papua New Guinea’s Human Capital Index of 43 per cent is below the regional average for East Asia and the Pacific of 59 per cent and lower middle income countries of 48 per cent.
While progress has been made developing skilled workers, especially in the resources and ICT sectors, the majority of PNG’s labour force is low-skilled, with the majority of the population not educated beyond Grade 10. Standards in post-secondary education are also poor, with a critical shortage of skills.
Relevant organisations
- Department of Labour and Industrial Relations (www.labour.gov.pg)
- The Employers Federation of Papua New Guinea (www.efpng.org.pg)
- Papua New Guinea Trade Union Congress (www.facebook.com/PNGTUC)
