Palau can now hire only 6,000 guest workers and once this quota is met the labor division will deny application for new foreign work visas.
Toribiong signed the executive order restricting the number of foreign workers in Palau on Oct. 9.
Government statistics showed that there are 5,432 foreigners compared to 5,930 Palauans in the workforce.
Palau’s total workforce is 11,362.
Toribiong said he recognizes “the need of Palauan employers to hire nonresident workers is important to the development and maintenance of Palau’s economy.”
But, he added, Palau has been overly dependent on cheap foreign labor.
According to his executive order, in the event that the number of work visas issued exceed the quota, no new work visas will be issued but each existing work visa will continue in full force and effect.
Guest workers will also be permitted to renew their visas.
Government statistics showed that 8,223 are working for the private sector while 3,139 are working for the government.
Of the non-Palauan workers, 651 are domestic helpers, 167 are houseboys, 220 are helpers, 77 are farmers, 497 are fishermen, 106 are masseuses and 449 are waitresses.
The executive order was drafted based on the comments made during a recent labor forum, where Palauans expressed concern over the huge number of foreigners working in their country.
Toribiong said he has ordered the Division of Labor to provide him with new data on foreign workers.
He said the increasing number of foreign workers has suppressed the wages being paid to Palauan workers, causing unemployment among locals.
“This depopulation of Palau by Palauans will eventually result in a situation where there are more foreigners living in Palau than there are Palauans,” Toribiong said.
He added that he will only entertain exemptions to the quota on a case by case basis.
