This paper presents the key trends in the economies and labour markets of Pacific island countries that are ILO Member Countries and the main issues facing policy makers in promoting decent and productive employment in these economies. It presents past trends and projections in population growth and in working-age cohorts, in formal employment, in the labour force and labour force participation rates, and in national income, and identifies the economic activities that are most likely to provide growth in formal employment in the countries. It also looks at the role being played by migration and overseas employment of Pacific islanders. The paper examines the factors that could most inhibit development of formal labour markets and decent and productive employment during the Asian Decent Work Decade and the role that the ILO could play in helping to overcome these obstacles together with other agencies working in the Pacific region. As the development of appropriate and effective policies will require a solid understanding of current labour market issues and trends, the paper also identifies the key gaps in statistical information on the labour market in the Pacific and how the ILO may assist in filling these gaps.