Record High Immigration Numbers Impact New Zealand’s Job Market and Housing

New Zealand is experiencing an unprecedented surge in immigration, reaching an all-time high of 110,000 in the year ending August, surpassing the previous record of 103,000 set just a month earlier, as reported by Statistics New Zealand on Wednesday. This surge marks a significant turnaround, considering that during much of the COVID-19 pandemic, more people were leaving the country than arriving.

Chief economist at Kiwibank, Jarrod Kerr, described these numbers as substantial for a relatively small economy like New Zealand. He suggested that the surge likely reflects pent-up demand that accumulated during the pandemic. Employers, who struggled to find skilled workers last year, are now relieved as the influx of immigrants aids in filling vacant roles.

Despite the positive impact on employment, Kerr cautioned that accommodating these migrants would require significant resources, including tens of thousands of homes, which are currently in short supply. New Zealand’s unemployment rate remains relatively low at 3.6%.

The data reveals that the majority of immigrants came from India, followed by the Philippines and China. The total number of immigrants for the year reached a record 225,000, while the number of New Zealanders leaving also approached record levels, totaling 115,000.

Notably, the figures include a net loss of almost 43,000 New Zealand citizens, many of whom were attracted to Australia by offers of better pay. Under a reciprocal arrangement, New Zealanders and Australians can live and work in either country, leading to concerns about the loss of trained and skilled individuals.

These immigration trends come to light just three days before New Zealand’s general election, though immigration has not been a major campaign issue. The main focus for both major parties has been on addressing the soaring cost of living, tax cuts, and crime.

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