New Zealand is seeing a record inflow of migrants as it seeks to alleviate worker shortages that are contributing to inflation.
(Bloomberg) — New Zealand is seeing a record inflow of migrants as it seeks to alleviate worker shortages that are contributing to inflation.
Net immigration rose to 65,440 in the year ended March 31, the biggest net annual gain since August 2020 and up from 52,902 in the 12 months through February, Statistics New Zealand said Friday in Wellington. The gain comprised the arrival of a record 88,900 non-New Zealand citizens, offset by citizen departures of 23,500.
The South Pacific nation has eased immigration policy to relieve labor shortages that became acute when the border was shut during the Covid-19 pandemic. While more workers may reduce pressure on wages, they could also add to demand for goods, services and housing.
New Zealand Jobless Rate Holds Steady, Wage Inflation Climbs
The Reserve Bank, which predicts a recession this year, is expected to raise the Official Cash Rate again later this month then pause as inflation gradually recedes.
The level of non-New Zealand citizen arrivals is higher than the 60,300 average in the five years prior to 2020, the statistics agency said.
The number of New Zealand citizen departures is the most since October 2013. Outside the pandemic years, the nation typically has a net loss of citizens. The exodus peaked at 44,400 in the year through February 2012.
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