Plunge in net immigration is intensifying New Zealand’s labor shortage and hurting economy to the point that the country’s central bank singled out the issue when it cut interest rates for the first time since 2016 this month by pravemn char_greenfield
WELLINGTON - New Zealand pub owner Chris Dickson worries his staff is overworked. He expected employment visas for two new overseas workers to be approved weeks ago, but the paperwork was delayed with no clear reason given.
Ardern came to power in 2017 promising measures predicted to reduce migration by tens of thousands a year and restrict foreign homebuyers. An overheating housing market and strained infrastructure had left many New Zealanders feeling resentful despite stellar economic growth rates.Economists say demand for foreign labor is specific to sectors where New Zealanders don’t want the jobs - such as agriculture and hospitality - or lack certain expertise, such as construction.
The moderation is partly due to tightened work visa restrictions introduced in the last months of the previous center-right National government’s tenure, but it has been persistent under the Labour-led coalition. Some foreign work visas for cafe and restaurant manager roles were declined recently due to a lack of evidence that effective training and retention strategies were being implemented by the industry to employ New Zealanders, he said.
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