By Alex Tarrant
Government is aware of competitive threats from the Australian jobs market, although a strong Australian economy helps New Zealand, Prime Minister John Key said after the Australian government forecast the creation of 500,000 jobs in two years.
Australian Treasurer Wayne Swan said government's budget would help create half a million jobs over the next two years to deal with a skills shortage in sectors such as mining, and to replace retiring baby boomers.
Job seekers in Australia would be encouraged to move into areas of low employment such as infrastructure, transport and government services sectors.
Swan said he would like the jobs to be filled by Australians and not through migration policies, although there could be a short-term migration boost to deal with shortages in mining jobs. New Zealand has extremely flexible labour laws with Australia, with citizens from both countries allowed to work in the other without a work visa. See Gareth Vaughan's article on how an average 139 New Zealand citizens a day left permanently to live in Australia in February.
Also, see Amanda Morrall's piece on the widening wage gap with Australia.
The news of Australia ramping jobs growth also comes as New Zealand faces a trade skills shortage as it rebuilds Christchurch, increased house building demand in Auckand and a pick-up in the repair of leaky buildings.
Key said the government was always conscious of competitive threats with Australia, but was also conscious of the fact that a strong Australian economy helped New Zealand.
"So it’s a double-edged sword. I actually think if you look at the steps we have taken as a government, they’ve been positive," Key told media at his post-cabinet press conference in Wellington.
"We have a much lower top personal [income tax] rate than Australia, we’re starting to invest heavily in our infrastructure, and I think actually as the AFR [Australian Financial Review] pointed out in one of its articles a couple of weeks ago, if you strip mining out from Australia - it’s very much a two speed economy over there," Key said.
"I think in many respects New Zealand’s doing quite well. That doesn’t mean there’s not a lot more that we need to do,” he said.
Government was doing a lot in the area of job creation strategies.
"We’re going to see the unemployment data this week. I don’t know what it’ll be like, but the government’s been doing what it can practically to stimulate the economy and to create jobs," Key said.
"From what I see in terms of the unemployment data at least, that unemployment data is tracking down. And in the leading area, which is Auckland, those on an unemployment benefit are considerably lower today than they were for instance this time last year," he said.
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