The number of overseas workers coming to New Zealand is gathering pace, with 8061 people arriving in Aotearoa on work visas in August, according to the Ministry of Business Innovation and Employment.
That is still well below the 20,148 who arrived on work visas in August 2019 before pandemic restrictions were introduced, but the numbers have been steadily increasing every month since February this year when just 285 people arrived on work visas. (The second graph below shows the monthly trend since January 2017).
However while the number of overseas workers entering the country has been steadily increasing since the start of this year, the total number of people in the country on work visas has declined sharply over the same period.
At the end of December last year, there were 175,269, people in NZ on work visas, but that number had declined to 108,918 by the end of August this year, a reduction of 66,351 (-38%) in eight months.
Most of that decline will almost certainly be due to people on work visas receiving residence visas under the 2021 Residence Visa Scheme set up by the Government last year.
This provided a fast track residence visa application process for skilled overseas workers who had already been in this country for several years.
That has seen the number of people in NZ on residence visas increase by 60,870 since the end of last year.
The transfer of people from work to residence visas can clearly be seen in the first graph below, which shows the trend for the population of both visa types since July 2014.
So the trend for overseas workers in NZ so far this year has been for around 60,000 to transfer to residence visas, enabling them to become established long term, while another 26,962 have arrived on work visas since the start of the year.
We are also seeing the start of overseas students returning.
The third graph below shows the number of people entering NZ each month on student visas.
This followed a very regular seasonal pattern up until the second quarter of 2020 when pandemic restrictions saw their numbers fall to almost nothing.
Those numbers have also started to increase, from just 93 in January this year to 4152 in July and then dropping back down to 1644 in August.
However as the graph shows, student arrivals are traditionally low at this time of year with overseas students not usually arriving in big numbers until January and February for the start of the academic year.
So it will likely be a few more months before know what overseas student numbers will look like long term now that pandemic restrictions have largely ended.
The comment stream on this story is now closed.
- You can have articles like this delivered directly to your inbox via our free Property Newsletter. We send it out 3-5 times a week with all of our property-related news, including auction results, interest rate movements and market commentary and analysis. To start receiving them, register here (it's free) and when approved you can select any of our free email newsletters.
49 Comments
Saw the following article on Stuff this morning:
https://www.stuff.co.nz/business/129934492/why-does-everyone-want-to-wo…
Interesting then that there's apparently such a shortage of ag/hort workers (those lazy, spoiled Kiwis!), that we have to import them all from overseas.
Since Labour got elected the minimum wage has gone up 35% while the number of people on Jobseeker has gone up 48%. Job availability and higher pay is doing absolutely nothing to stop the formulation of a permanent welfare class in this country. We will always need more immigrants to do the work that a large section of the citizenry have decided they cant be bothered doing.
We will always need more immigrants to do the work that a large section of the citizenry have decided they cant be bothered doing
People always seem to leave off the last part of that sentence: "...for minimum wage".
Yes, I know that employers are being forced to pay more than the bare minimum these days, but it's still in no way sufficient compensation for the work being done. The only reason non-citizens are willing to put up with it is as a pathway to residency. This whole "lazy Kiwi" narrative is a myth.
Work out the difference between minimum wage and the benefit, and see if the result would motivate you to get out of bed and put in 40 hours a week of hard labour.
Then ask yourself whether the problem is that the benefit is too high, or the minimum wage is too low.
Not quite. KW's assertion was that the benefit is too high to incentivise working. What I'm saying is that it could just as easily be wages which are too low.
If it's the word "benefit" which keeps ruffling feathers here, get rid of it completely. Would you get out of bed and work a 40+ hours per week picking fruit in the hot sun for minimum wage, even without a benefit to fall back on?
Or this:
Central Otago's horticulture and viticulture sector acknowledges it underestimated interest from Kiwis in seasonal work and is struggling to deal with "skyrocketing" applications, an industry leader says.
The industry has faced criticism for not responding to applications from New Zealanders seeking picking jobs and over-reliance on recognised seasonal employer (RSE) scheme workers. Granny Herald
Or this:
Covid-19 coronavirus: Locals keen to pick fruit ignored or rejected, foreign workers allowed to enter NZ Granny Herald
And this:
He said for entry-level wait and bar staff, the hourly wage range is around $23.50 to $25, while senior staff and chefs are offered around $27.50 to $32.
Doesn't seem like a lot of money for senior staff. I guess they could try paying more...
One article from 2020.
One article where the owner of Lonestar bar later acknowledged that he hadn’t advertised in over 6 months because “what’s the point”.
There are literally thousands of well paid low skilled jobs available. It’s just easier to stay at home and watch Netflix and pick up your paycheck!
The government needs to incentivize working, not incentivize staying at home!
*edited autocorrect*
Last comparison I saw, benefits were still below what they were in the 1980s.
Most of our benefit budget is spent on the pension. The only benefit we hand out regardless of need.
But I agree we should incentivise work over unproductive alternatives. Lower income tax significantly and raise an LVT, that incentivise productive work rather than sitting around on our ass-ets.
Can you explain why we have so many individuals on jobseekers benefit at a time of record low unemployment and thousands of positions paying well above minimum wage?
Stevedoring (for example) has shortages and is high paying for low skill entry positions.
This is not a myth, it’s a fact.
I saw this two months ago
https://www.theguardian.com/world/2022/jul/14/100-pure-rip-off-new-zeal…
The most popular listing was for a station cook, gardener and handyman in Queenstown Lakes
Retail and hospitality and tourism jobs continued to be in demand
Politicians and business lobbies have been trying to convince us that the immigration system bring in "talent", when in reality talent does not want to live in NZ.
However, we are a popular destination among economic refugees, i.e., those fleeing worse socioeconomic conditions and will take low-paid jobs to move here permanently.
100% pure rip-off? New Zealand voted second-worst place to move to | New Zealand | The Guardian
How about the special treatment offered to UK residents who go straight into council or government postions (on huge salaries) and contribute sweet f##%l- all to the nation? Any one...???
Edit - might be to close to the bone to some of the commentators on this site
Do you have any proof that UK residents are more likely to go 'straight into to council or government positions'? Or is it a bigotry against people from the UK.
Proudly English with forefathers killing Nazi's in WWII, Germans in WWI and Russians@Balaclava.
The end of some farms, Takeaways, Tourism, Hospitality businesses. No one has a right to own and run a business in New Zealand that requires a constant supply of low wage, low skill imported labor to be viable. These workers can not afford to live in NZ and pay adequate tax to offset their costs. Government borrowing and taxation has to step in to cover the shortfall. This is an effective subsidy to those businesses. Better businesses will survive and be able to pay more to workers or have capital to invest in technology to improve productivity.
Many of the low paying industries are either not viable at much higher labour cost, or are essential and will just pass on the labour costs to consumers. without those industries the economy will tank especially as a lot are exporters, and we have cheap labour again - it will be you and me doing the low wage jobs instead!
Eliminate immigration of unskilled labor, cut back welfare for able-bodied persons, and see where the market price for unskilled labor settles. My guess is that it settles considerably higher than it is today. If there are still labor shortages after doing that (as there are for nurses, doctors, etc.), then increase the relevant immigration quotas.
It's pretty obvious that many businesses are happy with the immigration status quo (pre and it seems post-covid), since it allows them to profit even as it harms society. Not that different from the attitude of landlords toward the accommodation supplement.
We've had multiple population policies for a while now.
Working for Families has been a thing for nearly 2 decades, to try an promote both having children, and for parents to work.
And relatively easy (by Western nation standards) immigration, with ongoing policy adjustment.
I guess we could go full hog and have a population ministry, who are forecasting how many more workers we need, 25 years out, then annually collate departure and death numbers, tweak immigration etc.
The problem is that's come, with little coordination, out of Wellington, who are then quite happy to stuff around when it comes to providing the infrastructure to places where those people end up moving, which is not-Wellington, because it means more work for them and they get paid whether it happens or not - and the fallout from the delays don't affect them at all.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.