There was a significant decline in the number of people arriving in New Zealand on work visas last month.
The latest figures from the Ministry of Business Innovation and Employment (MBIE) show 15,873 people arrived in NZ on work visas in April, down by 22% compared to the 20,442 that arrived in March.
That brought an end to the steady increase in overseas workers arriving evident since March last year.
It has been difficult to pick medium to long term trends in overseas workers coming to NZ since their numbers were reduced to just a few hundred a month between April 2020 and March 2022 by pandemic restrictions.
That created a pent up demand for foreign workers which saw their arrivals rise to 20,442 in March this year.
However the latest dip suggests the pent up demand for workers may now be reducing and numbers are returning to more normal levels.
As well as the 22% decline in the number arriving last month, the number of work visas approved by MBIE dropped even more sharply, from 28,065 in March, to 19,776 in April. That's down 29.5%.
The number of arrivals on work visas now appears to be normalising at or near pre-pandemic levels and in April this year was down just 3.4% compared to April 2019.
Changing economic conditions are also likely to affect the number of overseas workers arriving, particularly if the economy dips into recession, as many commentators expect.
For example, one industry that has been been hampered by a shortage of workers over the last few years has been the construction industry.
However the latest building consent figures suggest the industry could be heading for a sharp downward correction in activity later this year, which would likely result in job losses for existing workers and also reduce demand for overseas workers.
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