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Will the recent fall in unemployment rates affect the ‘immigration debate’ in New Zealand?

Will the recent fall in unemployment rates affect the ‘immigration debate’ in New Zealand?

The growing concerns that new immigrants are taking away more Kiwi jobs might be allayed to some extent after Statistics NZ revealed today that unemployment rate fell to 4.9 per cent in the March 2017 quarter (down from 5.2 per cent in the previous quarter), while employment continued to grow.

“In the March quarter, 6,000 fewer people were unemployed,” labour market and household statistics senior manager Mark Gordon said.

“The unemployment rate for men fell from 4.8 percent to 4.2 percent, making it the lowest rate since the December 2008 quarter,” Mr Gordon further added.

However, to what extent, if any, would this new report alter the current immigration debate in this election year remains to be seen.

Lately, the figures of Statistics NZ had been at the forefront of anti-immigration narrative in New Zealand.

The new immigrants taking away the jobs and keeping more numbers of local Kiwis out of employment is one central theme of this narrative.

The government have recently responded to these growing concerns by introducing a minimum income threshold to qualify for gaining entry in New Zealand through Skilled Migration Category route.

Anyone entering on a prioritised "skilled" visa would need to earn $49,000 for jobs considered currently skilled, or $73,299 for positions not currently considered skilled but are well paid.

The announcement described as “tinkering” by the Labour Party is already pushing some businesses and industry association relying heavily on migrant workers into anxiety for fear of dearth of the employable work force.

The latest report released by Statistics NZ might give some food for thought for all of us to ponder and soothe over the narrative that immigrants are taking away jobs of local kiwis.

According to Statistics NZ, unemployed people are those who are available to work, and who had either actively sought work or had a new job to start within the next four weeks.

The number of employed people increased 1.2 percent (29,000 people) in the March 2017 quarter. Men provided the main contribution to this increase, with more males in both full-time and part-time employment. For the sixth quarter in a row, employment growth exceeded growth in the working-age population (which was 0.7 percent). This meant New Zealand’s employment rate was up by 0.3 percentage points, to 67.1 percent.

Filled jobs (as measured by the Quarterly Employment Survey) increased 2.4 percent over the year to the March 2017 quarter. The accommodation and food services and construction industries contributed almost half this increase – 32,300 more jobs.

Growth in employment in construction industry, and outside Auckland

While the immigration debate which is partly fuelled by the fear of rising unemployment among the local Kiwis particularly around Auckland, it is opportune time to include the developments outside Auckland region in this [immigration] debate.

The recent report released by Statistics NZ tells us that employment is growing in regions outside Auckland.

“We're also starting to see construction employment build in regions other than Auckland and Canterbury,” Mr Gordon said.

“Over the quarter, the Household Labour Force Survey showed a significant increase in employment in the Waikato region, which included 3,600 more people working in construction” Mr Gordon added.

Annual wage inflation, as measured by the labour cost index (LCI), held steady at 1.6 percent in the March 2017 quarter. Over the same time period, the consumers’ price index (CPI) increased 2.2 percent.

The growing concerns that new immigrants are taking away more Kiwi jobs might be allayed to some extent after Statistics NZ revealed today that unemployment rate fell to 4.9 per cent in the March 2017 quarter (down from 5.2 per cent in the previous quarter), while employment continued to grow.

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