Productivity Commission to consider impact of immigration

Monday, 3 May 2021

Grant Robertson: ‘For example, some firms, industries and regions rely heavily on migration to meet their skill and labour needs and there is concern that this has led to downward pressure on wages.’

A Productivity Commission inquiry will consider the impact of immigration on the labour market, housing and natural environment.

The inquiry was announced on Monday and will be the first under new commission chair Ganesh Nana.

Finance Minister Grant Robertson said the disruption of Covid-19 had provided a “rare and unique” opportunity to closely examine immigration.

He said it was an area that made a significant contribution to the country’s labour market, culture and society.

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“Many migrants settle smoothly and prosper here, benefiting themselves, their families and New Zealand. They bring a highly valuable diversity of skills, talents, knowledge, experience, international connections, and financial social and cultural capital,” he said.

“However, it is important that we better understand the economic and other impacts of New Zealand’s immigration system.

“For example, some firms, industries and regions rely heavily on migration to meet their skill and labour needs and there is concern that this has led to downward pressure on wages. Further, despite the large increase in net migration in the last decade, skill shortages remain in some industries.

“This inquiry will enable New Zealand to strategically optimise its immigration settings by taking a system-wide view, including the impact of immigration on the labour market, housing and associated infrastructure, and the natural environment.”

This inquiry will complement existing work being led by the Minister of Immigration, Kris Faafoi, including the implementation of reforms to temporary work visas and a review of the Skilled Migrant Category visa.

“The Productivity Commission inquiry is a chance to take a longer term look at the immigration system. We will also be making changes to our immigration settings this year, as we prepare for the opening of our borders and continue to tilt the balance away from low-skilled work, by attracting high-skilled migrants and meeting genuine skills shortages,” Faafoi said.

“I expect to announce the direction of more immediate changes in the coming weeks.”