New Zealand labour pool growing at slower pace amid exodus
NEW Zealand’s working-age population increased at a slower pace in the third quarter amid signs that young Kiwis are leaving the country for better opportunities and pay overseas.
The number of residents aged 15 years and over who could work rose by 11,000 in the three months to September to an estimated 4,316,600, Statistics New Zealand said on Wednesday (Oct 2). That’s the slowest increase since the third quarter of 2022, when the nation had just opened its borders after the pandemic lockdowns.
Slower growth of the labour pool mirrors evidence that a surge in net immigration is starting to ebb, particularly as citizens depart in response to cooling economic growth that has curbed hiring and wage gains. A record 81,000 Kiwis – 1.5 per cent of New Zealand’s 5.3 million population – left in the year till July, many heading to Australia for higher-paying jobs.
Prime Minister Christopher Luxon last month told Bloomberg he expects the surge in departures to slow as the economy recovers and the government puts in place policies to make people feel safe in their homes and improve education and health outcomes.
Despite the departures of more citizens, New Zealand continues to attract foreigners to work or study. Net immigration was 67,200 in the 12 months to July.
Today’s report showed the working age population rose by 74,900 in the year through September, slowing from a revised 98,200 in the 12 months to June and a peak of almost 137,000 in the year till December.
The Reserve Bank of New Zealand in August projected the working-age population would grow by 14,000 in the third quarter and by 86,000 in the year till September. BLOOMBERG
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