The Times Australia
The Times World News

.

Record immigration will put pressure on NZ's population, infrastructure and productivity – where’s the election debate?

  • Written by Paul Spoonley, Distinguished Professor, College of Humanities and Social Sciences, Massey University

The concerns of various pundits and politicians earlier this year that New Zealand might struggle to attract immigrants[1] turned out to be premature. In fact, the country’s population has been boosted to the extent it should be a bigger election issue than it is.

In the 12 months to July, total permanent migrant arrivals were 208,400 – exceeding previous levels by quite a margin. Accounting for permanent departures, the net population gain from immigrants has been 96,200.

That breaks all previous records, and even accounts for a return to the consistent pattern of a net loss of New Zealand citizens (39,500 in the same period). There is every indication the country will hit an annual net gain[2] of 100,000 people.

At this rate, inward migration will provide a net annual population gain of 2% for 2023. Once natural increase is added (births over deaths being more than 20,000 a year), the overall rate will be around 2.3% to 2.4%. By contrast, the OECD average is less than 0.5%.

Auckland is beginning another period of rapid population growth, reversing the decline seen in 2021[3]. The city’s growth accounts for around half of the country’s total net migration gain. Combined with a natural increase of around 7,000 to 8,000, it means the city will have significant population growth, even allowing for a net migration loss to other regions[4].

Some of this surge can be explained by the return to relative normal after pandemic restrictions were lifted. But there’s a range of other factors pushing people to New Zealand, including anti-immigrant politics and general disenchantment in other countries.

New Zealand is seen as a desirable destination. In a recent US survey[5] Americans ranked New Zealand second on their list of “best countries” – ahead of the US itself.

Auckland is growing again, accounting for around half of the country’s total net migration gain. Getty Images

Immigration and productivity

In 2021, at the request of the finance minister, the Productivity Commission examined the ways immigration settings would contribute to the “long-term prosperity and wellbeing” of the country.

The Immigration – Fit for the Future[6] report released in 2022 provided a very complete review of the data and issues. While it indicated that immigration and immigrants have positive effects and outcomes for New Zealand, it also pointed to a lack of consistency and strategy, and little public accountability.

Read more: Refugees who set up businesses enrich NZ financially, culturally and socially – they deserve more support[7]

Key findings included what the commission referred to as “an infrastructure deficit” as investment failed to keep up with population growth. It also described a “reliance risk” on migrant labour that had “negative consequences on innovation and productivity”.

In the trade-off between a reliance on migrant labour or investing in new technologies, the concern is that migrant labour presents an easy win, with little incentive for employers to innovate.

Yet the significant implications of the current immigration surge for planning and productivity are noticeably absent from this election campaign.

The missing election issue

Mostly, the main parties are positive about the role and contribution of immigrants (unlike some countries where anti-migrant sentiment has been rising). But the parties are also mainly concerned with policy detail, not the bigger picture.

Labour, National, ACT and the Greens all propose family and parent visas. This is to be welcomed, as migration works best when extended families are involved. And there is a general recognition that talent recruitment needs more attention.

Read more: Why has New Zealand welcomed Ukrainians fleeing war and not others trying to do the same?[8]

Specifically, Labour wants Pasifika and other migrants who have been in New Zealand for ten years or more to gain residency. The Greens propose a review of refugee and asylum-seeker policy. National wants a new visa category for highly educated migrants. And ACT would require a regulatory impact analysis for all immigration policy.

For its part, New Zealand First refers back to its policies from the 2020 election. This includes statements about the negative impact of “cheap labour undermining New Zealand’s pay and conditions”, something the Productivity Commission found little evidence of.

But the party also suggested greater attention should be given to a more regionally dispersed population and the establishment of a 30-year population plan. Somewhat by default, then, New Zealand First highlights the gaps in other parties’ policy recommendations.

Read more: Foreign policy has been missing from NZ's election campaign – voters deserve answers to these big questions[9]

Where is the population strategy?

A more robust and constructive election debate would have addressed those big gaps more directly.

What should be New Zealand’s annual target for migrants, both permanent and temporary? How do we meet the challenges created by the current high volume, including the processing of applications, potential for migrant exploitation, and the stress on services and infrastructure?

More broadly, shouldn’t we be looking at immigration policy in the context of all the elements in play? This would mean factoring in the rapid ageing of the population, declining fertility and very different regional demographic trajectories (with some places experiencing population stagnation or decline).

Asked in a recent radio interview[10] about the housing and infrastructure challenges of immigration and record population growth, National leader (and potentially next prime minister) Christopher Luxon argued the numbers were a “catch-up” from the COVID years:

We’ve got to make sure immigration is always strongly linked to our economic agenda and where we have worker shortages.

This only emphasises the lack of a genuine national plan. Now that the workers kept out by COVID are flowing into the country in large numbers, the Productivity Commission’s observations and suggestions are more relevant than ever.

Otherwise, New Zealand risks allowing immigration to be the default answer to much harder questions about innovation, productivity and the development of a long-term population strategy.

Read more https://theconversation.com/record-immigration-will-put-pressure-on-nzs-population-infrastructure-and-productivity-wheres-the-election-debate-214952

Times Magazine

Building an AI-First Culture in Your Company

AI isn't just something to think about anymore - it's becoming part of how we live and work, whether we like it or not. At the office, it definitely helps us move faster. But here's the thing: just using tools like ChatGPT or plugging AI into your wo...

Data Management Isn't Just About Tech—Here’s Why It’s a Human Problem Too

Photo by Kevin Kuby Manuel O. Diaz Jr.We live in a world drowning in data. Every click, swipe, medical scan, and financial transaction generates information, so much that managing it all has become one of the biggest challenges of our digital age. Bu...

Headless CMS in Digital Twins and 3D Product Experiences

Image by freepik As the metaverse becomes more advanced and accessible, it's clear that multiple sectors will use digital twins and 3D product experiences to visualize, connect, and streamline efforts better. A digital twin is a virtual replica of ...

The Decline of Hyper-Casual: How Mid-Core Mobile Games Took Over in 2025

In recent years, the mobile gaming landscape has undergone a significant transformation, with mid-core mobile games emerging as the dominant force in app stores by 2025. This shift is underpinned by changing user habits and evolving monetization tr...

Understanding ITIL 4 and PRINCE2 Project Management Synergy

Key Highlights ITIL 4 focuses on IT service management, emphasising continual improvement and value creation through modern digital transformation approaches. PRINCE2 project management supports systematic planning and execution of projects wit...

What AI Adoption Means for the Future of Workplace Risk Management

Image by freepik As industrial operations become more complex and fast-paced, the risks faced by workers and employers alike continue to grow. Traditional safety models—reliant on manual oversight, reactive investigations, and standardised checklist...

The Times Features

Flipping vs. Holding: Which Investment Strategy Is Right for You?

Are you wondering whether flipping a property or holding onto it is the better investment strategy? The answer isn’t one-size-fits-all. Both strategies have distinct advantages a...

Why Everyone's Talking About Sea Moss - And Should You Try It Too?

Sea moss - a humble marine plant that’s been used for centuries - is making a major comeback in modern wellness circles. And it’s not just a trend. With growing interest from athle...

A Guide to Smarter Real Estate Accounting: What You Might Be Overlooking

Real estate accounting can be a complex terrain, even for experienced investors and property managers. From tracking rental income to managing property expenses, the financial in...

What Is the Dreamtime? Understanding Aboriginal Creation Stories Through Art

Aboriginal culture is built on the deep and important meaning of Dreamtime, which links beliefs and history with the elements that make life. It’s not just myths; the Dreamtime i...

How Short-Term Lenders Offer Long-Lasting Benefits in Australia

In the world of personal and business finance, short-term lenders are often viewed as temporary fixes—quick solutions for urgent cash needs. However, in Australia, short-term len...

Why School Breaks Are the Perfect Time to Build Real Game Skills

School holidays provide uninterrupted time to focus on individual skill development Players often return sharper and more confident after structured break-time training Holid...