New Zealand’s pool of labor is expanding at the fastest pace in more than two years as the nation’s re-opened border allows in more foreign workers.
(Bloomberg) — New Zealand’s pool of labor is expanding at the fastest pace in more than two years as the nation’s re-opened border allows in more foreign workers.
The number of residents aged 15 years and over who could work rose by 48,900 in the year through March to an estimated 4,151,000, Statistics New Zealand said Wednesday in Wellington. That’s up from a revised 29,600 in December and is the biggest annual gain since the end of 2020.
More workers may help take pressure off wages, which have been driven higher by a scarcity of labor and helped push inflation to a three-decade high. Economists predict the Reserve Bank may be nearing the end of its monetary tightening cycle as price pressures peak and the nation faces a recession.
The RBNZ is expected to raise the Official Cash Rate a further 25 basis points to 5% later Wednesday.
Ordinary time wages for non-government workers rose at a record annual pace of 4.3% in the fourth quarter, and the RBNZ in February projected an acceleration to above 5% by late 2023.
New Zealand began progressively re-opening its border last year after it was closed in March 2020 at the onset on the Covid-19 pandemic. That has started to lift the inflow of migrant workers, although there have also been changes and delays to visa rules and many companies continue to report shortages of skilled staff.
The RBNZ in February projected the working age population will grow by 61,000 in 2023.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.