The first quarter of 2024 witnessed a rise in unemployment rate to 4.2 per cent in New Zealand. This was more than the expected 4.2 per cent. This is indicative of the labour market of the country being tight and the economy being weak.
The jobless rate was four per cent in the fourth quarter, as per officially available data from Statistics New Zealand.
The employment change fell by 0.2 per cent in Q1 from a 0.4 per cent rise previously. Employment change indicates the aggregate rise or fall in the number of workers. A positive employment change means surge in employment, while the opposite indicates a decline in jobs.
In early April, New Zealand had implemented significant changes to its Accredited Employer Work Visa (AEWV) scheme in response to a near-record surge in migration last year. The government deems this rapid influx unsustainable and aims to prioritise both New Zealand citizens and highly-skilled migrants.
The revised programme introduces stricter requirements for low-skilled job seekers. Applicants must now demonstrate English language proficiency and meet minimum skills and work experience thresholds. Additionally, the maximum continuous stay for most low-skilled roles has been reduced from five to three years.
The New Zealand government is trying to attract and retain highly-skilled migrants such as secondary teachers, as there is a shortage of skills in that area. Simultaneously, the country needs to ensure that the locals are considered first in the areas where there is no dearth of skills.
The year 2023 was witness to near-record migration figures with almost 1.73 lakh individuals settling down in New Zealand. As a result, there are worries about the impact on inflation and infrastructure, including schools and accommodation.
