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Immigration and the economy

Immigration plays a vital role in securing New Zealand’s economic prosperity by:

  • supplying critical skills for our workforce 
  • bringing in visitors, tourists and international students.

A quarter of New Zealand’s workforce are migrants.

 

Between 2001 and 2006, 60 percent of workforce growth came from people born overseas.

 

In 2009/10, more than 2.5 million foreign nationals entered New Zealand, including: 

  • 835,000 Australians (they do not require a visa to enter or work in New Zealand) 
  • 1,206,000 as visitors/tourists (international tourism contributed $9.4 billion to our economy in the year to March 2010)
  •  6,000 mainly Pacific Islanders for seasonal horticulture/viticulture work under the Recognised Seasonal Employer Scheme.

In 2009/10 the numbers of approvals were:

  • 45,000 as new residents (main source countries UK 17%, China 13%, South Africa 12%), including 27,000 as skilled migrants (UK 18%, South Africa 17%, Philippines 13%) 
  • 130,000 for temporary work (UK 14%, India 9%, China 8%), including 23,000 for essential skills work (work for which there is a shortage of New Zealanders) 
  • 73,000 for study (international students contribute $2.3 billion annually and support over 32,000 jobs).

Research in 2009 showed that the recent inflow of migrants is estimated to be worth $1.9 billion per year to GDP.

 

A 2005/06 study of migrant contribution to the economy found that:

  • Migrants provided a net fiscal contribution to New Zealand of $3.3 billion, while the New Zealand-born population contributed $2.8 billion. 
  • Migrants contributed 25 percent of government revenue and accounted for 18 percent of government expenditure.
  • 927,000 overseas-born residents contributed income tax of approximately $5,170 per head compared with $4,930 per head by the 3.1 million New Zealand-born population.

Page Last Updated: 16 Dec 2010
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