Overview

New Zealand is among the OECD countries that have been settled by migration. Currently more than a quarter of the New Zealand workforce is foreign-born. Despite being a settlement country, most labour migration is temporary and permanent migration mainly draws from the pool of temporary labour migrants. Current temporary labour migration is equivalent to 3.6% of the workforce, by far the largest figure in the OECD. An elaborate system of labour-market tests and exemptions aims to limit negative impact on the domestic workforce while at the same time responding to employer needs. A large part of temporary flows is into low-skilled jobs with little steering possibilities, and some vigilance is needed. For permanent migration, which is also among the highest in per capita terms among OECD countries, New Zealand operates with target numbers. The country faces difficulties in meeting thes targets, whose value-added in a largely demand-driven system - favoring immigrants with a job offer - is questionable.

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