Responding to regional labour demand: International migration and labour markets in New Zealand’s regions

Abstract

New Zealand, like Australia and Canada, has long had an active policy of seeking immigrants to “grow” its population and economy. Unlike the other two countries, New Zealand does not have a federal system of government, and the absence of a state or provincial level of legislative authority has meant that policies to promote immigration and to meet labour market needs have been centrally driven. In the latter decades of the twentieth century, labour market activation policies in New Zealand were focussed on supply, including the engagement or re-engagement of workers. In the early years of the twenty-first century, there have been significant labour shortages, particularly (but not only) of skilled labour in a range of industries and regions, as well as changes in the nature of labour market engagement associated with the rise of various forms of non-standard employment. The policy focus has been increasingly demand-focussed and driven by local labour market considerations. It has also increasingly revolved around recruiting immigrant labour in response to local skill shortages. This paper discusses the way in which regions in New Zealand have developed schemes that are designed to attract immigrant labour to meet local labour demand as well as provide a key driver in local economic development.