New Zealand Immigration Debated to be a Dumb Economic Growth Parameter

New Zealand Treasury reported that the increased intake of low-skilled workers in the country as a result of New Zealand immigration is causing a threat to the nation’s productivity. It is constantly lowering the GDP per capita in the country.

Under skilled New Zealand Immigration program, 21000 immigrants were granted residency in the year 2014-2015. Out of 21000 people, most of them are currently working in low waged occupations. The skill levels of these migrants are also decreasing with time. 40% of these immigrants are the international students.

These are actually the diploma level students who were granted residency. Their numbers have been doubled since 2008. On the other hand, the number of skilled bachelor degree holders has declined by two-third.

This has been lowering the productivity of the nation. Also, it indicates that these students are primarily aiming for New Zealand immigration and not education.

The high immigration rate is a leading the nation to a disaster. Kerry McDonald, director, chairman and advisor of a New Zealand based company reported that the country‘s economy is focusing on quantitative growth drivers instead of quality growth drivers.  The increased immigration and citizenship grants will lower the living standards of its citizens. It will not only affect the economy but also the social and environmental factors in the country.

The economy of New Zealand being dependent on exports mainly cannot manage to fulfill the increased GDP demands. High immigration rate is indicating population growth with an increase in jobs, housing and infrastructure needs. The current quantity oriented economy is incapable to suffice these needs.

The low-skilled immigrants are not adding to the economy instead, they are increasing the costs. As a result, the living standards in New Zealand will have a negative impact.

New Zealand is following Australia in terms of deciding economic growth parameters. The high immigration rate might be beneficial for big businesses where the number of inputs define the number of outputs. But for the average nation, it is posing the serious threat to the quality of living.

New Zealanders are well aware of the after effects. Therefore, they are constantly debating on this issue.