Record numbers of people leaving New Zealand to work in Australia could have a negative affect on the workforce over the medium-term.
A report by economic think tank Infometrics shows Australia’s rate of unemployment was lower than New Zealand’s in the first quarter of this year, which was a break from the average rate between 2014 and 2018 when Australia’s rate was 0.7 percentage points higher than New Zealand’s.
“There is a definite correlation between transtasman migration and the relative labour market performances in New Zealand and Australia,” Infometrics director Gareth Kiernan said in the report.
“The latest figures for the March 2024 quarter show that Australia’s unemployment rate is now 0.4 percentage points below New Zealand’s rate - the worst relative result from New Zealand’s perspective since 2012.
“It’s little wonder that more people are looking for better opportunities across the Tasman.”