Aussie factor tips migration balance

New Zealand had a net inflow of 1720 permanent and long-term migrants in December, similar to November, pushing the gain for the whole of 2009 to 21,300.

That was 17,400 more than in 2008, an increase wholly explained by a fall of 17,400 or nearly 50 per cent in the net loss of people to Australia.

The migration gain is giving support to the housing market and consumer spending without pushing them to extremes, says Goldman Sachs JB Were economist Philip Borkin.

"The key thing to watch over the coming six months will be whether departures to Australia begin to rebound due to Australian economic outperformance."

Australia's unemployment rate is 5.5 per cent compared with 7.3 per cent in New Zealand.