KEY POINTS:
New Zealand's increasing diversity, particularly in Auckland, creates opportunities for more innovation - but employers are not taking advantage of this, says a labour market researcher.
Massey University's regional director for the College of Humanities and Social Science, Professor Paul Spoonley, said an increase in the number of young Maori, Pacific Islanders and Asians, coupled with the aging of the Pakeha population, meant the workforce would be increasingly non-European.
His own research forecasts that by 2016 a quarter of Auckland's population will be of Asian descent.
The number of Auckland residents born overseas gave it one of the world's highest immigrant populations.
Professor Spoonley cited the work of American economist Richard Florida, which links innovative and creative cities with ethnic diversity.
"That's a talent pool that Auckland has in a way that it hasn't necessarily had historically. The range of immigrants and the range of ethnic groups here is growing quite significantly. That's a talent pool."
But New Zealand employers had not capitalised on this in a big way.
"Some of our employers are great, and use diversity to their advantage, but other employers are struggling. And they struggle to see immigrants as their first-choice employees.
"You've got to say that those employers are out of touch with where Auckland is going."
While the Government had done much in terms of increasing acceptance of immigrants, Professor Spoonley said, some practical steps such as providing short-term work opportunities for them also helped.
"We spend a lot on recruiting skilled immigrants. We've got to ensure that we use those skills once they get here."
