Fake news: NZ suffering post-immigration business crunch

Via the AFR today:

New Zealand pub owner Chris Dickson worries his staff is overworked. He expected employment visas for two new overseas workers to be approved weeks ago, but the paperwork was delayed with no clear reason given.

…”We are struggling to find people,” Dickson said. “It’s an epidemic.”

…A plunge in net immigration is intensifying New Zealand’s labour shortage and hurting the economy to the point that the country’s central bank singled out the issue when it cut interest rates for the first time since 2016 this month.

Ahem, NZ has not cut immigration. Last month, Statistics New Zealand released its immigration estimates for the month of February, which reported a massive 19% year-on-year increase to a near record high:

“Provisional annual net migration of 61,600 in the year ended February 2019 is near the highest reported under the new outcomes-based measure,” population insights senior manager Brooke Theyers said…

 

Most recently, Iain Lees-Galloway announced an expansion of skills shortage lists enabling employers ton recruit more migrant labour:

The Government has announced a series of changes to immigration settings it says will address skills shortages in the country’s regions…

Under the changes three occupations will be added to the Regional Skill Shortage List (RSSL). They are early childhood, primary school and secondary school teachers…

While the Long Term Skill Shortage List (LTSSL) identifies occupations where there is a sustained shortage of highly skilled workers throughout New Zealand. It will include aged care nurses.

If a migrant worker is qualified for the job and meets the requirements specified for that occupation, they may be granted either an Essential Skills Work Visa or a LTSSL Work Visa. If they apply for a Work to Residence visa, they can apply for residency after two years.

While the Construction and Infrastructure Skill Shortage List (CISSL) outlines where there are immediate short-term skill shortages in the New Zealand’s construction labour market. If a business is seeking someone in one of the listed occupations a migrant worker may be granted an Essential Skills Work Visa…

Is it any wonder, then, that wages aren’t rising at all:

Percentage change from previous quarter
Quarter
2018 Mar 0.3 0.3 0.3 0.3 0.3
Jun 0.2 0.2 0.2 0.6 0.5
Sep 0.5 0.5 0.5 0.5 0.5
Dec 0.9 0.6 0.7 0.5 0.5
2019 Mar 0.2 0.7 0.5 0.3 0.4
Percentage change from same quarter of previous year
Quarter
2018 Mar 1.7 1.5 1.5 1.9 1.8
Jun 1.7 1.2 1.3 2.1 1.9
Sep 1.8 1.4 1.5 1.9 1.8
Dec 1.9 1.6 1.7 2.0 1.9
2019 Mar 1.8 2.0 1.9 2.0 2.0

Indeed, wages have been dipping in and out of real falls.

It’s a great shame for NZ that the story is a fake. And if some far flung bar is struggling to find workers then it should lift wages to attract workers not whine to the press!

 

Houses and Holes

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.

He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.

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Comments

  1. kiwikarynMEMBER

    Actually its true. The devil is in the detail – the Govt canned post study work visas for low skill qualifications. So all those that studied at some third rate vocational provider can no longer stay on after they have finished. Thus the ability of employers to exploit that ready pool of low skilled, low paid workers is gone. However, the Govt increased the post study work rights for those at University level, so that pool of workers has increased, although they are probably competing for low paid accountancy jobs rather than bar tending.

    • We can’t raise prices to cover wage rises because wages aren’t going up so the customers can’t afford it, because prices aren’t going up, because wages aren’t going up, because prices aren’t going up, because wages aren’t going up, because prices aren’t going up, because wages aren’t going up, because prices aren’t going up, because wages aren’t going up…

      So as you can see, it’s perfectly simple. We can’t raise wages.

      • While the boss has a Range Rover parked at the back.

        Thank goodness for Victoria’s new state-based luxury car tax. Get some tax out of the wage stealing bosses.

      • Jumping jack flash

        This!

        And the reason for it is paying for gouged living expenses and debt acquisition.

        Living expenses gouged as required to acquire the required amounts of debt.

    • McPaddyMEMBER

      As a lifter you would have thought he’d have heard about supply and demand and would abhor socialism?

  2. John Howards Bowling Coach

    Oh boohoo, he has to pay for staff now. It’s tough out there for businesses making money, with lots of customers making they staff work hard… Cry me a river

  3. New Zealand pub owner Chris Dickson should f**K off to India where he can have his utopia of unlimited slave labour and he can operate there if it means so much to him.

  4. Thought things I thought:

    1. Why do you need overseas workers to fill what are generally low-skilled pub roles? It is not a high-end tech or engineering firm!

    2. You are probably not paying enough! Welcome to the “free” market – pay more and get what you need! Pay local wages for the local economy you serve, and don’t try to distort it unreasonably…

    My 2c

    • kiwikarynMEMBER

      Back in my day, pubs had waiting lists of students wanting to work there. If you got a job you thought you had scored big time! But then we didnt all live at home, supported by our parents until we were in our 30’s. Nowadays local students think they are too good to work a menial job, so that leaves the foreign workers to fill the gaps.

      • DominicMEMBER

        This

        The latest generation is a pampered generation. Their mum’s were still packing their lunches in Grade 12. There is unquestionably a list of jobs out there that these softies wouldn’t touch with a barge pole – in fact, they wouldn’t touch a barge pole.

        I was explaining to my son that, in yesteryear, you’d get people working their way up from a job in the mail room to CEO in a decent sized company. These days the snowflakes are so fvcking entitled, they get offended if they’re not posted to a middle management position straight out of Uni.

      • Still begs the question as to whether said pubs are offering sufficiently high wages to be able to reasonably function in a first world country z particularly with respect to housing. If not pay more.

        Problem? Don’t blame kids, blame housing, and fix it, instead of bringing in people to undercut them.

        I’m not at all against immigration – but I’m against doing crappy things to band-aid fix crappy problems with limited points of view, and actually making things worse, and then blame the victims.

        I put it to the Stoics young-blamers and gaslighters that the problem is much more to do too-low (for housing and prospects) wages than it is about younsters being precious…

        Low-skill MASS immigration is a local market short-circuiting solution that ends up worsening local market problems in the long term, which a creatively destructive market would otherwise better fix.

        My 2 c

    • I thought that very thought thing last weekend. The trolley collector at my local Woolies wears a turban and has a thick accent. He seems like an affable bloke, but why the fcuk are we bringing people into the country to push trollies? Same same for the shelf stackers at that store who all communicate with each other in a foreign language. And the checkout operators as well. What’s all this “Skilled immigrant” bullsh1t we keep hearing FFS? These people are the definition of unskilled labour.

      Furthermore, when you see a major retail operation where almost the entire staff cohort appear to be from the same ethnic group, one has to wonder if there is discriminatory and hence illegal hiring taking place based on ethnic origin. Well, in fact, one doesn’t have to wonder because there clearly is, but who enforces laws like that these days. The hoots of “Racism racism racism” would be deafening if any regulator tried it, so they don’t.

      • John Howards Bowling Coach

        Yes Coles and Woolies stores are almost entirely Indian Staff who prefer to hire other Indians. Yes it is a racist situation and unacceptable. However they are smart enough to our Political Correctness against us as their weapon so no one is allowed to call it out for what it is because they are afraid of being called racist.

      • Also happens higher up the job chain. IT for eg. A friend of mine still left in engineering whos office is now populated entirely with 2 brands of foreigners, both of them represented in management. Friend is only a contractor for when they need real stuff doing or stuff fixing up.

  5. We are struggling to attract those who should be paid a lot more to work for lousy wages… good luck propping up that sagging real estate bubble…

  6. Too many cafes, means without exploiting low-wage workers, they can’t be in business.

    • This is true, with rents being around $1000 per week and more in prime areas I can see whey they blame wages. These pretend businesses have no power over the government favoured landlords (one of the biggest cripplers of small businesses). Never mind the financially engineered energy prices and other overpriced costs, its wages that must suffer.

  7. In a major university city in NZ it is very obvious that a giant proportion of the service staff are tourists on temp working visas.

    Q. Why is it that university students are not taking all the jobs? Obvious answer: Because the wages are too low. Less obvious answer: the money their parents are making is to some degree dependent on exploiting people with working visas as they put money back into the economy.

    Many of the ‘hospitality staff’ I’ve met in NZ live in youth hostels and travel – for years. This enables NZ businesses to be profitable – on the backs of exploited service staff. The entire ecosystem is corrupt as people from developing countries and the poor from developed nations are being exploited in jobs that allow business owners to pocket their wages.

    It is just another wage theft scheme dressed up as Kiwi largess in the same way our repugnant industry lobby in Australia pretends that it is a humanitarian body by allowing low wage 457 workers to be exploited.

    Let this sort of scheme run long enough and businesses become 100% dependent upon low staff wages, and this in turn devalues similar jobs for locals who become the working poor. Allow investors to drive the real estate market and they become a working poor without a home.

    Things in NZ are in many ways more tenuous than Australia as it is a small country that embraced neoliberalism well before the party got started in Oz. The ideology is so systemic in government that no one has any solutions about change. It just seems normal.

  8. The NZ intake wasn’t reduced, just the intake mix who are less likely to work for slave labour $5 a hour jobs.

    But let’s get to the real issue.

    Any migrant entering New Zealand is highly likely to be Australia’s problem.

    NZ has allowed in over 1 million third world unskilled migrants in the last 10 years.
    A 90,000 to 130,000 a year range.

    And as the NZ dept of Stats shows, over 70% of that intake then exit, or in the queue to migrate to Australia as a NZ SCV (Full work rights and access into Australia) as soon as they get the NZ residency & now ‘citizen passport stamp’.

    The Australian DHA & ABS details confirm the issue.
    The NZ SCV in Australia are 663,000
    Permanent stay / full work rights.

    The Non NZ born third world element of these SCV in Australia is now 271,000 (40% of the total) and predominantly Indian, Fiji Indian, Chinese, South East Asian & Middle Eastern or African – very unskilled & non assimilating.

    As one example they have dramatically lowered the average NZ SCV income level in Australia by some 22%, showing the sheer scale of the impact.

    A decade ago – we had 330,000 NZ SCV with 92% NZ born & only 8% non NZ born or 26,400 third world unskilled (mostly Pacific Islanders or poms).

    The NZ SCV in Australia had education levels, skills, assimilation & income that was even higher than Australians.. back then….

    But those ‘Real NZ born’ in Australia are dramatically reducing.

    Either they took up Australian citizenship (sole choice and later dual citizenship when allowed) or retained NZ only citizens.

    They are now mature aged if not elderly, from those 1980’s waves & are cashing out their super as a ‘permanent departure’ to go back & suck up NZ pensions & welfare.

    So the real NZ born number has declined dramatically, hidden by or masked by the massive wave of non NZ born third world unskilled who got ‘the citizen stamp’ allowed into Australia.

    An increase in the last decade of over 250,000 third world unskilled Asians, Criminal Chinese passport buyers, the Fiji & later sub continent Indians / Middle Eastern & African war criminals who paid the UNHCR bribes to get to the front of the queue – all via the NZ transit stop.

    And it gets much worse – over 290,000 third world unskilled Indian & Asian totally useless, who NZ allowed in over the last 5 years. They are now all queued up in NZ waiting to enter Australia on a NZ SCV as soon as they get the ‘stamp’.

    Remember – these are the real detritus and lowlife that couldn’t even get into Australia or got kicked out & so went into NZ to get back in via the SCV racket.

    And New Zealand is highly motivated to dump this detritus & burden in Australia.

    Winston Peters : “NZ only sells 2 things, milk powder to the Chinese and passport stamps for the third world to get into Australia”

    The NZ SCV Tran Tasman migrant entry & xfer racket is one of our fastest flowing spigots of the flood of unskilled third world migrant overload into Australian bathtub.

    ➡️ The simple answer to turn off this tap.

    Stop NZ selling passport stamps as a means of entry & using Australia as an outlet to dump their immigration mistakes as our social & economic problem.

    The fix is to restrict the Australian/ NZ SCV to only ‘Australian or New Zealand born’ that are over 18 years of age.

    A simple change by the Minister / Dept of Home Affairs.

    🔹No NZ SCV into Australia for a non NZ born migrant.

    🔹Force exit of the 271,000 non NZ born SCV third world unskilled migrants who should never have been allowed into Australia- back to NZ.

    🔹And that also blocks the 290,000 third world unskilled queued up in NZ from being allowed into Australia.

    ➡️ It’s long overdue and now necessary as Australia enters recession and our cities are overwhelmed by the migrant influx.

    Otherwise?
    Based on the trend of genuine NZ born mature & elderly going back & the non NZ born third world exploiting the NZ SCV racket..

    In 5 years time we will have over 800,000 NZ SCV in Australia – mostly in Sydney or Melbourne in Indian or Asian ghettos.

    Of which over 550,000 will be non NZ born third world unskilled.

    -/-

    Time for a Royal Commission into this.

    Time for a Royal Commission for the entire broken Australian border control & corrupted visa system.

  9. Jumping jack flash

    As is the case with every economy based on debt expansion to substitute for actual economic and productivity growth – ever decreasing labour costs are required to afford the required debt to expand it.

    The expanding debt gives the illusion of productivity but it is no substitute.

    Debt is not free nor can it ever be. The interest at least must be paid. If the debt has not been used to boost production (and then sales) to cover the interest then that debt actally harms the economy.

    The debt ponzi kicks the can, but we get the effects that we now see: gouged living costs and the requirement for continously cheaper costs of “production”.

  10. These businesses wont be happy until they have slaves. They are greedy SOB’s….