Immigration dips in New Zealand as experts warn of housing crisis

AUCKLAND - Despite a smaller population and an attractive destination, New Zealand’s immigration slowed for a third straight month in February, relieving policymakers who have been wary of the figures.

Statistics New Zealand confirmed on Monday that the annual net immigration dropped to 130,856 from a revised 133,793 in the 12 months through January. The peak was recorded as 142,159 in November last year.

The immigration numbers had been rising in the country previously, prompting the Reserve Bank to warn that the extra demand for houses and rental accommodation might add to inflation.

The government was also cautious of the immigration numbers and also labeled the situation as “unsustainable" citing that it was creating stress on infrastructure such as education and health services.

The experts are also looking at the bright side of immigration and claim that the flow of immigrants increased the labor force, making it easier for employers to find workers.

The figures were released just days after Immigration Minister Erica Stanford tightened rules for work visas to include an English language component to reduce the number of low-skilled workers entering the country.

The immigration numbers should also be seen in the context that almost 47,400 non-residents departed New Zealand in the year through February.  It is believed that immigration will slow over the next two years though the forecasts might have to be revised, Bloomberg reported.

It bears mentioning that governments across the globe are slowly tightening the rules to discourage immigration. The United Kingdom has taken drastic measures in this regard, tightening the rules for international students as well.

In the same manner, Canada also announced to reduce the number of international students by 35 percent as compared to 2023. Australia has also tightened the rules against international students implying that immigration is being discouraged due to multiple concerns including the housing crisis.