New Zealand’s labour productivity fell 0.7 per cent in the year to March 2016, bolstered by the strong labour market as waves of migrants look for work.
In the year to March 2016, a “growing labour market saw a record rise in labour available to produce goods and services,” Stats NZ national accounts senior manager Gary Dunnet said.
Provisional data shows the growth in labour inputs was largely driven by increased labour hours in the construction, accommodation and business service industries.
“We are seeing really strong growth in the labour force so it’s not surprising that we’ve seen a bit of a tick down in labour productivity. Labour is ample and the price isn’t that high so firms have grown production by using more labour as opposed to using more capital,” ASB Bank economist Nathan Penny said.
The situation is likely to have continued over the past 12 months with data this week showing migrants continued to flock to New Zealand in record numbers in the year to February as annual net migration rose to a record 71,333 in the 12 months to the end of February up from 67,391 in the same period a year earlier.
The latest jobs data showed New Zealand’s unemployment rate rose to 5.2 per cent in the last three months of 2017.
This is disgusting. The National Government has for several years driven people to New Zealand, to try to increase GDP. They have shown no regard for a) cultural integration and the NZ way of life b) wealth per person, only in aggregate and c) the ability of born New Zealanders to get jobs.
Opposition Labour Party finance spokesman Grant Robertson said the data showed “kiwis are working harder than ever before and getting less and less for their hard work”. Read more here.