At seven in the morning, a hospital ward begins another shift.
One nurse grew up in the town. Another arrived in New Zealand two years ago. A third moved from overseas with a partner who now works in construction. Together, they care for patients in a service that has struggled to recruit enough qualified staff locally.
Across the road, a café owner faces a different problem. Applications for an entry-level vacancy have increased, and several local workers say finding stable hours has become more difficult.
Both stories can be true at the same time.
Immigration can relieve serious labour shortages, bring valuable skills and help businesses grow. It can also increase competition for particular jobs, place pressure on housing and infrastructure, and allow poorly managed industries to postpone investment in training or better productivity.
That is why debates about immigration and employment become so heated. People are often describing different sections of the same labour market.
The impact of immigration on New Zealand’s job market is neither entirely positive nor entirely negative. It depends on who arrives, which skills they bring, where they settle, what jobs are available and how effectively the country plans for population change.
New Zealand Has Long Relied on Migrant Workers
Migration has helped shape New Zealand’s workforce for generations.
Workers born overseas are found throughout healthcare, education, construction, engineering, agriculture, hospitality, technology, transport and professional services.
Some arrive with highly specialised qualifications. Others fill seasonal, entry-level or practical roles that employers struggle to staff consistently. Many eventually establish businesses, employ other people and become permanent members of their communities.
This matters because New Zealand has a relatively small population and an ageing workforce.
Every year, workers retire, change occupations or leave the country. At the same time, employers need people with skills that may take many years to develop.
Migration can fill part of that gap faster than domestic training alone.
By mid-2026, more than 93,000 people held the country’s main employer-linked temporary work visa, illustrating how significant migrant labour has become to the economy. citeturn416755search37
The real policy question is therefore not whether New Zealand should have migrant workers. It is how migration can support the labour market without weakening wages, employment standards or long-term workforce planning.
Immigration Can Fill Jobs That Would Otherwise Remain Empty
When an employer cannot find a suitably qualified worker, the consequences extend beyond one unfilled vacancy.
A shortage of nurses may reduce the number of hospital beds that can be safely staffed. A shortage of electricians can delay housing projects. A lack of veterinarians may leave rural communities without timely animal care.
Migrant workers can help services continue operating while New Zealand trains more people locally.
This is particularly important in occupations requiring professional registration or years of specialist education. A country cannot solve an immediate shortage of experienced clinicians or engineers simply by enrolling more students. The training pipeline may take five to ten years.
Migration provides faster access to people who already have expertise.
It can also introduce knowledge gained in larger or more specialised international industries. A worker may bring experience with advanced construction methods, manufacturing systems, medical procedures or technologies not yet widely used in New Zealand.
When that knowledge is shared effectively, the benefit can extend to local colleagues and future workers.
Labour Shortages Do Not Mean Nobody Wants the Job
Employers often say they cannot find New Zealanders willing to work.
Sometimes this reflects a genuine shortage. In other cases, the explanation is more complicated.
A vacancy may be difficult to fill because it offers:
- Low or unpredictable pay
- Insecure hours
- Difficult working conditions
- Limited training
- An isolated location
- Seasonal employment
- Expensive accommodation nearby
- Few opportunities for advancement
A business may describe the problem as a worker shortage when the deeper issue is that the job is unattractive under the available conditions.
Immigration can keep such businesses operating, but it may also reduce the pressure to improve the role.
This is where policy design matters.
If migrant recruitment becomes too easy for low-paying positions, employers may become dependent on a continuing supply of workers with limited bargaining power. Government consultation documents have acknowledged that setting skill thresholds too low can contribute to wage stagnation, dependence on low-wage migrant labour and weaker incentives to invest in technology or training. citeturn416755search2
A well-designed system should help employers fill genuine gaps without turning migration into a substitute for decent employment practices.
Does Immigration Reduce Wages?
This question does not have a simple yes-or-no answer.
In theory, adding workers to a particular occupation increases labour supply. When the number of jobseekers rises faster than the number of vacancies, employers may feel less pressure to raise wages.
The effect is likely to be strongest when migrants and local workers are competing for similar entry-level or lower-paid jobs.
However, migrants also increase demand.
They need housing, food, transport, healthcare, clothing and financial services. Their spending supports other businesses and creates additional employment.
A migrant engineer may help a company expand and hire local administrative staff. A doctor may allow a clinic to enrol more patients. A construction worker may help complete homes that increase housing supply.
The wage effect therefore depends on whether migrants mainly compete with existing workers or help businesses produce more and create further jobs.
National averages can also hide local experiences. Immigration may have little measurable impact on wages across the entire economy while significantly affecting workers in a particular town, occupation or industry.
Migrants and Local Workers Are Not Always Direct Competitors
It is easy to imagine every new worker competing for one existing job.
Real labour markets are more interconnected.
Different workers may complement one another.
A business cannot employ more apprentices without enough experienced people to supervise them. A healthcare service cannot expand community care without clinicians, administrators, cleaners and support workers. A technology company may need one international specialist before it can establish a team of local graduates.
Migrants may also take roles that allow other workers to move into higher-skilled positions.
For example, hiring an experienced technician may free an engineer to focus on design and management. Recruiting additional care workers may allow nurses to spend more time on clinical duties.
The impact is strongest when migration adds capabilities that were genuinely missing.
Problems arise when employers repeatedly recruit overseas workers into roles that could have been filled locally with reasonable training, improved conditions or better workforce planning.
Migration should complement domestic development rather than replace it.
Immigration Can Help New Zealanders Change Careers
A growing economy creates movement.
When businesses expand, experienced workers may be promoted, new teams may form and junior roles may open beneath them.
Migrant skills can support this process.
An international specialist may help launch a new service, introduce advanced systems or supervise less experienced staff. Local employees can then gain knowledge that would otherwise require leaving New Zealand.
This can be especially valuable in a small economy where some industries lack enough senior professionals to train the next generation.
However, knowledge transfer does not happen automatically.
Employers need structured mentoring, clear career pathways and opportunities for staff to learn. Without those systems, migrant expertise may remain isolated within one role.
Businesses that recruit internationally should ask not only, “Can this person fill the vacancy?” but also, “How will their knowledge strengthen the rest of the workforce?”
Employers May Invest Less in Local Training
Migration becomes less beneficial when it creates a cycle of dependency.
An employer faces a shortage, recruits from overseas and solves the immediate problem. Because the position is now filled, the business does not train an apprentice, develop an existing employee or redesign the work.
Several years later, the migrant worker leaves and the same shortage returns.
This pattern can affect entire industries.
Training costs money. It also takes time and involves the risk that newly qualified workers will move elsewhere. Recruiting someone already trained can appear cheaper and faster.
Yet relying heavily on overseas recruitment means New Zealand benefits from education funded by other countries while failing to build enough capability of its own.
A balanced approach requires both migration and domestic investment.
The country may need skilled migrants immediately while simultaneously expanding training, apprenticeships and career development for New Zealand residents.
One strategy cannot replace the other.
Population Growth Creates Jobs Beyond the Original Vacancy
New migrants do not only enter the workforce. They become consumers, tenants, homeowners, parents and members of local communities.
A growing population requires more:
- Teachers
- Healthcare workers
- Builders
- Retail staff
- Transport services
- Council employees
- Tradespeople
- Childcare workers
- Professional services
This can create employment.
A town gaining several thousand residents may support new shops, medical practices and construction projects. Businesses gain customers, and entrepreneurs may find opportunities that did not previously exist.
Migrants also establish businesses of their own.
These enterprises may serve particular communities at first, then expand into the wider market. They can create jobs, introduce products and strengthen connections with overseas customers and suppliers.
The economic effect of immigration therefore extends beyond the job taken by the person who arrives.
Infrastructure Determines Whether Growth Feels Successful
Population growth creates demand before infrastructure can always catch up.
When housing construction, roads, schools and healthcare expand too slowly, residents may experience the effects as congestion, higher rents and longer waiting times.
These pressures can influence the job market indirectly.
An employer may have vacancies but struggle to recruit because workers cannot find affordable housing. A teacher may accept a job in a growing town and then leave because childcare is unavailable. A business may expand while public transport remains inadequate for shift workers.
This can create the impression that immigration itself is the problem when the deeper issue is poor planning for predictable population change.
Migration policy and infrastructure policy cannot operate separately.
When the country approves more workers for a region, it should understand where those people and their families will live, how they will travel and which public services will need additional capacity.
Regional Labour Markets Experience Immigration Differently
A migrant arriving in Auckland affects the labour market differently from one settling in a rural South Island community.
Large cities offer diverse employment but also face housing and transport pressure. Smaller regions may desperately need workers but struggle to provide suitable housing, social connection or employment for accompanying partners.
A rural employer might successfully recruit an overseas professional only to lose them a year later because their partner cannot find work or the family feels isolated.
Retention matters as much as recruitment.
Communities can improve settlement by supporting:
- Suitable housing
- Professional networks
- Cultural and social connection
- Recognition of partners’ skills
- Access to schools and healthcare
- Clear pathways for long-term residence
The national settlement strategy recognises that successful migration involves safety, wellbeing, belonging and participation—not simply filling a vacancy. citeturn416755search14
Workers are more likely to remain where they can build a life rather than merely hold a job.
Migrants Often Arrive During Economic Peaks
Immigration frequently responds to labour-market conditions with a delay.
When businesses are expanding and unemployment is low, employers report shortages and seek permission to recruit overseas. By the time workers arrive, the economy may have slowed.
This can leave recent migrants entering a weaker job market than the one they expected.
They may face reduced hours, redundancy or difficulty changing employers. Workers whose visa status is connected to employment can be particularly vulnerable.
Economic cycles therefore complicate migration planning.
A country that restricts migration sharply during downturns may create severe shortages when growth resumes. A system that remains too open after demand falls may bring in more workers than the market can absorb.
Policy must balance current conditions with future needs, which is difficult when neither employers nor governments can forecast the economy perfectly.
Migrant Workers Can Be Vulnerable to Exploitation
Most employers treat migrant workers lawfully.
Some do not.
A worker who depends on a particular job for income, immigration status or a future residence pathway may feel unable to challenge unsafe conditions or unpaid wages.
Exploitation can include:
- Charging workers for jobs
- Withholding pay
- Demanding excessive hours
- Providing false employment records
- Threatening immigration consequences
- Offering fewer hours than promised
- Requiring workers to return part of their wages
- Providing overcrowded accommodation at high cost
These practices harm migrants and the wider workforce.
An employer avoiding minimum standards gains an unfair advantage over businesses that pay correctly and provide safe conditions. Exploitation can also push wages and expectations downward across an industry.
Migrant workers generally have the same minimum employment rights as other workers in New Zealand, regardless of nationality. Visa conditions may restrict where or how they work, but they do not remove rights to lawful pay, leave and a safe workplace.
Strong enforcement protects both migrants and local workers.
Overseas Qualifications Are Not Always Fully Recognised
New Zealand may recruit skilled migrants and then fail to use their skills properly.
An experienced professional may arrive only to discover that their qualification requires additional assessment, local experience or registration.
This can lead to underemployment.
A trained engineer drives for a living. A healthcare professional works in an unrelated support role. A teacher accepts casual work while navigating a lengthy recognition process.
Some assessment is essential. Professional standards protect the public, and qualifications from different countries are not always equivalent.
However, unnecessary delays waste human capital.
Improved information before arrival, faster assessment and supported pathways into local practice can help migrants contribute at the level of their training.
The goal should not be to lower professional standards. It should be to make the route towards meeting them clear and efficient.
Immigration Can Increase Innovation and Trade
Workers from different countries bring more than labour.
They bring languages, professional networks, cultural knowledge and experience with international markets.
A migrant employee may understand how customers in another country make purchasing decisions. An entrepreneur may identify products that can be exported or services that local businesses have overlooked.
Diverse teams can generate stronger ideas when people are able to contribute fully.
Difference alone does not guarantee innovation. Poorly managed teams may struggle with communication, exclusion or bias.
Employers need inclusive practices that allow people with different accents, backgrounds and working styles to participate in decisions.
When that happens, migration can help New Zealand businesses connect with a much larger world.
Immigration Does Not Automatically Fix Productivity
Adding more workers can increase the size of the economy.
It does not necessarily increase output per person.
Productivity improves when workers have better tools, systems, skills and infrastructure. New Zealand has experienced persistent weakness in productivity growth, and long-term living standards depend heavily on improving the value produced by each worker. citeturn416755search10turn416755search11
If businesses use immigration mainly to add more low-cost labour, total production may rise without meaningful improvement in wages or efficiency.
A stronger approach uses migration to bring scarce expertise, support investment and expand high-value industries.
The most useful question is not simply how many migrants arrive. It is whether the immigration system helps the economy become more capable, productive and resilient.
Local Jobseekers Still Need Support
Concern about immigration can become unfairly directed towards individual migrants.
A new worker did not design the policy, set wages or decide how much a company invests in training.
At the same time, local workers who feel displaced or overlooked should not be dismissed.
A young person repeatedly rejected for entry-level work may reasonably wonder how they are supposed to gain experience. An older worker may struggle to retrain after an industry changes. Māori and Pacific workers may continue facing barriers that migration policy does not address.
Employment services, apprenticeships, education and career pathways remain essential.
Employers seeking overseas workers should be able to demonstrate that they have considered local recruitment and suitable training where reasonable.
A fair labour market protects opportunity for people already here while recognising that overseas workers can fill genuine needs.
The Debate Needs More Honesty and Less Blame
Immigration debates often collapse into two opposing claims.
One side says migrants take jobs and suppress wages. The other says immigration is always economically beneficial and any concern is prejudice.
Neither position captures the full picture.
Immigration can:
- Fill essential vacancies
- Expand businesses
- Create jobs
- Increase cultural and professional knowledge
- Support an ageing workforce
It can also:
- Increase competition in particular occupations
- Add pressure to housing and services
- Reduce incentives for training
- Create opportunities for exploitation
- Contribute to low-productivity business models
The outcome depends on policy, enforcement, infrastructure and employer behaviour.
Migrants are not an economic tool that can be switched on and off without human consequences. They are people making major decisions about careers, families and futures.
Local workers are not merely statistics either. Their concerns about wages, security and opportunity deserve serious attention.
A Better Labour Market Uses Everyone’s Potential
The strongest immigration system is not the one that produces the highest or lowest migration number.
It is the one that matches workers with genuine needs, protects employment standards and builds long-term capability.
That means recruiting overseas where shortages are real, while continuing to train New Zealanders. It means recognising international skills efficiently without compromising safety. It means punishing exploitation and ensuring population growth is supported by housing and infrastructure.
Most importantly, it means measuring success through more than the number of vacancies filled.
A successful system should produce better services, productive businesses, fair wages and communities in which newcomers and established residents can both build secure lives.
The nurse beginning the morning shift is not the cause of the health system’s workforce shortage. The local worker struggling to find stable hours is not imagining the pressure they feel.
Both are part of a labour market shaped by decisions far larger than one person.
The challenge for New Zealand is to design those decisions carefully enough that immigration strengthens opportunity rather than simply moving shortages and pressures from one group to another.
Frequently Asked Questions
1. Does immigration take jobs away from New Zealand workers?
Immigration can increase competition in some occupations, particularly when many workers seek similar roles. It can also fill shortages, expand businesses and create additional jobs through population growth and consumer demand.
2. Does immigration lower wages?
The effect varies by industry, location and skill level. A rapid increase in workers may weaken wage pressure in some jobs, while skilled migrants can help businesses grow and increase demand for other workers.
3. Why do employers recruit overseas workers?
Employers may be unable to find enough local applicants with the required skills, experience, availability or willingness to work in a particular location. In some cases, poor pay or conditions may also make vacancies difficult to fill.
4. Are migrant workers entitled to New Zealand employment rights?
Yes. Migrant workers generally have the same minimum employment rights as other employees, including lawful pay, leave and safe working conditions. Their visa may impose additional conditions on where or how they work.
5. Does New Zealand still need skilled migrants?
Yes. Healthcare, engineering, construction, technology, agriculture and other sectors can experience genuine shortages. Migration can provide experienced workers while local training pipelines develop.
6. Why are some skilled migrants working in lower-level jobs?
Overseas qualifications may require local recognition, registration or experience. Language barriers, limited networks and employer bias can also contribute to underemployment.
7. Can migration improve productivity?
It can when migrants bring scarce expertise, support innovation and help businesses invest or expand. Simply adding more low-cost labour does not necessarily improve productivity per worker.
8. What would make immigration better for the job market?
Better skills matching, strong employment-law enforcement, investment in local training, efficient qualification recognition and coordinated housing and infrastructure planning would help maximise the benefits while reducing pressure.