Immigration: The Problem We Don’t Have

If you listened only to election rhetoric, you could be forgiven for thinking New Zealand has an immigration problem. The evidence suggests otherwise. Compared with many other developed countries, New Zealand’s immigration system is doing exactly what it was designed to do.

Recent Statistics New Zealand figures show annual net migration of 20,300 people in the year to July, a dramatic reduction from the post-Covid surge. At the same time, the exodus of New Zealanders to Australia is easing, reducing one of the major concerns of recent years. Furthermore, much of today’s net migration is being driven by international students, who contribute billions of dollars to our economy through tuition fees, accommodation, living costs and regional spending. Far from being a problem, this is precisely the type of migration New Zealand wants.

The same picture emerges when we examine resident visa approvals. Over the past two years, residence approvals have remained stable at around 50,000 people annually. Almost half of these approvals come through partnership and Straight to Residence (skills shortage) pathways. Many of these people were already living and working in New Zealand before becoming residents. We are granting residence for skilled workers filling critical shortages in healthcare, engineering, IT, education and other growth sectors. We are approving residence for partners and families of New Zealanders who are building their lives in New Zealand. These are not signs of a system under strain. They are signs of a system functioning as intended.

The contrast with our closest neighbour is striking. Australia has spent much of the past year debating how to reduce migration levels and to restrict student pathways and has recently announced a significant tightening in visa settings. Canada has similarly been forced into significant policy adjustments following rapid population growth and infrastructure pressures.

New Zealand’s position is very different. Migration numbers are moderate and sustainable. Residence approvals remain stable. Skilled migrants continue to fill workforce needs. Investor migration is bringing significant new capital into the country. International education is recovering strongly. Families are reuniting. Most importantly, public confidence in our immigration system remains relatively high. New Zealand simply does not have the immigration problems facing many other countries.

That is not to suggest the system is perfect. Maintaining the integrity of New Zealand’s immigration regime remains paramount. While progress has been made to combat migrant exploitation, too many migrant workers remain vulnerable to poor employment practices. Protecting migrants also protects good employers and the integrity of the wider labour market. There is also the ongoing problem of unscrupulous, mainly offshore, agents. New Zealand needs a more proactive approach to identifying these operators and holding them accountable for the harm they cause to students, education providers and employers. These are genuine issues deserving attention, but they sit at the margins of the system.

As voters assess the immigration promises now being made by various political parties, it is worth remembering that good policy is not measured by the number of reforms announced. It is measured by outcomes. By that measure, New Zealand’s immigration system is performing well.

Sometimes the most difficult thing for politicians to do is nothing at all. But after several years of significant immigration reform, the greatest risk may not be that we fail to change the system. It may be that we keep trying to fix a problem that does not exist.