New Zealand Labour Government's failure in Immigration: Country is paying the price for flawed Immigration
New Zealand is facing inflation due to the Government's failed immigration settings. The country is being driven into inflation due to the chronic worker shortage, the interest rates are pushing higher making it difficult for the people of New Zealand.
Erica Stanford says that the shortage of the labour workers is the key factor in the nine consecutive OCR hikes of inflation. In New Zealand’s history The largest OCR hike was announced on Thursday.
According to the Governor of the Reserve Bank Adrian Orr, the interest rates will be higher as a result of the current immigration settings which are a handbrake on the New Zealand’s Economy.
The needed skilled workers were not able to come as a result of the Government’s immigration settings. Instead of bringing the required workforce, the Labour government has turned the country into a fortress making the conditions worse.
Government has also ignored the constant warnings of the Reserve Bank and Treasury about the impacts of labour shortage on the economy of the country. Instead the labour Government has stubbornly pursued its ideology of restricting the entry of the foreign workers in the country.
The weekly report of the Treasury on October 1, 2021 has clearly stated the impact of the labour shortage. It stated that the labour shortage will continue to pose the risk of higher inflation and will act as a barrier in the growth.
Even after giving the clear warning about the issue, the Government didn’t open the Accredited Employer Work Visa until July of this year. While Australia was opened for all visa holders months before New Zealand.
This delay was due to the Government’s inability to handle the visa process rather than the Covid -19 pandemic. The borders were closed for two years and the backlog of the visa application was huge.
Instead of making the visa processing faster, the Labour Government has imposed some restrictions and didn’t open the borders for skilled workers until July this year.
The government’s immigration policies were a total disaster. The Kiwis are paying the price for the Government's faulty immigration settings.
