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November 23, 2013 7:00am by David Farrar

Migration with Australia

The latest migration stats came out yesterday. In terms of NZers leaving to Australia and returning, the recent trend is pretty good.

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Comment13

New Zealand
migration

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Meatloaf

If someone uses a push mower, they will earn less per hour, than someone with a petrol mower, because the petrol mower can cut more per hour.The fact that many NZers are moving to Australia is no longer a surprise to me. According to Gareth Morgan, we have the third worst capital intensity (machinery, equipment, tools) per person in the OECD. Only Portugal and Mexico, are worse than us. Australia’s is 50% greater than us. This is why they can pay their people more.

So if a politician tells you their’s nothing they can do b.s. A bank by law can only lend to the government, or on property. This means they will be happy to lend to someone for a house, but if someone wants to start up a factory they’ll be lucky if they can get a loan for the building, and nothing for the equipment. So Auckland’s housing bubble, the politicians could have done something about it. No more excuses politicians.
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November 23, 2013 8:10am
wiseowl

The more important question is ,what is our immigration policy?
No response, no debate from any party on this.
Our country is slowly being changed to a multicultural mess.
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November 23, 2013 8:24am
wreck1080

I’m not sure about that. aussie has soaked up our little unemployment problem.

Now that aussie has it’s own economic woes, they are returning here.
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November 23, 2013 8:24am
Meatloaf

Actually NZ First has been on about this whole immigration issue for a long time. But the other parties seem to be happy with many people coming in to the country. Anyhow I’m not a NZ First voter currently.
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November 23, 2013 8:31am
WineOh

Net long term trend not so good.
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November 23, 2013 8:59am
David Farrar

Note the graph is of NZ citizens only.
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November 23, 2013 9:24am
Gulag1917

Australia is not very efficient in the use of resources, has lower labour productivity and has too many levels of bureaucracy. NZ is superior in these factors. There is going to be a bigger economic crunch in Australia.
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November 23, 2013 9:39am
Meatloaf

Thanks Gulag1917, now someone is speaking my language. NZ has great natural resources, a very skilled labour force, and people willing to take risks. These certainly help, and if we are strong enough in these other 3 areas, this will give us some sort of an economic edge. However, I still think that our low capital intensity is the one thing holding us back. But yes your quite right, we have other things to help make up for that shortfall. I gave you a positive tick, for your contribution.
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November 23, 2013 9:52am
gazzmaniac

Looking at that graph, it looks like there is a slight rise in the small proportion of people returning from Australia, and there are less people leaving than there were (but still a net loss).
That is not the same as people coming back in record numbers.
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November 23, 2013 10:41am
Gulag1917

NZ can out perform Australia, the only concern at this stage is geology e.g. earthquakes. NZers on average are further ahead in technology e.g. computing skills, work ethic etc.
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November 23, 2013 12:14pm
Meatloaf

Guys and girls, I said at the beginning that Australia has 50% more capital intensity per person, this statistic can be verified in Gareth Morgan’s book on pg. 59, of ‘after the Panic’. Capital intensity per person means, the amount of equipment, machinery and tools, per person. Australia is the 12th in the OECD as far as capital intensity per person is concerned, New Zealand is the third worst. If the average Australian is getting more money than us, their has to be a reason for this. True we do have a greatly skilled workforce, with a great work ethic, but this falls under labour as a factor of production. Our capital as a factor of production is not great. I am optimistic we can compete with Australia, if people understand what needs to change for this to happen.
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November 23, 2013 1:16pm
Johnboy

That’s a bit of a worry really if Rob’s theory about the respective IQ’s of Godzone and OZ is correct! 🙂
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November 23, 2013 9:34pm
Paul Williams

Is there any evidence that migration to Australia is largely of unemployed people? In my experience, and from Australian data, the flow is of qualified and highly employable people. In which case, the numbers and the trend of significant beyond volume.
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November 25, 2013 12:19pm

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