Government Accused of Importing Workers Amid Record Unemployment
New Zealand's labour market is in crisis, with unemployment at an 11-year high of 5.6%. Meanwhile, the Government has issued around 111,000 work visas to overseas workers.
This contradiction has left many questioning the logic behind these decisions. Christopher Luxon deserves criticism for using Air Force flights after promising a change in policy, but it's a sideshow compared to the bigger issue at hand.
The Reserve Bank is deliberately holding interest rates high to slow down demand and reduce wage inflation. However, this contradicts the issuance of 111,000 work visas, which seems to be working against itself.
Youth unemployment is particularly concerning, with around 7,300 young New Zealanders joining the unemployment queue in just three months. This is a warning sign that something needs to change.