A report on the impact of immigration on New Zealand has found that targeting semi-skilled migrants, as well as the highly skilled, is of greater economic benefit.
The report prepared for the Department of Labour examines how New Zealand would look in 2021, with different approaches to immigration policy.
It finds that, generally, increased immigration from the present net rate of 20,000 a year would bring economic benefits, including increased consumer spending and higher government revenue.
The report was written by the chief economist for business consultancy BERL, Ganesh Nana.
Dr Nana found if immigration stood still, exports would drop by nearly 13% by 2021 and gross domestic product by 11%.
He says a strong policy statement is needed that that increased immigration is here to stay for the long term and is positive for long-term economic improvement.
The report also concludes there is no obvious advantage to only targeting highly skilled migrants, as each sector of the economy needs people with a range of skills.
The Council of Trade Unions agrees that it is sensible for future immigration policy to allow in a wide range of new migrants, including unskilled workers.
Economist Bill Rosenberg says targetting immigration at the highly-skilled could reduce employment opportunities for New Zealanders and discourage them from acquiring skills.
