Record migration brings joblesss risk

growth is probably going to be a little bit slower than what that migration flow is,’’ ASB chief economist Nick Tuffley said, adding that many of the migrants were New Zealanders and a rising population created demand.

‘‘The economy has been losing a bit of momentum and jobs growth [has been] a bit slower so we do expect the unemployment rate to edge up.’’

BNZ is predicting that unemployment will climb from 5.9 per cent now to 6.8 per cent in mid-2017, an increase that would come despite the overall number of people employed climbing.

BNZ head of research Stephen Toplis said that migrants had been ‘‘a Godsend’’ for the New Zealand economy in recent years, but now risked becoming ‘‘a political hot potato’’, just as they had in the property market.

‘‘If unemployment goes up you just know there are going to be people out there that are going to want to blame the migrant,’’ Toplis said, adding there was a risk the unemployment rate could hit 7 per cent.

Unemployment has already risen from 5.7 per cent in mid-2014, with the number of jobs added (68,000) coming in below the number who entered the workforce looking for jobs (79,000).

Already political parties are warning that migration could harm the economy.

Green Party finance spokeswoman Julie Anne Genter said the economic growth and house price inflation created by record migration was ‘‘unsustainable’’.

NZ First, which has long warned of the impact of migration, said record migration was ‘‘hitting Kiwi job seekers hard’’ deputy leader Ron Mark said. ‘‘The lower-skilled job market is highly competitive as can be seen by the number of foreign workers in supermarkets and service stations and in the hospitality industry.’’