Migrant worker value questioned
A NEW report is calling into question the economic value of the overseas workforce Central Otago’s horticulture and viticulture sector relies on.
The report from the New Zealand Institute of Economic Research for the Productivity Commission concluded migrant workers and the Recognised Seasonal Employer (RSE) scheme did not benefit the economy when looking at the overall picture.
Report coauthor Peter Wilson said although lowskilled migrants did fill labour shortages and grew the scale of what participating businesses could produce, they did not necessarily increase productivity overall.
‘‘International research shows that the host country gets bigger gains if migrant workers and locals complement each other, so they have skills that complement each other.’’
‘‘Before Covid we were seeing a lot of temporary migrants, especially students and working holidaymakers, who end up competing with locals for jobs,’’ he said.
The RSE scheme began in 2007 and allowed employers in the horticulture and viticulture industries to provide seasonal jobs for workers from overseas.
It had grown from 5000 workers a year since it began, to more than 14,000.
Mr Wilson said there was little evidence to show things like the RSE scheme were benefiting the country’s economy.
‘‘That’s concerning, because New Zealand has steadily increased its use of migrant workers over the last 10 years.’’
Many in the horticulture and viticulture sectors said RSE and migrant workers were vital, and without them fruit and produce would be left to rot.
‘‘We hear that a lot . . . but what we think needs to happen is employers need to think of more innovative ways to pick fruit that involve more capital, more technology, which might reduce the need for physical labour.’’
International experience suggested without readily accessible alternative workers, productivityenhancing alternatives to labour and skill shortages were more likely, such as better training, and more automation.
Mr Wilson said he understood why employers turned to migrant workers.
‘‘It’s the rational thing for an employer to do. If you have a young, fit, motivated worker willing to do backbreaking work for seven days a week, and they’re happy to be paid less than someone else, why wouldn’t you employ them?
‘‘But whether that’s the right thing for New Zealand as a whole is what we are investigating.’’ —RNZ