NZ's strong migration gains continue

New Zealand's net migration inflows for September of 10,510 were the second strongest on record, beaten only by the July inflows.

Statistics New Zealand figures released yesterday showed inflows had topped 10,000 for the past three months, having averaged about 9650 in the preceding years.

September's outflow of 4960 was slightly higher than the 4810 average over the past year.

In the year ended September, arrivals reached 118,900.

Statistics NZ noted 24,700 (20.8%) were from Australia and of those arrivals two-thirds were New Zealand citizens.

A total of 14,100 (11.9%) were from India, and three-quarters had student visas. About 10,700 (9%) were from China, and about half had student visas.

On an annual basis, net migration set another record high of 61,234 for the year ended September.

During the years when scores of New Zealanders were leaving for better jobs in Australia, Labour was critical of the Government's policy but has now changed its tune.

Since the migration boom began, Labour and the Green Party have remained silent but Labour finance spokesman Grant Robertson broke that silence yesterday.

Mr Robertson said the economy was not keeping up with a migration boom, leaving Kiwis poorer individually since the election.

For the first six months of this year, GDP per capita had been negative and was the worst seen since September 2011.

In September 2014, it was $11,931. According to migration statistics released yesterday, in June 2015 GDP per capita was $11,924.

''While record migration may seem like a good story, it's only good if the economy can handle it. Auckland builders can't meet demand and high levels of migration are fuelling skyrocketing house prices.

With unemployment rising and per capita GDP declining, the economy isn't handling it, either,'' he said.

Westpac chief economist Dominick Stephens said the nature of the net immigration boom was slowly changing.

The number of New Zealand citizens departing the country remained extremely low by historical standards but had been creeping gradually higher for a year.

More New Zealanders departing detracted from net migration.

Also, the number of overseas citizens entering New Zealand had been rising steadily and monthly overseas arrivals were now 10% higher than three months ago.

There had been a notable lift in people arriving on student and temporary worker visas, he said.

''With offshore labour markets remaining weak, net migration was likely to remain strong over the coming years.

However, eventually, migration was expected to eventually slow.''

New Zealand's economy is slowing and Australia will eventually become a more attractive destination for migrants, from an economic point of view.

''What's more, the inflow of foreign migrants is now running well above residence approval targets of 90,000 to 100,000 over two years, contributing to the high-growth, low-inflation and low interest rate situation that has prevailed,'' Mr Stephens said.

ASB chief economist Nick Tuffley said the total net inflow included nearly 54,000 working age migrants over the year.

The strong inflow would support labour capacity and contain wages.

Housing demand would also remain supported by the inflows, particularly in Auckland.

The strong population growth, courtesy of migration, was a factor in helping keep the cash registers ringing for retailers.

In separate figures released by Statistics NZ, September overseas visitor arrivals rose 4.2% in September and 12.6% for the year.

Mr Tuffley said that was also a contributing factor to the lift in retail spending seen in the last 12 months.

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