1. Define the term net migration.

2. Using the data in figure 1, identify the country where the majority of New
Zealands immigrants come from.
3. In small groups, create a list showing some of the reasons why immigrants would
choose to move to New Zealand or Australia. Consider world events that may have
influenced their decision.
4. Using the data in figure 2, identify the trend of New Zealands net migration over
the past 10 years.

NZ pays high price for fame
In the year to February there was a net gain of long term migrants to New Zealand of 13,150. In the
past six years the net gain has been more than 128,000 people. On average, immigrant households
contain two people, so 128,000 extra people means an extra 64,000 houses. That increase is over
and above the natural population gain of about 0.5% a year. So in the past six years, it looks like
immigrants have been a significantly stronger influence on housing demand than local buyers. The
fact that immigrants are typically well-off paid professionals increases their
impact on the market.
Extract: Sunday Star Times 8/4/07

5. As indicated in the Sunday Star Times extract, the housing market is one area of the
economy affected by positive net immigration over the past six years. Using the data
in figure 3, identify if there is a relationship between net migration and house prices
over the past six years. Write your opinion
Policies neglect growth
Last week the Government announced a reduction of the targeted number of immigrants who will be
allowed to settle here in 2007-08 under the New Zealand Residence Programme. The number of
people sought under that scheme, which includes the categories of skilled and business migrants, will
be 45,000 to 50,000 down from a 47,000 to 52,000 range over the past 12 months. While that is a
relatively small reduction, it goes against the grain of a growing economy. Migrants add to the supply
of labour and thereby affect the potential growth rate of the economy. While business leaders are
looking at this issue from a labour-supply perspective, the Government is trying to cool demand
pressures in the economy.
Extract: Ulf Schoefisch, The Press 14/7/07

6. Considering the trends shown in New Zealands net migration over the past six
years, how do you think the reduction mentioned in The Press article will have the
desired effect of reducing demand in the economy? Justify your answer.
7. This information was printed in 2007. Do you think the results would be the same
or different? Which countries would more people be coming from? Why?