Wage Pressure Feeds Inflation

Increasing the wage thresholds for international skills and talent is unnecessary and will feed inflation, says BusinessNZ Chief Executive Kirk Hope.

"In the current environment of extreme skill shortages, high inflation, negative net migration and ongoing global supply chain constraints, further wage pressure on employers announced today does not support the economic recovery businesses are working hard to achieve."

Mr. Hope says the Government has found a pragmatic solution to a bureaucratic rule for hospitality by dropping the requirement for formal chef qualifications.

"The industry will welcome any relief to the severe skill shortages and we look forward to restaurants and cafes bringing vibrancy back to our towns and cities. But the combination of increased costs faced by the industry like food, wages and rent, will make it a risky business to be in unless consumers can afford to pay more.

"The border has been open less than three months and Government continues to change the rules on productive and resilient New Zealand businesses and public service organisations. Our current workforce simply doesn't have the people or skills required.

"That's why correct and welcoming immigration settings are critical as more New Zealanders leave the country."

Mr. Hope says the skills shortage is an issue that affects every industry, sector and region.

"The stress of severe skill shortages is negatively impacting the wellbeing of New Zealanders, fuelling economic turbulence and inflation."

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