New Zealand to temporarily increase hiring due to labor shortage

New Zealand will make temporary changes to immigration rules and aims to lure 12,000 workers next year with a working holiday scheme designed to fill labor gaps as businesses struggle to find staff, a minister said on Sunday.

The struggle to find workers, part of a global trend that has helped push up wages in New Zealand, is complicating the central bank's fight against inflation, which last week raised interest rates to the highest level since September 2015. "These measures are about providing immediate relief to businesses hardest hit by the global labor shortage," Immigration Minister Michael Wood said in a statement, adding that the holiday program aims to double intakes. Other steps include relaxing wage rules for skilled migrants in sectors such as elderly care, construction and infrastructure, meat processing, seafood and adventure tourism. Wood added that the visas of some onshore holidaymakers will also be extended by six months to ensure that workers stay in the country. "There are labor challenges across skill levels and sectors," he said. "New Zealand is not alone in this." The measures come at a time when the unemployment rate stood at 3.3% in the second quarter and wages rose 3.4% year-on-year, the fastest pace in 14 years. Last week, the Reserve Bank of New Zealand raised the official cash rate by 50 basis points to 3.0% to rein in inflation.