The New Zealand Institute of Economic Research produced the Picking Cherries report for the Productivity Commission.
According to report co-author Peter Wilson, while low-skilled migrants did fill labour gaps and expand the size of what participating firms could achieve, they did not actually boost overall productivity.
“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 programme, which started in 2007, requires employers in the horticulture and viticulture industries to hire seasonal staff from other countries. After its inception, it has expanded from 5000 to over 14,000 employees a year.
Wilson stated that there was no evidence that programmes such as the RSE system were beneficial to 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 have claimed RSE and migrant workers are vital, and without them fruit and produce would be left to rot.
“We hear that a lot around the world, 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.”
The report said international experience suggested that in the absence of readily accessible alternative sources of workers, productivity-enhancing alternatives to labour and skill shortages were more likely to occur, such as improving education and training, and increasing automation.
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 back-breaking 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.”