Working Across the Ditch: New Zealand in Australia

Abstract

This paper investigates the skills and employment profile of prime aged New Zealand born people (aged 25­54) working in Australia, using information sourced from both the New Zealand and Australian Population Censuses conducted in 2006. This information contributes to an understanding of the labour market impact of the mix and movement of skills between New Zealand and Australia.

The results show that New Zealand born people working in Australia on average held a similar level of education to those in New Zealand. However, they were less well qualified on average than the Australian workforce. New Zealanders working in Australia also tended to be under­represented in higher skilled work. A relatively high proportion worked at the lower end of the skill spectrum, in jobs such as machinery operators and drivers. They were under­represented in professional occupations as well as fast growing service related occupations in sales and retailing. The paper shows that one of the contributing factors to this is the greater income gap between New Zealand and Australia in some lower skilled jobs, such as machinery and plant operators.

These findings partly counter the anecdotal suggestions of a ‘brain drain’ to Australia.

There is also evidence that the number of New Zealanders who return home after a spell in Australia is perhaps greater than sometimes assumed. New Zealand and Australian Census results show that between 2001 and 2006 more than four workers returned to New Zealand for every 10 going to Australia.