WELLINGTON: New Zealand’s pool of labour increased at a slower pace for a second straight quarter, suggesting that a surge in foreign workers entering the country is past its peak.

       The number of residents aged 15 years and over who could work rose by 24,500 in the fourth quarter to an estimated 4,256,500, Statistics New Zealand said.

       That’s down from gains of 31,100 in the third quarter and 35,400 in the second.

       Slower growth in the working-age population is evidence that a surge in immigration may be starting to ebb.

       That may be a relief for the Reserve Bank, which said late last year that demand for housing from new arrivals could stoke inflation and potentially prompt another hike in interest rates.

       Since those comments, an unexpected contraction in third-quarter gross domestic product has seen investors price in aggressive rate cuts this year.

       Net immigration was a record 128,900 in the 12 months through October. Still, on a monthly basis, gains eased to about 9,300, the lowest since December 2022.

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       The working-age population rose by 124,000 in the year through December – the most since records began in 1986, data showed.

       The influx of foreign workers that occurred after pandemic-related border closures were lifted has helped ease labour market shortages and is expected to take pressure off wage inflation, which soared to a record in early 2023. — Bloomberg