Migrant pay gap research exposes 'concerning' inequities between different birth countries

The report highlights migrants who spoke English and another language were more likely to earn a lower wage than migrants who just spoke English.
The report highlights migrants who spoke English and another language were more likely to earn a lower wage than migrants who just spoke English. Photo credit: Image - Getty Images

New research commissioned by Diversity Works New Zealand reveals "concerning" pay gap inequities between migrants from different birth countries. 

Working migrants from South Africa, Northern America and Europe all earn a higher average hourly wage than migrants from Asia, the rest of the Americas, Polynesia, Melanesia and Micronesia. 

Diversity Works New Zealand chief executive Martha Smit says even when data compared migrants with the ability to speak English, time spent in New Zealand and age, the inequities remained. 

"In 2018, engineering professionals from the UK, South Africa and Northern America all earned an average wage above $45 an hour. In contrast, engineering professionals from India, China and Polynesia all had hourly wages below $40."

But the report shows there are a number of factors that contribute to the iniquities of some migrant groups.

"Cultural and language differences, institutional barriers, structural bias and discrimination," Smit says. 

The report highlights migrants who spoke English and another language were more likely to earn a lower wage than migrants who just spoke English. 

"This is really a reflection of global inequities and New Zealand is at risk of perpetuating those through employing for low-paid jobs from non-European countries and for highly skilled roles from European countries."

Smit says migrants from English-speaking, advanced countries can easily transfer their qualifications to the New Zealand labour market compared to migrants from other countries.

"The Government has a responsibility to ensure the skills and qualifications of migrants are recognised. This includes making certain there is no bias in how qualifications are gained overseas are assessed."

Smit says the pay gap that exists between migrant groups who have the same qualifications and industry roles shows conscious or unconscious bias and discrimination is influencing labour market outcomes in New Zealand. 

She adds although several pieces of legislation exist covering the unjust treatment in the workplace, discrimination and bias continues. 

"This means having recruitment processes and selection criteria, training and professional development, promotion and career progression, remuneration, and work locations and processes that ensure equitable and fair employment for all."