39598 (2025). Hon Barbara Edmonds to the Minister of Finance

Written Question

Published date: 27 Aug 2025

Metadata

Document type:	Written Question
Parliament number:	54
Question number:	39598 (2025)
Question asked:	14 Aug 2025
Member asking:	Hon Barbara Edmonds
Portfolio:	Minister of Finance
Minister replying:	Hon Nicola Willis
Answer received:	24 Aug 2025
Status:	Question Answered
Reply type:	Reply
Document ID:	WQ_39598_2025
Document guid:	398d9034-7f6f-408a-acf1-5c2db0535548

39598 (2025). Hon Barbara Edmonds to the Minister of Finance: What are the assumptions behind the changes in the labour force participation rate in the Budget Economic and Fiscal Update 2025 - Data - Economic Forecasts Data over the forecast period?

Hon Nicola Willis: The Budget Economic and Fiscal Update forecasts the labour market, including the participation rate to gradually improve from the later half of 2025. The labour market tends to lag economic growth as lower interest rates filter through the economy to generate demand. Investment Boost will help facilitate the recovery by supporting businesses to invest, spurring growth, and new jobs. Net migration is expected to bottom out in 2025 before slowly returning to 40,000 people per year by 2028/29.