If New Zealand could not supply the skilled people needed to help businesses grow, it had to import those skills.
Cutting immigration would reduce the supply of labour, stop growth and hurt the economy, he said in an interview while in Dunedin.
Mr Hope took issue with a recent Salvation Army report that said young unemployed New Zealanders were not getting employment opportunities because of unfair competition from migrant workers.
The report "What Next — Addressing New Zealand’s Youth Unemployment" said 75,000 unemployed New Zealanders would take work if it was available.
"This number is incorrect as official statistics show job-seeker unavailability — rather than work unavailability — means the number of young New Zealanders available for work is far less than the 75,000 claimed."
He said a Ministry of Social Development analysis of 70,000 unemployed New Zealanders in April 2016 showed only about half of the number could be regarded as actually available for work.
Of the remainder, some were not available for full-time work, some were not available for work at weekends and some did not have driver’s licences, he said.
Other factors included not being able to pass a drug test.
Business NZ was hugely supportive of getting young people into work but the debate had to be balanced with facts, Mr Hope said.
"Wrong decisions have been made in the education system and some kids are suffering."
Business had a role to play in ensuring the right skills were being taught at schools and tertiary institutions to satisfy the demand, he said.
It was wrong to inflate claims of numbers actually available to work when employers in sectors such as hospitality and aged care were crying out for staff and could not find New Zealanders.
Asked if the debate about immigration would hurt businesses, Mr Hope said it would not do any damage but changes made without research into the consequences would hurt the economy if businesses could not expand and grow.
