Moving towards a smarter immigration system - Joanna Hall

Not all the skill sets sought by businesses in New Zealand can be found onshore. Photo / 123RF

In December, the Government introduced a series of changes to New Zealand’s main work visa, the Accredited Employer Work Visa (AEWV), which are a step in the right direction towards a clear, consistent and smart immigration system.

It’s critical our workforce has the skills the country needs - and immigration plays an important role in helping to overcome gaps and upskill our domestic workforce.

Employers use migration, for the most part, as a last resort when they can’t find the right skills locally. While unemployment has increased and more people are looking for work, it doesn’t mean that all the skill sets sought by businesses can be found onshore.

That’s why the EMA advocates for an immigration system that can consistently provide the skills we need, working alongside an education sector which is responsive to the needs of industry. Our members also want more certainty in the rules which regulate the hiring of migrants, along with a reduction in the burden of compliance costs.

So, it’s good to see that many of the recent changes help to support these objectives. The more notable changes include:

• The removal of the median wage requirement in the AEWV scheme. We had advocated for this change in our policy manifesto prior to the last election. Previously, the threshold served as a proxy for skill levels, but it had unintended consequences such as adding unnecessary pressure to wage inflation. The change will now allow employers to hire migrants at the market rate specific to each job and location.
• Removing the requirements for completing Employment NZ online modules with Immigration New Zealand and, instead, providing relevant information for both migrants and employers when they need it. This is more practical for both parties and helps reduce the administrative burden on employers.
• From April 2025, employers will be able to declare in good faith that they have advertised Anzsco level 4 or 5 jobs with Work and Income. Anzsco is the Australian and New Zealand Standard Classification of Occupations, which grades occupations according to how “skilled” a role is (1 being highest and 5 the least). Previously, employers had to go through a 21-day wait time while Work and Income advertised the role. This change will expedite the recruitment process, though employers need to ensure that they engage with Work and Income in a genuine way.
• Changing the visa duration to three years for Anzsco level 4 and 5 roles is also welcome. Previously, the duration had been two years with the possibility of a one-year extension. The change will significantly reduce the costs and time spent on the application process for both employers and migrants, while also freeing up resources at Immigration New Zealand.
• The experience requirements have been reduced from three years to two, which is another positive move. It maintains a solid baseline of experience, ensuring we get the right skill levels appropriate to the roles that need to be filled.

In terms of future changes, we’re anticipating more information on how Immigration New Zealand will redesign the Job Check stage to streamline the experience for low-risk employers. The Job Check gateway is complex and compliance-heavy, so improvements here will be much appreciated.

The introduction of seasonal visas is good in theory, and we know there’s been a lot of consultation with groups that have seasonal requirements. However, the announcement in December didn’t contain any further information, so we’re awaiting more detail to assess how fit-for-purpose these will be.

Meanwhile, it’s good to see more certainty provided to Anzsco level 4 and 5 AEWV holders with an extension in the duration of visas, while those holding interim work visas will have access to greater employment protection.

However, pathways to residency continue to be an area of uncertainty. It’s unfortunate that some skilled migrants are forced to leave New Zealand at the conclusion of their visas, after having contributed significantly to our social and skill capital. This will become more pronounced when the labour market inevitably turns and employers increasingly struggle to find the right skill sets locally.

The Government has signalled it will review residency settings this year. We look forward to working with them to address the current bias towards university degrees which is inherent in the system.

We’re also mindful of the confusion that constant change to the immigration system can cause both employers and migrants. There were numerous changes in the latter part of 2024. While many of these were positive, we’ve had feedback from EMA members that the sheer number of announcements drip-fed to employers did cause confusion.

As a result, many employers feel they need to use licensed immigration advisers to avoid breaching immigration law and put at risk their ability to hire migrants in the future. This adds further to their costs.

Ultimately, we want a clear, consistent and smart immigration system that works alongside our education system, driven by a long-term workforce strategy, which will provide the skills New Zealand needs, now and into the future. To shift the dial on our productivity challenges, a more strategic approach is required so we can address our skill needs as a nation.

This requires taking a big-picture view of what skills will be needed over time. Collaboration will be key - between industry, relevant departments, ministers and key stakeholders - so that the needs of employers, migrants and Kiwis looking for work can be addressed. We will continue to advocate for outcomes that take us in this direction.