Foreign students could be given the chance to work while studying, under an immigration policy review.
The Education New Zealand proposal would mean more than 50,000 English language students would be eligible to work for 20 hours a week.
It is part of a wider plan by the industry body to attract students back to New Zealand and boost the ailing export education industry.
But critics said it would see competition in the part-time job market, pitting newcomers against other students and lower-skilled residents.
Despite that threat, ENZ chief executive Robert Stevens said the move was needed to claw back interest in a $1.7 billion industry which had suffered a decline.
"New Zealand competes in a global market and restrictive policies can mean the difference between attracting students and having them go elsewhere," Mr Stevens said.
The organisation commissioned an independent report into the impact of immigration policy on the international student market.
The findings of the study, by Martin, Jenkins & Associates, will be forwarded to the Government to help shape a policy review this year.
It describes work rights as a key selling point in countries such as Britain and Australia.
But it concedes there is a risk that students would take jobs otherwise filled by local job-seekers.
However, it also said that loosening the controls would prevent students working illegally and would offer benefits for seasonal industries.
Latest figures show the number of international language students dropped to a low of 50,000 last year from 70,000 the year before.
But the proposed policy has drawn criticism from some quarters.
New Zealand First leader Winston Peters said the focus should be on providing a high-quality education to attract students.
"The idea is not a goer until every New Zealand student trying to get through university has got the job they want first."
Andrew Kirton, co-president of the NZ University Students Association, said it welcomed students from anywhere in the world, but more emphasis should be placed on international students' well-being rather than "marketing ploys".
Other changes called for by Education New Zealand as a result of the report include a clear and transparent pathway from international study to permanent residency, swifter processing of visa applications and improved on-line resources.
Immigration Minister Paul Swain said he would be considering the issues raised in the report as part of a service review of student policy. Officials were expected to report back in April.
Overseas students could be given work rights
AdvertisementAdvertise with NZME.