The Green List was established in July, which provided pathways to residency - either immediately or after two years - for 85 professions identified as most in need.
From the beginning, however, the list came under fire, particularly for excluding nurses and midwives from the pathway to immediate residency, instead requiring a two-year commitment.
Wood and Health Minister Andrew Little previously justified excluding nurses over a fear they would leave for Australia not long after arriving - a claim strongly rejected by the sector.
It was also revealed many medical professions were excluded, despite major workforce shortages across the country.
College of Midwives union chief executive Alison Eddy said it was “great news” their concerns were finally being addressed.
“We were perplexed as to why were excluded given the incredible workforce shortages - some hospitals have reported greater than 50 per cent vacancies.
“We are focused on growing our own workforce here but given the nature of shortages we also need experienced overseas midwives as well.”
New Zealand Nurses Organisation union kaiwhakahaere Kerri Nuku said it was a “welcome step forward” given the global crisis of nursing workforce shortages. She said there was an estimated 3000 to 4000 vacancies currently.
However, she said while nurses were entering the country every week there were nurses heading overseas for better pay, and others leaving the workforce early due to burnout.
“There have to be better working conditions, better pay.
“The Green list has created certainty to those international workers, but the issue still needing work is around pay and conditions, particularly around health and safety.”
Asked why midwives and nurses had been excluded, why it had taken so long to change the policy and those initial reasons provided, Ardern said they believed the previous immigration settings had been effective.
She said 4500 internationally-accredited nurses had applied for accreditation here with the Nursing Council. Since the pandemic began nearly 34500 nurses had arrived in New Zealand, including nearly 1300 this year alone.
Ardern said the changes announced were about recognising increasing international shortages and “getting in front of the issue”.
“We’re going to increase shortages in places like Canada and the UK and of course, Australia. We already demonstrate we’re competitive, but let’s keep getting in front of that competition.”
Along with changes to the Green List, all teachers are now included in the work-to-residence pathway, along with drain layers, motor mechanics and other roles.
There is also a new temporary residence pathway for bus and truck drivers through a new sector agreement to help employers attract workers.
The Government will also start reissuing visas for Post Study Work Visa holders locked out by Covid-19 and streamline a Specific Purpose work visa for long-term critical workers.
Motor Trade Association chief executive Ian Pike said adding skilled motor mechanics would provide a “massive boost” amid a “crippling labour shortage”.
There was a shortage of about 1300 to 1500 workers and little local interest, he said.
“We urged Minister Wood many times to address this situation by smoothing the pathways for foreign workers to come here and give the industry much-needed support.
“We are extremely pleased and grateful that he has listened and acted.”
Previously, immigration settings in the Skilled Migrant Category effectively made it impossible for migrant automotive workers to come to New Zealand, as their qualifications were not deemed high enough and they were required to earn 1.5 times the median wage.
Aged Care Association chief executive Simon Wallace said the announcement would give certainty to migrant nurses who choose to make New Zealand their home and help attract much-needed nurses for the sector.
“Today the aged care sector just took another step back from the brink.”
BusinessNZ chief executive Kirk Hope said it was positive to see the changes which would help New Zealand stay “competitive in the current global context and secure the international skills needed for business to operate at full capacity”.
Hospitality New Zealand meanwhile said in a statement they were disappointed to miss out for chefs and other much-needed hospitality roles.
“The global shortage of skilled staff means we need more competitive and attractive immigration settings.
“Chefs are allowed to work in New Zealand, but they have to uproot their life to settle in a country where there is no certainty of residency, versus Australia, where there is automatic residency.
“All we asked for is competitive policy settings that at least give us a chance of attracting people.
National Party immigration spokeswoman Erica Stanford meanwhile said the announcement was a “major backdown” and should have happened a year ago.
Leaving nurses off the Fast Track Straight to Residence Pathway was not supported by health organisations, and even Te Whatu Ora/Health NZ lobbied the Government to change it.
“After months of dithering, it is a relief that the Government has finally realised its mistake.
“National welcomes the changes, but there is no excuse for the delays that have only added strain to the already overwhelmed healthcare system.”
Act Party immigration spokesman James McDowall also said the Government had been too slow.
“We are desperately short of nurses, bus services have stopped running and we don’t have enough teachers. These should have all been green-lit months ago.”
Green Party immigration spokesman Ricardo Menéndez March said they welcomed the changes but wanted more equitable pathways to residency for workers not covered.
“Immigration settings should prioritise the wellbeing of workers and our communities, not be based solely on what’s best for employers,” he said.