New Zealand Immigration Skills Requirement and Sectoral Ease: Starting 8th September

Starting from 8th September, New Zealand is introducing significant changes to its immigration skills requirements, particularly easing conditions in certain sectors. These updates are aimed at addressing labor shortages and making it easier for employers to hire skilled workers.

What is the Accredited Employer Work Visa (AEWV)?

The Accredited Employer Work Visa (AEWV) is a temporary visa that allows employers to hire skilled migrant workers. To qualify, employers must be accredited by Immigration New Zealand, ensuring they meet specific standards and can provide a genuine job offer. This visa is designed to prioritize New Zealanders for job opportunities while allowing accredited employers to fill genuine skill shortages.

Why Some Sectors Need Exclusive Exemptions

Certain sectors in New Zealand, such as meat and seafood processing, tourism and hospitality, and the care workforce, face significant labor shortages. These sectors are crucial to the economy and need a steady influx of skilled workers. The exclusive exemptions, lasting until 31 March 2025, aim to ease hiring by relaxing some immigration requirements.

Key Points:

• Meat and Seafood Processing: New visa applicants offered roles under the 2024/25 cap.
• Tourism and Hospitality: Existing visa holders with roles exempt from the February 2023 median wage, if their visa expires on or before 31 March 2025 and they apply for a further 1-year AEWV for the same occupation.
• Care Workforce: Existing visa holders with roles included in the care workforce sector agreement, if their visa was granted between 4 July 2022 and 23 November 2023, they were paid at least NZD$26.16 per hour, and they apply for a further 1-year AEWV for the same occupation.
• Minimum Skills Threshold: For roles not on the Green List or not paid at least twice the median wage, applicants need 3 years of relevant experience or a relevant qualification at level 4 or above of the NZQCF.
• IELTS Requirement: No specific mention of an IELTS 4 band requirement for these exemptions, but general AEWV requirements, including English language proficiency, may still apply.
• Skill Level 4 or 5 Criteria: Applicants typically need a bachelor’s degree in any field, a relevant diploma, or 3 years of relevant experience.

Previous Exemptions Accorded to These and Other Sectors

Previously, sectors like meat processing, seafood processing, and tourism and hospitality had temporary exemptions allowing them to pay below the median wage for certain roles. These exemptions were part of sector agreements designed to address immediate labor shortages while maintaining fair labor practices. Other sectors, such as construction and infrastructure, also benefited from similar agreements to meet their labor demands.

Expected Outcomes of These Changes

By easing immigration requirements, New Zealand aims to attract more skilled workers to fill critical roles in the exempted sectors. This is expected to alleviate labor shortages, boost productivity, and support economic growth. Employers will benefit from a larger pool of qualified candidates, enabling them to maintain and expand their operations.

Previous Data Showcasing Success

The Accredited Employer Work Visa has been successful in bringing skilled workers to New Zealand. Since its introduction, over 125,000 AEWV applications have been approved, with more than 31,000 accredited employers participating in the scheme. This has helped address labor shortages in various sectors and supported the country’s economic stability.

Source:Assurance-review-of-the-operation-of-the-AEWV-scheme-Final-Report.pdf (publicservice.govt.nz)

Countries Benefiting the Most

Countries like India, the Philippines, and China have seen significant numbers of their nationals benefiting from New Zealand’s immigration exemptions. These countries have a large pool of skilled workers who meet the requirements and are willing to relocate for better opportunities.

Source: Interactive World Migration Report 2022 (iom.int)

Current Labor Shortage and Expected Impact

By mid-2024, New Zealand is experiencing a 4.6% unemployment rate, with notable labor shortages in sectors such as meat and seafood processing, tourism and hospitality, and the care workforce. To address these gaps, the government plans to issue approximately 165,000 employment-based visas in 2024. This influx of skilled workers is anticipated to significantly alleviate labor shortages, especially in the exempted sectors, and bolster the country’s overall economic growth.

Souce:Labour market statistics: June 2024 quarter | Stats NZ

Conclusion

These changes reflect New Zealand’s commitment to addressing labor shortages and supporting key industries. By easing immigration requirements, the country aims to attract skilled workers and bolster its economy. The success of the Accredited Employer Work Visa in the past demonstrates the potential positive impact of these new exemptions. As New Zealand continues to adapt its immigration policies, it remains an attractive destination for skilled workers from around the world, ensuring a robust and dynamic workforce for the future.