NZ immigration is full of uncertainty, largely falling into three areas: border policy, changes in compliance for foreign workers and changes in the procedure of immigration. Let’s review each item and identify which one presents the largest problem to immigrants and to employers that would like to hire immigrants.
1) POTENTIAL CHANGES TO COMPLIANCE:
We have at least 4 changes potentially entering into policy here:
a) median wage correction upwards,
b) age of dependent children dropping down to 18,
c) points system might be adjusted, or at least this is what some believe and finally
d) qualifications requirements may get stronger, with a particular focus landing on semi-skilled workers.
The above items will not negatively impact most foreign job seekers today. We have seen Immigration New Zealand increase compliance on incoming foreign job seekers for several decades already. So far, I understand proposed or considered policy changes, I don’t believe this category is going to shock anyone. It would probably be more surprising if there was no change in this category.
2) COMING CHANGES TO PROCEDURE: (Regarding the changes coming November 1st)
What are the coming changes and how are they likely to impact the major stakeholders?
a) AFFECTED EMPLOYERS – will have to create new processes and systems to comply with INZ Accreditation. And they will need to keep compliance robust in order to maintain the privilege of hiring foreign talent. The larger employers will quickly streamline this new procedure and continue on as before. The smaller employers will have greater per-hire costs and some of them will struggle to find the capacity for accreditation. Some of the smaller companies that want to hire foreigners may not have the staff or time needed to sort compliance requirements. Therefore, I see the small-to-medium companies as an immediate growth area for agency support in both full service accreditation support or ad-hoc consulting and document support.
b) AFFECTED IMMIGRATION AGENTS- will have to re-think their business model as it concerns their client market because the employer-led immigration process will put two important tasks under one roof: job offers and work visas. Agents are likely to see their job seeker market shrink overall and meanwhile, the SME market is likely to become an opportunity soon and possibly larger companies would want to contract for seasonal volume work in certain sectors. Early adapters that figure out this new and evolving market will secure newly-created market share with thanks from INZ.
c) AFFECTED JOB SEEKERS – will experience a more functional work-to-residency process in the long run. However, there will be challenges that come with change. Job seekers are also likely to save a ton of money in the beginning stages where they find employers processing visa documents instead of agents. The goal of job seekers is likely to be simplified as well if they can target employers that are accredited. I assume even non-accredited employers will become accredited for the right opportunity. The entire job market is likely to be open for job seeking. In that regard, I see very little changing in terms of strategy for job seekers because it is still about getting work and the entire job market is there for you to explore.
The above items will lighten the load of most job seekers in the long run, both financially and also with a more efficient process in the long run. This will attract more of the talent that New Zealand wants. Employers will adjust in the usual way they always adjust, by either taking on the challenge in-house or contracting it out to a reliable partner.
3) CHANGES IN BORDER POLICY: (only temporary we hope)
What has been the impact of NZ border policy over from Q2, 2000 until now?
* New costs introduced with quarantine
* Complex exemption rules, often not leading to residency
* Divided families
* Uncertain when or how border policies will be resolved
It’s All About The Border
To me, this is the category of pain for the great majority of New Zealanders and foreign job seekers considering New Zealand as a home. Until the border policy issue is resolved and brought back into normal functional society again, immigration processes will remain unpredictable with cost, time and compliance procedures.
Economic Impact
Like many other nations of the world, New Zealand was built on the productivity of employers and workers. We wouldn’t be where we are today if we didn’t have a well-managed business environment and a well-managed border. In 2020, NZ lost over 20% of its goods and service export revenue when the Travel and Tourism industry fell apart. That left the other 80% responsible for the all of goods and services revenue that remained, and that put additional pressure on infrastructure to keep those goods moving at a high rate. Things worked out well for NZ so far, because we have the infrastructure and it works. But we need foreign talent to keep up with maintenance and technology upgrades. The future of NZ export revenue depends on the current state of NZ infrastructure.
Positive Outlook
Although this is a trying time for everyone, let’s not lose sight of the fact that NZ is still the best place on the planet for lifestyle, raising children and enjoying abundant nature. And let’s also not forget, NZ has already started with easing border restrictions with travel options provided to citizens of nearby islands, Australia and exempted workers. This may be expected to widen cautiously over the next months to come. I see plenty of positive trends so far and only one big problem that needs to be resolved.
Employment for Immigration to New Zealand, Australia and Beyond 