Navigating Change: Stakeholder Perspectives on New Zealand Work Visa Policy Changes on 7th April 2024

On 7 April 2024, the new government announced changes to the Accredited Employer work visa policy to tighten up the Accredited Employer Work Visa (AEWV) category of visa applications. Immigration Minister Erica Stanford, while announcing the changes on Sunday, said that New Zealand's migration numbers were "unsustainable" and getting the immigration settings right was "critical to this Government's plan to rebuild the economy", and the reforms would better balance "the needs of business with the wider interests of New Zealand".??

The significant changes include:

• Any migrants in ANZSCO level 4 or 5 occupations will now need to meet a minimum standard of English.?
• Most AEWV roles now require a minimum level of skill, relevant qualifications, and work experience to be considered for the job applied.
• If the vacancy is a job in ANZSCO level 4 or 5, the employer will also need to advertise longer and engage with Work and Income.
• For ANZSCO level 4 and 5 jobs paying at or above the required AEWV wage rate, the maximum visa length for an AEWV is reduced to 2 years, with the ability to apply for one more year with a new Job Check.
• The franchisee accreditation category will be disestablished, and these businesses will be able to apply to bring in workers from overseas through standard, high-volume or triangular employment accreditation.?
• The Work to Residence pathway for bus and truck drivers is closing to people who are not already working (or have applied to work) in a qualifying role.?
• Some planned additions to the Green List and the Construction and Infrastructure Sector Agreement will not progress.
• There will be new obligations placed on employers failing which immigration they may have their accreditation revoked.?

What do the changes mean?

The changes, apart from having socioeconomic ramifications, would definitely impact the migrants while forcing employers to make adjustments in their hiring processes. Sector-specific changes, such as for bus and truck drivers, will curtail the growth prospect of this occupation. A potential decrease in the overall number of work visas granted, particularly for ANZSCO level 4 and 5 occupations, aligns with the government's objective to reduce net migration numbers. Minimum English proficiency and higher and relevant skill standards may narrow the pool of eligible candidates. A shift will take place in the composition of the migrant workforce towards higher-skilled individuals, which could positively impact sectors requiring specialised expertise but potentially lead to shortages in lower-skilled occupations.

Impact on the Migrants workforce

The policy changes signify substantial changes to the migrant landscape in New Zealand. Minimum necessary English proficiency for lower-level occupations will raise the barrier to entry for non-native English-speaking applicants. Shorter visa tenures and tighter qualifications will likely result in a more transient migrant workforce and could deter long-term settlement plans. This could have mixed repercussions, with a possible decline in visa applications while increasing the calibre of migrant skills within the country.

Employer Adjustments

Businesses employing migrants will have to adapt to longer job advertising processes and engagements with work and income. With stiffer penalties for accreditation breaches, employers might experience heightened operational compliance costs, which can influence the structure and sustainability of their labour force.

Sector-Specific Consequences

The closure of the Work to Residence pathway for bus and truck drivers and the decision not to progress with some of the planned additions to the Green List and the Construction and Infrastructure Sector Agreement suggest the government’s intent on reshaping industry-specific labour frameworks. This approach potentially curtails growth prospects for those occupations and businesses.

Socio-Economic Ramifications

The policy changes are poised to cultivate a workforce that aligns with the new government’s economic and social goals by tailoring migration to more qualified individuals and sustaining higher employment standards.

Conclusion

This shift aligns with the government’s emphasis on reducing net migration numbers. The changes also highlight a move towards greater accountability for employers in the immigration process. The reduction in maximum visa lengths for certain jobs, particularly those in ANZSCO levels 4 and 5, also signals a more temporary nature for these work visas, possibly impacting the long-term stability of the workforce in these sectors. Overall, the comparative analysis underscores a shift from a more open and accessible work visa policy to one that is more selective, with stricter requirements for both applicants and employers, potentially affecting the ease with which businesses can access global talent and the duration for which migrants can contribute to New Zealand.