New Zealand eases immigration rules to lure in more talent

The New Zealand government has announced changes that will streamline its migration system in a bid to lure in more foreign workers and address the talent shortage.

Starting October 9, a new simplified points system will be introduced to New Zealand's Skilled Migrant Category (SMC) Resident Visa to provide clarity on the threshold for migrant workers' residency.

To apply for the SMC, migrant workers will only need to six points that will be based on occupational registration, recognised qualifications, or income. This is down from the previous 180 points required to apply for the SMC.

"The clear requirements will provide temporary workers with clarity about their status, addressing a long-standing issue where some people with no pathway to residence were given false hope," said Immigration Minister Michael Wood.

All migrants applying for the SMC will also need to have a job or job offer in New Zealand with an accredited employer, according to the announcement.

These changes will remove an "artificial constraint in the old system" that previously set an indicative number of residence places available annually and prevented skilled migrants from settling in the country, said Wood.

Businesses across New Zealand have been telling the government that a big draw card for skilled migrant workers is gaining residency for them and their families.

"We know many industries are calling for workers as the global labour shortage bites. The new skilled migrant settings will help attract and retain skilled migrants to fill medium-to-long-term skills needs that would take time to fill by workers already in New Zealand," Wood said.

The new SMC will complement other pathways to residence, such as the Green List, as well as help Immigration New Zealand process applications faster, according to the minister.

New Zealand expanded late last year its Green List to include more professions in healthcare, education, and construction sectors to give the country an edge amid a "highly competitive global environment."

Temporary work visa extension

Meanwhile, the government will also be extending the maximum duration for Accredited Employer Work Visa (AEWV), New Zealand's main temporary work visa, from three years to five years from November.

"Providing a five-year maximum continuous stay means people who don't qualify for a pathway to residence will have clarity about how long they can work and stay in New Zealand and provides longer term certainty for business," Wood said.

The extension also came after feedback from businesses.

"We recognise the important role the immigration system plays in our nation's economic future. We are committed to working with businesses to ensure we are striking the right balance," the minister said.

Businesses welcome changes

While the Canterbury Employers' Chamber of Commerce welcomed the newly announced changes for SMC and AEWV, the group noted that there are still some areas of improvement.

Chief executive Leeann Watson pointed out the absence of "experience" as a consideration in the new six-point system, which she said was what "businesses are looking for."

"We will need to see the full policy document to ensure changes in eligibility criteria will actually unlock opportunities for businesses to plug gaps in their workforce," she said in a statement.

On the AEWV, Watson said five-year extension will provide businesses access to staff who may not necessarily qualify for residence, but the requirements there for employers are still "nearly impossible to work with."

"We will continue to advocate for further simplification of the scheme by abolishing labour market tests and wage rules and making it easier for migrants to move between accredited employers," she said.

Some 13% of employers on the chamber's latest Quarterly Canterbury Business Survey have been expecting improvement in the country's immigration settings amid labour market constraints.

The Auckland Business Chamber also previously encouraged the government to "get immigration moving faster for workers" as more than half of employers there suffer from skills shortage.