A Closer Look at the Impact of Recent Changes

While the changes implemented in April 2024 aim to potentially reduce net migration trends, their benefit to the New Zealand economy and society remains uncertain. The core issue persists: many employers struggle to find local staff, both skilled and unskilled.

This challenge is particularly pronounced in sectors such as construction, care, primary industries, and hospitality, where many vacancies are classified as skill level 4-5 occupations according to the Australian and New Zealand Standard Classification of Occupations (ANZSCO)

The process has become more stringent for potential migrant workers in unskilled occupations. They must prove they meet specific qualifications by assessing their qualifications through the New Zealand Qualifications Authority if they do not have a bachelor's degree or above. Alternatively, they are required to prove they have at least three years of work experience. Additionally, they are required to demonstrate their language proficiency by getting an acceptable result in an English language test. The costs associated with hiring an unskilled migrant worker who can only be granted a two-year work visa have surged.

A significant drop in the volume of applications does not necessarily indicate that the new policies are effectively addressing the underlying issues. The decline in numbers can be seen as a temporary solution rather than a permanent fix. Employers across New Zealand continue to face challenges in filling both skilled and unskilled positions, highlighting that the root problem remains unresolved.

In summary, while the changes to the AEWV process have led to a notable decrease in applications, they have yet to provide a comprehensive solution to the labour shortages that many New Zealand employers are experiencing. The focus should now shift to finding sustainable strategies that balance migration controls with the country's economic and social needs, a task that requires immediate attention and action.