What to expect in the New Zealand immigration space in 2024.
The 2023 General Election resulted in New Zealand’s first three-party coalition government. The three parties proposed very different policies in their 2023 election campaigns. The coalition agreements provided some clues as to what we could expect. The devil is always in the details of immigration policy. Unfortunately, the coalition agreements haven’t given us the details to understand what will happen to the Accredited Employer Work Visa (AEWV). Fortunately, we will not have long to wait as Erica Stanford, the Minister of Immigration, has advised in a recent TV interview that further announcements are likely in the next month.
Skills
The Prime Minister and Minister of Immigration have commented on AEWV holders' skill level. In 2023 52% of AEWV applications were based on jobs with an ANZSCO skill level of 4 or 5. ANZSCO is a job classification system where skill levels are assessed from 1 to 5, with level 1 being the highest and level 5 being the lowest. The Minister of Immigration has advised they intend to reverse this, with half of AEWV applicants being skill levels 1 and 2, similar to what it was under the former Essential Skills policy when the National Party were last in power.
Labour Market Test
The Labour Market Test is the process an employer must undertake to prove no New Zealanders are available to take up a position an employer wants to fill with a migrant worker. This process is part of the Job Check in the AEWV process and was previously required under the Essential Skills Work Visa.
The Minister of Immigration stated she is unsatisfied with the current Labour Market Test rules. Under the previous policy, employers of lower-skill positions (ANZSCO 4 and 5) generally had to consult with Work and Income and advertise the position to confirm no New Zealanders were available. However, the Work and Income consultation was abolished under the AEWV policy. The Minister made comment about employers only having to declare no suitable New Zealanders were available with no proof under the AEWV policy, which employers had to previous prove in the Essential Skills process.
Median Wage
The AEWV also requires most migrants to be paid at least the median wage (some exceptions in specific jobs apply). When the AEWV was launched in 2022 the median rate was set at $27.76 per hour, this increased to $29.66 per hour in February 2023. The previous government had advised an increase to $31.61 per hour in February 2024 however that was abolished in late December 2023 by the new government. The intention of the median wage was for it to be a tool for setting a specific level of skill. The historically low post Covid-19 unemployment rates meant this idea failed as employers were desperate for staff. It resulted in some migrants being paid more than the equivalent kiwi worker and further cost pressures on employers. The previous Essential Skills policy required employers to pay market rate, the equivalent to what a New Zealander would be paid. The Minister has made it clear she intends to abolish the median wage requirement.
Predictions for 2024
The Minister of Immigration has advised further updates in the next month however, my predictions are as follows:
A focus on skilled positions, with ANZSCO having a bigger focus on assessing job suitability.
Thorough checks for accredited employers, especially those in the labour hire industry.
Work and Income engagement required for lower skilled Labour Market Tests.
The requirement for an employer to prove they cannot find suitable New Zealanders to fill positions.
The abolishment of the median wage.