Skill Shortage Underscores Need For Rule Change

New Zealand Association For Migration & Investment

22 January 2007

Skill Shortage Underscores Need For Migration Rules Change

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Looming skill shortages reinforce the case for revising the work-to-residence rules applied to some skilled migrants, according to the New Zealand Association for Migration & Investment (NZAMI). The immigration consultants’ national organisation wants an increase in the length of time given to prospective migrants to find appropriate jobs. The Association is also seeking an easing of restrictions on the types of employment that can help applicants gain residence.

The six month work-to-residence visas were introduced under Skilled Migrant policy in late 2005, replacing the previous two year visas. The scheme allows migrants to gain residence, if they are able to find and retain appropriately skilled employment for three months out of the six month period.

Labour Department statistics show that, in the half year to June 2006, only 19 people, or three percent of those applying, gained residence through this means.

“It’s clear from these figures that the scheme, as currently constituted, isn’t working for prospective migrants. We don’t believe it’s working for New Zealand either,” says the NZAMI’s Chairman, Bernard Walsh.

“This policy’s failure needs to be seen in the context of the Quarterly Survey of Business Opinion released last week by the New Zealand Institute of Economic Research (NZIER). The survey showed a net 29 per cent of firms finding it harder to recruit skilled labour.

“Even last year, during a comparative slackening of the employment market, the Labour Department was reporting skill shortages well above historical averages, reinforcing the view that New Zealand faces a long-term skills deficit,” says Mr Walsh.

“Under these circumstances, we really shouldn’t be placing unrealistic barriers in the way of highly-motivated, skilled people who have given up their jobs and their homes to come here and work hard at building a future for themselves and their families.

“Many New Zealanders know from their own experience that it can take time and persistence to find appropriate work, even in a buoyant job market. The task is obviously far more taxing and time-consuming for newcomers, who might well experience initial difficulties finding their feet in their new environment. Our immigration policies need to take these realities into account.

“We have recommended to government that six month work-to-residence visas be replaced with visas valid for one year. These would provide new arrivals with a more realistic opportunity for exploring the market for their specific skills, and would also make prospective migrants more attractive to employers,” he says.

Mr Walsh adds that there would be no substantial risk associated with an extended time-span for work visas, as migrants on the work-to-residence scheme have all been cleared for residence, subject only to the requirement of securing and retaining employment in their field.

“The NZAMI has also asked government to re-assess its insistence that employment gained under this scheme must comprise a considerable level of managerial, specialist or technical expertise. We believe that this requirement places the benchmark too high and is helping to frustrate the operations of the work-to-residence scheme under Skilled Migrant policy.

“It’s hard to imagine many employers offering senior positions, particularly with a managerial component, to people with short term work permits and no guarantee of residence. Furthermore, a rigidly formalistic concept of skilled employment will probably fail to reflect market realities at any given time,” he says.

“In recent years, our Skilled Migrant policy has become increasingly sensitive to the long term requirements of our economy and generally works very well. However, the policy’s work-to-residence element provides an exception to this rule. We urge government to take an urgent look at making it more realistic, so that it can better serve New Zealand’s needs, as well as those of the hard-working, skilled people our country needs,” he says.

The New Zealand Association for Migration & Investment represents approximately 170 members throughout New Zealand, including immigration and investment consultants, accountants, lawyers, banks, business specialists and financial advisers.

ENDS

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