New Zealand Businesses Face Critical Skills Crisis As 87% Struggle To Fill Roles Locally

A comprehensive survey of hundreds of New Zealand employers has exposed the severity of the country's skills crisis, with nearly 9 in 10 businesses (87.8%) struggling to fill roles locally and more than two-thirds describing access to migrant workers as critical to their operations.

The 2025 Working In Business Survey: Migration & Skills provides the most comprehensive picture yet of how workforce pressures are constraining New Zealand's economic growth across all sectors and regions.

"The numbers paint a stark picture – New Zealand businesses simply cannot find the skills they need locally," said Scott Mathieson, Co-Founder of Working In. "When 68% of employers tell us migrant workers are critical to their operations, and only 4% can fill all roles locally, we're looking at a structural workforce crisis that demands urgent attention."

Skills shortages hit core sectors hardest

Technicians and trades workers are the most sought-after skills, with nearly half (46.3%) of employers struggling to fill these roles. Machinery operators and drivers (26.8%) and managers and professionals (23.6%) complete the top three shortage areas.

Construction and infrastructure businesses, representing over a quarter of survey respondents, are particularly affected by the skills shortage.

"These are the workers building our homes, maintaining our infrastructure, and keeping our supply chains moving," Mathieson explained. "Without access to international talent, New Zealand's infrastructure and housing ambitions are simply undeliverable."

Nearly 8 in 10 businesses (79.7%) report positive impacts from employing migrants, with 40.7% experiencing significant improvements exceeding 20% in productivity or revenue. Only 2.4% report any negative impact.

Key benefits include filling critical skills shortages (89.4%), strong work ethic and motivation (58.5%), and willingness to work flexible hours (44.7%).

"When 4 in 10 employers report productivity gains above 20%, the idea that migrant workers damage the economy is simply not supported by evidence from those actually employing them," said Mathieson.

Despite political sentiment, 60.2% of businesses support increased immigration levels, with skills shortages in specific industries identified as the top policy priority by 91.1% of respondents.

However, administrative barriers are hampering recruitment. Three-quarters (75.6%) cite visa and compliance requirements as their primary challenge, with only 26% satisfied with current processing times.

"Employers are crying out for streamlined systems – 83% tell us this would be their most valuable support," Mathieson noted. "The current system is actively working against New Zealand's economic interests while businesses struggle to access the talent they desperately need."

Regional impact spans beyond Auckland

While Auckland represents 52% of responses, the dependency on migrant workers spans all regions. Nearly 8 in 10 businesses (78.9%) across New Zealand describe migrants as critically or moderately important to their regional labour supply.

Looking ahead, 74.8% of businesses plan to recruit migrant workers over the next three years, with emerging technology areas including artificial intelligence (19.5%) and advanced manufacturing (15.4%) representing new recruitment frontiers.

"New Zealand faces a choice: embrace the international talent that demonstrably drives economic success, or watch our competitors pull ahead while we're constrained by systems that don't match business reality," Mathieson concluded.

"These aren't abstract statistics – they represent real businesses struggling to grow, real projects delayed, and real economic opportunities lost. When 89% of employers have successfully filled skills shortages through migrant workers, we need to ask why policy is making this harder, not easier."

Survey snapshot:
• 68.3% consider migrant workers critical/very important
• 87.8% struggle to fill roles locally
• 79.7% report positive business impacts
• 46.3% identify technicians/trades as top shortage
• 82.9% want streamlined visa processes
• 91.1% prioritise skills shortages in immigration policy

© Scoop Media