Govt to remove cap on skilled migrant workers

June 21, 2023
Michael Wood.

The Government will change skilled migrant visa requirements in an effort to help businesses attract workers and fill skill shortages.

Immigration Minister Michael Wood announced the changes today, acknowledging many industries were calling for workers "as the global labour shortage bites".

He said new settings - such as removing the cap on skilled migrants and a "simplified" points system - would help attract and retain workers to fill medium to long-term skills shortages.

Wood said removing the cap on skilled migrants removed an "artificial constraint" in the old system that set an indicative number of residence places available each year.

It prevented skilled migrants settling in New Zealand even when there was a demonstrable need, he said.

“From early October, a simplified points system will be introduced to set a clear skills threshold based on New Zealand occupational registration, recognised qualifications, or income.

“Highly skilled people will have a faster route to residence, and others will have a clear route to residence if they work for a period in New Zealand.

"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."

Wood said he understood providing certainty for skilled migrants and their families of a pathway to residence would be "a big draw card" for attracting them to New Zealand.

Michael Wood hopes the changes will help fill worker shortages.

He said the new skilled migrants visa system would complement other pathways to residence, such as the Green List - which has a narrower, occupation-specific criteria and is aimed at those working in specified nationally significant in-demand roles.

“This, along with simpler settings, means Immigration New Zealand will be able to process more applications faster."

There would also be an extension to the maximum duration of an Accredited Employer Work Visa (AEWV) from three to five years from November, he said.

That was to align with the introduction of a five-year maximum continuous stay on that visa for people who were not on a pathway to residence.

The duration is longer than the three years initially indicated, in response to feedback from businesses, he said.

Wood said it was the country's main temporary work visa and gave businesses access to skills to "plug short-term gaps".

"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.

“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."

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