Praneet Kanodia
September 13, 2024

New Zealand tightens work visas. New rules in place for stay, running business

New Zealand is facing a concerning shift in demographics. There’s a wave of non-New Zealand citizens coming in, while more and more Kiwis leave the country. In 2023, migration of new citizens into New Zealand reached a record of 173,000, while a record 47,000 Kiwis moved out.

The extreme net migration has led to a brain drain in the economy and is also putting a strain on its resources. Unable to sustain these record-high immigration numbers, New Zealand is now looking to alter and tighten its visa regulations. 

The Immigration Minister Erica Standford says that the government is looking to align New Zealand’s immigration policies with its current economic needs in the changing business environment. 

In line with the alignment plan, Erica Standford announced a list of immediate adjustments and changes to the Accredited Employer Worker Visa (AEWV) scheme — NZ’s primary work visa program. The idea is to still be able to attract the required talent, while simultaneously reducing the pressure on the existing workforce.

Highlighting this point, Standford said: "The Government is focused on attracting and retaining the highly skilled migrants such as secondary teachers, where there is a skill shortage. At the same time, we need to ensure that New Zealanders are put to the front of the line for jobs where there are no skills shortages".

Reason for the tightened regulations

The major reasoning behind the adjustments were to support and bring forward the Kiwi talent and resources. With increased access to immigrants, NZ organizations often ended up recruiting foreign talent, making it difficult for the Kiwi population to attain employment in the country. 

All of this led to high net migration and significant brain drain, raising concerns for the economy’s future outlook. The core reasoning is to ensure that the New Zealand workers are given priority and put forward for the job roles for which they make a good match of skill and requirements.

"We had to make some changes now because we've got high migrant exploitation and unsustainable numbers coming into the country. So there are some things that we need to do immediately”, Stanford said in an interview.

With the new rules and regulations, the NZ government is looking to create a more evolved immigration system that aligns with their economic development in multiple ways. 

The statement highlighted: “These changes are the start of a more comprehensive work program to create a smarter immigration system that manages net migration, responds to our changing economic context, attracts top talent, revitalizes international education, is self-funding and sustainable, and better manage risk”.

What are the new rules?

The new rules revolve around introducing some English language requirements, increasing the work experience threshold, reducing the continuous stay options, and more.

Here’s a more detailed look into it:

  • New English language requirements introduced for migrants applying for low-skilled roles
  • Added minimum requirements for skills and work experience 
  • Employers now need to engage with Work and Income before approving migrants for levels four and five roles
  • Maximum continuous stay for levels four and five roles reduced from five to three years
  • Organizations are now required to follow the standard, triangular, or high-volume accreditation processes to hire migrants.

Commenting on the changes, Stanford said: “I am bringing in a suite of changes that will improve the AEWV scheme and ensure we are better testing the local labor market and reducing the risks of putting New Zealanders out of work”. 

She went on to highlight that many of these adjustments were not out of the blue – rather just a shift back to the pre-pandemic norms. The collective changes are simply aimed at achieving a balance between the business needs and the wider national interest.

The way forward

With the slight visa regulations adjustments, NZ will be able to strengthen its economic integrity, promote employment, and refine the immigration system. 

The changes serve as a part of the bigger picture involving migration management, talent attraction, and national risk management. As these changes work together, the Kiwis can expect several positive developments down the line.