How the Labour Market Has Impacted NZ Work Visa Holders

It’s changing. Very fast. More than 180,000 people are now accessing Jobseeker Support in NZ. If you are a business supporting any sort of NZ work visas or a migrant on a work visa- here are some facts on why you need to read this article and understand it well. The future for some may be bleak now, but knowledge and preparation will ease things for them.

Disclaimer: This article assumes some level of work visa knowledge on the reader’s part.

The essential skills work visa is the most commonly received NZ work visa application compared to five other key categories.

Essential Skills Work Visa

ANZSCO (Australia and New Zealand Standard Classifications of Occupations – yes, I know it’s a mouthful!) Skill Level 3 and 4 roles are the highest percentage of Essential Skills Work Visas submitted – based on data for 12 months ending April 2020. ANZSCO 1-3 roles have different advertising rules to ANZSCO 4,5 roles.

This means an understanding of Labour Market Testing (LMT) for the Essential Skills work visa is very important knowledge.

Lately, INZ announced they will ask for updated evidence that New Zealanders are still not available for the role on offer. Why have they asked that? Two main reasons:

1. It is the objective of Essential Skills Policy – Incentivising development of a highly skilled workforce, supporting NZ businesses to maintain capacity, not displacing New Zealanders from jobs, managing fiscal risk and ensuring integrity of NZ immigration system.
2. Never before has NZ job market changed so much from the time the application is submitted to when its assessed – like it has now, due to Covid19.

And it’s not just that, INZ is also required to be sure that the role on which the work visa is submitted is sustainable and genuine. This in turn implies the financial sustainability of the business. A business should be confident in their ability to back up their visa submission with evidence.

INZ Wants to Know Why a Work Visa - and a Migrant Worker - Are Necessary

INZ is looking for evidence specific to the job. If New Zealanders are not suitable, INZ wants to know exactly why. They also want to know how many people viewed the job ad and how many applied (so screenshots from your advertising platform). They want transparency and clear justifiable reasons why Kiwis have been rejected. If Covid19 has caused issues in the possible recruitment of New Zealanders, INZ wants an explanation on that too. ANZSCO Skill level 4 and 5 will need a favourable Skill Match Reports for approval – no changes there.

There is one thing INZ cannot do – while assessing the application, they cannot anticipate future changes to the labour market. They must make the decision based on the job market at the time of assessment.

What’s not an issue? That a business took wage subsidy. A business taking wage subsidy to keep people employed is not a reflection on its sustainability. In INZ’s exact words “The subsidy provides support when many employers are unable to operate due to restrictions required to manage public health risks and not due to any concerns about the sustainability of a particular employer”.

This does not mean you must put out a new advertisement right now. But you can. You can also wait for INZ to contact you. They will give you an opportunity to comment (in the form of a potentially prejudicial information (PPI) letter). They are likely to give you four weeks to do so. What also matters is the sustainability story – how is your business recovering from the financial hit of Covid19? Can you continue supporting the role, and if yes, for how long?

NZ Work Visa Holders & Applicants Should Have a Plan B

This is where advocacy and representation can make or break the case. At this time, visa holders should also have a Plan B in mind. While this warning applies more to roles with generic skills required, as opposed to those applying for the essential skills work visa, it is true for all applicants. In some cases, no matter how much an employer wants the visa applicant, a suitable New Zealander will be available for the role. Or the lockdown could have hit a business so hard that it cannot recover. In both cases, visa can be declined. Having a Plan B protects you – even if your plan is to return to your country. You don’t want to be left high and dry in this immigration environment!

Want to discuss your Plan B options? Contact us for a free consultation.