Over the past year, New Zealand has grappled with a significant emigration challenge as record numbers of citizens, particularly young people, leave the country in search of better opportunities. In response, the government has introduced reforms to its immigration policies, aiming to attract skilled workers and address critical labour shortages. These changes, which take effect progressively in 2025, are designed to reverse the concerning trend of net migration losses and bolster the country’s economic growth.
Record Exodus of New Zealanders
In the year leading up to April 2024, a staggering 81,200 New Zealand citizens left the country, resulting in a net loss of 56,500 citizens. Of those emigrating, an estimated 45,000 chose Australia, drawn by its higher wages, lower cost of living, and more affordable housing. For many young New Zealanders, economic pressures such as rising living costs and limited local opportunities have made emigration an increasingly appealing option.
The government has acknowledged the scale of the issue and the economic risks posed by such a large exodus, which has left many industries struggling to fill critical skill gaps. In response, it has posed a series of immigration reforms aimed at attracting foreign talent while addressing domestic labour shortages.
Overhauling the Accredited Employer Work Visa
A cornerstone of the reforms is the overhaul of the Accredited Employer Work Visa (AEWV) program. Starting in March 2025, the government will remove the median wage threshold requirement, which previously mandated that jobs pay at least the median wage to be eligible for the visa. This change is expected to allow greater flexibility for employers, particularly in industries with critical shortages.
Additionally, the minimum work experience requirement for lower-skilled migrants will be reduced from three years to two, broadening the pool of eligible candidates. Workers in lower-skilled roles (classified as ANZSCO Level 4 or 5) will see their visa durations extended from two years to three, aligning with the maximum allowable continuous stay. The labour market test process will also be streamlined, moving to a declaration-based model that reduces administrative hurdles for employers.
Streamlining the Immigration Process
To further simplify the immigration process, the government has removed the requirement for accredited employers to complete online modules on employment rights, effective January 2025. Instead, employers and workers will receive direct information about their rights and obligations during the visa process. By mid-2025, a redesigned Job Check process will streamline applications for low-risk employers, reducing processing times and administrative burdens.
Balancing Challenges with Opportunities
While the new policies aim to address critical labour shortages and enhance New Zealand’s competitiveness, they are not without challenges. Increased migration could exacerbate the country’s housing shortage, further straining already stretched infrastructure. Ensuring the successful integration and long-term retention of migrants will require robust settlement programs, particularly as younger migrants tend to leave for other opportunities after a few years.
Moreover, concerns about domestic employment remain. Policymakers must strike a delicate balance between addressing skill shortages and creating opportunities for local workers. The government has emphasised that the new declaration-based labour market test will ensure New Zealanders are prioritised for job opportunities.
A Forward-Looking Approach
The government’s immigration reforms mark a significant step in addressing New Zealand’s dual challenges of emigration and labour shortages. By removing barriers for skilled workers and introducing flexible visa options, the hope is to attract and retain the talent needed to drive economic growth and innovation.
However, the success of these policies will depend on their implementation and ongoing evaluation. As Immigration Minister Erica Stanford noted, the changes aim to build “a smarter, efficient and predictable immigration system” that supports the nation’s economic needs while managing migration levels responsibly.