Government reopens skilled migrant, parent resident visas as businesses face recruiting difficulties

The Government is re-opening the skilled migrant visa category with its current settings still intact after "listening closely to the concerns of business" about the difficulty of recruiting internationally.

Expressions of interest for the visa category were suspended last year to allow Immigration NZ to prioritise processing of the 2021 Resident Visa. The category was put under review and was planned to be reopened this year.

Immigration Minister Michael Wood said on Wednesday that it would be reopened, but with no changes yet made. Longer-term work on future-proofing the category is underway with the intent to have no cap.

"We are listening closely to the concerns of businesses, many of whom have approval to hire migrants but are finding it difficult to recruit internationally in a constrained labour market," he said.

"Today's changes work in tandem with the immigration changes already made and will help further relieve labour shortages, and ensure a competitive edge to attract talent to New Zealand."

The skilled migrant category works on a points basis. Applicants gain a certain number of points based on their age, whether they have employment lined up in New Zealand, qualifications, and experience.

Wood said the first selection will be at 160 points and subsequent selections will have an increased threshold of 180 points. This is intended to "better align with the future direction of the category and our rebalance goals".

"Over 12,000 international migrants have applied for 511 different occupations across New Zealand since the Accredited Employer Work Visa opened." Wood said. 

"The skilled migrant category provides a pathway for retaining the majority of these much-needed skills in New Zealand permanently, strengthening our nation’s resilience to global shocks and economic security into the future."

The Government's immigration rebalance earlier this year was intended to move New Zealand away from relying upon "lower-skilled workers" and "incentivise and attract high skilled migrants to New Zealand". 

Wood said consultation is underway on a proposed new skilled migrant system "that will future proof the category" and complement the Green List and Highly Paid residency pathways. 

"The previous system restricted the number applications which were progressed through a planning range, this meant that only 40 percent of SMC applications were processed in 2019.

"Our proposed changes, include removing the planning range, so that all applications that meet the criteria will be processed. It will also include a more simplified points system, will set a clear, fair and transparent eligibility threshold and offer several ways for people to demonstrate their skill level."

This would mean a "faster route to residence for very highly skilled migrants", Wood said, such as university lecturers or scientists with a PHD.

"Other professionals such as teachers and registered tradespeople will have a clear route if they work for a period in New Zealand. The new system will improve processing times and there will be no cap on the number of people who can gain residence each year, if they meet the skills threshold."

Also announced on Wednesday was the resumption of the Parent Resident category visa, which allows overseas parents of New Zealand citizens of residents to move to Aotearoa if they fulfil criteria, such as earning a certain amount of money. 

The Government will increase the number of parent resident visas granted each year to 2500 and reduce income thresholds. Up to 2000 visas a year will go to those in the existing queue, with selections starting on November 14.

New expressions of interest will go into a ballot rather than the existing queue. There will be 500 visas a year for those in the ballot, who will be eligible for selection for two years from August 2023.

"Through our reconnection plan and changes to immigration settings we have a system that works for New Zealand long-term. We have created an immigration system which is responsive to international factors, while giving New Zealanders confidence that there is a plan and robust principles underlying how we manage immigration.

"We know it is tough for many businesses at the moment, but there are positive signs. We are seeing a strong demand for the Working Holiday Scheme, with more than 30,437 applications approved since March, with arrivals expected to pick up in the coming months.

"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."