Migrants, Jobs & Labour Markets

For anyone considering the move to New Zealand, the labour market and current economic conditions should be front of mind, because whether a job is part of your visa process or not, inevitably it will be a part of your ability to live here long term. I have written many posts on the challenges migrants face when trying to secure work here and those have been in existence since the dawn of time, but obviously those challenges ebb and flow with our economic and labour market conditions.

There is also no shortage of news on the current state of our economy and the pressure that is putting on the labour market, which would leave any would-be migrant with questions, and rightly so. However it is, as always, a game of two halves, because despite tougher economic conditions, New Zealand still has shortages (some severe and chronic) in various parts of our labour market.

To give this some context, the current unemployment rate in New Zealand is hovering around 4.0% (as of the last quarter of 2023) and whilst predictions are that it will lift over the course of the next 12 months (with varying numbers being suggested), whatever rate we land on will still be significantly lower than countries like South Africa, where they are and have been in double-digit unemployment for years. Also, regardless of the increase, unemployment doesn’t impact all sectors of the economy equally, with job losses tending to befall the lower skilled economy far faster than higher skill level roles. The construction sector is already feeling the slow down, as is retail and yet only this week, the Government announced a change to the Green List to move Secondary School teachers up a rung to the fast-track pathway.

Unfortunately however, our media tends to paint a far more general picture and that is easily interpreted as there being less jobs for all people - nothing could be further from the truth. We are assisting a company at the moment, who have tried and failed to find a software development educator and are now moving through the process to support that applicant in a Work Visa application. There are still two very different stories playing out here as the economy bobs up and down on more turbulent seas and for good quality, skilled migrants, looking to make the move, it is important to understand that difference.

Stormy seas ahead?

There is no doubt that conditions in NZ are changing, but not all migrants are in for the same bumpy ride.

The biggest barrier to all migrants undertaking the job search is the lack of a Work Visa (job comes first) and of course as market conditions tighten, that barrier becomes even greater. So realistically, the change in labour market conditions does have an impact but it doesn’t spell the end of your potential plans. At lower skill levels, employers tend to review their investment in to the visa process and focus more on whether they can source locally…which is actually not a bad thing. I have never been a supporter of large-scale migration for low-skill level roles, with exceptions being where there are very clear shortages that have persisted over time (there are some roles we have never been able to fill).

At the higher skill-levels however, a similar thing happens in that employers tend to be more cautious and potentially slower to respond, but given the importance of most these roles, inevitably they fall back to relying on offshore talent, because we still dont have a lot of highly skilled locals, drifting around looking for work. We have also been through this nearly fifteen years ago during the global financial crisis (GFC) and in that era, I was still assisting migrants to make their way through the process, having secured jobs in New Zealand.

Our labour market has been starved of good quality talent for a lengthy period during covid and whilst the last 18 months has soaked up a fair bit of that demand, it has been primarily in lower skilled roles. The upper end of the skill spectrum has a more constant need, that changes with labour market movements, but very rarely disappears.

However for migrants, the key to all of this is understanding where that skill level line exists. The reality is that there are a lot of potential applicants who I would be advising to stay put, given their roles would fall very close to that skill level line, with higher job losses expected. However for the teachers, healthcare workers, engineers, ICT professionals, artisans and plenty more, the jobs are here, it is just getting a little harder to find them.

Dig deeper

Finding a job in NZ for any migrant has always been a challenge - it comes down to how deep you are prepared to dig.

I have always said to all my clients that the job search consists of three parts - 1) there is the labour market and the number of jobs available, 2) there are the skills that the applicant brings and the level of experience and value they can use to compete in that labour market and 3) the applicant’s determination, effort, persistence and attitude. Numbers one and two are pretty easy to measure, however number three is far harder and ultimately the most important. I will never forget a client who came to NZ during a period of roughly 5% unemployment (so higher than now) looking for work as a personal assistant. I had warned her that it was going to be more than tough. She had the skills but the market was very tight. However what let her succeed in a matter of weeks, was a level of determination that left most other applicants in the dust (although they all do try hard). This particular applicant made it her life mission to find the job and she did. Sometimes no matter how big the obstacle, where there is a will, there is a way.

You do however have to be smarter, more interesting, more engaged and more connected. Where previously online applications might do the job, you now need to be on the phone, beating the pavement and getting in front of people. Your CV has to be top notch, you have to stand out from the crowd and above all you have to have a thick skin. You will get rejected on multiple occasions, however in the words of Chumbawumba - if you get knocked down, then get back up again.

For some the road will be easier, particularly if you are a Secondary School Teacher or healthcare worker, and for others it will require more grit and determination - however this is something you have control over. Deploying a good job search strategy, understanding how the market works and being able to market yourself properly are all tools for the belt in this process.

To the brave souls who are undertaking this journey and fighting the good fight out here in the labour market, we support you and salute your efforts. To those who are not sure whether to jump onboard or run in the opposite direction, that is a decision only you can make - we just hope you make it with the right information to hand and hopefully this post provides some of that much needed clarity.

Until next week.