Open For Business

I always tell potential clients that it isn’t my job to sell them New Zealand, they have to reach the decision to move here on their own and I also suggest that no matter how many people might try to persuade them, one way or the other, the decision to live in another country (any country) is a very personal affair.

However, I can also appreciate that if you are considering a move like this, you will be hoovering up as much information as you can in terms of the pro’s and con’s and it would be fair to say that with ongoing rule changes, our media pumping out economic doom and gloom, and a global shift in the demand for migrants (if you think our system is tricky, check out Canada), then you might stop and think, whether now is the right time. In fact I have had a few people ask me whether or not New Zealand is shutting the doors and closing up shop when it comes to people making the move here.

It seems timely then to explain what is going on, that despite the negative press, New Zealand is still very much open for business and to explain in a bit more detail what all these recent changes (both in the rules and in the economy) mean for those considering the big move.

Changing Rules

It is my role as an adviser to stay ahead of the various changes in the rules that INZ and the Government roll out, but even for someone with my tenure in the industry, it has been a challenge to keep up with them all. However when you break all of these various changes down, one thing becomes pretty clear - these rule changes are targeted at a very specific group of migrants, namely those at the lower end of the skill spectrum.

Rule Changes - Good or Bad

We have had enough to make your head spin, however for most skilled migrants, the process remains the same.

When the current Government inherited the immigration portfolio from its predecessors, it was very clear that the system had been let off the chain and the number of lower skilled migrants pouring in to the market was unsustainable. The vast majority of changes we have seen since late 2023 have been aimed at trying to fix that and ultimately reduce those numbers, pushing employers to fill those lower skilled roles with local applicants. That makes a lot of sense. However whenever changes are announced, the market tends to see these as a broader signal, suggesting that NZ is clamping down on all migrants. The irony of course is that in many sectors of the economy we still need plenty of good quality, skilled people. While the Skilled Migrant Category changes, in late 2024, introduced a more “work to residence” heavy process for many applicants, it also reduced the overall criteria involved. Yes there are plenty of issues in that process, and I dont necessarily agree with all of the settings, but equally it meant that for many skilled migrants, the path to Residence changed, but didn’t disappear. On the other side, the introduction of the Green List and Straight to Residence options, means that a good number of skilled applicants have a simpler, faster pathway to securing Residence than ever before - in fact in some cases applications for Residence are being decided in as little as a few weeks.

It has absolutely become harder for lower skilled applicants, but equally those applicants were unlikely to have been able to secure Residence in the long run. Ironically, even though those changes were rolled out in a hurry, the Government has already had to make concessions for certain sectors who are still struggling to fill shortages.

Rule changes, particularly if you are already part-way through the process, can be incredibly scary things to have to deal with, however it pays to remember that despite the vast number of changes we have seen, New Zealand still has pathways for those who are skilled, employable and determined enough to make it work. The process and timeframes might change, but as far as being open for business, New Zealand still very much is. However, there is always another side to this equation and as New Zealand has steadily moved its visa process to an employment-led one (where jobs are the key to success), the labour market plays an equally important role in determining whether people can make the move.

The Labour Market

The current unemployment rate in New Zealand, for the June 2024 quarter is 4.6%, which compared to recent history is a fairly large increase and certainly a change from the rather chaotic days where the rate was closer to 3%. When New Zealand opened its borders in late 2022, after the covid fog had largely lifted, there was a mad scramble to bring in as many people as possible. Employers had been starved of new skills and talent for the two and half years prior - the pent up demand was staggering.

Finding A Job Is Never Easy

The labour market is definitely challenging but success never comes easy and for those determined enough, jobs are available.

Fast forward to two years later and things have certainly changed, with the cost of living increasing, businesses taking a substantial hit and some employers pulling back on their plans to increase headcount. However like visa changes, these issues aren’t experienced the same way in all parts of the labour market.

Just this week, we have had three clients secure work with two more securing very positive interviews. The occupations vary and whilst they are all skilled applicants, not all of them are Green List applicants. All of them have had to work a bit harder to get those jobs and deploy as many tools as they have in the toolkit, but with patience and perseverance, comes success. There is no doubt that the market is harder, but that doesn’t mean it is closed and arguably securing a job here has never really been an easy process anyway.

There are also signs that whilst our unemployment rate has increased, that the recent changes to our official cash rate (a reduction in interest rates) has given a bit of a breath of new life to business confidence. One recent poll, suggest the biggest increase in over a decade, suggesting that businesses, who have been waiting to see what interest rates would do have all let exhaled a collective breath. While the path ahead still looks challenging, there are certainly still opportunities to be found, and potentially more on the horizon.

Planning Ahead

When I discuss a potential move with a client, I am generally always thinking several steps ahead, because there is a great deal of planning that goes before any formal visa process. Generally this involves gathering the required documentation, but for us it also means getting to grips with what the labour market is doing, researching potential job opportunities and then timing the all important job search. It is very rare that we suggest a client simply jumps on a plane and heads across, unless of course they have a job offer or interview already lined up.

Being ready in advance, and having a clear understanding of the visa options in front of you, keeping up to date with changes (or having someone do this for you) and then being ready to strike when the labour market iron is red hot, is all a part of a much longer term plan and process. Migrating can be a long-game and it takes patience, persistence and preparation to make it work successfully - something we are very familiar with here and something we encourage all of our clients to do with our assistance.

So while there may be plenty of opinion swaying you as to whether to move or not, remember the decision is ultimately up to you and while it is really important to understand what is happening in terms of the rules and the labour market, a large part of a successful move comes down to how determined and well prepare you are.

If you are considering the move and not sure where to start or you are determined to make the move, but the job search is getting you down, we have an immigration and employment seminar coming up on 15 September. This is a free event, where one of our team as well as a leading employment coach will be discussing both topics (the job search and visa process), with some hopefully useful advice to be shared. Join us, it might just be the start of your next big move.

Until next week!