NZ eases immigration rules while engineering redundacies continue

ACE, Immigration New Zealand, new zealand, skilled migrants,

The New Zealand government is easing hiring of skilled workers from overseas, but work dries up for engineers.

The New Zealand Government has just announced further changes to the Accredited Employer Work Visa (AEWV) to make it easier for companies to hire skilled workers from overseas. However, these changes might be a bit late considering the country is experiencing a significant economic slowdown. According to HSBC, New Zealand’s economy suffered the biggest hit in the world in 2024.

Immigration Reforms

If there’s one certainty about New Zealand’s immigration system, it’s that change is constant.

Over the past three years, the government has introduced multiple revisions to visa policies, work permits, and residency pathways—often with little notice—leaving both businesses and skilled migrants scrambling to keep up.

For businesses trying to recruit skilled workers from overseas, keeping track of shifting immigration requirements has become a challenge in itself. Employers must not only ensure compliance with updated visa conditions but also navigate an increasingly complex application process that seems to change every few months.

Below is the overview of the latest immigration changes that will be made to the Accredited Emplyer Work Visa (AEWV) in March 2025:

  • From 10 March 2025, employers recruiting workers under the AEWV and seasonal SPWV policies will no longer be required to pay the median wage. Instead, there will be no set pay thresholds except the New Zealand minimum wage (currently NZD $23.15 an hour, increasing to NZD $23.50 an hour on 1 April).
  • The work experience requirement for migrants will be reduced from 3 years to 2 years.
  • From 10 March 2025 the visa length for new ANZSCO Level 4 and 5 AEWVs will be extended to 3 years, matching the total time they can stay in New Zealand on 1 or more AEWVs (their maximum continuous stay).
  • From 10 March 2025 the income threshold for migrants supporting children will be increased from an annual threshold of NZD $43,322.76 to NZD $55,844. This is 80% of the median wage (aligning with eligibility for partner work rights) based on an annual, 40-hour work week. It will be updated annually in line with changes to the median wage.
  • From 10 March 2025 the requirement for employers to engage with the MSD will be now become declaration based. They will need to declare in good faith, that they have advertised lower skilled roles (ANZSCO skill level 4 and 5) with MSD and interviewed candidates who may be suitable for the role. Employers will be required to retain evidence of their engagement as they may be requested to provide it. This can be done alongside recruitment employers will already be undertaking in the domestic labour market.
  • Some ANZSCO level 4 and 5 roles will be recognised as ANZSCO level 3 (e.g. Scaffholder), with INZ transitioning from the Australian and New Zealand Standard Classification of Occupations (ANZSCO) to the National Occupation List (NOL). ANZSCO no more: Australia and NZ to launch separate job classification systems

The full list of changes can be found here

Infrastructure Slowdown Raises Concerns

Despite the positive impact these immigration changes could have for the engineering and construction sectors, industry experts warn that the current state of the infrastructure pipeline presents a challenge. Over the past year, a series of government decisions to halt or delay major infrastructure projects has left many professionals in limbo.

Delay on infrastructure projects impacting New Zealand

Several high-profile infrastructure projects have been shelved or significantly delayed, including key transport and water infrastructure initiatives. The slowdown has already led to job losses, with some major firms downsizing or restructuring.

Key Canceled Projects:

Auckland Light Rail Project

Initially proposed as a $15 billion initiative to connect Auckland’s city center with the airport via a light rail system, this project was officially canceled in January 2024. Transport Minister Simeon Brown cited escalating costs, which projections suggested could reach up to $29.2 billion, as a primary reason for halting the project. The government directed Auckland Light Rail Limited to cease operations and begin winding down. New Zealand cancels $15 billion Auckland Light Rail Project

Let’s Get Wellington Moving (LGWM)

This comprehensive transport plan aimed to revamp Wellington’s infrastructure, including the introduction of a light rail system and enhancements to cycling and pedestrian pathways. In December 2023, the government announced its withdrawal from the LGWM initiative, effectively terminating the project. Transport Minister Simeon Brown instructed the New Zealand Transport Agency (NZTA) to stop funding related projects, leading to the cessation of various local council initiatives under the LGWM umbrella.

Richard Templer, Chief Executive of Engineering New Zealand, recently voiced concerns about the downturn’s impact on the industry. “We’re seeing experienced engineers and construction professionals leaving for overseas opportunities because the pipeline of work in New Zealand has dried up,” he said. “If we don’t have projects to sustain them, we risk losing our talent—both local and incoming migrants.”

Decline in engineering roles in New Zealand as infrastructure pipeline dries up

What’s Next for the Industry?

The coming months will be critical in determining whether New Zealand can strike the right balance between attracting skilled workers and maintaining a robust infrastructure sector. Industry leaders are urging the government to not only focus on immigration but also to provide a clearer roadmap for future projects, ensuring that skilled professionals—both local and international—have long-term career prospects in New Zealand.

For now, businesses will continue to navigate this uncertain landscape, hoping that the promised policy changes translate into tangible opportunities.

The grass might not be greener in Australia, but…

In a recent bid to keep engineering and construction talent in New Zealand, The Construction and Infrastructure Workforce Development Council Waihanga Ara Rau, commissioned Allen + Clarke to
undertake targeted research to understand factors relevant to individuals’ decisions regarding working in Australia compared to New Zealand.

You can read the full report “Is the grass really greener? Investigating the attractiveness of working in Australia“ here

While the report concludes that Australia is attractive for young, childless professionals but not so much for mid-career professionals with children, what is missing from the report is the current state of infrastructure underinvestement in NZ and therefore limited job opportunities in comparison to Australia.

ACE New Zealand has been vocal about this issue in its recent LinkedIN posts.

Infrastructure New Zealand has also expressed concerns about the lack of certainty affecting infrastructre investment by publishing its own report: Estimating the Costs of an Uncertain Infrastructure Pipeline.

While Australia’s grass might not be literally greener, the job market certainly is! Engineers and construction professionals can find better career opportunities, higher salaries, and stronger prospects for growth across the ditch.

If you are interesetd in exploring job prospects in Australia, get in touch with Peter Laver on LinkedIn or register your details here.

Source: Immigration New Zealand

Source: ACE New Zealand on LinkedIn

Last updated: 27/02/2025

Disclaimer: Any posted material is not intended to be immigration advice and does not purport to represent all requirements for a successful application or applications. No person should act on the basis of the material contained in any post without obtaining advice relevant to their situation, and without considering and taking professional advice where necessary. For more information visit: https://www.immigration.govt.nz/

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