Recent changes to the Essential Skills visa policy and the Skilled Migrant Category. Elizabeth Gerard Senior Advisor, Skills and Employment policy

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1 Recent changes to the Essential Skills visa policy and the Skilled Migrant Category Elizabeth Gerard Senior Advisor, Skills and Employment policy

2 Overview The Government has recently announced changes to: the Skilled Migrant Category (SMC) and the Essential Skills work visa policy. These were implemented on 28 August 2017.

3 Essential Skills - recent trends and issues 50% rise in temporary migrants in the last 10 years Evidence of more temporary migrants in industries with: lower skilled jobs lower wages lower productivity The current settings have resulted in a pool of low-skilled temporary migrants who have been in New Zealand longterm, but have no pathway to residence.

4 Review of Essential Skills visa the policy objectives Preserve access to temporary migrant labour necessary for New Zealand s continued economic growth. Ensure that temporary means temporary for lower-skilled migrants, by making visa conditions clear. Support the changes to the SMC, which will lift the quality of skillsbased permanent migration to New Zealand

5 Essential Skills - the policy response Introduce remuneration thresholds to determine three skill levels (and their associated visa conditions): Lower-skilled Mid-skilled, and Higher-skilled. Introduce the following for workers in lower-skilled roles: a maximum duration of three, after there will a year-long stand down period, and requiring the partners and children of lower-skilled Essential Skills visa holders to meet the requirements for a visa in their own right.

6 Essential Skills determining skills bands Remuneration ANZSCO 1-3 ANZSCO 4-5 $ per hour High High $ $35.24 per hour Mid Low Less than $19.97 per hour Low Low

7 Essential Skills visa conditions of different skills bands Skill band Maximum visa length Maximum number of visas Eligible to support partner/child visa Higher-skilled 5 years Unlimited Yes Mid-skilled 3 years Unlimited Yes Lower-skilled 1 year Up to 3 years No

8 Essential Skills what does this mean for migrants? The Essential Skills workers that will be impacted will be those: not currently considered lower-skilled and who will be reclassified as lower-skilled due to the introduction of remuneration thresholds, and currently considered lower-skilled, as they will be subject to the maximum duration and restrictions on supporting their partner and dependent children. Their dependent partners and children will also be affected. People already here: Only visas applied for after 28 August 2017 count towards 3 year max Family members who already hold visas are allowed to remain for duration of their ES visa

9 Essential Skills What does this mean for employers? Three year max for lower skilled roles Still able to access migrants for lower-skilled roles after 3 years (but not the same migrant) Will not apply if a person moves into a more skilled role Remuneration becomes key to visa assessment Clear info about pay and hours needed to support visas Future applications to include evidence pay has stayed within the skill-band range (e.g. payslips, applicant s tax info) If pay drops below level for skill-band, employer can be considered in breach of immigration law

10 SMC - recent trends and issues The points system had not been reviewed as a whole since the SMC opened in The system did not appear to be prioritising the migrants with the highest skill levels.

11 Review of the SMC the policy objectives Managing the quantity of SMC selections The automatic selection mark for applicants under the SMC was increased from 140 points to 160 in October Managing the quality of SMC migrants The points system was reviewed to manage the quality of SMC migrants.

12 SMC the policy response Introduce two remuneration thresholds as a proxy for skills to: Prevent points being claimed for low-paid jobs that were previously classified as skilled (according to ANZSCO classification). Allow points to be claimed for jobs that are paid above a higher remuneration threshold, but were previously not classified as skilled (according to ANZSCO classification).

13 SMC the policy response There are more points for: applicants aged skilled work experience, and some recognised post graduate qualifications. Bonus points will no longer be available for: qualifications in areas of absolute skills shortage (on the LTSSL), partner s lower-level qualifications employment, work experience or qualifications in Identified Future Growth Areas, or close family in New Zealand.

14 SMC expected impacts Expected impacts on migrants: The changes will have some impact on lower-paid occupations. The changes are likely to have a bigger impact on former international students than other skilled migrants. Expected impacts on employers: The salary threshold will mean migrants need more work experience and seniority before they can meet the SMC salary and points criteria,. There will still be options for employers to support a worker in a role paid below the threshold as a temporary worker, but they will have to show there are no New Zealanders available

15 More information See Click on the Policy update link from the front page