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Discussions about the safe reopening of the New Zealand border to broader groups of people should be a priority, says a report to the new Immigration Minister.
The report from the Ministry of Business, Innovation and Employment (MBIE) to the incoming minister said that, to support the country’s economic recovery, there should be a relaxation of border restrictions when it is safe to do so.
MBIE said the process of a phased reopening presents a unique opportunity to permanently restore aspects of the economy and the job market.
That could include refocusing the tourism and international education sectors on higher-value, lower-volume strategies.
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There was also the possibility of promoting a more rapid transformation of sectors that had developed an excessive dependence on low-skilled migrant labor.
“Temporary work visa settings should address the genuine skills shortage, but not dampen incentives to improve job attractiveness, train New Zealanders or invest in technology.
“To achieve this, immigration settings must work in tandem with levers in education, skills, and the welfare system, to maximize positive outcomes for the labor market and the economy. Decisions about reopening the border and exceptions for worker classes are opportunities to incorporate those changes more quickly. “
Ricky Wilson / Stuff
MBIE said the process of a phased reopening presents a unique opportunity to permanently restore aspects of the economy and the job market.
MBIE said that a key determinant of labor market outcomes, which could be controlled within immigration settings, was the relative skills of migrant workers compared to the rest of the population.
There was a risk that the importation of low-skilled migrants could suppress local wages and conditions.
MBIE said New Zealand had a comparatively well-educated workforce overall, but there was a significant degree of mismatch between the skills that workers had and the skills that employers were seeking.
“Added to this is a growing reliance on migrant labor in some lower-skilled and lower-paid sectors and occupations, which creates downside risks for New Zealanders’ employers, including beneficiaries and school dropouts; reduced incentives for employers to offer better wages and / or terms and conditions, including training (if they can access workers without having to); and the incorporation of low-cost labor models and disincentives to switch to potentially more productive ways of doing business. “
Reforms to the temporary work visa system were being implemented, with the aim of addressing the decline in the skill level of New Zealand’s migrant workforce and ensuring that employers were incentivized to train and hire New Zealanders, or move to more productive of doing business, MBIE said.
“Temporary work visa settings should allow for genuine skills shortages and complement rather than replace the existing workforce, and should work in tandem with levers in the education, skills and social welfare system to maximize outcomes. positive for the labor market “.
MBIE said there was also an opportunity to encourage the entry of highly skilled workers and investors in light of New Zealand’s successful management of Covid-19.
“In the economic recovery phase, highly skilled migrants are likely to remain highly sought after and subject to global competition. The significant contribution they make by filling critical skills shortages, coming up with innovative ideas and linking businesses to overseas networks means that highly skilled migrants are more likely to supplement than replace New Zealanders’ employment. “
