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Temporary changes being made to Immigration NZ’s Skill Match Report process

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The Government is temporarily changing the Skills Match Report process in light of the challenges presented by COVID-19, introducing a list of occupation and regions with oversupply or undersupply of jobseekers.

Currently you need to list your vacancy with Work and Income to try and find a suitable NZ candidate to fill your role. If you can’t find a suitable NZ candidate, you’ll be sent a Skills Match Report to support a work visa application.

From 7 October 2020, if the role you’re filling is:

  • oversupplied, Work and Income will not issue a Skills Match Report. If you want to hire a migrant, you can still submit a work visa application to Immigration New Zealand to be considered but without a Skills Match Report it will be very difficult to hire a migrant worker under these circumstances.
  • undersupplied in your region, you will not need to get a Skills Match Report to support a work visa application.

These oversupply and undersupply lists are listed on the Work and Income website and the lists are only applicable if the person is paid below the national median wage (currently $25.50 an hour).

It is also important to note that people with existing employer-assisted temporary work visas expiring before the end of 2020 have had their visas extended for 6 months (from the original date of expiry), so this will not currently affect existing migrant workers.

We need to point out, however, that the following roles are on the oversupply list, meaning you will not receive a Skills Match Report for these roles if the person is to be paid below the national median wage:

  • Cafe worker (431211)
  • Cook (351411)
  • Fast food cook (851111)
  • Kitchenhand (851311)
  • Sales assistant (621111)
  • Waiter (431511)

We are seeking further clarification on some points and will keep members updated with any new information.

Further information:

Undersupply of New Zealand jobseekers

For occupations and regions where there is an undersupply of New Zealand jobseekers, employers no longer need a Skills Match Report for roles paying below the national median wage, currently $25.50 an hour. Employers can support a migrant work visa application if they can show they have genuinely and publicly advertised the role so New Zealanders looking for work are likely to have seen it.

See undersupply list of regions and occupations | Work and Income

Oversupply of New Zealand jobseekers

For occupations and regions on the oversupply list, Immigration NZ deem that there are New Zealand jobseekers on Jobseeker Support available. Employers can move straight to engaging with MSD to recruit New Zealand jobseekers.

See oversupply list of regions and occupations | Work and Income

No clear oversupply or undersupply

There is no change to the process for occupations and regions that are not on either the over or undersupply lists. A Skills Match Report is still required before an employer can hire a migrant earning below the national median wage, currently $25.50 an hour.

This is a temporary measure

The over and undersupply lists are a temporary measure in response to the effects of COVID-19 on the labour market. They will be reviewed in early 2021, or sooner if there is a significant change.

These lists will be used from 7 October 2020. For applications submitted before 7 October 2020, the Skills Match Report submitted will be considered as part of the assessment of the application.

INZ will also use the Australian and New Zealand Standard Classification of Occupations (ANZSCO version 1.2) to confirm an occupation is on the over or undersupply list. It will continue to be important that employers accurately match the job being offered to the ANZSCO occupation and consider whether the job is on the oversupply or undersupply lists.


Immigration NZ’s FAQ’s

Q. How can an employer find out whether the role they’re recruiting for is on the oversupply or undersupply lists? The lists are published on the Work and Income website. The lists include the matching Australian and New Zealand Standard Classification of Occupations (ANZSCO) codes for each occupation listed. If an employer remains unclear about whether a role is on the lists, they should contact MSD.

Q. What happens if an occupation doesn’t appear on either the oversupply or undersupply list? Where there is no clear over or undersupply of New Zealand jobseekers, employers will follow the current Skills Match Report process (more information here) if the role is paid below the median wage and must meet immigration requirements.

Q. How will INZ determine whether an employer’s vacancy matches a role on the under supply or over supply list?   The lists will reference the Australian and New Zealand Standard Classification of Occupations (ANZSCO version 1.2) codes for each occupation listed. ANZSCO codes describe the tasks associated with jobs and are used by INZ when assessing Essential Skills work visas. INZ will assess whether the job offered matches an occupation on the undersupply or oversupply list to determine whether a Skills Match Report is required for employment paid below the median wage.

Why is ANZSCO being used to define occupations for the new Skills Match Report process?  Didn’t the government decide to stop using ANZSCO for assessing Essential Skills applications in July 2020? 

While ANZSCO is no longer used by INZ to determine such things as the duration of an Essential Skills visa and whether advice from MSD is required, INZ has continued to use ANZSCO for certain aspects of an Essential Skills work visa application.  It is still being used by INZ for statistical purposes to record occupations associated with Essential Skills applications, and as a tool to help determine whether or not an applicant is suitably qualified and/or experienced for the role being offered. 

When looking for a consistent way to determine whether or not particular occupations are in over or undersupply, the government needs to use a classification system able to be applied across all industries and sectors.  While we acknowledge that ANZSCO has its limitations, it remains the only standardised occupation classification system (specific to New Zealand) available at this time.  

It is important to note that the oversupply and undersupply lists will be regularly reviewed to reflect changes in the labour market.  MSD will continue to work with employers to place INZ job seekers into roles.

In the past I have found ANZSCO difficult to use, particularly when trying to determine whether a job is best matched to the definition of a Cook or Chef.  What do I do if I am not sure?  Should I just apply to MSD for a skills match report if I am not sure?  

Selecting the ANZSCO “best match” is more about duties, pay and level of responsibility than job title.  Start by looking at these aspects of the role that you are looking to fill and compare these with the tasks described by ANZSCO.  If you find that the tasks of the role are best matched to an occupation which is included on the oversupply list, you should contact your local Work and Income office to discuss your needs, so that they can work with you to try and place a suitable jobseeker into the role.  MSD can also provide assistance to you and the job seeker to meet any training required for the role.

If you find that the tasks of the role are best matched to an occupation which is not included on the oversupply list, you can then approach MSD to request a skills match report.

Q. Why are you changing the Skills Match Report process? These changes will enable sectors that are experiencing workforce challenges to secure visas for some occupation groups in a more streamlined way, while providing a clear signal to employers that visa applications for low-paid roles are unlikely to be successful for occupations where there is an oversupply of available New Zealand jobseekers.

Q. Are these changes permanent? No. The lists of occupations on the over and undersupply framework will be reviewed every three months or sooner if there is a significant change to the labour market. The use of the over and undersupply framework will be reviewed in early 2021 and the ongoing need will be evaluated in light of the labour market conditions at the time, and in advance of implementation of planned reforms to the temporary work visa system (including strengthening of the labour market test).

Q. If MSD has no New Zealanders available to do a job, can an employer go ahead and hire a migrant worker? If a role is either on the undersupply list (indicating that there are very few New Zealanders available for a particular role and region), or an employer has obtained a Skills Match Report from MSD indicating that there are no New Zealanders available, an employer will be able to support a work visa application. It is important to note that the Skills Match Report is just one part of the labour market test; in order to support an application, employers will still need to show they have genuinely and publicly advertised the role so New Zealanders looking for work are likely to have seen it. Visa applications will also need to meet all other requirements of the visa (including that the job is paid at the market rate and that applicants meet health and character requirements).

Q. Who makes the final decision on whether a migrant worker gets a work visa? INZ makes the final decision about work visas. Advice from MSD (either on a Skills Match Report or on the oversupply or undersupply lists) is one of the factors in INZ’s decision making.

Q. Are the under and oversupply lists applicable for roles paid at or above the national median wage? No, the lists are only applicable if the person is paid below the national median wage. The process of preparing to submit an Essential Skills work visa for roles paying at or above the median wage has not changed – an employer still has to show they have genuinely and publicly advertised the role in a manner that New Zealanders looking for work are likely to have seen it.

Q. If the occupation is included on the undersupply list does the employer need to advertise on websites such as Trademe and Seek? Yes, as there may be New Zealanders available who are not registered jobseekers with MSD. The Skills Match Report is only one aspect of the labour market test for Essential Skills visas. Therefore, if an occupation appears on the undersupply list, employers must still meet other aspects of the test. INZ must be satisfied that employers have made genuine attempts to attract and recruit suitable New Zealanders which includes advertising as well as advice from MSD. 

Q: What does this mean for migrant staff currently employed in roles on the oversupply list? These staff can continue in their jobs until their visa expires. If their occupation is on an oversupply list when their work visa expires, it is unlikely that a further visa based on that occupation would be approved if the role pays below the median wage. All employer-assisted temporary work visas (including all Essential Skills visas) expiring before the end of 2020 have been extended for 6 months (from the original date of expiry), so there will be very few people in this situation before the end of the year.

Q: Does this also apply to people on open work visas (e.g. working holiday, partners of workers, post-study work visas)? No. This only applies to those applying for an Essential Skills work visa.

Q: As an employer, how do I go about preparing for and supporting a work visa application now? The process of preparing to submit an Essential Skills work visa has not changed but the employer should check before submitting whether the role is on the undersupply or oversupply list. If so, MSD will not issue a Skills Match Report on the basis that there is either an undersupply or oversupply of New Zealand jobseekers available.

Q: Do the new undersupply and oversupply lists replace the immigration skill shortage lists (long term skill shortage list, regional skill shortage list, construction and infrastructure skill shortage list)?  No, the undersupply and oversupply lists do not replace the immigration skill shortage lists which remain in place. The undersupply and oversupply lists are only applicable to the Skills Match Report part of the labour market test and employers still need to show they have genuinely and publicly advertised even if the position is on the undersupply list. If a position is on an immigration skills shortage list and the migrant meets the qualifications and experience specified on the list, evidence of advertising is not required.

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