The New Zealand construction sector is gearing up for substantial growth following the COVID-19 pandemic, with government focus on developing infrastructure strategies to support economic goals and dealing with the significant shortage of residential housing. Players in the construction industry have been vocal about ongoing skill shortages in this sphere in New Zealand, and the Government has reacted by enacting fast-track pathways for temporary work visa-holders to gain residency in certain construction roles.

This article provides a brief summary of the updated immigration pathways available for construction workers to help combat the major labour gaps in the industry. Employers in the construction market can utilise this information when making recruitment decisions and forecasting projects.

Current market

Recruitment in the construction market has been an issue for several years. Stats NZ’s Business Operation Survey 2021 reported that around 90% of construction businesses reported experiencing moderate to severe difficulty recruiting tradespeople. [1]

This is at odds with the strong demand and growth in the construction sector, with 25% more dwellings [2] (49,773 dwellings) consented in the February 2022 year than the February 2021 year.

Apprenticeships are currently at a record level. In July 2021 the Building and Construction Industry Training Organisation recorded 20,000 apprentices in training [3].  However, there are significant skill shortages in the market for workers with more experience, such as specialist engineers and project managers.

Forecasted industry growth

Immigration New Zealand (INZ) reports that around 4,800 new jobs will be created in the construction and infrastructure sector by 2028 [4]. Most of these jobs will be in residential building in New Zealand’s largest cities – Auckland, Christchurch and Wellington.

Employers have asked the Government to provide clearer pathways for overseas workers to gain residency in New Zealand to fill the gaps in the current job market and to recognise the breadth of infrastructure investment across both government and private projects.

New immigration pathways

On 4 July 2022, INZ implemented the new Accredited Employer Work Visa (AEWV) system. The new AEWV is a temporary work visa that enables migrants to work in New Zealand if they receive a job offer from an accredited employer and have the skills/qualifications required to perform the work [5].

In September 2022, the Government introduced the ‘Green List’ and three new Work to Residence visa pathways, which can be accessed via the AEWV. This was a result of the Immigration Rebalance announcement in May 2022 [6]. These new residence visa pathways are designed to respond to the existing skills shortage list and make it easier to attract globally in demand workers by offering them clearer pathways to New Zealand residency. The Green List sets out a number of specific roles that are currently in shortage in New Zealand, including several key roles in the construction and engineering sectors.

The three new residence visa categories are:

• Straight to Residence Visa;
• Work to Residence Visa; and
• Highly Paid Residence Visa.

Skilled migrant category

The three new residence visa pathways complement the pre-existing Skilled Migrant Category Residence Visa (SMC Visa) but have a more streamlined application process. The SMC Visa pathway was suspended for the duration of New Zealand’s border closure and has only recently been re-opened. New expression of interest applications for the SMC Visa can be submitted from 9 November 2022.

Residence visa pathway requirements

Regardless of which new residence visa is applied for, all applicants must be 55 or younger, meet the English language requirements, and meet the health and character requirements for residence. If applicable, their partner and dependent children aged 16 or over will also need to meet English language requirements, as well as the health and character requirements.

At the time of applying for any of the residence visas, the applicant must be working for, or hold a job offer, from an accredited employer under the AEWV system [7].

How employers become accredited

The Immigration NZ website provides a checklist of what employers need to do to become accredited under the AEWV regime, including the process to follow once accredited.

Employers need to pay fees based on the type of accreditation required (noting there are four levels of accreditation available), and must meet certain financial requirements, such as showing the business has not made a loss over the last two years.

If an employer becomes accredited, it will be able to hire migrant workers on an AEWV. If the migrant worker’s role is on the Green List, the accredited employer can complete the job check step without proof of advertising. The purpose of a job check is to ensure that there are no New Zealanders currently available in the market to do the required job. Accredited employers are required to apply for a job check through the Immigration Online dashboard.

If a migrant worker successfully obtains an AEWV and their role is on INZ’s Green List, they may be eligible for one of the new residence visas [8]. Workers who obtain a residence visa can stay and work indefinitely in New Zealand. The key requirements for each new residence visa are summarised below.

Straight to Residence Visa

Applicants must be working for an accredited employer, or hold a job offer from such an employer, at the time of applying for this visa.

To be eligible for this residence visa, the applicant’s role must:

• be on Tier 1 of the Green List;
• meet the skill/qualification requirements for the Green List role, which can be found on the Immigration NZ website; and
• be full-time (at least 30 hours a week) or at least a 12-month fixed term contract.

Tier 1 of the Green List has a wide range of construction roles, including:

• Project Builder;
• Surveyors;
• Specialist Engineers; and
• Construction Project Managers.

Independent contractors may also be eligible if their contract or contracts total at least six months in duration. Shorter contracts must not have any breaks between them. In addition, if the role has a wage threshold as a skill requirement, the independent contractor will need 10 years’ relevant experience and must meet the higher wage threshold (being 50% more than the wage threshold for applicants with permanent or fixed-term employment).

People have been able to apply for the Straight to Residence pathway from 5 September 2022.

Work to Residence Visa

Under this visa, eligible migrants can apply for residence after two years of working in New Zealand while on an AEWV (or other work visa, in some circumstances).

To be eligible for this residence visa, the applicant must:

• be employed in a Tier 2 Green List role, or hold an offer of employment for one, that is full-time (at least 30 hours per week) or at least a 12-month fixed term contract;
• meet the Green list requirements for that role; and
• have worked in New Zealand for 24 months (within a 30-month period) from 29 September 2021 in a Tier 2 Green List role.

Tier 2 construction roles on the Green List include Electricians and Plumbers.

People can apply for the Work to Residence visa from 29 September 2023.

Highly Paid Residence Visa

To be eligible for this residence visa, the applicant must:

be employed, or hold an offer of employment, in a role that is paid at least twice the median wage (currently NZD115,482 (or NZD55.52 per hour));
have been working for at least 24 months in New Zealand in a role that is paid at least twice the median wage (the 24-month period counts from 29 September 2021 and can take place within a 30-month period); and
work for an accredited employer under the AEWV regime.

People can apply for the Highly Paid Residence visa from 29 September 2023.

Employers Checklist

INZ’s website provides a helpful guide to employers and workers alike to understand the different visa categories and applicable criteria. When considering an AEWV or one of the new residence visas, it will be crucial to check the Green List job requirements, as overseas qualifications may not be comparable to the New Zealand standards as outlined in the New Zealand Qualifications Framework.

Please contact one of our immigration experts if you would like to discuss any of these issues further.
 

This article was co-authored by Alice Lemmon, a solicitor in our Construction and Infrastructure team. 

Footnotes

[1] Building and construction sector trends biannual snapshot: May 2022

[2] Stats NZ Information Release February 2022

[3] As at [1].

[4] Immigration New Zealand Construction Market Summary

[5] AEWV definition – Temporary work visa up to three years depending on wage threshold. To be used if the worker has a job offer from an accredited employer and meets the job skills/qualifications.

[6] New Zealand Immigration Announcement 11 May 2022

[7] Workers on other temporary work visas may also be eligible for one of the new residence visas in some circumstances.

[8] Workers on other temporary work visas may also be eligible for one of the new residence visas in some circumstances.