New Zealand faces skill-shortage 'epidemic'

Press release: New Zealand faces skill-shortage 'epidemic' move2nz.com

press release

29th June 2011

New Zealand faces skill-shortage 'epidemic'

Why New Zealand is losing the international battle for skills

In the modern world workers with skills, qualifications and experience are able to pick and choose which country they live and work in leading to an international battle for skills.

Around the world countries are putting huge resources into attracting these globally mobile workers to invest their money and skills in their local economy while holding on to their best and brightest.

There is a lot at stake - government research shows that existing immigration levels, in place since 2001, will add $28 billion to the New Zealand economy by 2021[1].

However while our main competitors in this battle, Australia and Canada, have both increased their quotas for skilled migration (by 11 percent and 22 percent respectively) our Immigration Minister has bucked the trend, cutting quotas by 13 percent[2] and approvals for the most skilled and qualified workers by over 21 percent[3].

Immigration commentator Mike Bell, architect of move2nz.com, has analysed the position and states that New Zealand is facing a dire skill shortage of epic proportions.

"Businesses don't understand why they can't find good applicants for top jobs" says Bell "but New Zealand has effectively pushed away thousands of the very best in the world."

"The Canterbury rebuild is just the tip of the iceberg - businesses in pretty much every industry and every region are struggling, unable to find key staff. In 2008 we had a good system which was working well, now immigration is a broken and twisted wreck burdened with massive bureaucracy."

"Sadly a lot of New Zealanders are going to lose their jobs as a result of this mistake and probably won't even realise why."

Latest government research on skill shortages dates back to February 2010, however requests made this week to the fourteen Economic Development Agencies around New Zealand show little new data is available.

1 Press release: New Zealand faces skill-shortage 'epidemic' move2nz.com

Savage cuts in immigration numbers implemented from January 2010 appear to have been made without recent data on skill shortages. The significant effects of those changes to a system which had been running since 2001 are only now becoming with an increasing number of businesses finding they are unable to locate qualified and experienced key staff.

"The Minister has thrown the baby out with the bathwater." asserts Bell. "It's vitally important to protect kiwi jobs, but this is a knee-jerk reaction which has seriously hurt New Zealand. Without good data on where the skill gaps are all this has achieved is to block the people we really need!"

Hon Ruth Dyson, Labour Party spokesperson on immigration agrees.

"The Minister's response seems to be that we have an increasing number of unemployed, therefore we should reduce the number of people coming to New Zealand from overseas. This is an extremely shallow and damaging analysis." states Dyson.

"This is too important for short term thinking. We need to retain and attract the skills that we need to build a strong New Zealand for the future."

The most recent statistics confirm this change. In the 11 months to May 2011 applications being approved for Residency under the Skilled Migrant Category (aimed at bringing in workers with the most sought after skills) were down by 5,150 compared to the same period in the previous year - over 21 percent[3].

For the same period approvals for temporary work visas from applicants on the 'Essential Skills' programme have been cut by 7,201, over 26 percent[4] compared to the same period in 2009/10.

Like steering a huge oil-tanker, changes to immigration are long term and take time to show an effect.

"Even if the Minister finally listened to what we have been saying since March 2009 and put things back the way they were, it would take several months for the change to be felt." Bell points out.

Dyson adds "changes in immigration policy that we have seen over the last two and a half years are helping to keep New Zealand's economy sluggish, rather than helping to lift us out of recession."

In the meantime Australia and Canada continue to win the international battle for skills while New Zealand struggles to retain our top kiwi workers or make any headway economic recovery.

Mike Bell - architect move2nz.com

2 Press release: New Zealand faces skill-shortage 'epidemic' move2nz.com

Sources:

1. International Migration Settlement and Employment Dynamics research 2009.

2. Letter - Dr. Jonathan Coleman, Immigration Minister.

3. Immigration New Zealand statistics: R1 – Resident decisions by financial year.

4. Immigration New Zealand statistics: W1 – Work applications decided.

ENDS

Editor's Notes

Mike Bell is the architect of move2nz an independent non-profit organisation launched in 2005. Free from government ties and funding Bell is able to present information and research that others working in this field are unable or unwilling to uncover, often reaching controversial conclusions such as the story "They've taken your money, used your skills, now bugger off!" run in 2009.

Run and funded jointly with his wife Tammy Bell, move2nz was created generate economic and cultural benefit for New Zealand through providing information and support to skilled migrants to increase settlement and retention rates.

The Bell's website move2nz.com has over 36,000 members and has twice been voted Best Community Site in New Zealand.

Mike Bell is a migration and settlement expert with six years experience working with skilled migrants, on government initiatives and strategies.

Please note: Bell is not a licensed immigration adviser and must not be referred to as such.

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