Why Immigration New Zealand keeps failing skilled migrants who add real value to the economy.

Immigration New Zealand (INZ) has faced criticism in the past and recently for failing skilled migrants in several key areas, despite these individuals contributing significantly to the economy.

Here are some of the major reasons why various commentators and industry experts think that INZ has failed repeatedly skilled migrants who add real value and deserve a shot at residence visa status in this country:

1. Lengthy and Unpredictable Processing Times

Many skilled migrants have experienced long delays in visa processing, often waiting months or even years. This creates uncertainty for workers and their families, affecting job security, housing, and mental well-being.

As much as 'automation' has been implemented by INZ, the law dictates that decisions sit with people and these sometimes are a major cause of the delays. If not, then why does INZ have a high turnover of staff?

2. Policy Instability and Constant Changes

INZ has frequently changed immigration policies, especially around skilled migrant categories, residence pathways, and point systems. This unpredictability undermines the trust of migrants who planned their futures based on previous rules and who now face difficulties in meeting the new rules.

For example, the latest change to the median wage threshold has significantly moved the lever toward the employer to offer lesser wages or hourly rates that will sit below the 'market rate' required or 'median wage' required for a residence visa. This will make it difficult for skilled migrants to achieve residence under the SMC category and perhaps not meet the 'market rate' required for other categories.

3. Disconnect Between Immigration Policy and Labour Market Needs

Despite clear skill shortages in sectors like healthcare, construction, and IT, INZ has sometimes failed to align immigration settings with the real-time needs of the economy. Skilled workers have been turned away or left in limbo even when their expertise is in demand notwithstanding that some migrants fake or lie their way into jobs and when shit hits the fan, the policy still doesn't fix the problem.

Further, the system is subject to exploitation by migrants with malfeasance in their actions (YES THEY DO EXIST AND ARE IN NZ) and who will lie and cheat their way to staying in New Zealand. Do you know of a case where employees lied, cheated and tried to extort their employer because false intentions and promises were made to such people? I can definitely think of one case where the 'employer' came out clean after an investigation by INZ based on false and malicious employee claims.

4. Poor Communication and Transparency

Migrants often report a lack of clear guidance from INZ, inconsistent information, and limited updates on application progress. This lack of transparency can erode confidence and leave migrants feeling unsupported.

This is important where the decision is left to individuals within INZ that do not have the experience or skills to integrate a more comprehensive approach to apply instructions and the concept of fairness and natural justice.

5. "Uncapped" Pathways Becoming Logjammed

Some visa categories, like the Skilled Migrant Category (SMC), were advertised as viable routes to residence, but caps or processing bottlenecks created a backlog. Many applicants met the criteria but were still left waiting indefinitely.

In addition, the requirements to meet the residence standards for eligibility change at times leaving skilled migrants out of pocket and desperate for fast and untenable solutions for their short and long term desire to stay in New Zealand.

7. Overemphasis on High-Income Thresholds

Newer policies have prioritized high-income earners, sidelining skilled but lower-paid workers (e.g., teachers, aged-care workers) who are essential to the functioning of key public services.

As if New Zealand wasn't a low wage economy, the fixation of INZ on this is outside the reality of what some business owners can afford and the level of demand in some industries that rely on human capital from other parts of the world. A one fit size approach does not work and has not worked.

If you are an employer looking to hire skilled migrants and require a strategy around HR and immigration, contact us at admin@cmgadvisory.co.nz to receive some FREE information about having a strategy in place.