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Essential Skills in Demand Lists and the review process

This section provides an overview of the Essential Skills in Demand Lists, including the process used by the Department of Labour (the Department) to periodically review the lists. Importantly, the Department is piloting a new process for undertaking this periodical review. Please read this information if you are interested in submitting an occupation for review.

What are the Essential Skills in Demand Lists?

The Department maintains the Essential Skills in Demand Lists consisting of:

  • the Long Term Skill Shortage List (LTSSL),
  • the Immediate Skill Shortage List (ISSL) and
  • the Canterbury Skill Shortage List (CSSL).

The lists are central to ensuring that New Zealand’s skill needs are met by facilitating the entry of appropriately skilled migrants to fill skill shortages, and reducing the costs and time delays for employers seeking staff. However, this objective must be balanced by the need to ensure that there are no suitably qualified New Zealand citizens or resident workers available to undertake the work, and that the shortage is ‘genuine’.

 

The Canterbury Skill Shortage List (CSSL) highlights occupations currently on the Immediate Skill Shortage List (ISSL) or Long Term Skill Shortage List (LTSSL) that are needed for the Canterbury rebuild. Suitable applicants who meet the requirements of these occupations listed and who have a job offer in Canterbury may be granted a temporary work visa without a labour market check needing to be done. If the occupation is on the LTSSL, then a pathway to residence is also available.

 

The Immediate Skill Shortage List (ISSL) is for occupations that have an immediate shortage of highly skilled workers in New Zealand. It is designed to facilitate the approval of temporary work visa applications. If an applicant produces an offer of employment in an occupation that is included on the current ISSL, immigration officers will accept that no suitably qualified New Zealand citizens or residents are available.

 

The Long Term Skill Shortage List (LTSSL) identifies those occupations where there is an absolute (sustained and ongoing) shortage of highly skilled workers both globally and throughout New Zealand. People who gain employment in one of these areas may be granted a work visa under the LTSSL Work to Residence instructions. The Work to Residence instructions enable an applicant to apply for residence after two years, provided they have remained working in a LTSSL occupation with a base salary of at least NZ$45,000, and meet standard instruction requirements.

 

Candidates for residence under the Skilled Migrant Category who have an offer of employment, work experience or qualifications in an area of absolute skill shortage identified on the LTSSL, may gain bonus points towards their application for residence.

 

The Essential Skills in Demand Lists are not designed to cater for lower skilled labour shortages or seasonal labour shortages. Nor are they intended to address recruitment and retention problems arising because the industry cannot, or does not, meet the terms and conditions necessary to recruit sufficient numbers of suitably qualified workers from within the New Zealand workforce.

What if an occupation is not listed?

Employers wanting to bring in migrant workers for occupations not listed on the ISSL or LTSSL may do so provided suitable New Zealanders are not available. Other immigration instructions that may be used include the Skilled Migrant Category and Talent (Accredited Employers) Work Instructions for residence, and temporary work instructions, such as the Essential Skills Work Instructions.

 

Employers wanting to recruit from overseas are encouraged to explore this website to gain a better understanding of the alternative avenues.

How are the Essential Skills in Demand Lists reviewed?

The lists are reviewed regularly to ensure that they meet the changing needs of the labour market. The Department is responsible for managing the review process and making recommendations to the Deputy Chief Executive - Immigration (in the case of the ISSL) and the Minister of Immigration (in the case of the LTSSL).

 

For an occupation to be added to the ISSL, the occupation must be:

  • be highly skilled,
  • deemed to be in shortage, and
  • in the geographic regions where there is a shortage confirmed.

For an occupation to be added to the LTSSL:

  • there must be an ongoing and sustained (absolute) shortage, both globally and in New Zealand
  • the shortage must be across all geographic regions in New Zealand
  • the occupation must have a base salary of at least NZ$45,000 based on a 40-hour working week
  • the occupation must be highly skilled, meet the Skilled Migrant Category definition of skilled employment, and
  • applicants must hold provisional registration, if required.

In all cases, the following must also be confirmed:

  • industry is committed to training New Zealanders
  • industry is committed to fully utilising the domestic labour market before the industry considers employing overseas workers
  • the shortage is not due to recruitment and retention issues arising as a result of terms and conditions of employment
  • industry is committed to the provisions of New Zealand employment legislation available to workers
  • evidence of employers having difficulty employing staff
  • estimated apprentice or graduate trainee numbers and the numbers of workers leaving or retiring from the industry
  • details of the qualification and skills required for the occupation, and
  • the shortage is not employer specific.

First review of 2011

The results of the first review of 2011 were released on 5 December 2011.

Pilot of review process

The Department is piloting a process for reviewing the ESID lists. The pilot does not represent a change in ESID policy – the existing policy parameters remain in place. The revised review process is intended to streamline the process as a whole.

 

The pilot process includes the following features:

  • an Expression of Interest procedure, through which industry stakeholders (for example employers’ groups, trade unions and industry training bodies) are invited to submit proposals for an occupation to be included/removed/moved between lists in the review,
  • the preparation and publication of ‘Preliminary Indicator Evidence Reports’ (PIERs) that draw together and assess relevant data for each of the occupations under review and provide the Department’s preliminary view on the status of the occupation, and
  • a submission process, through which industry stakeholders are invited to provide additional information and evidence about the nature and extent of skill shortages in the occupations under review.

Importantly, the pilot process places an emphasis on ensuring that there is a sound evidence base to support changes to the ESID lists. The Department has revised the way that it assesses the statistical data available on the status of occupations to try to improve its usefulness.

 

However, the information provided by industry stakeholders is a vital part of the assessment process. This is particularly the case where statistical data is dated (for example Census information on salaries) and where data is not available for some occupations (for example because the occupational group is too small to generate sufficient data for national surveys). Interested stakeholders are therefore strongly encouraged to collect robust evidence to support submissions. Further information on the nature of the evidence required is noted below.

Key steps in the pilot review process

The key steps in the pilot process are outlined below.

1. Expressions of Interest

The Department calls for industry stakeholder proposals for occupations to be reviewed. Submissions must be made on the Expression of Interest form. Submissions for Expressions of Interest are not currently open. See an example of a completed Expression of Interest form PDF [191KB]. 

2. Selection of occupations to be reviewed

The Department assesses the Expression of Interest proposals and selects occupations to be reviewed. The Department may also identify occupations that it wishes to review as a result of its own intelligence gathering. As a general rule, occupations identified by industry stakeholders will take precedence, and the Department will provide the balance of occupations for review.

3. Publication of Preliminary Indicator Evidence Reports (PIERs)

The Department prepares a Preliminary Indicator Evidence Report (PIER) for each occupation selected to be part of the review. The PIER collates relevant statistical data about the occupation and provides the Department’s preliminary view on the status of the occupation.

4. Call for submissions on occupations selected for review

Submissions will be sought from industry groups and others about the nature and extent of skill shortages in their occupational setting. An example of a completed submission form PDF [304KB] is also available.

5. Wider sector consultation on occupations

Once submissions are received, the Department (using an independent contractor) will undertake any further follow-up with submitters, consultation with government agencies and industry, and additional data analysis that may be required to inform decisions on any changes to the ISSL and LTSSL. The consultation process overlaps with the submission process and will conclude on 26 August 2011.

6. Decisions taken and published

Consistent with past practice, where there is consensus that an immediate skill shortage exists in a highly skilled occupation, the Department will recommend that the occupation be added to the ISSL. Where an occupation is highly skilled, there is a demonstrated absolute (sustained and ongoing) and global long-term skill shortage, the Department will recommend that the occupation be added to the LTSSL. There may be cases where the Department does not consider the lists to be the most appropriate response to the shortage, and may recommend an alternative.

Important points for preparing an Expression of Interest

The Expression of Interest process provides an opportunity for industry stakeholders to request a change to the ESID status of an occupation.


The completion of an Expression of Interest form is the first step in requesting that an occupation be:

  • added to one of the ESID lists, or
  • removed from one of the ESID lists, or
  • moved from one list to the other.

Expressions of Interest will generally only be considered by the Department where:

  1. the occupation has an ANZSCO skill level classification of level 3 or above and has a specific, recognised qualification requirement, and
  2. the occupation has not been reviewed by the Department within the last review period (or, if it has, the submitter can demonstrate a significant change in labour market conditions that warrants a further review), and
  3. the Expression of Interest has the support of at least one industry body or professional association (for example, an employers’ group, trade union, or industry training body). 

Submitters preparing an Expression of Interest are required to make a case for an occupation to be reviewed, including evidence in support of the proposed change.

 

Where the necessary evidence is not immediately available, the Department may accept an Expression of Interest as long as there is a clear commitment to obtain evidence within the timeframes for the submission process.

 

Please see an example of a completed Expression of Interest form PDF [191KB] for further information. 

Important points for preparing a submission

The submission process is an opportunity for stakeholders to provide additional information and (potentially) different perspectives on the nature and extent of skill shortages in occupations selected for review. Stakeholder submissions are a vital source of information, helping to inform the Department’s final assessment of the status of occupations.

 

Submissions should be made by coordinated groups and industry stakeholders (for example, employer’s groups, trade unions and industry training bodies), and should represent the shared views of those groups and stakeholders. Evidence of consultation must be shown as part of a submission.

 

Further, all submissions must be supported by evidence that can be substantiated in some way – for example sourced to a survey, or administrative data, or to feedback collected from employees. 

 

As a general rule, the Department is looking for evidence that has a reasonable breadth of coverage across the industry (ie represents the views or situation of a reasonable proportion of employers and/or employees and/or trainers or other stakeholders); and is specific (ie clearly stated facts).

Any questions?

If you have any questions about the pilot review or you wish to be notified of the next review round, please contact: shortagesreview@dol.govt.nz.


Page Last Updated: 20 Jan 2012
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