New Zealand will make temporary changes to its immigration rules aiming to lure 12,000 workers over the next year with a working holiday scheme designed to fill labour gaps.
The jostling for workers is part of a global trend that has helped push up wages in New Zealand, posing a challenge to the fight on inflation by the central bank, which raised interest rates last week to their highest level since September 2015.
"These measures are about providing immediate relief to those businesses hardest hit by the global worker shortage," Immigration Minister Michael Wood said in a statement, adding that the holiday scheme targeted a doubling of intake.
The visas of some onshore working holiday makers will also be extended by six months to retain workers now in the country, Mr Wood said.
Meanwhile those who had previously held a working holiday visa but who missed out on travelling to New Zealand due to the pandemic would also be issued with new 12-month visas from October.
In addition, the government will also allow some sectors to pay skilled migrant workers less than the new median wage requirements. These sectors include aged care, construction and infrastructure, meat processing, seafood and adventure tourism.
A said the move would allow sectors that have traditionally relied on lower paid migrants time to improve attraction and retention of domestic workers, prioritise the training of New Zealanders, and invest in technology and new business models.
"Workforce challenges are being seen across skill levels and sectors," Mr Wood said.
"New Zealand is not alone in this.
"We know these measures will help fill skills gaps, as businesses work towards more productive and resilient ways of operating."
The measures come after the jobless rate stood at 3.3 per cent in the second quarter, when wages were also up 3.4 per cent on the year, rising at their fastest in 14 years.
Australia's unemployment rate meanwhile stands at 3.4 per cent, the lowest since 1974.
Last week, the Reserve Bank of New Zealand lifted the official cash rate by 50 basis points to three per cent, in a seventh straight hike to rein in inflation.
