New Zealand is overhauling its residency rules in an effort to hold on to skilled workers and tackle labor shortages, as record numbers of citizens continue to leave the country.
The government announced on Friday that two new residency pathways will open from mid-2026, designed to make it easier for migrants already working in New Zealand to settle permanently. Officials say the move is part of a wider plan to stabilize the workforce and support economic growth.
Economic Growth Minister Nicola Willis said the decision followed months of consultation with business leaders frustrated by the difficulty of keeping experienced foreign workers.
“Employers told us that too many migrants with crucial skills were locked out of residence despite years of proven contribution,” she said.
Under the new rules, one pathway will be open to highly skilled workers who meet salary and experience benchmarks. The second will cater to trades and technical workers who satisfy qualification, wage and experience thresholds — a measure aimed at industries struggling to fill roles in construction, manufacturing and infrastructure.
Immigration Minister Erica Stanford said the reform was about giving businesses certainty and rewarding workers already embedded in New Zealand life.
“This is about keeping the people who are already adding value to our economy and communities,” she said.
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The changes come as New Zealand faces its largest net outflow of citizens in decades. Between July 2024 and July 2025, 73,400 New Zealanders moved abroad while just 25,800 returned, according to official figures. The loss of working-age citizens has intensified pressure on employers and raised fears of a deeper skills shortage.
In recent months, the government has also eased visitor visa rules to attract remote workers, including so-called “digital nomads,” and relaxed criteria for investor visas to draw more foreign capital.
Business groups broadly welcomed Friday’s announcement. Business New Zealand said it would “give employers confidence that talent can stay,” while Infrastructure New Zealand urged the government to bring the pathways forward to avoid further project delays.
Not everyone is convinced. Opposition party New Zealand First dismissed the policy as “unfocused,” warning that many migrants eventually leave for Australia after gaining skills. Party leader Winston Peters called for a more targeted system that balances employer needs with long-term benefits for local workers.