Rising Unemployment in New Zealand: What It Means for Employers and AEWV Holders
New Zealand’s unemployment rate has climbed to 5.2% in the June 2025 quarter, marking a significant shift in the labour market. With over 158,000 people unemployed, the ripple effects are being felt across industries—from recruitment challenges to visa compliance concerns. At Begin Immigration Solutions, we’re here to help you navigate these changes with clarity and confidence.
For Employers: Labour Market Testing Just Got Tougher
As unemployment rises, so does the pool of New Zealand citizens actively seeking work. This directly affects the Labour Market Test (LMT)—a critical step for employers looking to hire migrants on an Accredited Employer Work Visa (AEWV).
Key implications:
• More local applicants: With more Kiwis applying for jobs, employers must demonstrate genuine efforts to hire New Zealand citizens before turning to migrant workers.
• Stricter scrutiny from INZ: Immigration New Zealand (INZ) is increasingly meticulous in reviewing LMT results. Expect deeper checks into job advertisements, applicant responses, and interview outcomes.
• Documentation matters: Employers should maintain detailed records of recruitment efforts, including reasons for rejecting local candidates, to satisfy INZ’s requirements.
• Market salary rate enforcement: INZ has become significantly more vigilant in assessing whether migrant workers are being paid at least the market rate for their role and location. Employers offering salaries below market expectations are increasingly being flagged at the Job Check stage. INZ does not want to see migrant workers paid less than their Kiwi counterparts, and we’ve seen a noticeable uptick in concerns raised on this issue.
• Redundancy red flags: If an employer has recently made staff redundant and is now sponsoring a new AEWV, INZ may question the legitimacy of the hire. Employers will need to justify why a migrant is being hired instead of re-employing a previously laid-off New Zealander.
• Public optics matter: INZ is acutely aware of public sentiment. In a high-unemployment environment, the agency does not want to appear as favouring migrant workers over locals. This means AEWV approvals may be more conservative and selective.
💡 Tip: If you’re unsure how to structure your LMT documentation, Begin Immigration Solutions can guide you through best practices.
For AEWV Holders: Job Losses and Visa Stability
For AEWV holders, rising unemployment brings uncertainty—especially if you’ve recently lost your job or fear redundancy.
Here’s what you need to know:
• Report redundancy to INZ: If you’re made redundant, it’s essential to notify Immigration New Zealand. Transparency helps protect your visa status.
• The “3-month rule”: While not officially documented, AEWV holders typically have around three months to find a new job before INZ contacts them. After this period, you may be asked to show evidence of job applications or explain your situation.
• Changing jobs? Be prepared: Applying for a Variation of Conditions (VoC) or a job change after a long gap can be challenging. INZ may request proof that you haven’t breached visa conditions—such as working for cash or outside your visa terms.
📌 Important: Keep records of job applications, interviews, and any income sources during unemployment. This can help demonstrate compliance if INZ follows up.
Navigating Uncertainty with Support
Whether you’re an employer trying to meet LMT requirements or an AEWV holder facing job loss, Begin Immigration Solutions is here to help. We offer:
- Tailored advice on Labour Market Testing
- Guidance on Variation of Conditions applications
- Support in communicating with INZ during periods of unemployment
📞 Reach out today to ensure your immigration journey stays on track—even in a shifting economic landscape.
