The landscape of occupational classification in New Zealand is on the brink of a significant transformation. Statistics New Zealand has announced that the Australian and New Zealand Standard Classification of Occupations (ANZSCO) will soon be replaced by a new system known as the National Occupation List (NOL). This change is crucial for both migrant workers and HR professionals who must understand the implications of this transition. In this blog post, we’ll explore what the transition from ANZSCO to NOL means, its impact on the labor market, and how stakeholders can prepare.
ANZSCO has long been an essential tool for classifying occupations based on skill levels. However, as labour markets evolve, so must the systems that manage them. The joint announcement by the Australian Bureau of Statistics and Statistics New Zealand highlighted the need for separate systems tailored to each country’s unique labor demands. The introduction of the National Occupation List reflects these changes and aims to address the contemporary challenges of New Zealand’s workforce.
Over time, both Australia and New Zealand have witnessed significant shifts in their labour market landscapes. These changes are driven by technological advancements, globalisation, and shifting economic priorities. Consequently, a more responsive and localised classification system is necessary to cater to these dynamic environments. By developing the NOL, New Zealand aims to create a framework that aligns more closely with its specific occupational needs.
Before finalizing the decision to implement the NOL, extensive consultations were held with key stakeholders across various sectors. This period allowed for open dialogue and feedback, ensuring that the new system would meet the needs of employers, workers, and policymakers alike. The strong support garnered during this phase underscores the demand for a more nuanced approach to occupational classification.
The National Occupation List is New Zealand’s bespoke occupational classification system set to launch on November 20, 2024. Unlike its predecessor, the NOL is designed specifically to reflect the unique characteristics and requirements of New Zealand’s labour force. This tailored approach ensures greater accuracy in job classifications and better alignment with the country’s economic objectives.
The NOL introduces several key features aimed at improving the classification process. One notable aspect is its enhanced focus on emerging industries and occupations, which positions it as a forward-thinking tool in workforce planning. Additionally, the NOL incorporates more detailed subcategories, allowing for a finer granularity in job descriptions and skill requirements.
In developing the NOL, Statistics New Zealand leveraged cutting-edge technology and data analytics. This approach ensures that the system remains adaptable and responsive to future changes in the labour market. The integration of technological insights allows for ongoing updates and refinements, maintaining the NOL’s relevance over time.
While the first version of the NOL will be available in late 2024, a complete transition from ANZSCO will take time. Immigration New Zealand will continue to use ANZSCO until further notice, with a confirmed switchover date expected in 2025. Stakeholders should stay informed about updates and adjust their practices accordingly.
For HR professionals and employers, preparation is key to a smooth transition. Organizations are encouraged to familiarize themselves with the NOL’s framework and identify any potential impacts on their recruitment processes. By proactively engaging with the new system, businesses can minimize disruption and capitalize on the opportunities it presents.
Migrant workers, particularly those seeking employment or residency in New Zealand, should be aware of how the NOL may affect their applications. Understanding the nuances of the new classification system is essential for aligning qualifications and skills with the requirements outlined in the NOL. Consulting with immigration advisers or relevant authorities will be crucial during this period.
During the transition phase, ANZSCO will remain in use to ensure consistency and stability. This gradual approach allows time for stakeholders to adjust and adapt to the upcoming changes without sudden disruptions. Employers and HR professionals can continue to rely on ANZSCO to guide their workforce planning in the interim.
ANZSCO grades occupations based on skill levels, ranging from 1 (highly skilled) to 5 (less skilled). This classification helps employers and policymakers assess the qualifications and experience required for various roles. While the NOL will eventually replace ANZSCO, understanding its existing framework remains important for current operations.
To stay informed about the transition from ANZSCO to the NOL, stakeholders should regularly check for official updates from Statistics New Zealand and Immigration New Zealand. Engaging with industry associations and attending relevant seminars or workshops can provide valuable insights and support during this period of change.
For HR professionals, the NOL introduces new dimensions to talent acquisition and management. By offering a more precise classification of occupations, the NOL enables HR teams to make informed decisions about hiring, training, and workforce development. This shift also opens avenues for identifying skills gaps and aligning recruitment strategies with organisational goals.
Educational institutions and training providers play a crucial role in preparing the workforce of the future. With the advent of the NOL, these organizations can better tailor their programs to match emerging industry needs. By aligning curricula with the NOL’s classifications, educators can equip students with relevant skills and enhance their employability.
The NOL serves as a valuable tool for government agencies and policymakers in shaping labour market policies. By providing a comprehensive overview of occupational trends and needs, the NOL supports evidence-based decision-making. This information is vital for crafting policies that foster economic growth and address workforce challenges.
Organisations that proactively engage with the NOL can gain a competitive edge in workforce planning. By understanding the evolving labour market landscape, businesses can strategically align their human resources with future demands. This forward-looking approach enhances agility and resilience in an increasingly dynamic environment.
The detailed classifications within the NOL facilitate targeted employee development initiatives. Employers can identify areas for skill enhancement and offer tailored training programs to upskill their workforce. This investment in employee growth fosters job satisfaction, retention, and productivity.
For employers seeking to hire migrant workers, a thorough understanding of the NOL is invaluable. By aligning job descriptions with the NOL’s classifications, businesses can streamline the immigration process and attract qualified talent. This alignment reduces barriers and enhances the overall effectiveness of recruitment efforts.
The transition from ANZSCO to the National Occupation List marks a pivotal moment in New Zealand’s labour market landscape. By adopting a more tailored and responsive classification system, New Zealand aims to meet the evolving needs of its workforce and economy. For migrant workers and HR professionals, understanding and preparing for this change is essential to capitalising on the opportunities it presents. By staying informed, engaging with stakeholders, and leveraging the NOL’s insights, businesses and individuals can thrive in this new era of occupational classification.
Vandana Rai is a Senior Licensed Immigration Adviser and has built a reputation around her rare set of skills, which could be considered ideal for her legal profession.