Bill McKay of the University of Auckland told HRD better skills retention strategies are needed
As New Zealand continues to expand its Green List to address pressing skills shortages, questions are being raised about the long-term sustainability of importing talent.
"Virtually any skilled professional in New Zealand can go to Australia and earn 20% more. It's not just about money either; lifestyle and career opportunities also pull our talent away,” Bill McKay, senior lecturer in Architecture and Planning at the University of Auckland, told HRD.
Earlier this month, ten additional roles were added to the Green List, a move designed to fast-track immigration for occupations facing acute shortages, with new occupations set to be added to the Work to Residence pathway in August.
New Zealand's manufacturing industry contributes about $21.8 billion to the economy annually, according to Small Business and Manufacturing Minister Chris Penk, who stressed that gaps in the industry resulting from a tougher economic climate need to be addressed.
The occupations being added to the Green List are:
McKay outlined some caution with the types of occupations added to the list, adding he was “surprised.”
“We've got a big deficit in housing and infrastructure in New Zealand, and yet we’re focusing on roles like fitters, turners, and car panel beaters, which lean more toward manufacturing,”
This lack of skills in New Zealand also affects the younger generation – following a push toward university education sidelined vocational pathways. Only in recent years has there been a reassessment.
"You can earn more as a plumber than as an architect," McKay noted, "But roles like panel beating or fitting just don’t carry the glamour or appeal they once might have. Young people want different things from work now—flexibility, purpose, maybe even a shot at being an influencer."
Due to younger workers – particularly Gen Z – having different views of what is important at work, additional strain is put on New Zealand’s economy because more are willing to leave the country for better opportunities.
“It’s not just about the grass being greener in other places like Australia, it’s the fact that they’ve got nothing to lose. Why wouldn’t they go and live somewhere else? The problem is, a lot of the time, they don’t come back,” McKay noted.
McKay also outlined that building a resilient workforce isn’t just about retention—it’s about creation.
"We may not even be training enough people in some of these sectors. For fitters and turners, I couldn’t find an industry training organisation (ITO) actively supporting that stream. It’s not a case of losing talent—it’s not developing it in the first place."
So, what can employers do? In McKay’s view, it starts with rethinking traditional employment models.
"If you can’t compete on pay, offer lifestyle perks—four-day work weeks, rostered shifts like in mining, or employer-provided accommodation, particularly in high-demand regions like Queenstown."
McKay underscored that addressing workforce shortages requires more than fast-tracking visas. It demands a renewed focus on domestic skills development and long-term planning.
"We can’t just assume we’ll import our way out of the problem. At some point, we have to grow our own."
