Even better pay isn’t working
Ayear on from the landmark pay equity settlement that boosted caregiver wages by between 15 per cent and 50 per cent, sadly we are not seeing a surge in New Zealanders applying for these roles.
Historically, many have argued that low wages are the reason we have a chronic caregiver workforce shortage. However, the well-deserved pay scale increases and training opportunities have not yet seen an increased number of applicants.
Even if eventually we see more applications for roles, it will not address looming shortfalls due to our rapidly ageing population. Forecasts indicate that between 12,000 and 20,000 extra residents will need aged residential care by 2026, requiring an additional 1000 caregivers each year.
So where are the applicants? And what does this mean for our ability to care for New Zealand’s older and more vulnerable citizens?
You could say that the lack of workers is due to New Zealand’s falling unemployment, down to 4.4 per cent as of May. And, along with more people having at least some work, there are signs that fewer people are seeking more work.
We also know that young New Zealanders are simply not attracted to the sector – despite the higher wages and training – and are not retained once recruited. Indeed, high churn and an ageing workforce are two of the major drivers of caregiver workforce shortages.
Aged-care providers’ ambition is always to employ New Zealanders first, but once they have exhausted the small pool available, they have no option but to look to migrant workers to provide the care required.
Rest-home members of the Aged Care Association are involved in ongoing initiatives with the Ministry of Social Development and Work and Income that do result in Kiwis working in aged care, but the numbers are minuscule.
About one-third of New Zealand’s caregiver workforce holds some form of visa – and that valued workforce is being turned away by a harsh immigration policy. Anecdotally at least, we are hearing that Filipinos now see the door closing on New Zealand and are instead looking to Canada and China for opportunities.
Many of these workers are expertly suited to the role of caregiving, with nursing qualifications and experience in their country of origin – but are unable to work as nurses in New Zealand until they’ve met the necessary registration requirements.
However, as caregiving does not meet the required skill levels for a migrant to apply to work on a Skilled Migrant visa, nor is it recognised as Essential Skills in Demand (ESID), applicants must apply for an Essential Skills visa – which must be renewed yearly and with no transition path to a permanent visa. Additionally, the maximum three years’ duration for Essential Skills visa holders means these workers are sent back to their country for a one-year stand-down period and they may not return.
So, in 2020 we will see an exodus of the first wave of affected migrant caregivers and a huge gap in the workforce. And, with these immigration policy settings already starting to turn immigrants away from New Zealand, it is going to significantly raise the pressure on an already challenging recruiting environment.
Another big concern is that we’ll likely see a halving of overseas registered nurses entering the sector under changes to the points threshold in the Skilled Migrant category. This reduction is on top of current recruitment issues – our members struggle to retain skilled registered nurses and to recruit recent graduates.
The Government says it remains committed to making sure the immigration system works for New Zealand. Indeed, Finance Minister Grant Robertson said in the May Budget that the Government’s priority was to address industry specific shortages. We are still to hear what this means, and in the meantime our workforce shortages compound.
To work for the sector that cares for older New Zealanders we need to see immigration policy that allows employers to retain migrant workers and one that provides continuity of supply.