8 October 2024
Statistics New Zealand has announced the development of a new, independent occupational classification system called the National Occupation List (NOL). This new system will replace the current Australian and New Zealand Standard Classification of Occupations (ANZSCO), which has been in use since 2006 for visa applications, labour market data, and other statistical purposes.
The first version of the NOL will be launched on 20 November 2024. This move comes after a consultation process revealed strong support for separate classification systems for New Zealand and Australia, reflecting the growing differences in the two countries’ labour markets.
Transition Timeline for New Zealand
Immigration New Zealand will continue using the ANZSCO system during the transition period. While the NOL is scheduled for release in November 2024, it will take additional time for Immigration New Zealand to fully integrate the new classification into its processes. A further update on the transition timeline is expected in 2025 when a confirmed date for the full switch-over will be announced.
Why the Change?
The decision to create separate occupational classifications for New Zealand and Australia was made jointly by Statistics New Zealand and the Australian Bureau of Statistics (ABS). Both countries have seen significant changes in their labour markets since the introduction of ANZSCO in 2006, and these differences have made the joint management of occupation classifications less effective.
Australian Statistician Dr David Gruen and New Zealand Government Statistician Mr Mark Sowden highlighted that while the two countries are moving to separate systems, they will continue to work together to ensure the classifications remain comparable. This ensures that cross-border economic analysis, as well as Trans-Tasman mutual recognition of accreditation, remains unaffected. The agencies will develop concordances to map between the two systems, ensuring data continuity and facilitating time-series analysis across both countries.
Key Benefits for New Zealand
The new National Occupation List (NOL) is designed to better reflect New Zealand’s modern labour market and economy. As the custodian of the NOL, Statistics New Zealand will manage the list and ensure it remains current by incorporating new and emerging occupations as needed. This approach will allow New Zealand to respond to labour market changes more quickly and flexibly while still maintaining alignment with Australia and international standards.
Mark Sowden emphasized the importance of maintaining comparability with Australia but also noted that a tailored list will allow New Zealand to more accurately reflect its specific labour market needs. The NOL will provide a clearer understanding of occupation trends within New Zealand and offer more relevant insights for businesses, policymakers, and job seekers.
Australia’s Approach: OSCA
In Australia, the new classification system will be called the Occupation Standard Classification for Australia (OSCA). The first version, OSCA 2024, will be released on 6 December 2024. Dr Gruen noted that the joint management of the ANZSCO system had worked well for many years but that the growing diversity in both countries’ labour markets necessitated a shift to separate, country-specific classifications.
According to Dr Gruen, OSCA will better represent the contemporary Australian labour market while still allowing for international comparisons. He stressed that ensuring Trans-Tasman comparisons can continue is a priority for both countries.
Next Steps
In New Zealand, the NOL will officially take effect on 20 November 2024, with ongoing updates planned to ensure it stays relevant to the country’s economic and employment needs. While the name National Occupation List has been proposed, Statistics New Zealand is currently seeking public feedback on the name, and there is a possibility that it may be revised. If the name changes, updates will be provided on the Stats NZ website.
The NOL will be maintained on the Ariā platform, which facilitates classifications, concepts, and concordances. This platform will be integrated with other systems to ensure smooth transitions for users across different sectors, including government agencies and stakeholders involved in employment, immigration, and economic planning.
Conclusion
The decision to replace ANZSCO with separate, country-specific occupational classification systems for New Zealand and Australia marks a significant shift. While both systems will remain comparable, they are designed to address the unique labour market needs of each country. For New Zealand, the NOL will better reflect current job trends and provide the flexibility to adapt to future labour market changes.
Reference
https://www.immigration.govt.nz/
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