ANZSCO no more: Australia and NZ to launch separate job classification systems

ANZSCO-changes

ANZSCO, immigration, OSCA, skilled migrant category, sponsorship, visa,

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Australia and New Zealand have announced that while maintaining comparability, each country will introduce their own occupational classifications.

Australia and New Zealand have jointly managed the Australian and New Zealand Standard Classification of Occupations (ANZSCO) since 2006.

However, the labour markets in both countries have evolved significantly, prompting the decision to introduce separate, tailored occupational classifications while maintaining Trans-Tasman comparability​. This change will take effect in November 2024 for New Zealand and December 2024 for Australia, introducing OSCA (Occupation Standard Classification for Australia).

Dr. David Gruen, Australian Statistician, and Mr. Mark Sowden, New Zealand Government Statistician, emphasized that the decision to separate was mutual, aiming to better reflect each country’s unique labor market dynamics while maintaining Trans-Tasman and international comparability.

“Joint management of the occupation classification has served both countries well. With the increased diversity in the Australian and New Zealand labour markets, this is no longer the case. Having an occupation classification which reflects the contemporary Australian labour market is a critical step, while ensuring Trans-Tasman comparisons can continue,” said Dr. Gruen.

Understanding ANZSCO: A key resource for Civil Engineers looking to migrate to Australia

​Why the Change?

The labour markets of Australia and New Zealand have diverged since the introduction of ANZSCO. While joint management served both countries well, the Australian Bureau of Statistics (ABS) and Stats NZ recognized that tailoring the classification to better reflect their respective labour markets is now necessary​. Currently, 56 of the current 1,076 occupations in ANZSCO have a different skill level in Australia and New Zealand.

Pros and Cons for Migrant Engineers and Employers

Pros:

1. Tailored Job Classification

For migrant engineers, these new occupational classifications will provide a more accurate representation of job roles and skills required in each country. While ANZSCO took a more general approach to categorizing occupations across both nations, OSCA and the New Zealand classification will cater specifically to each country’s labour demands. This will help migrant engineers better understand job requirements and opportunities in their chosen country​.

2. Changes in Qualification Recognition

A key change is that New Zealand-specific occupations and Te Reo Māori terminology will no longer appear in Australia’s classification. This could make it easier for migrants focusing on the Australian market to navigate job opportunities that are tailored solely to the Australian Qualifications Framework (AQF) and labour market. However, migrants moving between the two countries will still benefit from continued mutual recognition of qualifications.

Visa applicants who struggled to fit their qualifications into ANZSCO’s more rigid categories may now find it easier to nominate their occupation under OSCA.

Cons:

  • Migrants who are used to ANZSCO may find it difficult to adjust to the two new systems during the transition. While comparability will be maintained, certain distinctions between Australian and New Zealand job markets might create barriers for those seeking to work across both countries.
  • Some occupations may be reclassified or renamed, which could temporarily affect job searches and visa applications. Engineers may need to re-evaluate their career paths and ensure their qualifications align with the new classifications.
  • Sponsoring employers may find that the job titles they previously used to sponsor employees may have changed, or new, more accurate classifications could now be available. This means employers will need to ensure they are nominating positions that fit under the new OSCA framework.
  • Employers sponsoring foreign workers may need to reassess the qualifications and experiences they require for certain roles to align with OSCA’s new criteria. This could affect how employers select candidates and prove the necessity of hiring from overseas.

Looking Ahead

The introduction of updated classification will modernize the labour market and offer more clarity for workers and employers alike. While the transition might bring some short-term confusion, migrant engineers should benefit from classifications that better reflect local industries and job roles. Both countries remain committed to maintaining Trans-Tasman comparability, ensuring that the mutual recognition of skills and qualifications will not be disrupted.

For migrant engineers, it is advisable to stay updated on the new classifications to understand how these changes could affect your career prospects in Australia or New Zealand

Source: Stats NZ

Source: ABS

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