The Effects of Occupational Licensing on Skills Needs in the Building Industry: Evidence from New Zealand

Abstract

Occupational licensing for the building industry is being introduced in New Zealand. This research assesses whether the licensing regime being put into place in New Zealand would require new skills when voluntary licensing (2007) and compulsory licensing (by 2011) are introduced. The paper develops a deeper understanding of the effects of occupational licensing on an industry, above those of increased quality and training, to determine the effects of licensing on future skills needs in the New Zealand building industry. The results of the in-depth interviews of35 leading practitioners in the New Zealand show how occupational licensing will affect skills in the industry in two main ways: increase professionalism and increased specializa ioin skills. The impact on the New Zealand bU1Id1ng industry willbe to force a change in the working practices, increasing the move to offsite . prefabrication and change the types of sk1lls the industry requires. The paper serves as an . illustration to other countries on how changes 1n legislation, and the introduction of regulation for an industry, alter the working practices of that industry.