Free trade is a net gain to both trading partners in general. However, trade liberalization does harm some inefficient industries. This research will check various labor market policies and programmes that might be used to reduce the effects on the people who lose jobs from free trade. The purpose of this paper is to evaluate programmes such as Trade Adjustment Assistance programmes, wage insurance, wage subsidy and training subsidy, using qualitative means to critically evaluate such schemes, especially in the context of the New Zealand labour market. This research provides seven optional labour market policy strategies to the New Zealand government for future labour policy consideration.