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International Migration Outlook - New Zealand 2007/08

1. Migration Movements

1.1. Permanent and long-term arrivals and departures

  • Permanent and long-term (PLT) arrivals are people who have been outside New Zealand for 12 months or more, and who indicate on their arrival card that they intend to be in New Zealand for 12 months or more.
  • PLT departures are people who have been in New Zealand for 12 months or more, and who indicate on their departure card that they intend to be away from New Zealand for 12 months or more.

In 2007/08, there were 85,200 PLT arrivals and 80,500 PLT departures, leading to a positive net migration of 4,700.

Figure 1 below shows PLT arrivals and departures from 1978/79 - 2007/08.[3]

Figure 1: Permanent /long-term arrivals and departures 1978/79 - 2007/08.

Figure 1: Permanent /long-term arrivals and departures 1978/79 - 2007/08.
Source: Statistics New Zealand

As shown in Figure 1, the number of PLT departures from New Zealand steadily increased throughout the 1990s until 2000/01. PLT arrivals had been increasing for some time and reached their highest levels in 2001/02 and 2002/03. This was driven by a dramatic increase in the number of international students arriving in New Zealand, an increase in the number of people approved for both permanent and temporary residence and to a lesser extent an increase in the numbers of expatriates returning home in the wake of increased global security concerns.

Overall, between 2002/03 and 2004/05, PLT arrivals have increased. The fall in PLT arrivals within that two year period can be attributed to a fall in the number of international students granted visas to study in New Zealand, a decline in the number of people granted permanent residence offshore and a decrease in the number of New Zealanders returning home.[4] The rise in PLT departures can be attributed to international students who arrived at the beginning of the decade, have finished their studies, and returned home; an increase in departing temporary workers, and increasing numbers of New Zealanders who have left to reside overseas, principally in Australia (which has an open labour market to New Zealand citizens).

1.2. Residence approvals

New Zealand's growing economy has led to low unemployment and a high demand for skilled labour (and, increasingly, lesser skilled labour[5]). The quantum and composition of the New Zealand Residence Programme (NZRP), which governs permanent residence approvals, is set annually with regard to factors including net migration flows and the impacts of a given level of immigration inflows on the economy, infrastructure and social cohesion. Table 1 shows the number of people granted residence in New Zealand in 2007/08, broken down by category.

Table 1: Residence approvals by category and sub-category in 2007/08
Residence stream Category Number of approvals
Approved applications Approved people
Grand Total  24,722 46,077
Skilled / Business Entrepreneur Category 188 602
General Skills 5 12
Investor Category 28 87
Skilled Migrant 11,315 25,434
Skilled/Business Deferral 3 5
Work to Residence 475 1,163
Skilled / Business Total   12,014 27,303
Uncapped Family Sponsored Stream Dependant Child 1,164 1,164
October Transitional 1 1
Partnership 7,297 8,284
Partnership Deferral Family 11 11
Uncapped Family/Sponsored Stream Total 8,473 9,460
Parent Sibling Adult Child Stream Adult Child 104 262
Humanitarian 6 26
October Transitional 1 1
Parent 2,171 3,722
Sibling 448 1,166
Parent/Sibling/Adult Child Stream Total 2,730 5,177
International / Humanitarian 1995 Refugee status 105 213
October Transitional 4 4
Other 326 597
Pacific Access 375 1,117
Refugee Family Quota 57 209
Refugee Quota 261 795
Samoa Quota 4 16
Samoan Quota 373 1,186
International / Humanitarian Total  1,505 4,137

Source: Department of Labour

In 2007/08, 46,077 people were approved for residence in 24,722 applications.[6] Of these individuals, 27,303 (59 percent) were approved through the Skilled/Business Stream, 14,637 through the Family Sponsored Stream (32 percent), and 4,137 through the International/ Humanitarian Stream (9 percent). The proportion of applicants across all streams is comparable to the figures for 2006/07, noting that the Parent/Sibling/Adult Child and Uncapped Family/Sponsored stream were previously both included in the Family/Sponsored stream.

Table 2 shows the top ten nationalities of all people approved for permanent residence in 2007/08 (Appendix 1 shows the nationalities of all residence approvals in 2007/08).

Table 2: Residence approvals by top ten nationalities 2007/08
Country Approved People Percentage
Total 46,077 100%
Great Britain 10,030 22%
China 6,070 13%
South Africa 4,166 9%
Philippines 3,787 8%
India 3,293 7%
Fiji 3,044 7%
Samoa 2,212 5%
United States of America 1,339 3%
Tonga 1,004 2%
South Korea 850 2%
Other 10,282 22%

Source: Department of Labour

1.3. Residence approvals by category

1.3.1. Skilled Migrant Category

The Skilled Migrant Category (SMC) was implemented in December 2003. The aim of the SMC is to meet New Zealand's identified labour market needs and opportunities and contribute to building growth, innovation, and global connectedness. Gaining residence through the SMC is based on employability and capacity building factors and an applicant's ability to settle and contribute to New Zealand. Applicants must also meet relevant health, character, and English language requirements.

From 30 July 2007, changes to the structure of the SMC points system came into effect. These changes mean that applicants will be eligible for an increased number of bonus points for skilled employment, recognised qualifications, and work experience in an identified future growth area. Changes have also been made to the allocation of bonus points for study in New Zealand and for partners' offers of skilled employment and their qualifications.

In 2007/08, 25,434 people were approved for residence through the SMC. SMC approvals accounted for 55 percent of all residence approvals in 2007/08. Twenty-seven percent of SMC approvals in 2007/08 were from the United Kingdom (UK). South Africa, China, and the Philippines each represented 13 percent of all approvals. Table 3 shows the nationality of people approved through the SMC in 2007/08.

Table 3: Nationalities of Skilled Migrant Category approvals in 2007/08
Country Approved People Percentage
Total 25,434 100%
Great Britain 6,871 27%
South Africa 3,399 13%
China 3,348 13%
Philippines 3,233 13%
Fiji 1,473 6%
India 1,464 6%
United States of America 718 3%
Germany 527 2%
Malaysia 489 2%
South Korea 370 1%
Other 3,542 14%

Source: Department of Labour

1.3.2. Gender of Skilled Migrant Category approvals

Figure 2 shows the gender of the 25,434 people approved through the SMC in 2007/08. Slightly more men (52 percent) than women were approved. A much greater proportion of principal applicants were men (66 percent) while 59 percent of the secondary applicants approved in 2007/08 were women.

Figure 2: Gender of Skilled Migrant Category approvals by applicant type 2007/08
(n = 25,434)

Figure 2: Gender of Skilled Migrant Category approvals in 2007/08.
Source: Department of Labour

1.3.3. Business Categories

Business immigration policy seeks to increase New Zealand's level of entrepreneurial skill and investment capital. Other goals of the policy are to increase enterprise and innovation, and to foster international links. In 2007/08, 689 people were approved for residence through the Business categories, representing approximately 2 percent of all residence approvals in this financial year. This compares with 1,263 people approved in 2006/07, and 3,442 people in 2005/06. Table 4 shows all Business category approvals between 2002/03 and 2007/08.

Table 4: Business approvals 2002/03 - 2007/08

Category
2002/ 03 (%) 2003/ 04 (%) 2004/ 05 (%) 2005/ 06 (%) 2006/ 07 (%) 2007/ 08 (%)
Total number who gained residence 3,751 3,701 3,493 3,440 1,257 689
Entrepreneur 7 43 61 84 90 87
Investor* 93 57 39 16 10 13

Source: Department of Labour

Approval numbers through the Investor category have steadily decreased over the last six years. Until 2007/08, the decrease has been offset by high numbers entering through the Entrepreneur category. Entrepreneur category approvals fell from 1,128 in 2006/07 to 602 in 2007/08, causing a decrease in the total number of approvals through the Business categories.

Approval numbers through the Entrepreneur category increased in 2004/05 and 2005/06 due to a growing number of people on Long Term Business Visas (LTBVs) becoming eligible for residence. After 2005/06, Entrepreneur category numbers declined. China and South Korea were the largest source countries in 2007/08 (23 percent), followed by United Kingdom (21 percent). No application was approved through the Employees of Relocating Businesses Category in 2007/08.

In November 2002, the requirements for Business Categories were strengthened. The English language requirements for business migrants were raised to an average score of five under the International English Language Testing System (IELTS). Table 5 shows the source countries for Business migrant applications from 2002/03 to 2007/08.

Table 5: Business approvals by source country 2002/03 - 2007/08
Business Category 2002/ 03 2003/ 04 2004/ 05 2005/ 06 2006/ 07 2007/ 08
Total 3,793 3,712 3,501 3,442 1,263 689
Great Britain 261 481 480 408 197 175
China 2,028 1,028 1,121 985 372 150
South Korea 449 1,022 1,049 1,260 267 140
India 9 48 47 50 56 53
Fiji 21 115 158 134 74 45
United States of America 91 108 104 82 31 28
South Africa 10 52 40 42 39 18
Malaysia 120 161 103 61 32 15
Others 804 697 399 420 195 65

Source: Department of Labour

1.3.4. Investor Categories

A new Active Investor Migrant Policy became operational at the end of November 2007 and replaced the previous investor policy. The policy aims to provide residence to a small number of business people (approximately 300 applications per annum), who want to invest in New Zealand firms. It has three segmented categories, tailored to different types of investor migrants:

  • Global Investors - top priority category for migrants investing $20 million (including $5 million in active investment); it has minimal policy controls and facilitated, fast-track processing.
  • Professional Investors - this category is for high value migrants investing $10 million (including $2 million actively); it has moderate policy controls and facilitated, fast-track processing.
  • General (Active) Investors - the minimum investment for this category is semi-active, which means that migrants can invest (at least $2.5 million) in New Zealand firms through managed funds; it has stringent policy controls and applicants are selected through a points system.

1.3.5. Family Sponsored Migrants

The Uncapped Family Sponsored and Parent Sibling Adult Child streams enable close family members of New Zealand residents and citizens to be granted residence.

In 2007/08, 14,637 people (32 percent of all residence approvals) were approved for residence through these streams, down slightly from 14,705 in 2006/07. The majority of all approvals through the Uncapped Family Sponsored and Parent Sibling Adult Child streams are through Partnership and Parents policies.

Under Partnership policy, a couple must provide evidence that their relationship is genuine and stable, whether they are married or in a de facto relationship. Applicants must have been living in a genuine and stable partnership for 12 months or more at the time they lodge their Partnership policy application.

Combining the two streams together, Partnership approvals made up 57 percent of the total in 2007/08. A further 25 percent of approvals were for the parent of a New Zealand citizen or resident, and eight percent each were for a sibling and dependent children.

China, the UK, India, Fiji, and Samoa have been the largest source countries of Family Sponsored migrants in recent years. China and the UK combined accounted for around 30 percent of approvals in this stream of approvals in 2007/08.

1.3.6. Samoan Quota

There were 1,202 people approved for residence through the Samoan Quota in 2007/08. Of this total, 82 people were approved under the Samoan Quota Residual Places policy.

1.3.7. Pacific Access Category

There were 1,117 people approved for residence through the Pacific Access Category (PAC) in 2007/08. Of this total, 578 people were approved under the PAC Residual Places policy. Table 6 provides a breakdown of the number of people approved for residence through the PAC categories in 2007/08.

Table 6: Pacific Access Category approvals in 2007/08
PAC sub-category Number approved
Total 1,117
PAC Tonga 284
PAC Fiji 92
PAC Kiribati 86
PAC Tuvalu 77
Residual Places 578

Source: Department of Labour

1.3.8. Successful refugee status claimants granted residence

Permanent residence is approved separately from refugee status. In 2007/08, 213 successful refugee status claimants were approved for residence, compared to 191 in 2006/07 and 162 in 2005/06. The low number of successful refugee status claimants being approved for permanent residence is likely to continue as fewer people seek asylum in New Zealand.

1.3.9. Residence Trends for Women

In 2007/08, 45 percent (11,227) of the principal applicants approved for residence were female. A total of 23,559 women were approved in 2007/08, compared with 24,281 in 2006/07. The lower number in 2007/08 reflects the decrease in the overall number of approvals through the NZRP - the proportion of females approved (51 percent) was unchanged.

Thirty-four percent (3,838) of SMC principal applicants approved were female. Women made up 59 percent (6,608) of the principal applicants approved under the various Family Sponsored Stream categories, the majority of whom were approved under Partnership policy (4,680).

Women made up 40 percent (609) of the total number of principal applicants approved under the International/Humanitarian Stream categories. Women principal applicants were predominantly approved under the Samoan Quota (124), the PAC (136) and the Refugee Quota (129). In total, females (including children) made up 53 percent (419) of Refugee Quota arrivals in 2007/08.

1.4. Temporary Entry Approvals

1.4.1. Visitors

In 2007/08, around 1.5 million people were granted a temporary visitor, student, or work permit upon arrival in New Zealand. Most (80 percent) were from visa free countries.[7] In addition, over 756,000 Australian citizens travelled to New Zealand.[8]

The largest visitor source countries in 2007/08 were Australia, the UK (270,000), and the USA (199,000), followed by China (112,000), Japan (108,000) and South Korea (92,000). Countries with the greatest increase in visitor numbers over the last 12 months include Australia, China, Canada, India and South Africa but most countries recorded a decrease in visitor numbers.

1.4.2. Workers

Anyone who wishes to work in New Zealand (except New Zealand and Australian citizens or residents)[9] must have a work permit. The objective of work permit policy is to contribute to developing New Zealand's capability base by allowing New Zealand employers to access global skills and knowledge. Work permit policy also aims to ensure that the employment of temporary migrants does not undermine wages and conditions of New Zealand workers. However, New Zealand employers are increasingly seeking to address labour shortages through immigration solutions due to New Zealand's low unemployment rate.

Some policies allow employers to recruit temporary workers from overseas to meet particular or seasonal skill needs that cannot be met from within New Zealand. Work permits are also issued to young people (aged 18-30 years) participating in working holiday schemes that New Zealand has established with a number of countries. Partners of New Zealand citizens and residents can also be issued with a work permit.

The number of people issued with work permits has increased in recent years. In 2007/08, 130,462 individuals were issued work permits, 13 percent more than in 2006/07 (see figure 3).

Figure 3: Principal applicants granted work permits since 1997/98

Figure 3: Principal applicants granted work permits since 1997/98.
Source: Department of Labour

A number of factors have contributed to the growth in work permit numbers. These include the expansion of the working holiday schemes, the introduction of new policies such as 'Work to Residence' and 'Study to Work', as well as a growing number of work permits issued through partnership policy. Much of the increase in work permits issued in 2007/08 came from partners of temporary workers or students; seasonal workers; and people who took part in specific purposes or events.[10]

In 2007/08, the UK was the largest source country with more than 20,000 work permit holders (16 percent), followed by China (11 percent). The number of Chinese people granted work permits has increased significantly in recent years to almost 15,000 in 2007/08. Much of this growth has stemmed from the introduction of the Study to Work policies in 2005, whereby international students can apply for work permits upon the completion of their New Zealand qualification. In 2007/08, 67 percent of all Graduate Job Search permits (3,445 out of 5,133) were issued to Chinese graduates. The Philippines and India also showed strong growth in the number of work permit holders while the number from Japan has been steadily declining. Table 7 shows the top source countries of work permit holders.

Table 7: Principal applicants granted work permits in top source countries since 2005/06*
Country 05/06 06/07 07/08
Total 99,674 115,457 130,462
UK 18,659 18,696 20,431
China 11,954 14,889 14,966
Germany 6,241 7,302 8,016
USA 6,327 7,185 7,851
India 4,889 5,659 7,107
Philippines 2,176 3,666 5,849
Fiji 3,278 4,427 5,579
Japan 6,142 5,803 5,454
Others 40,008 47,830 55,209

*This Table analyses individuals rather than the number of permits issued. If a person had been issued with more than one work permit in any year, they are counted only once.

Source: Department of Labour

1.4.3. Students

The objective of New Zealand's student immigration policy is to facilitate the entry of foreign students, with a focus on attracting and developing students who have the skills and talent New Zealand needs. New Zealand benefits in many ways through export education. As New Zealand's fourth largest export industry, the annual financial gain alone is estimated at over two billion dollars in foreign exchange.

International students attending courses lasting over three months must apply for a student visa before travelling to New Zealand. Students from a visa waiver country may apply for a student permit in New Zealand.

New Zealand's international student population has declined since 2002/03, but increased in 2007/08. However, the number of students coming from New Zealand's main source country, China, continues to decline. Decreasing numbers of Chinese students have had a marked impact on the overall numbers of international students, but growth in permit numbers from many other source countries has helped to offset the downward trend.

In 2007/08, 69,193 people were approved to study, up three percent from 67,147 in 2006/07. The number of student permits approved from China decreased by 3,800 but this reduction was offset by increasing numbers from other source countries. International students come from a diverse range of countries, with over 155 nationalities recorded for students in 2007/08. Table 8 provides a breakdown of the top source countries since 2002/03.

In 2007/08, China was still the major source country for international students and accounted for 24 percent of those issued with a student permit. This was followed by South Korea, with 16 percent. India has almost doubled its number of international students over the last twelve months to become the third highest contributor of student permit holders with eight percent.

Table 8: Principal applicants granted student permits from 2002/03*
Country 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08
Total 87,838 87,075 77,563 69,223 67,147 69,193
China 41,598 40,748 34,070 26,661 20,227 16,366
South Korea 15,590 13,729 11,346 10,091 11,148 11,023
Japan 4,770 4,608 4,297 3,955 3,670 3,459
India 2,076 2,174 2,208 2,370 3,085 5,778
USA 2,211 2,740 2,858 2,662 2,736 2,730
Germany 1,483 1,953 2,057 2,421 2,611 2,695
UK 1,499 2,330 2,714 2,103 2,131 2,277
Fiji 1,117 1,142 1,298 1,702 2,094 2,759
Malaysia 1,230 1,350 1,494 1,745 2,049 1,983
Thailand 2,474 2,256 1,947 1,708 1,820 1,995
Others 13,790 14,045 13,274 13,805 15,576 18,128

*This table analyses individuals rather than number of permits issued. If a person was issued with more than one student permit in any year, they are counted only once.

Source: Department of Labour

In 2007/08, there were 27,025 student permits approved offshore, an increase of 21 percent from 22,260 in 2006/07. The source countries with the major increases were India (which more than doubled its number to 3,889) and China (32 percent). Figure 4 shows the number of students approved offshore since 2005/06.

Figure 4: Number of students approved offshore for the top source countries from 2005/06 to 2007/08

Figure 4: Number of students approved offshore for the top source countries from 2005/06 to 2007/08.
Source: Department of Labour

1.4.4. Temporary entry trends for women

In 2007/08, 45 percent women were issued with work permits (out of a total of 130,500). Of these, 13,000 women were issued with labour market tested work permits[11] (out of a total of 41,400). Women were issued 206 work permits through New Zealand's Long Term Skill Shortages List Occupation Policy[12] and 411 women were issued with Talent visas.[13] Work permits issued under these two categories allow the holder to progress to permanent residence after two years in New Zealand. Long-Term Business Visas (Interim visas) were issued to 38 women to allow them to establish businesses in New Zealand and progress to permanent residence through the Entrepreneur category.

Of the 69,193 people issued with student permits in 2007/08, 31,955 were female. In addition, 2,205 were issued Graduate Job Search permits[14] (out of a total 5,133), and 1,612 women were issued a two-year work permit, to obtain practical experience suitable to their course or qualification gained in New Zealand (out of 3,528). Of the 23,775 people issued work permits under Partnership policies, 16,536 were female.

1.4.5. Working Holiday Schemes

Working Holiday Schemes (WHSs) allow 18-30 year olds from partner countries to spend 12 months (two years for UK working holidaymakers) in New Zealand and undertake work of a temporary nature. WHSs also allow young New Zealanders to work overseas under reciprocal agreements.[15] New Zealand currently has WHSs with 27 countries with up to 50,000 places available.

The number of young people coming to New Zealand as working holidaymakers has increased steadily in recent years. In July 2005, a number of policy changes came into effect that increased the number of places available in many of the schemes, eased the work restrictions for some schemes, and introduced online processing for most applicants.

In the last few years several new WHSs have commenced with countries such as Norway, Thailand, and Estonia. There were 34,890 people approved through the various schemes in 2007/08, with the greatest numbers coming from the UK and Germany, contributing 27 percent and 17 percent respectively. Table 9 shows the number of people issued with working holidaymaker permits in 2007/08.

Table 9: Number of people approved work permits under Working Holiday Schemes 2007/08
Working holiday schemes Annual places available in the scheme Number of working holidaymakers 2007/08
Total   34,890
Argentina 1,000 988
Belgium 2,000 214
Canada 2,000 1,444
Chile 1,000 1,039
Czech Republic 1,000 963
Denmark 2,000 235
Estonia 100 51
Finland 2,000 227
France 5,000 1,883
Germany Unlimited 5,976
Hong Kong 200 263
Ireland 2,800 1,919
Italy 1,000 369
Japan Unlimited 2,352
Malaysia 1,150 813
Malta 50 5
Mexico 200 62
Netherlands Unlimited 701
Norway Unlimited 61
Singapore 200 37
South Korea 1,500 1,892
Sweden Unlimited 601
Taiwan 600 615
Thailand 100 90
United Kingdom Unlimited 9,462
United States of America 5,000 2,189
Uruguay 200 193
Working holiday schemes extension   246

Source: Department of Labour

Across all the WHSs, 52 percent of work permits were issued to women. For the schemes with Japan, Taiwan, Thailand, and Hong Kong, the number of work permits issued to women was more than double the number of work permits issued to men.

A high proportion of working holidaymakers were in their early twenties, with 46 percent between the ages of 21 and 25 years. Figure 5 shows the age and gender distribution of working holidaymakers in 2007/08 who were aged between 18 and 30 years.

Figure 5: Age and gender of working holidaymakers in 2007/08

Figure 5: Age and gender of working holidaymakers in 2007/08.
Source: Department of Labour


Footnotes

[3] Unless otherwise stated, all statistics relate to the New Zealand government financial year, which runs from 1 July to 30 June.

[4] In 2005/06, 65 percent of approved applications were made by people already in New Zealand, in 2002/03 it was 48 percent.

[5] Although most of the lesser skilled workers come through temporary flows.

[6] An application can include one or more persons. When the application is assessed, the principal applicant is the person first assessed against the policy criteria, unless policy indicates otherwise. Secondary (or non-principal) applicants are additional persons included in the application. All persons included in an application will be individually assessed against the policy criteria that apply to them.

[7] An appendix of visa-waiver countries is attached to this report (see Appendix Two).

[8] Migrants from Australia are entitled to enter New Zealand without applying for a residence visa or permit. In addition, migrants from Niue, Cook Islands and Tokelau do not required permits, as people from these countries have automatic rights to New Zealand citizenship.

[9] See previous footnote

[10] Specific purpose permits and event permits are issued to people for a particular period (usually for less than 12 months) who are skilled in areas relevant to that specific purpose or event. Examples of specific purposes or events include specific types of business or sporting activities, entertainers, performing artists, film, and video production crew who meet certain requirements.

[11] Labour market tested work permits allow New Zealand employers to recruit temporary workers from overseas to meet particular or seasonal worker shortages that cannot be met from within New Zealand while protecting employment opportunities for New Zealand citizens and residents.

[12] The Long Term Skill Shortage List policy is a Work to Residence policy.  It provides a pathway from temporary work to permanent residence for people who have an offer of employment in an occupation on the Long Term Skill Shortage List.

[13] Talent Visas - the Talent (Arts, Culture and Sports) policy enables major New Zealand and sporting organisations to sponsor individuals with an exceptional talent in a declared field of art, culture or sport. Sponsoring organisations are required to undertake an initial two year commitment of support, accommodation and if required, repatriation.

[14] International students who have graduated from a course that would gain points under the Skilled Migrant Category can apply for a 12-month open work permit (Graduate Job Search permit). Applicants are not required to have a job offer for this permit, but must have completed a New Zealand qualification that would qualify for points under the SMC, and must apply within three months of the end date of their student permit for that qualification.

[15] New Zealand's WHS for the USA is not a reciprocal arrangement.