International Migration Outlook - New Zealand 2007/08
4. Employment Status of Foreign-Born Population
4.1. Labour Force Status
The labour force status of New Zealand's foreign born population varies by country or region of birth. Table 15 shows that the overall percentage of the New Zealand labour force that was in employment during the year ending 2006 was just under 95 percent. Those born in the United Kingdom had the highest employment rate (at 97 percent) while those born in Asia had the lowest (at 91 percent).
Table 15: Birthplace and Labour Force Status (2006)
4.2. Labour Market Activity
The Longitudinal Immigration Survey: New Zealand (LisNZ) surveys migrants aged 16 years and over who were approved for permanent residence in New Zealand from 1 November 2004 to 31 October 2005. The survey is conducted in three waves with migrants being interviewed at 6 months, 18 months and 36 months after they have taken up permanent residence in New Zealand. Wave 1 interviews were conducted between 1 May 2005 and 30 April 2007. The number of interviewed respondents (both onshore and offshore applicants) for the first wave totalled 7,137.[28]
The first set of results from LisNZ Wave 1 data is available in the publication Hot Off The Press.[29] Categories of migrants are Skilled principal applicant, Skilled secondary applicant, Business, Family Partner, Pacific, and Other.
4.2.1. Labour market activity
The LisNZ data provides information on migrants and labour market activity six months after gaining permanent residence. Labour market activity is measured by categorising migrants as employed, not employed but seeking work, or not employed and not seeking work. Overall, 70 percent of migrants aged 16 years and over were employed at the time of the interview.
Table 16 shows labour force activity by sex and immigration approval category. As expected, Skilled principal applicants had the highest employment rate of 93 percent (95 percent of males and 91 percent of females respectively). Business applicants experienced the lowest employment rates across the sexes at 55 percent (62 percent of males and 50 percent of females respectively). Skilled secondary applicants experienced the greatest seeking-work rate at 7 percent (7 percent for males and 7 percent for females respectively).
Table 16: Labour Force Activity by sex and immigration approval category[30]
4.2.2. Qualifications
The employment rate for all migrants with post-school qualifications was 78 percent compared with 55 percent for those with a school qualification. The seeking-work rate was lower for migrants with post-school qualifications (4 percent) compared with those who had school qualifications (6 percent).
The employment rates of skilled principal migrants with school or post-school qualifications were similar (94 percent and 93 percent, respectively). For other migrants, having post-school qualifications was associated with higher employment rates. Table 17 shows the labour force activity of migrants by immigration approval category.[31]
Hot Off The Press includes further information about migrants and labour force activity, such as: factors that helped migrants to find work in New Zealand; reasons migrants experienced difficulty in finding employment in New Zealand; and previous work experience in New Zealand.
Table 17: Labour force activity by highest qualification level and immigration approval category
4.3. Data on the Occupations of Skilled Migrant Category principal applicants
In 2007/08, 7807 Skilled Migrant Category (SMC) principal applicants (69 percent) gained points for current employment, while an additional 15 percent had an offer of employment.
Over half of all principal applicants (57 percent) claimed bonus points for a job or a job offer outside the Auckland region, up slightly from 56 percent in 2006/07. Sixteen percent claimed bonus points for a job or a job offer in an area of absolute skills shortage.
The majority of principal applicants (67 percent) gained points for relevant work experience, and 20 percent gained additional bonus points for work experience in an identified future growth area, an identified cluster area, or an area of absolute skills shortage. Thirty-five percent had qualifications in an identified future growth area, identified cluster area, or area of absolute skills shortage, up from 32 percent in 2006/07 and 31 percent in 2005/06. The majority of those with New Zealand qualifications were 20–29 years old (87 percent), and were typically from China (72 percent), India (10 percent), or Malaysia (3 percent).
Table 18 shows the breakdown of onshore versus offshore principal applicants and the types of employment for which they were awarded points under the SMC.
| Type of skilled employment in NZ | % Onshore | % Offshore | % Total |
|---|---|---|---|
| Total principal applicants | 9,281 | 2,034 | 11,315 |
| Employed 12 months or more | 29% | 0% | 24% |
| Employed less than 12 months | 55% | 2% | 45% |
| Offer of employment | 4% | 66% | 15% |
| Neither a job nor a job offer | 13% | 31% | 16% |
Source: Department of Labour
Occupational data is recorded for a number of residence categories. For applicants through the SMC, data is captured on the principal applicant's main occupation (their occupation during the 12-month period before residence). Although the Australian and New Zealand Standard Classification of Occupations (ANZSCO) is now used to classify this data, the bulk of data for the 2007/08 year was received before this change took effect. The New Zealand Standard Classification of Occupations (NZSCO) is therefore still used to classify the occupational group (NZSCO level 1) and the occupation description (NZSCO level 5) of the main occupation for the 2007/08 data where possible.[32]
Of the principal applicants main occupations, 39 percent had a main occupation classified as Professional and, in particular, recorded occupations in the health, education, engineering, and information technology sectors. A further 19 percent had main occupations classified as Technicians and associate professionals, and 17 percent were Legislators, Administrators, and Managers. Fourteen percent were classified as Trades workers. Table 19 shows principal applicants’ occupational groups.
| Major Group† | Principal Applicant | |
|---|---|---|
| n | % | |
| Total§ | 10,333 | 100% |
| Professionals | 3,994 | 39% |
| Technicians and associate professionals | 1,998 | 19% |
| Legislators, Administrators, Managers | 1,764 | 17% |
| Trades workers | 1,411 | 14% |
| Service and sales workers | 628 | 6% |
| Agriculture and fishery workers | 205 | 2% |
| Plant and machine operators and assemblers | 157 | 1% |
| Clerks | 144 | 1% |
| Elementary Occupation (including residuals)‡ | 32 | <1% |
* Main occupation is the job the applicant spent the most hours doing in the past 12 months.
† Major group is coded to the New Zealand Standard Classification of Occupation.
‡ Elementary Occupations (including residuals) includes elementary occupations and occupations not listed in the New Zealand Standard Classification of Occupation.
§ This table includes all principal applicants, not just those with a job or job offer as in previous reports. Applicants whose occupation was classified as ‘Not Stated’ are excluded from the total.
Source: Department of Labour
The SMC has attracted a high number of skilled migrants in a broad range of sectors in 2007/08, but the most common occupations included registered nurses, chefs, secondary school teachers, bookkeepers and restaurant managers.
4.3.1. Labour market tested work permit holders
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. They consist of the General work permit, permits issued under Approval in Principle policy, some business policies, machinery installers, specialist skill areas, seasonal work permit policy, and Japanese interpreters.[33]
In 2007/08, 41,420 people were issued a labour market tested work permit, 21 percent more than in 2006/07. The UK has remained the largest source country with 12 percent of all labour market tested work permits in 2007/08. However, the Philippines had the largest relative increase in people issued with labour market tested work permits over the last year. The Philippines almost doubled its number to 3,416 and it became the second largest source country with 8 percent of all people issued with labour market tested work permits in 2007/08. Figure 6 provides a breakdown of labour market tested work permit holders by nationality over the last three financial years.
Figure 6: Principal applicants granted labour market tested work permits since 2005/06*
*This Table analyses individuals rather than number of permits issued. If a person had more than one skill shortage work permit in any year, they are counted only once.
Source: Department of Labour
4.4. Additional Research
4.4.1. Migrants and Labour Market Outcomes
Recent research commissioned by the Department of Labour, 'Migrants and Labour Market Outcomes', investigates the labour market outcomes of migrants to New Zealand. Labour market outcomes such as income, source of income, labour force status and occupation are included. The research analyses the relationship between migrant characteristics and their outcomes over time. The study uses data from the 1981, 1996, 2001 and 2006 censuses. Key findings include:
In 2006, 25 percent of the working age population (those aged 15 years and over) were born overseas. This is compared to 22 percent in 2001 and 18 percent in 1981.
Between 2001 and 2006 the working age population grew by around 271,000 people. Of these people, just over 162,000 (60 percent) were born overseas.
Between 2001 and 2006, the high participation working age group (30 to 49 years of age), had a net inflow of 64,200 migrants and a net outflow of 1,200 New Zealand born.
The retention of migrants between the New Zealand censuses has improved. The out-migration rate is defined as the relativity between the existing migrants who leave between a census compared with those who arrive. For every 100 migrants who entered New Zealand between 2001 and 2006, there were 24 migrants, who were in New Zealand in 2001, who left New Zealand. This figure of 24 is compared to an overall out-migration rate of 42 between 1996 and 2001.[34]
4.4.2. Settlement Experiences Feedback Survey
The Settlement Experiences Feedback Survey (SEFS) is an annual survey designed to monitor settlement experiences and outcomes for Skilled/Business Stream migrants 12 months after their residence approval. One section of the survey focuses on providing five labour market related indicators: employment outcomes (including employment experiences); satisfaction levels; income; occupation; and industry. The most recently published results of this survey[35] are based on the responses of 601 migrants surveyed between 1 January 2007 and 30 June 2007:
- 92 percent of principal and 70 percent of secondary applicants were working for pay or profit.
- Of the principal applicants who applied for residence through the Skilled Migrant Category, 91 percent from each of UK/Ireland and Europe, South Africa and North America (ESANA), 93 percent from Asia, and 94 percent from other regions were working for pay or profit.
- 35 percent of principal and 16 percent of secondary applicants were professionals.
- 74 percent of principal and 73 percent of secondary applicants were very satisfied / satisfied with their main job.
- 45 percent of principal and 15 percent of secondary applicants had an annual income of over $50,001.
- 50 percent of principal applicants from ESANA had an income of over $50,001 followed by 46 percent of principal applicants from UK/Ireland, 33 percent from Asia and 39 percent from other regions (Includes Pacific countries).
- 74 percent of principal and 73 percent of secondary applicants were very satisfied / satisfied with their main job.
- Where applicants expressed dissatisfaction with their main job, 46 percent of principal and 67 percent of secondary applicants thought that their pay was too low.
4.5. Conditions of labour market access for foreign students
Student permit holders are able to undertake employment:
- to fulfil practical course requirements;
- for up to 20 hours in any given week during the academic year, and during any holidays within the academic year if they are an eligible student (see conditions below);
- full-time during the Christmas-New Year holiday period if they are an eligible student; and/or
- on completing their course.
Students are not permitted to:
- work in self-employment;
- provide commercial sexual services;
- act as an operator of a New Zealand business of prostitution;
- invest in a business of prostitution.
Students may be allowed to work during the academic year, and during any holidays within the academic year for up to 20 hours in any given week. In order to work, students must meet a number of conductions. They must be:
- undertaking a full-time, course of study, at a Private Training Establishment or Tertiary Institution of at least two academic years duration; or
- undertaking a full-time course of study in New Zealand, culminating in a New Zealand qualification that would qualify for points under the Skilled Migrant Category; or
- undertaking a full-time tertiary course of study of at least one academic year duration as part of an approved tertiary student exchange scheme; or
- undertaking a full-time, full secondary school year course of study in Years 12 or 13, provided they have written permission from their school and written parental consent; or
- engaged in a full-time course of study of at least six months duration at a Private Training Establishment or Tertiary Institution, and a visa or immigration officer is satisfied that the primary purpose of the course of study is to develop English language skills, and the student has an International English Language Testing System (IELTS) overall band score of 5.0 or above (General or Academic Module).
Footnotes
[28] The target population excluded temporary visitors and all people from Australia, Niue, Cook Island and Tokelau. Migrants from Australia were excluded because they are entitled to enter New Zealand without applying for a residence visa or permit. In addition, migrants from Niue, Cook Islands and Tokelau were excluded, as people from these countries have automatic rights to New Zealand citizenship. Refugees were also excluded from the target population because their routes to permanent residence, as well as their settlement experiences, are very different from those of migrants.
[29] Longitudinal Immigration Survey Statistics New Zealand
[30] Table 6 from LisNZ: 2008 - tables 1-16.
[31] Table 9 from LisNZ: 2008 - tables 1-16.
[32] For the 2,039 applicants whose occupations were classified by the ANZSCO, 1,278 of them had occupations that were able to be recoded to NZSCO for both the occupational group and the occupation description. 435 applicants occupations were able to be recoded at the occupational group level only and 326 were unable to be recoded at either level and therefore show as 'Other'.
[33] The General work permit is the standard 'skill shortage' work permit consisting of occupations on the Immediate Skill Shortage List (ISSL), the Long Term Skill Shortage List (LTSSL), or where a labour market test has been conducted to ensure no New Zealanders are available to do the work. There are other policies that are related to skill shortages, such as the Talent (Accredited Employers) or LTSSL Occupation Work to Residence policies, but these policies have not been included in this analysis.
[34] This research forms part of the Department of Labour Economic Impacts of Immigration research programme. Additional information can be found at: http://www.immigration.govt.nz/