Migration Trends & Outlook 2008/09
4 TEMPORARY MIGRATION
Highlights
- The number of people issued work permits in New Zealand grew 2 percent between 2007/08 and 2008/09 to 136,481; this was much slower growth than in previous years.
- In 2008/09, 73,926 international students were approved to study in New Zealand. This was a 6 percent increase from 2007/08. However, the number of students coming from China (New Zealand's main source country) is still in decline (down 8 percent).
- Most people approved for residence in 2008/09 had previously held a temporary permit (81 percent of 46,097 approvals). Of those who had held a permit previously, 59 percent had held a work permit.
- An increasing number of international students are gaining permanent residence in New Zealand after completing their studies, with 15 percent of all people approved for permanent residence in 2008/09 having previously held a student permit.
4.1 Introduction
Temporary workers and students make an important contribution to New Zealand's economy. People on work permits are an important source of labour, offering skills and experience that New Zealand employers need, even in an economic downturn.[60] About one-third of work-permit holders will eventually become permanent residents, and specific work permit policies facilitate this transition.
International students contribute to New Zealand's economic development through foreign exchange earnings, by promoting international links, and by participating in the New Zealand workforce after their study. In 2007/08, international education was worth an estimated $2.1 billion to the New Zealand economy.[61] In addition, an increasing number of international students gain permanent residence in New Zealand after completing their studies. The advantages for employers are that these students have New Zealand qualifications and are already partially settled in New Zealand.
This chapter describes the trends in the number of people coming to New Zealand on temporary student or work permits.[62] Appendix E shows the number of people issued work and student permits by source country for 2008/09.
4.2 Work permits
The objective of work permit policies is to contribute to developing New Zealand's capability base by allowing New Zealand employers to access skills and knowledge from around the world. Work permit policies allow people to enter New Zealand for a variety of work-related purposes. These policies also aim to ensure that the employment of temporary migrants does not undermine the wages and conditions of New Zealand workers. Specific policies allow employers to recruit temporary workers from overseas to meet particular or seasonal skill needs that cannot be met from within New Zealand. Other policies that do not require a labour-market test allow family members of migrants to participate in the labour market, and young people (18-30 years) to participate through Working Holiday Schemes. Appendix F summarises work permit criteria.
In 2008/09, 136,481 individuals were issued work permits, 2 percent more than in 2007/08. This is far less than the 13 percent growth recorded from 2006/07 to 2007/08.
Figure 4. 1 Number of people issued work permits, 1997/98–2008/09
Source: Department of Labour
After an average growth of 15 percent over the past decade, the growth in the number of people issued work permits slowed to just 2 percent from 2007/08 to 2008/09. Although some categories of work permits showed strong growth, these were largely offset by the large decrease in the number of Essential Skills work permits.
The number of people on Working Holiday Schemes increased by 4,325 (12 percent) as two new schemes were introduced and caps lifted on other schemes. The number of seasonal workers also increased 3,740 (61 percent) as the number of places available was increased. However, Essential Skills permits decreased by 5,972 (18 percent), because fewer applications were made and, of those applications, more were declined.
Figure 4. 2 Comparison of work permit categories, 2006/07–2008/09*
Note: The percentages show the proportion of all work permits for each work permit type by financial year.
* Related work permit policies have been grouped into a smaller number of categories.
Source: Department of Labour
4.2.1 Work permit approvals by source country
In 2008/09, the United Kingdom was the largest source country of work permit approvals in New Zealand. More than 20,000 of the work permits approved (15 percent) were from the United Kingdom. China was the second-largest source country (with 9 percent). India continued to show strong growth (up 24 percent) as a source of work permit approvals, and the Philippines also showed steady growth (up 10 percent). However, the number from Japan steadily declined (down 14 percent). Appendix G shows work permit approvals by source country from 1999/2000.
The number of Chinese people granted work permits decreased significantly (18 percent) in 2008/09. This was largely because fewer permits were approved under the Study to Work policies, under which international students may apply for work permits when they have completed their New Zealand qualification. This is discussed later in this chapter.
Figure 4. 3 Top six source countries of work permit approvals, 2006/07–2008/09
Note: The percentages show the proportion of all work permit holders by source country and financial year.
Source: Department of Labour
4.2.2 Essential Skills and Horticulture/Viticulture work permits
Essential Skills and Horticulture/Viticulture work permits[63] are labour market-tested policies that allow New Zealand employers to recruit temporary workers from overseas to meet shortages that cannot be met from within New Zealand. These permits still protect employment opportunities for New Zealand citizens and residents.
In 2008/09, 37,278 people were issued with Essential Skills or Horticulture/Viticulture work permits, a 6 percent decrease from 2007/08.[64] The United Kingdom remained the largest source country. Eleven percent of all Essential Skills and Horticulture/Viticulture work permits in 2008/09 were for people from the United Kingdom, although this number has decreased by 16 percent since 2007/08.
Vanuatu had the largest relative increase in people issued with Essential Skills and Horticulture/Viticulture work permits from 2007/08 to 2008/09. Vanuatu doubled its number of work permit approvals to 2,357, becoming the fourth-largest source country (6 percent of all people issued with Essential Skills and Horticulture/Viticulture work permits in 2008/09). Almost all these approvals were for Horticulture/Viticulture work permits.
Figure 4. 4 Top five source countries of Essential Skills and Horticulture/Viticulture work permit approvals, 2006/07–2008/09
Note: The percentages show the proportion of all Essential Skills and Horticulture/Viticulture work permit approvals by source country and financial year.
Source: Department of Labour
4.2.3 Working Holiday Schemes
Working Holiday Schemes allow young people (18-30 years) to spend 12 months (or 2 years for United Kingdom working holidaymakers) in New Zealand and to undertake work of a temporary nature.[65] In February 2009, policy changes removed the cap on the number of places available in many schemes. New Zealand had Working Holiday Schemes with 30 countries at the date of publication.
The number of young people coming to New Zealand as working holidaymakers has increased steadily over the years, as have the number of agreements. In 1997/98, there were 8,803 people approved on seven schemes. In 2008/09, 38,946 people were approved through the various Working Holiday Schemes. The greatest numbers came from the United Kingdom and Germany, contributing 26 percent and 17 percent of all working holidaymakers, respectively.
| Working Holiday Schemes | Annual places available in the scheme | Number of working holidaymakers 2008/09 |
|---|---|---|
| Argentina | 1,000 | 1,000 |
| Belgium# | Unlimited | 200 |
| Brazil* | 300 | 295 |
| Canada# | Unlimited | 1,713 |
| Chile | 1,000 | 979 |
| China* | 1,000 | 647 |
| Czech Republic^ | 1,200 | 897 |
| Denmark# | Unlimited | 207 |
| Estonia | 100 | 57 |
| Finland# | Unlimited | 182 |
| France# | Unlimited | 2,666 |
| Germany | Unlimited | 6,732 |
| Hong Kong | 200 | 239 |
| Ireland# | Unlimited | 2,355 |
| Italy# | Unlimited | 461 |
| Japan | Unlimited | 1,963 |
| Latvia* | 100 | 21 |
| Malaysia | 1,150 | 778 |
| Malta | 50 | 8 |
| Mexico | 200 | 244 |
| Netherlands | Unlimited | 792 |
| Norway | Unlimited | 68 |
| Singapore | 200 | 34 |
| South Korea^ | 1,800 | 2,089 |
| Sweden | Unlimited | 630 |
| Taiwan | 600 | 652 |
| Thailand | 100 | 77 |
| United Kingdom | Unlimited | 10,172 |
| United States# | Unlimited | 2,593 |
| Uruguay | 200 | 195 |
| Total | 38,946 |
* These new schemes came into effect at various times throughout the financial year.
^ The number of places available on these schemes was increased during the financial year.
# The cap on these schemes was removed during the financial year.
Note: The start dates of new schemes or changes to existing schemes generally do not align with financial years, in some cases affecting uptake figures. See the timeline of immigration policy changes in Appendix A for full details. Working Holiday Scheme extensions are no longer included in the table, as they are treated as seasonal work permits.
Source: Department of Labour
In 2008/09, there was an even distribution of men and women on working holidays, but the gender split varied within individual schemes. The number of women on Working Holiday Schemes from Japan, Taiwan, Thailand, and Hong Kong was more than double the number of men. The number of men on Working Holiday Schemes from Italy was more than double the number of women.
A large proportion (46 percent) of working holidaymakers were aged 21-25 years.
Figure 4. 5 Age and gender of working holidaymakers, 2008/09
Source: Department of Labour
For information about the ratio of females to males by age and source country for all work permits approved in 2008/09, see Appendix H.
4.3 Student permits
International education is estimated to contribute more than $2 billion annually in foreign exchange to New Zealand.[66] Host countries benefit from improved political and economic relations with the source countries, as well as financial gains from student migration. In New Zealand, international students can also play an important role in the labour market by participating in the workforce after they finish their studies, particularly if they are employed in areas with skill shortages.
International students planning to attend courses that last longer than 3 months must apply for a student visa. For courses that are 3 months or less, non-New Zealand residents do not need a student visa or permit, although they will still require a temporary permit to be in New Zealand.
International students can be approved under a number of criteria. The two largest groups are full fee-paying students and domestic students.[67]
4.3.1 Student approval numbers
New Zealand's international student population declined between 2002/03 and 2006/07, but increased in both 2007/08 and 2008/09. However, the number of students coming from China (New Zealand's main source country) continued to decline.
Figure 4. 6 Top six source countries of student permit approvals, 2006/07–2008/09
Source: Department of Labour
In 2008/09, 73,926 international students were approved to study in New Zealand. This was a 6 percent increase from 2007/08. The number of approvals for Chinese students decreased by 1,322 (8 percent) over the same period, but this reduction was offset by more permits from other source countries. Appendix I shows the top source countries of people approved for a student permit since 1997/98.
In 2008/09, China was still the major source country for international students, accounting for 20 percent of those issued a student permit, followed by South Korea (14 percent). India continued its strong growth as a source of international students, increasing 42 percent in 2008/09.
4.3.2 Students approved offshore
The number of international students approved offshore for a student visa is an indicator of the number of new students coming to study in New Zealand. Offshore approval numbers decreased steadily from 2001/02, but have increased since 2004/05. In 2008/09, there were 28,669 offshore student approvals, which was an 11 percent increase from 2007/08.
In 2008/09, 39 percent of all students were approved offshore. This varied across countries. More than three-quarters of the approvals for students from Germany and the United States were offshore, compared with less than a quarter of the approvals for students from South Korea and China.
In 2008/09, India was the largest source of offshore student approvals and continued to show strong growth, with an increase of 38 percent in offshore student approvals.
Figure 4. 7 Top six source countries for students approved offshore, 2006/07–2008/09
Note: the percentages show the proportion of all students approved offshore by source country and financial year.
Source: Department of Labour
4.3.3 Age and gender of international students
In 2008/09, fewer females than males were issued student permits, although the proportion varied considerably among source countries. Of the top seven source countries for students, India had the lowest proportion of females compared with males, while Japan had the highest proportion. Table 4.2 details the proportion of female international students' by age group and source country in 2008/09. See Appendix J for more information.
| Source country | Age group (years) | All ages (%) |
|||
|---|---|---|---|---|---|
| 0-15 (%) |
16-19 (%) |
20-29 (%) |
30 and over (%) |
||
| Total number of approvals | 18,361* | 17,232 | 32,977 | 5,355 | 73,925* |
| China | 47 | 45 | 45 | 60 | 46 |
| South Korea | 47 | 48 | 51 | 53 | 49 |
| India | 45 | 17 | 20 | 37 | 22 |
| Japan | 61 | 64 | 59 | 62 | 62 |
| Fiji | 49 | 46 | 52 | 53 | 49 |
| Germany | 60 | 61 | 51 | 48 | 58 |
| United States | 49 | 61 | 59 | 48 | 57 |
| Other | 49 | 46 | 42 | 47 | 46 |
| Overall proportion | 49 | 47 | 42 | 50 | 45 |
* Excludes one person of unspecified gender.
Source: Department of Labour
4.3.4 Student transitions to work
Many countries have simplified or reviewed their application procedures for visas and residence permits for international students because they attach growing importance to attracting international students.[68] For many students, the prospect of working and gaining residence in the host country plays a role in their decision to study abroad.[69] Changes to New Zealand's student policy were introduced in July 2005. These changes aimed to help students transition from study to work and residence by creating more opportunities for students to work while studying and by allowing them greater access to work permits after study.
In 2008/09, 5,914 students were issued a graduate job search work permit,[70] a 16 percent increase from 2007/08. The number of students from China issued a graduate job search work permit decreased 24 percent from 2007/08 to 2008/09. This is a flow-on effect from the fall in student numbers from China over the past 6 years. Despite this decrease, China is still the largest source country for Study to Work policies.
The second-largest source country, India, had the highest increase. The number of students from India issued a graduate job search work permit rose 176 percent between 2007/08 and 2008/09.
Figure 4. 8 Top six source countries for students issued a graduate job search work permit, 2006/07–2008/09
Source: Department of Labour
Some students were issued a 2-year[71] work permit to obtain practical experience relevant to their course or qualification.[72] Of the 2,341 students issued a 2-year work permit, 53 percent were from China and 25 percent from India. This follows a similar pattern to the graduate job search work permits-the number of students from China issued a 2-year work permit decreased 44 percent between 2007/08 and 2008/09, while the number from India increased 38 percent over the same period. Overall, the number of students issued a 2-year work permit decreased 28 percent between 2007/08 and 2008/09.
4.4 Permanent residents who have held temporary permits
Linking temporary immigration policy with residence policy can have significant benefits for migrants and for New Zealand. Having participated in New Zealand society, temporary workers and students are likely to settle well and contribute to the country. Research shows a positive link between migrants' work experience in New Zealand before residence and their employment outcomes after gaining residence.[73] This section examines the cohort of people approved for permanent residence in 2008/09 and identifies the previous temporary permits these migrants held.
In 2008/09, 46,097 people were approved for residence. Eighty-one percent of these people had previously held a temporary permit-90 percent of principal applicants (the main person listed on a residence application) and 70 percent of secondary applicants (other people named on a residence application). Across the four residence streams, the Skilled/Business Stream had the highest rate of applicants who had previously held a temporary permit (85 percent), followed by the combined Uncapped Family Sponsored and Parent Sibling Adult Child streams (82 percent), and the International/Humanitarian Stream (45 percent).
4.4.1 Most recently held temporary permit
The most recently held temporary permit was identified for migrants who held a visitor, student, or work permit before residence. Three-quarters of principal applicants had recently held temporary work permits. Secondary applicants were equally distributed across the three types of temporary permit (visitor, work, and student).
Table 4.3 highlights the differences between principal and secondary applicants, as well as the various streams and types of temporary permit. Many secondary applicants were dependent children, which explains the much lower proportion of secondary applicants who held a work permit before residence compared with principal applicants.
| New Zealand Residence Programme stream | Applicant type | Number of residence approvals 2008/09 | Percentage who held temporary permit (%)* | Most recent temporary permit | ||
|---|---|---|---|---|---|---|
| (row %) | ||||||
| Student | Visitor | Work | ||||
| Total | Principal | 24,572 | 90 | 3 | 22 | 75 |
| Secondary | 21,525 | 70 | 32 | 34 | 34 | |
| Total | 46,097 | 81 | 15 | 27 | 59 | |
| Skilled/Business | Principal | 12,589 | 94 | 2 | 10 | 88 |
| Secondary | 15,958 | 77 | 34 | 26 | 40 | |
| Subtotal | 28,547 | 85 | 18 | 18 | 64 | |
| Uncapped Family Sponsored and Parent Sibling Adult Child | Principal | 10,663 | 89 | 4 | 35 | 60 |
| Secondary | 3,383 | 60 | 22 | 74 | 5 | |
| Subtotal | 14,046 | 82 | 7 | 42 | 51 | |
| International/Humanitarian | Principal | 1,320 | 64 | 2 | 41 | 58 |
| Secondary | 2,184 | 34 | 28 | 50 | 22 | |
| Subtotal | 3,504 | 45 | 14 | 45 | 41 | |
* The proportion of people approved for residence who held a temporary permit at some point in 2008/09.
Source: Department of Labour
4.5 Temporary permit holders moving to permanent residence
This section examines all migrants approved to work or study in New Zealand between July 1999 and June 2009, and describes their transition patterns to permanent residence. The analysis method used in this section takes the first student or work permit held for an individual and tracks their transition to permanent residence.[74]
4.5.1 Transition from work to residence
On average over the last decade, 6 percent of work-permit holders gained permanent residence in the same financial year that their first work permit was approved. The number of work-permit holders converting to residence increased over time. One-third of work-permit holders gained permanent residence within 5 years of being issued their first work permit.
Figure 4.9 shows the proportion of work-permit holders converting to residence over time and the time taken to make the transition. The graph gives the cumulative proportion of all work-permit holders approved between 1999/2000 and 2008/09, and the number of years taken to transition from work to residence.[75] It shows that the transition to residence by work-permit holders tends to be greatest in the first 2 years after a work permit is issued.
Figure 4. 9 Average cumulative proportion of work-permit holders who convert to residence
Source: Department of Labour
4.5.2 Transition from study to residence
On average, the rate of transition to residence for students is lower than it is for work-permit holders. Students also tend to take longer to make the transition. There are a number of factors that influence the amount of time between a student's first permit and gaining residence, including the length of time of study and whether there is an intermediary move to a work permit before applying for residence.
Almost one-quarter of students (23 percent) gain permanent residence in New Zealand within 5 years of their first student permit. This proportion levels out at 30 percent after 7 years.
Figure 4.10 shows the proportion of student-permit holders converting to residence over time and the time taken to make the transition. The graph is cumulative. The trend shows a steady take-up of residence over time.
Figure 4. 10 Average cumulative proportion of student permit holders who convert to residence
Source: Department of Labour
[60] Other than New Zealand and Australian citizens and residents, anyone who wants to work legally in New Zealand must have a work permit or a variation of conditions.
[61] Infometrics, NRB, and Skinnerstrategic. 2008. The Economic Impact of Export Education. Wellington: Ministry of Education. Available at http://www.educationcounts.govt.nz/publications/international/35324/35364 (accessed 21 October 2009).
[62] This analysis is of individuals who at any time in 2008/09 were issued a permit, not of the total number of permits issued. If a person was issued more than one permit in the current period, only the most recently held permit was used in this analysis.
[63] Includes the following policies: Approved in Principle, Essential Skills, Essential Skills-Skill Level 1, General, Specialist Skills, Recognised Seasonal Employer, Transitional Recognised Seasonal Employer, and Working Holiday Scheme Extension.
[64] The work permit policies used in this analysis differ slightly from those used in analyses in previous years. In order to compare total numbers between 2006/07 and 2008/09, data from previous years was coded retrospectively.
[65] Working Holiday Schemes generally allow young New Zealanders to work overseas under mostly reciprocal agreements. The New Zealand Working Holiday Schemes for the United States and China are not reciprocal arrangements.
[66] Infometrics, NRB, and Skinnerstrategic. 2008. The Economic Impact of Export Education. Wellington: Ministry of Education. Available at http://www.educationcounts.govt.nz/publications/international/35324/35364 (accessed 21 October 2009).
[67] Dependent children of work-permit holders are considered domestic students at primary and secondary schools.
[68] International Organization for Migration, 2008. World Migration 2008: Managing Labour Mobility in the Evolving Global Economy. Available at http://www.iom.int/jahia/Jahia/cache/offonce/pid/1674;jsessionid=
56A14C82ADF836D407C6B2A84733774E.worker01?entryId=20275 (accessed 21 October 2009).
[69] Ministry of Education. 2008. The Experiences of International Students in New Zealand. Report on the Results of the National Survey 2007. Wellington: Ministry of Education. Available at http://www.educationcounts.govt.nz/publications/international/22971 (accessed 21 October 2009).
[70] Applicants for the graduate job search work permit are not required to have a job offer, but they must have completed a New Zealand qualification that would qualify for points under the Skilled Migrant Category, and they must apply within 3 months of the end date of their student permit for that qualification.
[71] In some cases, the permit may be for 3 years if the applicant is working towards membership or registration with a New Zealand professional association that requires more than 2 years of practical work experience.
[72] Applicants for this type of work permit must have completed a minimum 3-year course or a qualification that would qualify for points under the Skilled Migrant Category, and must have a job offer relevant to their course of study.
[73] Statistics New Zealand. 2008. Longitudinal Immigration Survey: New Zealand (LisNZ)-Wave 1. Hot Off The Press. Wellington: Statistics New Zealand. Available at http://www.stats.govt.nz/NR/rdonlyres/4816641F-FF8A-401D-99E8-E73BEBB88125/0/longitudinalimmigrationsurveynzmay08hotp.pdf (accessed 21 October 2009).
[74] This analysis examines work-permit holders and student-permit holders separately. However, some migrants had held both a work permit and a student permit over the analysis period and were counted once in each analysis.
[75] The proportion is the average cumulative proportion over all cohorts.
