EXECUTIVE SUMMARY

Immigration vital to New Zealand's prosperity and growth

More than one in five of the New Zealand population were born outside New Zealand compared with an average one in nine among member countries of the Organisation for Economic Co-operation and Development (OECD).

The temporary and permanent entry into New Zealand of citizens from other countries addresses skill shortages; brings capital, expertise, and international connections into New Zealand; and supplies visitors and students who support the country's tourism and education industries.

• Between 2001 and 2006, 60 percent of New Zealand's workforce growth came from migrants.^[1]
• International education was worth an estimated $2.2 billion to the New Zealand economy in 2004.^[2]
• Migrants contributed 68 percent more in taxes than they received in services and benefits in 2005/06 (compared with 13 percent for the New Zealand-born population).^[3]
• The migrant population had a positive net fiscal impact of $3.3 billion in 2005/06 (compared with the New Zealand-born population's $2.8 billion).^[4]
• International tourism contributed more than $8.8 billion to New Zealand's economy in the year ended 31 March 2007^[5], which represents 18 percent of total export earnings.

Global outlook

Internationally, the nature of migration is changing. The number of temporary migrants moving countries to visit, study, or work has grown substantially around the world, with the New Zealand experience being no different. As a proportion of the total population, however, New Zealand, Ireland, and Switzerland have the highest permanent immigration movements and among the largest immigrant populations relative to other OECD countries.^[6]

Opportunities exist for New Zealand to benefit from the global economic situation if its economy is more attractive to potential migrants because it is more resilient or less negatively affected by the global downturn than the economies of other potential destination countries. New Zealand could also use its environment, people, lifestyle opportunities, and relative safety from crime and violence to attract migrants. These are all factors migrants like about living in New Zealand. Addressing perceived high tax rates and making the tax system easier to understand might also help to attract and retain skilled migrants.^[7]

Changes in migration flows

The total number of people migrating to and from New Zealand fluctuates, but within this migrant exchange, the general trend has been one of net positive growth for New Zealand.

Permanent and long-term arrivals of non-New Zealand citizens increased to 62,200 in 2007/08 from 59,200 in 2006/07. The net inflow of 40,000 non-New Zealand citizens is the highest net inflow recorded since 2003.

The net inflow of permanent and long-term migrants to New Zealand was 4,700 people (the difference between 85,200 permanent and long-term arrivals and 80,500 permanent and long-term departures), which was less than half the 10,100 recorded for 2006/07. This was mainly the result of a large increase in the number of departing New Zealand citizens (up 6,500 from 2006/07).

Globally, permanent migration tends to be family-related (about 44 percent of migration in 2006). In New Zealand, family-related migration made up 27 percent of permanent migration. By comparison, labour-related migration made up 24 percent of New Zealand's permanent migration, similar to the proportions for Canada (22 percent) and Australia (26 percent), and higher than the global rate of 14 percent in 2006. New Zealand, Australia and Canada also have high proportions of accompanying family of workers' migrants (31%, 26% and 33% respectively) while most other OECD countries have either no or small proportions of migrants in this category.

Temporary work or study helps transition to residence

People on temporary work permits are important, offering skills and experience that New Zealand employers need and cannot source locally. In New Zealand, temporary migrants make up about 21 of every 1,000 head of population compared with about 11 in Australia and 5 in Canada.

The number of people issued work permits in New Zealand grew 13 percent between 2006/07 and 2007/08.

An increasing proportion of people are studying and working in New Zealand before applying for residence: in 2007/08, 81 percent of residence approvals had previously held a temporary permit compared with 77 percent in 2006/07. Immigration policies support this transition.

Research shows a positive link between migrants' work experience in New Zealand before residence and their employment outcomes after gaining residence^[8]. Temporary workers and students, having participated in New Zealand society, are likely to settle well and contribute to the country. Migrants' net fiscal impact is estimated to increase with the duration of residence: from $2,680 per migrant who has been in New Zealand for less than five years to $4,280 per migrant who has been in New Zealand for more than 15 years. The equivalent figure for the New Zealand-born population is $915.

New Zealand continues to attract skilled migrants

Of the 46,077 migrants granted permanent residence in 2007/08, 59 percent entered through the Skilled/Business stream. The majority of this stream was made up of migrants entering New Zealand through the Skilled Migrant Category (25,434 migrants).

The United Kingdom remains the largest source country of Skilled Migrant Category approvals (27 percent), followed by South Africa, China, and the Philippines (all 13 percent).

Culturally diverse migrants enter under the Humanitarian Stream

The three largest source countries of International/Humanitarian Stream migrants were Pacific nations (Samoa, Tonga, and Fiji), reflecting the high proportion of approvals in this stream through the Samoan Quota and the Pacific Access Category. Also accepted for resettlement to New Zealand were 795 refugees. This brought the number of refugees accepted to more than 3,600 from more than 50 countries (including Myanmar, Afghanistan, Eritrea, Sudan, Iraq, Iran, and Bhutan) in the five years to 2007/08.

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