Migration figures show NZ well placed

Latest migration figures show New Zealand is successfully attracting the migrants it needs in an increasingly mobile and competitive global climate, Immigration Minister David Cunliffe says.

“Immigration will play a greater role as we seek to attract the skills and talent needed for economic transformation. We are already doing well but need to stay ahead by responding to local and international trends,” he says.

The Department of Labour’s sixth annual ‘Migration Trends’ report shows a 21 per cent rise in work permits issued in the 2005/06 year compared with the previous year.

Nearly 100,000 people were issued work permits to work in sectors ranging from IT to horticulture in the 2005/06 year. This compares with around 35,000 work permits issued in 1999-2000.

Around 52,000 people were approved for permanent New Zealand residence in 2005/06. Over 60 per cent were approved under the skilled or business categories.

“This is a reflection of New Zealand employers’ continued need for overseas staff in an environment of low unemployment and shortages of Kiwi workers. It shows the government is responding well with effective immigration measures.

“It also demonstrates the changing nature of migration. People are becoming increasingly mobile in a competitive global environment, where there are more opportunities for people than ever before.

“For example, in 1985 there were an estimated 84 million people living outside their country of origin. This figure is forecast to rise to 230 million by the year 2050.

“These trends support my announcements last year initiating a substantive immigration change programme. This will ensure our immigration legislation, policies and systems continue to respond to new trends and meet New Zealand’s needs in the 21st Century.

“We are now looking ahead to ensure immigration helps move New Zealand into a high income, knowledge-based market economy for the future."

The report is available here.

MIGRATION TRENDS – BACKGROUNDER

What is the purpose of the report?

The Migration Trends report is designed to identify trends emerging in both temporary and permanent migration. This report is the sixth in a series produced annually. The reports are written in a format to make the data useful for informing policy decisions, identifying trends in migration flows, and increasing understanding of immigration.

Trends in this format have been monitored since July 2000 and now mean recent migration patterns can be compared to with those identified in previous years. The current report provides data for the 2005/06 financial year.

Who produces the report?
The Department of Labour’s Research and Evaluation team works with the Department’s statistical unit to produce the report.

What are the key statistics?

• Nearly 1.5 million people granted temporary to New Zealand in 2005/06
• Plus 700,000 visitors from Australia
• 99,700 people issued permits to work in New Zealand in 2005/06 – up 21 per cent on the previous year
• Over 28,500 young people here on working holiday schemes in 2005/06 – up from 21,000 in 2004/05.
• The number of people approved for New Zealand residence in 2005/06 was 51,236.
• Of those approved for residence, 54 per cent were approved under the Skilled Migrant Category.

What are some of the key findings?
Temporary migration – Work and visitor numbers have grown substantially in the last five years.

Over 1.5 million people entered New Zealand on a temporary permit in 2004/05. In addition, almost 700,000 Australian citizens travelled to New Zealand (Australian citizens do not require a permit to enter New Zealand). Visitors made up the largest number of temporary entrants, followed by workers and students.

Immigration policy contributes to the demands of the labour market through the issue of work permits to reduce skill shortages (labour market tested work permits). The number of labour market tested work permits issued to individuals has grown significantly since 1999/00.

Work permits are also issued to young people participating in working holiday schemes, partners of New Zealand citizens or residents, partners of work permit holders, and to people applying through the Work to Residence policies. Overall, 99,700 individuals were issued work permits in 2005/06, 21 percent more than in 2004/05.

Numbers approved for residence – Highest number of residence approvals since 2001/02.

In 2005/06, 51,236 people were approved for residence, and the majority of these were approved through the Skilled/Business Stream. The Skilled Migrant Category (SMC) accounts for a large proportion of the New Zealand Residence Programme, with over half of all people approved in 2005/06 gaining residence through this category.

Of those migrants approved under the SMC, 75 per cent of principal applicants were approved with a skilled New Zealand job offer. Plus, 31 per cent had qualifications in an area of absolute skills shortage.

The UK was the largest source of SMC approvals in 2005/06, accounting for 41 percent of approvals overall – up 10 per cent on the previous year. South Africa is the next largest source country with 12 per cent of approvals, followed by China on 11 percent.

A growing number of Chinese students are applying for residence through the SMC after gaining New Zealand qualifications.

The UK is also the largest source country overall for the New Zealand Residence Programme, with 29 per cent of all residence approvals (including categories such as Family and Humanitarian).

Proportion of New Zealand Residence Programme approvals by source countries

Of the 51,236 approvals in 2005/06, 29 per cent were from the UK (31 per cent in 2004/05), 13 per cent were from China (10 per cent), 8 per cent were from South Africa (7 per cent) and 7 per cent from India (7 per cent).

People moving from temporary to permanent permits – Nine out of 10 principal applicants approved for residence in 2005/06 had previous New Zealand experience.

People in New Zealand on temporary permits are often well placed to become permanent residents. Those on work permits often have skills that are in demand, while students can offer employers recognised New Zealand qualifications.

A growing proportion of work and student permit holders have become permanent residents. Around 30 per cent of temporary workers gain permanent residence within five years. For students the comparable figure was around 20 per cent.

Migrants who have had previous New Zealand experience are likely to settle well. Research has shown that migrants with previous work experience in New Zealand tend to have good employment outcomes. 87 per cent of principal applicants approved for residence in 2005/06 had previously held a work, student, or visitor permit.