Migration Trends 2003/2004 i

Transcription

1 Migration Trends 2003/2004 i

2 Migration Trends 2003/2004 i

3 Migration Trends 2003/2004 Workforce Group Immigration Service Department of Labour September 2004 Migration Trends 2003/2004 i

4 Disclaimer: The Department of Labour has made every effort to ensure that the information contained in this report is reliable, but makes no guarantee of its accuracy or completeness and does not accept any liability for any errors. The information and opinions contained in this report are not intended to be used as a basis for commercial decisions and the Department accepts no liability for any decisions made in reliance on them. The Department may change, add to, delete from, or otherwise amend the contents of this report at any time without notice. The material contained in this report is subject to Crown copyright protection unless otherwise indicated. The Crown copyright protected material may be reproduced free of charge in any format or media without requiring specific permission. This is subject to the material being reproduced accurately and not being used in a derogatory manner or in a misleading context. Where the material is being published or issued to others, the source and copyright status should be acknowledged. The permission to reproduce Crown copyright protected material does not extend to any material in this report that is identified as being the copyright of a third party. Authorisation to reproduce such material should be obtained from the copyright holders. Department of Labour Workforce Group - Immigration Service PO Box 3705 Wellington New Zealand ISBN: Migration Trends 2003/2004 ii

5 Contents EXECUTIVE SUMMARY Introduction Summary of residence approvals, 1 July 2003 to 30 June Skilled/Business Stream Occupations Family Sponsored Stream International/Humanitarian Stream Long-term absence of approved residents Temporary migration INTRODUCTION AND BACKGROUND Introduction Aim Report structure Background and introduction to the New Zealand Immigration Programme METHODOLOGY Introduction Definitions and classifications Limitations Data analysis SUMMARY OF RESIDENCE APPROVALS IN 2003/ Introduction Residence approvals by stream since 1992/ Residence application inflows by month Residence approvals by category Location of residence approvals Number of people per approved application Nationality of approvals Age ranges of approvals SKILLED/BUSINESS STREAM Introduction Skilled Migrant Category General Skills/Interim General Skills Categories Business Categories IELTS scores for the Skilled/Business Stream Occupations of residence approvals FAMILY SPONSORED STREAM Introduction Residence application inflows Family Category Approvals Humanitarian Category Transitional Policy INTERNATIONAL/HUMANITARIAN STREAM Introduction Refugee Quota Successful refugee status claimants Samoan Quota Pacific Access Category...55 Migration Trends 2003/2004 iii

6 8 LONG-TERM ABSENCE OF APPROVED RESIDENTS Introduction Overall number of people absent 1998 cohort Application categories of long-term absent migrants Absence rates for the 1998 to 2001 cohorts TEMPORARY MIGRATION Introduction Residents who had previously held a temporary permit Work and Student Permits issued Residence approval for people previously in New Zealand on a temporary permit CONCLUSIONS General residence trends Skilled Categories Business categories Family Sponsored Stream International/Humanitarian Stream Absence from New Zealand Principal applicants with previous New Zealand experience Temporary migration...76 Appendix A: Permanent and temporary residence approval categories...77 Appendix B: Residence approvals between 1 July 2003 and 30 June Appendix C: Numbers of people, by country, issued with one or more work or student permits between 1 July 2003 and 30 June Appendix D: Current work permit criteria including skill shortage work permits...89 Appendix E: Skilled/Business Stream IELTS assessment scores by top 12 countries in 2003/ Appendix F: Rates of long-term absence among 1998 residence approvals by country of origin, as at 30 June Migration Trends 2003/2004 iv

7 List of Figures and Tables Table 2.1 New Zealand Immigration Programme 2003/ Figure 4.1 People approved for residence compared with the NZIP from 1992/1993 to 2003/ Table 4.1 Approval limits and approvals by stream since 2001/ Figure 4.2 Residence application inflows in 2003/ Figure 4.3 Top 10 nationalities applying through the Skilled categories (SMC and GSC/IGSC)...17 Figure 4.4 Comparison of residence application inflows in the Business categories by top six nationalities...18 Figure 4.5 Residence applications on hand between 1 July 2003 and 30 June Figure 4.6 Comparison of residence approvals by category for approvals...19 Table 4.2 Residence approvals by category and sub-category, 2003/ Table 4.3 Residence approvals by Visa or Permit in 2003/ Table 4.4 Average number of people per approved residence application...21 Figure 4.7 Comparison of residence approvals by largest source countries...22 Figure 4.8 Largest nationalities of approvals through the residence streams in 2003/ Figure 4.9 Age range of residence approvals in 2003/ Table 5.1 EOI Pool selection points for draws between December 2003 and June Figure 5.1 Nationalities of principal applicants in the EOI pool and those who had received an invitation to apply as at 30 June Figure 5.2 Age ranges of all people included in EOIs as at 30 June Figure 5.3 Gender of all people included in EOIs as at 30 June Table 5.2 SMC Points for Employability and Capacity Building Factors...28 Table 5.3 Comparison of points claimed by EOI principal applicants, those with an ITA, and Table 5.4 approvals through the SMC as at 30 June EOIs submitted to date who claimed points for a job or job offer by location of principal applicant...30 Table 5.5 Region of employment for SMC approvals as at 30 June Figure 5.4 Distribution of point rankings for all EOIs submitted as at 30 June Figure 5.5 Comparison of point ranks for principal applicants with or without a job or offer for all EOIs submitted as at 30 June Figure 5.6 Comparison of nationalities for GSC/IGSC approvals...32 Figure 5.8 Age ranges of GSC/IGSC approvals in 2003/ Figure 5.9 Gender of GSC/IGSC approvals in 2003/ Figure 5.10 Nationality of work to residence permit holders for POL and Talent Visa work permits issued in 2003/ Figure 5.11 Talent visas and Priority Occupations List work permits issued in 2002/2003 and 2003/ Table 5.6 Residence categories through which Talent Visa and POL work permit holders were granted residence as at 30 June Figure 5.12 Nationality of Investor Category approvals...37 Figure 5.13 Application inflows through the Investor Category from July 2002 to June Table 5.5 Points Structure for the Investor Category...38 Table 5.6 Breakdown of Investor Category points awarded to principal applicants approved in 2003/ Figure 5.14 Nationalities of Entrepreneur Category approvals in 2003/ Table 5.7 Residence categories through which LTBV holders (March 1999-June 2001) were granted residence...40 Table 5.8 Residence categories of LTBV conversions to residence between March 1999 and June Table 5.9 IELTS Test Results Description of Band Scores...42 Table 5.10 Skilled/Business Stream IELTS assessment scores 2003/ Table 5.11 Main occupational group for principal applicants approved through the SMC in 2003/ Table 5.12 Main occupation for principal applicants in the GSC/IGSC in 2003/ Figure 6.1 Growth in the number of people on hand in the Family Sponsored Stream...47 Migration Trends 2003/2004 v

8 Figure 6.2 Number of people applying for residence through the Family Sponsored Stream in 2003/ Figure 6.3 Approvals through the Family Category in 2002/2003 and 2003/ Figure 6.4 Nationality of approvals through the Partnership, Marriage and De facto subcategories...49 Figure 6.5 Residence application inflows in the Family Parent sub-category between October 2000 and June Figure 6.6 Nationality of approvals through the Family Parent sub-category...50 Figure 6.7 Nationality of approvals through of other Family sub-categories...51 Figure 6.8 Residence application inflows in the Family Sibling sub-category between October 2000 and June Table 7.1 Composition of the Refugee Quota in 2003/ Figure 7.1 Nationality of quota refugees accepted for resettlement...54 Figure 7.2 Number of people claiming refugee status between 1997/1998 and 2003/ Figure 7.3 Nationality of successful refugee status claimants granted residence...55 Table 7.2 Pacific Access Category (PAC) Approvals in 2003/ Table 8.1 Long-term absence of a cohort of migrants approved for residence January 1998 to December 1998, as at 30 June Table 8.2 Proportions of migrants approved for residence January 1998 to December 1998 who are long-term absent migrants, as at 30 June Table 8.3 Long-term absence at six-monthly intervals of the cohorts of migrants approved for residence between 1998 and Figure 8.1 Long-term absence at six-monthly intervals of the cohorts of migrants approved for residence in Figure 9.1 Proportion of principal applicants approved for residence in 2003/2004 who had held a temporary permit at some stage since July 1997 by top residence nationalities...62 Table 9.1 Type of work permit held by principal applicant prior to being approved for residence...63 Table 9.2 Work permits Principal Applicants granted work permits in top twelve countries 1997/1998 to 2003/ Figure 9.3 Work permits Principal Applicants given work permits in top six countries Table /1998 to 2003/ Skill shortage work permits Principal Applicants given skill shortage work permits in top twelve countries 1997/1998 to 2003/ Figure 9.4 Skill Shortage Work permits - Principal Applicants given skill shortage work permits in top six countries 1997/1998 to 2002/ Table 9.4 Most common occupational groups of work permit holders...66 Table 9.5 Table 9.6 Most common occupations of work permit holders...67 Student permits Principal Applicants who held student permits in top twelve countries from 1997/1998 to 2003/ Figure 9.5 Student permits - Principal Applicants holding student permits in top six countries 1997/1998 to 2003/ Figure 9.6 Number of students approved offshore for the top ten source countries between 2001/2002 and 2003/ Figure 9.7 Number of students approved offshore for the largest three source countries between 1997/1998 and 2003/ Table 9.7 Table 9.8 Table 9.9 Total principal applicants approved for student and work permits between 1997/1998 and 2003/2004 and the numbers subsequently approved for residence...70 Total principal applicants approved for work permits between 1997/1998 and 2003/2004 and the numbers subsequently approved for residence...71 Total principal applicants approved for student permits between 1997/1998 and 2003/2004 and the numbers subsequently approved for residence...71 Figure 9.8 Cumulative residence take-up by principal applicants approved for a work permit between 1997/1998 and 2003/ Table A.1 Skilled/Business Stream...77 Table A.2 Family Sponsored Stream...78 Table A.3 International/Humanitarian Stream...79 Migration Trends 2003/2004 vi

9 Table of Commonly used Acronyms Acronym AMS BIC EOI ESOL GSC IELTS ITA IGSC JSV LTBV MIS NZIP PAC POL SMC WHS Full Name Application Management System Business Investor Category Expression of Interest English for Speakers of Other Languages General Skills Category International English Language Testing System Invitation to Apply Interim General Skills Category Job Search Visa Long Term Business Visa Management Information System New Zealand Immigration Programme Pacific Access Category Priority Occupations List Skilled Migrant Category Working Holiday Scheme Migration Trends 2003/2004 vii

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11 1.1 Introduction EXECUTIVE SUMMARY This report is the fourth in a series produced annually to provide background information about trends in residence approvals. The reports are written in a readily accessible format to make the data useful for informing policy decisions, identifying trends in migration flows and to increase the public s understanding of immigration. Trends in residence approvals in this format have been monitored since July 2000 and now constitute a time series, enabling comparisons of recent migration patterns with those identified in previous years. The current report provides data for the 2003/2004 financial year. Below is a brief summary of residence approvals in this period. More detailed information about approvals in each residence category can be found in the relevant sections of the report, as can data describing aspects of temporary migration. 1.2 Summary of residence approvals, 1 July 2003 to 30 June 2004 A total of 39,017 people in 20,631 applications were approved for residence in 2003/2004. This number was 87 percent of the 2003/2004 New Zealand Immigration Programme, which was set with an approval limit of 45,000 by the Government. Fifty-three percent were approved through the Skilled/Business Stream, 35 percent through the Family Sponsored Stream and 13 percent through the International/Humanitarian Stream. Approvals through the Skilled/Business Stream were considerably fewer in the current period than in 2002/2003 and this led to a lower number of approvals overall. This current period saw the closing of the General Skills Category (GSC), an Interim General Skills Category (IGSC) in place during July-November 2003, and the introduction of a new skilled immigration policy the Skilled Migrant Category (SMC). These changes impacted on both the inflows of applications and the rates at which applications were approved for residence. The closing of the GSC at the beginning of the 2003/2004 financial year and subsequent lapsing of over 11,000 lower quality GSC applications had a significant impact on the number of approvals in the first six months of the year. The IGSC required principal applicants to have a job offer, which dampened inflows somewhat. Additionally, increased verification by the New Zealand Immigration Service led to lower approval rates for GSC applications. A further contributing factor to the lower number of approvals in 2003/2004 was the small, yet significant, decrease in the average family size. The average number of people per application fell from 2.0 in 2001/2002 to 1.9 in the current financial year. Great Britain replaced India and China as the largest source of migrants and on average, residence applications from British applicants included a lower number of people than those from Indian and Chinese applicants. Application inflows overall fell during the first six months of 2003/2004, reflecting the fall in applications through the Skilled/Business Stream after the closure of the GSC in July The IGSC was introduced in July and closed finally on 12 November Application flows increased steadily after the new Skilled Migrant Category (SMC) came into effect. This policy operates under different principles to those of the GSC. First, people submit an expression of interest (EOI) into a pool. Depending on a selection point, people (applications) are selected from the pool and invited to apply for residence. In the first six months of the new policy over 5,500 EOIs had been submitted to the pool, with an average of 2.5 people per EOI. A growing proportion of people applied for residence onshore 63 percent in this financial year compared with 48 percent for the 2002/2003 financial year. The proportion of onshore GSC/IGSC approvals increased considerably over the current period, due to the requirement Migration Trends 2003/2004 1

12 for IGSC principal applicants to have a job offer. More EOIs were submitted by principal applicants residing onshore than offshore. Under the SMC, a high number of points can be claimed for employment by applicants who are working or have a job offer in New Zealand at the time the application is made. The SMC took effect on 17 December 2003 and as at 30 June 2004, 613 people had been approved for residence through the new category. Selections from the EOI pool took place fortnightly from February 2004 and in the ten draws to date 3,812 EOIs (9,216 people) were selected. Of those EOIs selected, 1,245 had received an invitation to apply (more are expected to receive an invitation to apply after the initial verification process) and the first people were approved through the SMC at the end of March The largest source countries of residence approvals in 2003/2004 were Great Britain (21 percent), China (12 percent), and India (8 percent). With the dramatic decline in approvals from India there was a noticeable shift in the make up of the largest source countries. In 2002/2003, India and China accounted for 32 percent of residence approvals (16 percent each), Great Britain had 14 percent and South Africa, Fiji and South Korea had 5 percent each. 1.3 Skilled/Business Stream There were 20,596 people approved for residence through the Skilled/Business Stream in 2003/ percent of all residence approvals Skilled approvals Skilled Migrant, General Skills, Interim General Skills Category approvals In 2003/2004, 16,883 people (43 percent of all residence approvals) were approved through the Skilled categories. The three largest source countries were Great Britain (30 percent), India (16 percent) and China (15 percent). India accounted for 34 percent of approvals through the Skilled categories in 2002/2003, but numbers declined significantly after the policy changes of November 2002 (which included increases in English language requirements and changes to the Job Search Visa) and the closure of the GSC. There was an average of 2.5 people per approved application through the Skilled categories. Under the GSC/IGSC, applicants could be approved for residence if they achieved a minimum number of points. The passmark remained at 29 points until the closure of the IGSC in November Under the IGSC principal applicants were required to have a job offer in New Zealand and consequently the proportion of principal applicants with points for a relevant job offer increased while the IGSC was in place. The SMC requires applicants to have a minimum of 100 points. All principal applicants approved for residence through the SMC to 30 June 2004 had a job or offer of employment. Of all EOIs submitted to June 2004, 76 percent of principal applicants claimed points for a job or offer. Of the 60 percent residing onshore, 98 percent claimed points for a job or offer. A high proportion of principal applicants through the SMC gained points for work experience and qualifications in areas of absolute skills shortages. Furthermore, 76 percent had a job or job offer in an area of absolute skills shortage. Two-thirds of approved principal applicants had a job or job offer in a region outside of Auckland, with a high proportion going to Canterbury or Waikato. Only a small number of people were approved through the SMC in 2003/2004. Those approved were selected in the early pool draws when the selection point was at its highest. The characteristics of people approved through the SMC will change as the selection point changes. For example, a lower selection point will mean proportionately fewer people will Migration Trends 2003/2004 2

13 have scored points for a job or offer. The people approved through the SMC in the current period are not necessarily representative of the people who will be approved over the coming financial year. Work to residence Prior to July 2003, principal applicants within five points of the GSC passmark could be invited to apply for an open work permit (a Job Search Visa) to enable them to job search in New Zealand, with the aim of obtaining a job offer and sufficient points for residence. Under the new SMC, applicant s who cannot provide factual evidence of their ability to settle and contribute but who demonstrate that they can realise their potential, may be offered a work permit with a formal route to residence if they establish themselves in skilled employment. The Talent and Priority Occupations List Visa enable applicants to work to residence by gaining skilled employment. In 2003/2004, 62 principal applicants were granted Talent Visas Arts, Culture and Sports; 657 were granted Talent Visas Accredited Employers; and 546 were granted Priority Occupations List work permits. Over the next 12 months people holding these types of permits will become eligible for residence. Eligibility is determined by the length of time the person has held their permit (a minimum of 24 months) and other requirements specific to each permit type. Talent (Accredited Employer) and POL permit holders are required to have worked in New Zealand for 24 months at a minimum base salary of $45,000. At the end of June 2004 a small number of work to residence permit holders had converted to residence, mainly through the GSC Approvals in the Business categories The downward trend in residence approvals through the Business categories eased somewhat in the current period. In 2003/2004, 3,712 people (9.5 percent of all residence approvals) were approved for residence through the Business categories, down slightly from 3,793 in 2002/2003. While the number of people approved through the Investor Category was significantly fewer in 2003/2004 (2,101 compared with 3,498 in 2002/2003), approvals through the Entrepreneur Category increased from 256 in 2002/2003 to 1,600 in the current period. Overall, there was an average of 3.4 people per application through the Business categories in 2003/2004. China remained the largest source of approvals through the Investor Category (35 percent), followed by Great Britain (20 percent) and South Korea (11 percent). China s share of the Investor Category has declined from 57 percent in 2002/2003, while the proportion of approvals from Great Britain has increased significantly. The Investor passmark was set at 12 points. Seventy-seven percent of the applicants scored one point for investing the minimum of $1 million and almost two-thirds scored five points for having ten or more years of prior business experience. The growing number of approvals through the Entrepreneur Category is a reflection of the large number of people on a Long Term Business Visa (LTBV) becoming eligible for residence. Almost half of all Entrepreneur Category approvals were from South Korea (49 percent) followed by China (19 percent) and Fiji (7 percent). The LTBV is a temporary immigration policy that caters for people who are interested in establishing a business in New Zealand and subsequently applying for residence through the Entrepreneur Category. Since March 1999, when the policy was introduced, 4,417 principal applicants (including 10,919 people) have been approved for LTBVs. The number of people being granted an LTBV declined after the English language requirements changed in November In 2003/2004, 433 principal applicants (1,024 people) were granted an Migration Trends 2003/2004 3

14 LTBV compared with 1,201 principal applicants (3,138 people) in 2002/2003, and 1,826 principal applicants (5,484 people) in 2001/2002. An increasing number of LTBV holders converted to residence (after holding an LTBV for a minimum of 3 years), and a high proportion converted through the Entrepreneur Category. Between 1 March 1999 and 30 June 2001, 1,037 principal applicants were granted an LTBV and therefore could have been expected to convert to residence by June By the end of June 2004, 573 of these 1,037 principal applicants (55 percent) had converted to residence. Of these 573 LTBV holders, 435 (76 percent) had converted to residence through the Entrepreneur Category, and 67 (12 percent) had converted through the GSC/IGSC IELTS scores for the Skilled/Business Stream Principal applicants and spouses, partners and dependent children aged 16 years and older included in an application in the Skilled/Business Stream are required to meet the minimum standard of English. Usually this requirement is met by providing evidence of an Englishspeaking background or by passing an English language assessment test. Secondary applicants can pre-purchase English language tuition in New Zealand. The International English Language Testing System (IELTS) is used to assess ability in English. The band scores (representing scores for listening, oral, reading and writing) range from 1 being a Non User to 9 being an Expert User of English. Since 20 November 2002, GSC principal applicants (and IGSC principal applicants from July 2003) have had to score an average of 6.5 across all bands and principal applicants in Business categories an average of 5.0 across all bands. Under the SMC, principal applicants (and their partners if that person is claiming points for a job or qualification) must also score an average of 6.5 across all bands. Secondary applicants (other than those claiming points) may still pre-purchase ESOL training if they do not meet the required standard. IELTS scores were available for 3,432 migrants in 2003/ the majority were GSC/IGSC applicants. Average scores for GSC/IGSC principal applicants increased across all bands compared with the 2002/2003 year. In 2003/2004, the average score was 6.18 compared with 5.93 in 2002/ In general, migrants scored at the competent or modest English user level. Six is the rating for a competent user. Scores were generally highest for oral (or speaking) and lowest for listening. Secondary applicants tended to score lower than principal applicants did. Of those people approved through the SMC, only a small number were required to sit the IELTS test. Principal applicants approved through the SMC scored an average of 7.11 across all bands. Occupations Occupational data is recorded for a number of residence categories. For GSC applicants (and subsequently IGSC applicants), the main occupation has been captured on the residence application form since 1 October 2001, as well as the occupation of the job offer (when required for points or residence). For applicants through the SMC, data is currently captured on the principal applicant s main occupation and the region of their job or job offer in New Zealand. For GSC/IGSC applicants, there appears to be a correlation between the occupational classification in the home country and the occupational classification of the job offer in New Zealand, with 80 percent (71 percent if onshore applications are excluded) having a job offer in the same classification as their home occupation. In the same period last year, 74 percent of principal applicants had a job offer in the same classification as their main occupation. 1 IELTS scores lower than the required average of 6.5 may be due to people being approved who had lodged their applications for residence prior to the changes to the English language requirements introduced in November Migration Trends 2003/2004 4

15 A high proportion (72 percent) of principal applicants through the SMC to date had main occupations classified as Professional, and in particular, occupations in the health and education sectors. A low proportion had main occupations classified as Legislators, Administrators, Managers and Technicians and associate professionals (9 percent each), and 8 percent were classified as Trades workers. 1.5 Family Sponsored Stream The number of people applying for residence through the Family Sponsored Stream has grown steadily. The increasing demand for residence through this stream has led to a high number of people waiting to have their applications processed. At the end of the current financial year there were 11,661 people in 7,799 applications on hand. This is enough people to fill approximately 86 percent of places in the 2004/2005 NZIP for the Family Sponsored Stream. The demand for places is expected to increase over the next financial year. The policy changes in October 2001 meant that less dependent relatives (parents and siblings) could not be sponsored for three years post residence. In 2004/2005 this three-year wait will begin to work through the system and more people are expected to apply through the Family Parent and Family Sibling sub-categories. Further inflows of applications will inevitably lead to a backlog. There were 13,462 people approved for residence through the Family Sponsored Stream in 2003/ percent of all residence approvals. Effective from 1 October 2001, the framework of the Family Sponsored and International/ Humanitarian Streams moved to a more flexible and responsive approach to family sponsored immigration, recognising the diverse family structures now found in New Zealand. A new Partnership policy took effect from 29 September 2003, which aimed to ensure that married and de facto couples (including same sex partners) were treated on the same basis when applying for residence. Under Partnership policy a couple must provide evidence that their relationship is genuine and stable. Applicants must have been living in a genuine and stable partnership for 12 months or more at the time they lodge their application Family Category approvals In 2003/2004, 12,380 people were approved for residence through the Family Category - 32 percent of all residence approvals. Over half of the people approved (58 percent) were the spouse or partner of a New Zealand citizen or resident. A further 21 percent were the parent of a New Zealand resident or citizen and 9 percent were approved through the Family Sibling sub-category. There was an average of 1.3 people per approved Family Category application. From October 2002, Great Britain replaced China as the main source of approvals through the Family Category. Between 1997/1998 and September 2002, China had been the largest source of approvals. Approvals from Great Britain, Fiji, Samoa and India were relatively stable over this period. In 2003/2004, 18 percent of approvals were from Great Britain, followed by China (12 percent), Fiji and India (9 percent each). The largest source country of approvals through Partnership policy (including Family Marriage, De facto and Partnership) was Great Britain (23 percent), followed by China (11 percent) and India (9 percent). Great Britain was also the largest source country of approvals through the Family Parent sub-category (22 percent), followed by India (14 percent) and China (12 percent). Migration Trends 2003/2004 5

16 The demand for residence through the Family Category has steadily increased. Much of the increasing demand has come from parents and partners of New Zealand citizens or residents. The number of people applying for residence through the Family Parent and Partnership sub-categories has gradually increased over the last 12 months Humanitarian Category approvals The number of residence approvals through the Humanitarian Category has continued to decline. In 2003/2004, there were 317 people approved compared with 867 in 2002/2003 and 1,939 in 2001/2002. Approvals in the current period represent applications accepted prior to 1 October 2001, when this Category closed. The largest source countries of Humanitarian approvals were Fiji and Somalia (22 percent each), and China (10 percent). In 2003/2004 there was an average of 2.6 people per application Transitional Policy The October 2000 Transitional Policy offered well settled overstayers the opportunity to apply for a two year work permit and then to transition to residence. Applicants who had a New Zealand citizen or resident spouse or partner or a New Zealand born child were counted through the Family Sponsored Stream, while others were counted through the International/Humanitarian Stream. There were 518 approved Transitional Policy residence applications (765 people) through the Family Sponsored Stream in 2003/2004. The largest proportion came from Tonga (41 percent), followed by Samoa (26 percent). A higher number of approvals came through the International/ Humanitarian Stream, 1,527 approved applications (2,117 people) the largest proportion came from Tonga (35 percent), followed by Samoa (31 percent). 1.6 International/Humanitarian Stream There were 4,959 people approved for residence through the International/Humanitarian Stream in 2003/ percent of all residence approvals Quota refugee approvals In 2003/2004, 865 people were accepted for resettlement to New Zealand through the Refugee Quota Programme. The largest source country of these refugees was Afghanistan (58 percent) a result of the family reunification exercise to reunite Tampa refugees with their families and spouses. Eritrea and Sudan accounted for a further 10 and 9 percent respectively. There was an average of 3.4 people per approved Refugee Quota application Successful refugee status claimants residence approvals Fewer people were found to have successful claims for refugee status in the current period (115 people) than in 2002/2003 (247 people). Overall, the number of people claiming asylum in New Zealand has declined significantly since 1998/1999. Within the current period, 362 successful refugee claimants were approved for residence (residence is approved separately from refugee status), down from 713 in 2002/2003. The largest source country of residence approvals in the current period was Iran (30 percent), followed by Zimbabwe (22 percent) and Iraq (7 percent). There was a notable increase in the proportion of approvals from Zimbabwe, up from only 4 percent in 2002/2003. There was an average of 2.3 people per successful approved residence application Samoan Quota In 2003/2004, 641 people were approved through the Samoan Quota, which allows up to 1,100 Samoan citizens to be granted residence in New Zealand each year provided they have a job offer in New Zealand and meet other requirements. In 2002/2003, 463 people were approved, down from 1,042 in 2001/2002. Migration Trends 2003/2004 6

17 1.6.4 Pacific Access Category The Pacific Access Category (PAC) is a residence category that was established with Pacific countries with which New Zealand has close cultural and historical ties. The PAC came into effect as of 1 July 2002, and was extended in April 2003 to include a sub-quota for Fiji (250 places) and an increase in the number of places for Kiribati from 50 to 75. In 2003/2004, 292 people were granted residence through the PAC. 1.7 Long-term absence of approved residents One measure of successful settlement and contribution to the country is the extent to which migrants remain in a country in the years following arrival or approval. The rates of absenteeism from the country of the 27,338 people who were approved for residence in the 1998 calendar year were studied. Ninety-seven percent actually arrived to take up residence, or were approved while they were onshore. 2 As at 30 June 2004, 28 percent of the people who had arrived or been approved onshore were absent from the country, 21 percent had been absent for 181 days (six months) or more and 19 percent had been absent for one year or more. An analysis comparing the rates of long-term absence for people who were approved for residence in the 1998 to 2001 calendar years showed that, in general, the proportion of people absent long-term gradually decreased across successive cohorts. In the 1998 cohort, people from Taiwan, Singapore and Hong Kong had comparatively high absence rates. The highest rates of absenteeism included migrants approved through the 1995 Business Investor Category, the GSC, the Family Parent sub-category and the Family Dependent Child sub-category. It should be noted that absences from New Zealand do not necessarily mean a failure to settle. The globalisation of labour markets, and family ties, means that people circulate around the world for a variety of reasons none of which may be a reflection on their settlement in New Zealand. 1.8 Temporary migration People who are in New Zealand on temporary permits are a potentially valuable source of residents. Temporary to permanent migration was examined by looking at the proportion of current residents who had previously held a temporary permit (a proxy for prior New Zealand experience) Residents who had previously held a temporary permit Seventy-five percent of principal applicants approved for residence in 2003/2004 had previously held a student, work or visitor permit at some stage since July This proportion has continued to increase, up from 65 percent in 2002/2003 and 54 percent in 2001/2002. A work permit was the most common type of temporary permit most recently held by new residence principal applicants. Of the people issued with a work or student permit in the 1997/1998 year, 29 percent have subsequently become New Zealand residents. 2 Because of technical issues around client linking from multiple databases, it is possible that more people have taken up residence than has been recorded. 3 This figure does not include people who visited New Zealand for up to three months (or up to six months for British citizens) from countries that New Zealand has visa-waiver agreements with. These people are currently recorded in MIS in a format that is not available for analysis and therefore the number of people who have previously visited New Zealand is substantially underreported. Migration Trends 2003/2004 7

18 1.8.2 Temporary permits A growing number of people were issued work permits in the current period 73,587 compared with 66,766 in 2002/2003. The largest source country was Great Britain (26 percent), followed by Japan (9 percent) and the USA (6 percent). Of the work permits issued, 27,426 were granted for the purpose of filling a skill shortage in New Zealand, up from 23,200 in 2002/2003. The number of people issued work permits has increased substantially since 1997/1998 when 26,336 were granted. The growth can be attributed mainly to more skill shortage permits (which are labour market related) being issued and an expansion in the numbers on working holiday schemes. The number of individuals granted student permits decreased for the first time since 1997/1998. In the current period, 87,075 people were issued a student permit, compared with 87,838 in 2002/2003. Offshore applications for student permits began to decline in January 2002 and have continued to decline throughout the current period, most noticeably for China and South Korea. The number of Chinese students applying offshore fell from 20,461 in 2001/2002 to just 6,762 in 2003/2004. The declining number of international students in New Zealand is likely to continue as existing students complete their courses and the drop in offshore approvals begins to filter through the system. Migration Trends 2003/2004 8

19 2.1 Introduction 2 INTRODUCTION AND BACKGROUND New Zealand is a nation of migrants. The initial settlers, the indigenous Maori people (tangata whenua), arrived more than 1,000 years ago. Within the past 200 years increasing numbers of migrants from Australia and Europe, and then the Pacific Islands and Asia, have settled in New Zealand. Currently around one fifth of all New Zealand residents were born overseas. 4 Migration remains an important contributor to New Zealand s economic growth and to nation building. This report is the fourth in a series produced annually to provide background information about trends in residence approvals. The reports are written in a readily accessible format to make the data useful for informing policy decisions by identifying trends in migration flows to New Zealand and to increase the public s understanding of them. Immigration trends in this format have been monitored since July 2000 and now constitute a time series, enabling comparisons of recent immigration patterns with those identified in previous years. While the main focus of the report is on residence approvals, data describing aspects of temporary immigration are also included. This report provides data for 2003/2004 financial year, from 1 July 2003 to 30 June In relevant places, data from previous years is provided to put the current information in context and to illustrate the dynamics of the immigration process. The data source for this report is the Department of Labour s Immigration database, the Application Management System (AMS). 2.2 Aim The main aim of this report is to identify, discuss and compare trends and patterns in various aspects of residence approvals during the period 1 July 2003 to 30 June Information is mainly descriptive and includes: the policy categories and sub-categories through which migrants were approved the demographic characteristics of those approved for residence the characteristics of Expressions of Interest (EOIs) for residence through the Skilled Migrant Category (SMC) occupation data for SMC and General Skills Category (GSC) principal applicants English language standards achieved by those who sat the IELTS English proficiency test rates of absence from New Zealand of the cohorts approved for residence in the calendar years work and student permit holders in New Zealand, including the top nationalities patterns of transition for those with temporary student or work permits through to residence a time series analysis for approvals through the Immigration streams, categories and some sub-categories, by comparing patterns identified with those in previous years. 2.3 Report structure The report is presented as follows: Chapters 2 and 3 include the introduction and methodology 4 Source: Statistics New Zealand, 2001 Census: People Born Overseas (2001) - Reference Reports, Migration Trends 2003/2004 9

20 Chapters 4 to 8 summarise the characteristics of those approved for residence, provide information on application flows, and include a detailed breakdown of applicants approved through the Skilled/Business, Family Sponsored, and International/ Humanitarian Streams. Chapter 8 discusses rates of absence for people approved for residence Chapter 9 has information about temporary migration and transitions from temporary to permanent residence Chapter 10 summarises the data and provides conclusions Appendices A to F provide detailed information on immigration policy, the three residence streams, and flows of people by nationality. 2.4 Background and introduction to the New Zealand Immigration Programme People who wish to migrate permanently to New Zealand must apply through one of the three residence streams of the New Zealand Immigration Programme (NZIP) introduced in October The streams are: Skilled/Business, Family Sponsored, and International/ Humanitarian. Each stream has a number of categories and a separate approval level. Table 2.1 details the approval limits for 2003/2004. Table 2.1 New Zealand Immigration Programme 2003/2004 Stream Approval Limit Proportion of NZIP Skilled/Business 27,000 (+3,000) 60% Family Sponsored 13,500 (+1,500) 30% International/Humanitarian 4,500 (+500) 10% Total 45,000 (+5,000) 100% Skilled/Business Stream The Skilled/Business Stream includes the Skilled Migrant Category (SMC), General Skills Category (GSC), Interim General Skills Category (IGSC), and Business categories. The GSC closed on 1 July 2003 and the IGSC took effect until 12 November The IGSC was an intermediate step before the introduction of the SMC. Under the IGSC, principal applicants had to meet the same requirements as they did under the GSC, but applicants were also required to have a skilled job offer in New Zealand. The SMC was introduced from 17 December 2003 and heralded a significant change to the way skilled migrants could be granted residence. Unlike the GSC and IGSC, where applicants could be approved for residence if they achieved a minimum number of points, prospective SMC applicants achieving a minimum number of points may be invited to apply for residence if sufficient places remain in the NZIP. A person who is interested in applying for residence under the SMC must first submit an EOI. Points are awarded for employability and capacity building factors, including: skilled employment; work experience; qualifications; and age. An EOI is entered into a pool if the applicant meets prerequisites for health, character and English language, and has a point score of 100 or more. EOIs are ranked on the basis of their point scores. The New Zealand Immigration Service (NZIS) then determines the number of EOIs to be selected from the pool and a selection point is set. EOIs that meet or exceed the selection point may be invited to apply for residence through the SMC. A second tier assessment involves a formal assessment of an applicant s ability to settle and contribute to New Zealand. Applicants may be granted residence if they can demonstrate Migration Trends 2003/

21 this ability such evidence includes skilled employment in New Zealand (or an offer of skilled employment), or New Zealand qualifications that are either: to a specified level; in an area of identified growth; or relevant to an occupation that is in absolute shortage. Applicants who are unable to demonstrate their ability to settle and contribute as specified above may undergo further assessment, which would include a face to face interview. Depending on their assessed potential, they may be granted a two-year work permit, or have their application for residence declined. If a work permit is issued, they could be approved for residence through the SMC if they hold a skilled job for three months or more in that two year period. The Business categories include an Investor, Entrepreneur, and Employees of Relocating Businesses Category. The Long Term Business Visa (LTBV) allows an applicant to establish a business in New Zealand before applying for residence through the Entrepreneur Category. There are also work to residence policies that can lead directly to residence if certain conditions are met. These are: Talent Visa (Accredited Employers) Talent Visa (Arts, Sports and Culture) Priority Occupations List policy. The work to residence policies were introduced on 29 April After holding one of these work permits for two years, applicants are eligible for permanent residence provided they have met the conditions of their permit, will continue to work in New Zealand, and meet the English language, health and character requirements. Applicants are counted against the NZIP only if they become residents. The policies are described in more detail in Appendix A Family Sponsored Stream This stream includes spouses and partners, dependent children, parents, adult siblings and children, the now-closed Humanitarian Category, a Family Quota and applicants approved through the October 2000 Transitional Policy. Family reunification accounts for a large proportion of migrant flows to New Zealand. The Family Sponsored Stream allows for New Zealand citizens and residents to sponsor family members to live in New Zealand under some circumstances. A new Partnership policy took effect from 29 September 2003, which aimed to ensure that married and de facto couples (including same sex partners) were treated on the same basis when applying for residence. Under Partnership policy (a sub-category of the Family Category), a couple must provide evidence that their relationship is genuine and stable. Applicants must have been living in a genuine and stable partnership for 12 months or more at the time they lodge their application. Sponsors of less dependent relatives (parents, siblings and adult children) must have held New Zealand residence for at least three years. Sponsors must sign a declaration that they will provide accommodation and financial support for the first two years of the sponsored migrant s residence in New Zealand. From July 2002, a Family Quota was established for residents wanting to sponsor parents, siblings, adult children and grandparents who do not meet other residence categories. While the Humanitarian Category closed in October 2001, some applications are still being assessed. Details are provided in Appendix A. Migration Trends 2003/

22 2.4.3 International/Humanitarian Stream A large proportion of people approved for residence in this stream are refugees or refugeelinked. This stream also includes various categories that are not related to refugees, such as the Pacific Access Category and the Samoan Quota, ministerial exceptions to policy, and the October 2000 Transitional Policy. Details about all of the quotas and categories in this stream are given in Appendix A. Migration Trends 2003/

23 3.1 Introduction 3 METHODOLOGY This report is based on an analysis of certain variables from the Department of Labour s Management Information System (MIS), a subset of the Immigration database, Application Management System (AMS). The data for the report were generated using Microsoft Access to query MIS on the variables of interest. The MIS data that this report is based on were extracted in the week starting 5 July Since MIS is a dynamic database, the data represent the state of data as of that week. The data cover the period 1 July 2003 to 30 June The extracted data was imported into SAS, Access and Excel for further analysis. 3.2 Definitions and classifications Below is a description of some of the key immigration terms used in the report. Further descriptions of the NZIP and residence streams and categories are included in Appendix A. Application: An application refers to both incoming applications for residence (not yet determined), as well as approved applications for residence. To distinguish between them, incoming applications are referred to as application inflows, and approved applications for residence as approved applications. Because an application consists of a principal applicant and, if any, secondary applicant(s), both application inflows and approved applications are a count of principal applicants. Approvals: An approval is an individual, either principal or secondary applicant, who has been approved for residence. Management Information System (MIS): MIS is the Immigration Service s database of immigration applications and is used as the source of reporting on many aspects of the business s performance. MIS draws records from AMS on a weekly basis. AMS is the immigration database and is used to enter details of applications by staff assessing applications. AMS went live on 1 October However, data is available from AMS from 1 July 1997 as it was imported into AMS from the previous Residence Information Management System (RIMS). Data prior to July 1997 was obtained for this report from RIMS. Permit: A permit allows a person to remain in New Zealand in accordance with the permit s conditions. All permits expire when the holder leaves New Zealand (if not before). Unless otherwise specified, permit is used throughout this report to denote both permits and visas. In the NZIS s operational reporting, an application is said to be finalised when either a visa is issued to an offshore applicant, or a permit is issued to an onshore applicant. When a person arrives at a New Zealand border with a visa, they are issued with a corresponding permit which is not counted again. Principal applicant: The principal applicant is the person assessed against the policy criteria. Residence policy: People wishing to migrate to New Zealand may gain residence through one of the categories listed in Appendix A. Residence applications are considered on the basis of whether the principal applicant meets the policy criteria. The principal applicant may include their partner and dependent children in the application. All applicants must meet standard health and character requirements. Migration Trends 2003/