Migration Trends 2003/2004 i

Migration Trends 2003/2004 i

Migration Trends 2003/2004 i

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

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 www.immigration.govt.nz ISBN: 0-478-28010-6 Migration Trends 2003/2004 ii

Contents EXECUTIVE SUMMARY...1 1.1 Introduction...1 1.2 Summary of residence approvals, 1 July 2003 to 30 June 2004...1 1.3 Skilled/Business Stream...2 1.4 Occupations...4 1.5 Family Sponsored Stream...5 1.6 International/Humanitarian Stream...6 1.7 Long-term absence of approved residents...7 1.8 Temporary migration...7 2 INTRODUCTION AND BACKGROUND...9 2.1 Introduction...9 2.2 Aim...9 2.3 Report structure...9 2.4 Background and introduction to the New Zealand Immigration Programme...10 3 METHODOLOGY...13 3.1 Introduction...13 3.2 Definitions and classifications...13 3.3 Limitations...14 3.4 Data analysis...14 4 SUMMARY OF RESIDENCE APPROVALS IN 2003/2004...15 4.1 Introduction...15 4.2 Residence approvals by stream since 1992/1993...15 4.3 Residence application inflows by month...16 4.4 Residence approvals by category...19 4.5 Location of residence approvals...21 4.6 Number of people per approved application...21 4.7 Nationality of approvals...22 4.8 Age ranges of approvals...23 5 SKILLED/BUSINESS STREAM...25 5.1 Introduction...25 5.2 Skilled Migrant Category...25 5.3 General Skills/Interim General Skills Categories...32 5.4 Business Categories...36 5.5 IELTS scores for the Skilled/Business Stream...41 5.6 Occupations of residence approvals...43 6 FAMILY SPONSORED STREAM...47 6.1 Introduction...47 6.2 Residence application inflows...47 6.3 Family Category Approvals...48 6.4 Humanitarian Category...52 6.5 Transitional Policy...52 7 INTERNATIONAL/HUMANITARIAN STREAM...53 7.1 Introduction...53 7.2 Refugee Quota...53 7.3 Successful refugee status claimants...54 7.4 Samoan Quota...55 7.5 Pacific Access Category...55 Migration Trends 2003/2004 iii

8 LONG-TERM ABSENCE OF APPROVED RESIDENTS...57 8.1 Introduction...57 8.2 Overall number of people absent 1998 cohort...57 8.3 Application categories of long-term absent migrants...58 8.4 Absence rates for the 1998 to 2001 cohorts...59 9 TEMPORARY MIGRATION...61 9.1 Introduction...61 9.2 Residents who had previously held a temporary permit...61 9.3 Work and Student Permits issued...63 9.4 Residence approval for people previously in New Zealand on a temporary permit...69 10 CONCLUSIONS...73 10.1 General residence trends...73 10.2 Skilled Categories...74 10.3 Business categories...74 10.4 Family Sponsored Stream...75 10.5 International/Humanitarian Stream...75 10.6 Absence from New Zealand...75 10.7 Principal applicants with previous New Zealand experience...75 10.8 Temporary migration...76 Appendix A: Permanent and temporary residence approval categories...77 Appendix B: Residence approvals between 1 July 2003 and 30 June 2004...81 Appendix C: Numbers of people, by country, issued with one or more work or student permits between 1 July 2003 and 30 June 2004...85 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 2003/2004...91 Appendix F: Rates of long-term absence among 1998 residence approvals by country of origin, as at 30 June 2004...93 Migration Trends 2003/2004 iv

List of Figures and Tables Table 2.1 New Zealand Immigration Programme 2003/2004...10 Figure 4.1 People approved for residence compared with the NZIP from 1992/1993 to 2003/2004...15 Table 4.1 Approval limits and approvals by stream since 2001/2002...16 Figure 4.2 Residence application inflows in 2003/2004...16 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 2004...18 Figure 4.6 Comparison of residence approvals by category for approvals...19 Table 4.2 Residence approvals by category and sub-category, 2003/2004...20 Table 4.3 Residence approvals by Visa or Permit in 2003/2004...21 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 2003/2004...23 Figure 4.9 Age range of residence approvals in 2003/2004...23 Table 5.1 EOI Pool selection points for draws between December 2003 and June 2004...26 Figure 5.1 Nationalities of principal applicants in the EOI pool and those who had received an invitation to apply as at 30 June 2004...26 Figure 5.2 Age ranges of all people included in EOIs as at 30 June 2004...27 Figure 5.3 Gender of all people included in EOIs as at 30 June 2004...27 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 2004...29 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 2004...30 Figure 5.4 Distribution of point rankings for all EOIs submitted as at 30 June 2004...31 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 2004...31 Figure 5.6 Comparison of nationalities for GSC/IGSC approvals...32 Figure 5.8 Age ranges of GSC/IGSC approvals in 2003/2004...33 Figure 5.9 Gender of GSC/IGSC approvals in 2003/2004...34 Figure 5.10 Nationality of work to residence permit holders for POL and Talent Visa work permits issued in 2003/2004...35 Figure 5.11 Talent visas and Priority Occupations List work permits issued in 2002/2003 and 2003/2004...36 Table 5.6 Residence categories through which Talent Visa and POL work permit holders were granted residence as at 30 June 2004...36 Figure 5.12 Nationality of Investor Category approvals...37 Figure 5.13 Application inflows through the Investor Category from July 2002 to June 2004...38 Table 5.5 Points Structure for the Investor Category...38 Table 5.6 Breakdown of Investor Category points awarded to principal applicants approved in 2003/2004...39 Figure 5.14 Nationalities of Entrepreneur Category approvals in 2003/2004...39 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 2004...41 Table 5.9 IELTS Test Results Description of Band Scores...42 Table 5.10 Skilled/Business Stream IELTS assessment scores 2003/2004...43 Table 5.11 Main occupational group for principal applicants approved through the SMC in 2003/2004...44 Table 5.12 Main occupation for principal applicants in the GSC/IGSC in 2003/2004...45 Figure 6.1 Growth in the number of people on hand in the Family Sponsored Stream...47 Migration Trends 2003/2004 v

Figure 6.2 Number of people applying for residence through the Family Sponsored Stream in 2003/2004....48 Figure 6.3 Approvals through the Family Category in 2002/2003 and 2003/2004...49 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 2004...50 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 2004...51 Table 7.1 Composition of the Refugee Quota in 2003/2004...53 Figure 7.1 Nationality of quota refugees accepted for resettlement...54 Figure 7.2 Number of people claiming refugee status between 1997/1998 and 2003/2004...54 Figure 7.3 Nationality of successful refugee status claimants granted residence...55 Table 7.2 Pacific Access Category (PAC) Approvals in 2003/2004...56 Table 8.1 Long-term absence of a cohort of migrants approved for residence January 1998 to December 1998, as at 30 June 2004...58 Table 8.2 Proportions of migrants approved for residence January 1998 to December 1998 who are long-term absent migrants, as at 30 June 2004...58 Table 8.3 Long-term absence at six-monthly intervals of the cohorts of migrants approved for residence between 1998 and 2001...59 Figure 8.1 Long-term absence at six-monthly intervals of the cohorts of migrants approved for residence in 1998-2001...60 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 2003/2004...64 Figure 9.3 Work permits Principal Applicants given work permits in top six countries Table 9.3 1997/1998 to 2003/2004...64 Skill shortage work permits Principal Applicants given skill shortage work permits in top twelve countries 1997/1998 to 2003/2004...65 Figure 9.4 Skill Shortage Work permits - Principal Applicants given skill shortage work permits in top six countries 1997/1998 to 2002/2003...66 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 2003/2004...67 Figure 9.5 Student permits - Principal Applicants holding student permits in top six countries 1997/1998 to 2003/2004...68 Figure 9.6 Number of students approved offshore for the top ten source countries between 2001/2002 and 2003/2004...69 Figure 9.7 Number of students approved offshore for the largest three source countries between 1997/1998 and 2003/2004...69 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 2003/2004...72 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

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

Migration Trends 2003/2004 viii

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 2003. The IGSC was introduced in July and closed finally on 12 November 2003. 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

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 2004. 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 2003/2004 53 percent of all residence approvals. 1.3.1 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 2003. 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

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. 1.3.2 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 2002. In 2003/2004, 433 principal applicants (1,024 people) were granted an Migration Trends 2003/2004 3

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 2004. 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. 1.3.3 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 2003/2004 - 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 2002/2003. 1 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 2002. Migration Trends 2003/2004 4

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 2003/2004 35 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. 1.5.1 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

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. 1.5.2 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. 1.5.3 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 2003/2004 13 percent of all residence approvals. 1.6.1 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. 1.6.2 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. 1.6.3 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

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). 1.8.1 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 1997. 3 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

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

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 2004. 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 2004. 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 1998-2001 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, 2002. Migration Trends 2003/2004 9

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 2001. 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% 2.4.1 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 2003. 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 2003/2004 10

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 2002. 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. 2.4.2 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 2003/2004 11

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 2003/2004 12

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 2004. 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 2004. 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 1997. 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 2003/2004 13

Residence streams: In selected analyses in the report, data is broken down into residence streams. The Skilled/Business Stream included the GSC, IGSC and SMC, as well as all Business categories. The Family Sponsored Stream included the Family and former Humanitarian Categories, while the International/Humanitarian Stream included the Samoan Quota, Pacific Access Category, Refugee Quota, Refugee Status, Ministerial direction and various other approvals. A full breakdown of these streams is provided in Appendix A. Visa: A visa indicates that the issuing officer knows of no reason why the visa holder should not be granted a corresponding permit on arrival in New Zealand. Year: The data is reported by quarters of the financial year, which is from 1 July to 30 June. 3.3 Limitations The data reported relates to the number of people approved for residence rather than the number of migrants arriving in 2003/2004. People approved for residence offshore have one year in which to move to New Zealand. However, people may be approved for residence and then decide not to take it up. Also, MIS data reflects the total number of applications for residence, rather than the number of people approved. In some cases an applicant may have more than one residence application recorded in the period of interest. These duplicate records typically occur for administrative reasons. For example, an Immigration Officer may discover that an applicant s surname has been spelt incorrectly. Where this occurs a new application would be created with the amended spelling. Duplicate client codes were removed before the data was analysed for this report. Also, the data used in this report relates to the date the residence application was decided, rather than the date the residence application was completed. This distinction is made in MIS where date decided refers to the date the decision was made to approve a person for residence and the date completed refers to the date the application was completed and the visa or permit label was issued and endorsed in the applicant s passport. It is possible that a small number of decided applications will not go on to be completed. Date decided was used in this report to be consistent with other Immigration Service reporting. Chapter 9 discusses the links between temporary and permanent immigration, including an analysis of those approved for residence in 2003/2004 that had previously held a work, visitor or student permit. A caveat with regard to data relating to visitor s permits must be noted. New Zealand has visa waivers with a number of countries. The waivers allow people to visit New Zealand for up to three months (or up to six months for visitors from Great Britain). Information on visitors with waivers is not available from MIS. Therefore, the number of people who had held a visitor permit prior to being approved for residence is substantially under-reported. 3.4 Data analysis Percentages within this report are rounded to the nearest whole number and for this reason column and row percentages in some tables may not always add to 100 percent. Similarly, for charts the category percentages are rounded and may not always add to 100 percent. Migration Trends 2003/2004 14

4 SUMMARY OF RESIDENCE APPROVALS IN 2003/2004 4.1 Introduction This section provides an overview of immigration trends since 1992/1993 and details the characteristics of those approved for residence in the period from 1 July 2003 to 30 June 2004. Data for the twelve-month period is presented at a high level for all residence streams and their categories; the location of applications; the nationalities of approvals and the age ranges of approvals. More detailed information on the characteristics of approvals in each residence stream is provided in subsequent sections of the report. Appendix B provides a complete breakdown of all residence approvals by residence stream and nationality. 4.2 Residence approvals by stream since 1992/1993 In 2003/2004, 39,017 people were approved for residence in 20,631 applications. Of these people, 20,596 were approved through the Skilled/Business Stream (53 percent of all individuals approved for residence); 13,462 through the Family Sponsored Stream (35 percent); and 4,959 through the International/Humanitarian Stream (13 percent). Figure 4.1 shows the number of people approved for residence through the various policy streams between 1992/1993 and 2003/2004 compared with the planning level (previously known as the Immigration Target and now known as the NZIP). Policies prior 2001/2002 were grouped together to match the current streamed approach to the NZIP. Figure 4.1 2003/2004 People approved for residence compared with the NZIP from 1992/1993 to 60,000 50,000 Persons approved 40,000 30,000 20,000 10,000 0 92/93 93/94 94/95 95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 Skilled Business Family Sponsored International/Humanitarian NZIP Migration Trends 2003/2004 15

Table 4.1 below shows the approval limits and number of people approved in each stream, since the NZIP was introduced in 2001/2002. Table 4.1 Approval limits and approvals by stream since 2001/2002 2001/2002 2002/2003 2003/2004 Stream Limit Approvals Limit Approvals Limit Approvals Skilled/Business Family Sponsored International/ Humanitarian Total 35,000 max 35,876 14,500 +/- 10% 14,276 3,500 +/- 10% 2,704 53,000 max 52,856 27,000 +/- 3,000 30,443 13,500 +/- 1,500 14,809 4,500 +/- 500 3,286 45,000 +/- 5,000 48,538 27,000 + 3,000 20,596 13,500 + 1,500 13,462 4,500 + 500 4,959 45,000 + 5,000 39,017 In addition to immigration residence approvals, New Zealand s population is affected by other migration flows such as trans-tasman migration, the arrival and departure of New Zealand and Australian citizens and the arrival and departure of visitors and people on temporary work or student permits. 4.3 Residence application inflows by month Figure 4.2 illustrates the inflow of residence applications per month over the past 12 months. The Skilled/Business Stream has been split into its broad categories (Skilled categories and Business categories). The totals of the Family Sponsored and International/ Humanitarian Streams are shown, as well as the total for all streams. Figure 4.2 Residence application inflows in 2003/2004 3000 Skilled Categories Number of applications 2500 2000 1500 1000 Business Categories Family Sponsored Stream International / Humanitarian Stream Grand Total 500 0 Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03 Jan-04 Feb-04 Mar-04 Apr-04 May-04 Jun-04 Month Total inflows of applications declined over the first six months of the current financial year then increased steadily after the Skilled Migrant Category (SMC) came into effect. The General Skills Category (GSC) closed on 1 July 2003 and application inflows remained relatively steady under the Interim GSC until its closure in November 2003. Migration Trends 2003/2004 16

The lower inflow through the GSC/IGSC has led to a steady decline in the number of GSC/IGSC applications on hand (see Figure 4.5). There has been a large inflow of Expressions of Interest (EOIs) for the SMC. However, these are not counted until after the applicant has been selected, invited to apply for residence, and responded by submitting an application (see Chapter 5). This accounts for the lower Skilled inflow in Figure 4.2 post December 2003. Application inflows through the Family Sponsored Stream have remained steady but continued to flow at a high rate, resulting in a gradual increase in the number of applications on hand. It is noteworthy that at the end of June 2004 there were enough applications on hand to fill approximately 86 percent of places in the 2004/2005 NZIP for the Family Sponsored Stream. The decline in applications through the Skilled categories from India (which began in 2002) has continued throughout the current period. Early indications from the SMC show that there are smaller proportions of Indian and Chinese applicants submitting an EOI than the proportions of those applying through the IGSC. India represented 33 percent of the 12,635 GSC application inflows for 2002/2003. Of the 3,632 applications lodged under the IGSC during the current period, 17 percent were from India. Of those submitting EOIs since the SMC came into effect, only 10 percent were from India. Figure 4.3 GSC/IGSC)* Top 10 nationalities applying through the Skilled categories (SMC and 2002/2003 (n = 12,635) 2003/2004 (n = 4,062) Pakistan 2% USA 2% Zimbabwe 2% South Korea 3% Fiji 3% Philippines 5% South Africa 6% Others 16% China 10% India 34% Great Britain 17% Japan 2% South Korea 2% USA 3% Fiji 3% Philippines 3% Zimbabwe 3% South Africa 8% Others 15% China 15% India 16% Great Britain 30% * Note the caveat above that these charts do not count EOIs, only applications made. As depicted in Figure 4.4 below, South Korea (28 percent) was the largest source country for residence applications through the Business categories in 2003/2004, followed by China (26 percent). The fall in applications through the Business categories is very notable, with the impact of the November 2002 changes still being evident. These changes included an increase in English language standards and tighter operational requirements regarding the source of funds in the Investor Category. Application inflows in 2003/2004 were less than half what they were in 2002/2003, with the most noticeable decline seen in applications from China. It is important to note that not all Business categories had decreasing application numbers over the current period. Application inflows through the Investor Category have steadily declined but applications through the Entrepreneur Category picked up as more Long Term Business Visa holders became eligible to apply for residence. Migration Trends 2003/2004 17

Figure 4.4 Comparison of residence application inflows in the Business categories by top six nationalities 2002/2003 (n = 2,532) 2003/2004 (n = 1,248) USA 2% Malaysia 2% Great Britain 5% Others 8% Others 20% South Korea 28% Taiwan 5% Malaysia 3% South Korea 8% USA 4% Fiji 5% China 70% Great Britain 14% China 26% Figure 4.5 below illustrates the total number of residence applications on hand in 2003/2004. The number of applications on hand in the Family Sponsored Stream has gradually increased while those on hand in the International/Humanitarian Stream have remained steady. The number of applications on hand in the Skilled/Business Stream has fallen significantly with the managed inflow of applications in preparation for the introduction of the SMC. Figure 4.5 Residence applications on hand between 1 July 2003 and 30 June 2004 30000 Skilled/Business Number of applications 25000 20000 15000 10000 Family Sponsored International/Humanitarian All Streams 5000 0 Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03 Jan-04 Feb-04 Mar-04 Apr-04 May-04 Jun-04 Month and year To manage the queue of applications on hand, and new applications received under the SMC, GSC applications on hand were prioritised on the basis of contribution and settlement potential. Applicants with lower potential had their applications lapsed and were given a full fee refund. This process helped to reduce the level of applications on hand so that the positive outcomes from the new skilled policy could take effect more quickly. Migration Trends 2003/2004 18

4.4 Residence approvals by category Figure 4.6 shows the proportions of people, by category, approved for residence in 2002/2003 and 2003/2004. There was a significant decline in approvals through the Skilled/Business Stream in 2003/2004, contributing to an overall decrease in approval numbers for the current period. Figure 4.6 Comparison of residence approvals by category for approvals 2002/2003 (n = 48,538) 2003/2004 (n = 39,017) Refugee Quota Humanitarian 1% Category 2% Business Categories 8% Samoan Quota 1% Others 6% Skilled Categories 55% Refugee Quota 2% October 2000 Transitional Policy 7% Business Categories 10% Samoan Quota 2% Humanitarian Category 1% Others 3% Skilled Categories 43% Family Category 27% Family Category 32% Table 4.2 details all residence approvals, by category and sub-category, for the 2003/2004 financial year. Migration Trends 2003/2004 19

Table 4.2 Residence approvals by category and sub-category, 2003/2004 Residence Stream Skilled/ Business 27,000 (+3,000) (60% of NZIP) Family Sponsored 13,500 (+1,500) (30% of NZIP) International/ Humanitarian 4,500 (+500) (10% of NZIP) Sub-category Approved applications Approvals Proportion of 2003/2004 Approvals 1995 General Skills/Interim GSC 6,851 16,270 Skilled Migrant 215 613 Skilled categories total 7,066 16,883 43.27% Employees of Businesses 3 11 Investor Category 629 2,101 Entrepreneur Category 1 476 1,600 Business categories total 1,108 3,712 9.51% Skills/Business Deferral 2 1 1 Stream Total 8,175 20,596 52.79% Family Marriage 3,653 4,366 Family Parent 1,484 2,553 Family De facto 688 733 Family Child Dependent 973 981 Family Child Adult 132 347 Family Sibling 412 1,114 Partnership 1,793 2,060 Family Quota 83 226 Family Category total 9,218 12,380 31.73% October 2000 Transitional policy 518 765 Humanitarian Category 117 317 Other total 635 1,082 2.77% Stream Total 9,853 13,462 34.50% Refugee Protection 85 166 Refugee Other 141 605 Refugee Women at Risk 9 35 Refugee Medical 5 17 Refugee Emergency 13 42 Refugee Quota total 253 865 2.22% PAC Residence Tonga 31 106 PAC Residence Tuvalu 11 20 PAC Residence Kiribati 4 14 PAC Residence Fiji 51 152 Pacific Access total 97 292 0.75% Samoan Quota 200 641 1995 Refugee status 159 362 Ministerial direction 295 515 Section 35A 32 35 Refugee Family Sponsored 38 129 October 2000 Transitional policy 1,527 2,117 Victims of Domestic Violence 2 3 Other total 2,253 3,802 9.74% Stream Total 2,603 4,959 12.71% Grand Total 20,631 39,017 100% 1 Includes approvals through the Entrepreneur Category (34) and the Entrepreneur (Transitional) Category (1,566). The latter applies to applicants who held a work visa or permit granted under the LTBV Category prior to 20 November 2002 and therefore the English language requirements are lower than those applying through the Entrepreneur Category. 2 Applies to a person included in a Skilled/Business application who is the partner of the principal applicant but has not lived with the principal applicant for at least twelve months, and subsequently applies after they have met the 12-month requirement. Migration Trends 2003/2004 20

4.5 Location of residence approvals The term visa is used to denote someone applying for residence offshore while the term permit is used to denote people applying in New Zealand. Table 4.3 provides a breakdown of residence approvals showing permit and visa details in 2003/2004. Table 4.3 Residence approvals by Visa or Permit in 2003/2004 Total = 39,017 Applicant Type Permit Visa Total n % n % n Principal applicants 13,083 63 7,548 37 20,631 Secondary applicants 8,217 45 10,169 55 18,386 Total 21,300 55 17,717 45 39,017 Overall, 37 percent of approved applications were made offshore and 63 percent were made in New Zealand. The proportion of applications made onshore has continued to increase, up from 48 percent in 2002/2003. There was also an increase in the proportion of people applying onshore from 37 percent in 2002/2003 to 55 percent in the current period. This increase is likely to be a result of a number of factors including the IGSC requirement for principal applicants to have a job offer, and the increasing number of approvals coming through from the October 2000 Transitional Policy, where applicants would have made their applications onshore. Similarly, 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. 4.6 Number of people per approved application There was an average of 1.9 people per approved residence application. The smallest included one person and the largest included 14 people. Overall, the number of people included in offshore applications tended to be higher on average than for onshore applications. The average family size has gradually decreased over the last three years from an average of 2.0 in 2001/2002 to 1.98 in 2002/2003 and 1.9 in the current year. The decrease may reflect the changing source markets of residence approvals. In 2003/2004 a higher proportion of residence approvals were from Great Britain compared with China and India. On average, residence applications from British applicants included a lower number of people than applications from Indian or Chinese applicants. Table 4.4 Average number of people per approved residence application Stream Approved onshore Approved offshore applications applications Total Skilled/Business 2.2 3.1 2.5 Family Sponsored 1.2 1.6 1.4 International/Humanitarian 1.5 3.2 1.9 Total 1.6 2.3 1.9 Migration Trends 2003/2004 21

4.7 Nationality of approvals 4.7.1 Nationality of all residence approvals Figure 4.7 below compares the nationalities of those approved for residence in 2002/2003 and 2003/2004. Great Britain was the largest source country in the current period accounting for 21 percent of all residence approvals, followed by China (12 percent) and India (8 percent). In 2002/2003, the three largest source countries accounted for almost half of all residence approvals. The comparative decline in approvals from India and China has created more diversification in the largest source countries. Figure 4.7 Comparison of residence approvals by largest source countries 2002/2003 (n = 48,538) 2003/2004 (n = 39,017) Others 27% China 16% Others 25% Great Britain 21% Malaysia 2% Philippines 3% Tonga 3% Samoa 3% South Korea 5% Fiji 5% South Africa 5% India 16% Great Britain 14% USA 2% Zimbabwe 3% Tonga 5% South Korea 5% Samoa 6% Fiji 6% South Africa 7% India 8% China 12% 4.7.2 Nationality of Immigration Streams Figure 4.8 shows the largest nationalities of approvals through each of the three residence streams. Some significant changes have occurred in the Skilled/Business Stream with the decline in approvals from India, and to a lesser extent China. India was the largest source country in 2002/2003 with 21 percent of approvals. In 2003/2004, India and South Korea had 8 percent each behind Great Britain (28 percent), China (15 percent) and South Africa (10 percent). Great Britain has remained the largest source country in the Family Sponsored Stream with 18 percent of approvals. The largest source countries for approvals through this stream have remained fairly consistent over the past two years. Samoa and Tonga were the largest source countries for approvals through the International/Humanitarian Stream (27 percent and 18 percent respectively). In 2002/2003, 16 percent of approvals were from Iraq, compared to just 1 percent of approvals in the current period. An increasing number of approvals through this stream were from Zimbabwe, the result of an increasing number of successful refugee claimants being granted residence in 2003/2004. Migration Trends 2003/2004 22

Figure 4.8 Largest nationalities of approvals through the residence streams in 2003/2004 Others 21% Great Britain 28% Others 33% Great Britain 18% Samoa 27% USA 2% Fiji 4% Zimbabwe 4% South Korea 8% India 8% South Africa 10% China 15% USA 3% South Africa 4% Tonga 6% Samoa 6% Fiji 9% India 9% China 12% Others 43% Zimbabwe 2% China 3% Fiji 7% Tonga 18% Skilled/Business Stream (n = 20,596) Family Sponsored Stream (n = 13,462) International/Humanitarian (n = 4,959) 4.8 Age ranges of approvals Figure 4.9 shows the age ranges of all residence approvals in 2003/2004. Three quarters of all migrants (74 percent) were less than 40 years of age, and a high proportion (28 percent) overall were less than 20 years of age. Fewer migrants fell into the higher age brackets 26 percent overall were 40 years of age or older. Figure 4.9 Age range of residence approvals in 2003/2004 Total = 39,017 12000 10000 23% 26% Number of applicants 8000 6000 4000 2000 5% 20% 9% 6% 11% 0 Under 16 16 to 19 20 to 29 30 to 39 40 to 44 45 to 49 50 and over age group Migration Trends 2003/2004 23

Migration Trends 2003/2004 24

5.1 Introduction 5 SKILLED/BUSINESS STREAM This chapter provides a breakdown and analysis of residence approvals through the Skilled categories (SMC, IGSC, and GSC) and Business categories. From November 2002, the GSC and Business categories were amended by a number of policy changes. The changes included higher English language requirements and the extension of these requirements to LTBV applicants. Furthermore, the LTBV is now issued for an initial nine-month period after which time applicants need to show evidence of having established a business to be granted an extension. Tighter operational policy requirements regarding the source of funds in the Investor Category were also introduced in November 2002. The GSC was closed on 1 July 2003, at which point Job Search Visas (JSV s) ceased to be offered. The GSC was replaced by the IGSC from 2 July 2003, which subsequently closed on 12 November 2003. The SMC came into effect from 17 December 2003. These changes are detailed in relevant sections of this chapter. 5.2 Skilled Migrant Category The aim of the SMC is to meet New Zealand s identified needs and opportunities and contribute to building growth, innovation and global connectedness. Gaining residence through the SMC is based on employability and capacity building factors and an applicant s ability to settle and contribute to New Zealand. Applicants must also meet relevant health, character, and English language requirements. Applicants must meet a minimum threshold of 100 points to submit an expression of interest (EOI) into the pool. 5 EOIs are ranked from the highest to the lowest points and those that meet the determined selection point are selected from the pool and may be invited to apply for residence. Selections have been made fortnightly since the first draw in February 2004. In the year to date, 1,245 principal applicants were invited to apply for residence through the SMC, of whom 215 (613 people in total) were approved for residence by the end of the period. Information on the SMC points system can be found in Table 5.2, below. 5.2.1 Expressions of Interest This section provides information on the characteristics of all EOIs submitted to date, as well as those principal applicants who were selected during the current period and have subsequently been invited to apply for residence through the SMC. There has been strong interest from potential migrants seeking to gain residence through the SMC, with a steady flow of EOIs into the pool since the policy came into effect. In just over six months, 6,684 EOIs had been received and a high proportion met the requirements for entry into the pool. As at 30 June 2004, 5,538 EOIs had been submitted to the pool, with an average of 2.5 people per EOI. At the time of this analysis, a small number of EOIs had fallen below the 100 point threshold, most likely after the preliminary verification following selection. EOIs claiming less than 100 points were excluded from this analysis on the basis that they no longer met the minimum threshold for eligibility under SMC policy. Ten selections were made from the pool between February and 30 June 2004. In total, 3,812 EOIs (9,210 people) met or exceeded the determined selection points and were selected from the pool. Table 5.1 details the draws to date. 5 EOIs can be made manually or online (via the NZIS website). An EOI made online will only be accepted if the points initially total 100 or more. EOIs selected from the pool undergo a verification process which may result in a change to the number of points claimed by the principal applicant. Migration Trends 2003/2004 25

Table 5.1 EOI Pool selection points for draws between December 2003 and June 2004 6 Date of Selection Selection Point Number of EOIs selected Number of people selected 18-Feb-04 195 126 371 3-Mar-04 185 255 699 18-Mar-04 185 98 277 2-Apr-04 180 330 879 14-Apr-04 180 62 158 28-Apr-04 170 653 1,659 12-May-04 165 533 1,312 26-May-04 160 538 1,206 9-Jun-04 155 551 1,262 23-Jun-04 150 666 1,393 Total 3,812 9,216 EOIs that are selected in the draws undergo an initial verification process and may be offered an invitation to apply for residence through the SMC. Of those 3,812 EOIs selected from the pool to date, 1,245 had received an invitation to apply for residence as at 30 June 2004. More are expected to receive an invitation to apply after the initial verification process. 5.2.2 Nationality of EOI principal applicants Over one third (37 percent) of EOIs submitted to date were from British principal applicants. The second largest country was India (10 percent), followed by South Africa and China (7 percent each). Of those principal applicants who, to date, have received an invitation to apply for residence, 50 percent were from Great Britain, 9 percent were from South Africa and 5 percent were from India. Two percent were from China. Figure 5.1 compares the nationalities of those EOIs submitted to date with those who had received an invitation to apply for residence at the end of the current period. Figure 5.1 Nationalities of principal applicants in the EOI pool and those who had received an invitation to apply as at 30 June 2004 EOIs Submitted to date (n = 5,299) Invitations to apply (n = 1,239) Germany 2% Malaysia 2% Zimbabwe 3% Fiji 3% USA 3% Philippines 6% Other 21% South Africa 7% China 7% India 10% Great Britain 37% Ireland 2% Canada 2% Germany 3% Zimbabwe 3% Fiji 2% Other 17% USA 3% Philippines 4% India 5% South Africa 9% Great Britain 50% 6 The actual number of individual EOIs selected from the pool to date is less than 3,812. In some instances an EOI was selected in more than one draw and therefore counted twice. This can happen if an EOI is selected and subsequently found to not meet the selection criteria for that draw (for example, if the points claimed by the principal applicant are higher than can actually be claimed). In some circumstances these EOIs may be returned to the pool and may therefore be eligible for selection at a later date. If an EOI has been selected in more than one draw during the period, only the details of the most recent selection have been included in this analysis. Migration Trends 2003/2004 26

5.2.3 Age and gender of people included in EOIs Figures 5.2 and 5.3 show the age and gender of people included in EOIs submitted to date, including 13,020 people in 5,299 EOIs. Half of all applicants (6,436 people) were between 20 and 40 years of age. Maximum points (30) can be claimed by principal applicants aged between 20 and 29 years with the points for age decreasing after this. Twenty-nine percent of principal applicants claimed the maximum points for age. One third of applicants in the pool were under 20 years of age. The low proportion of principal applicants over 50 years (4 percent of principal applicants) reflects the maximum age limit of 55 under the SMC. Figure 5.2 Age ranges of all people included in EOIs as at 30 June 2004 Total =13,020 4500 4000 28% 31% Number of people in age group 3500 3000 2500 2000 1500 1000 500 4% 19% 10% 5% 3% 0 Under 16 16 to 19 20 to 29 30 to 39 40 to 44 45 to 49 50 and over Age group Slightly more males (52 percent) than females (48 percent) were included in EOIs submitted to date. Almost twice as many principal applicants were male (65 percent) than were female (35 percent). Of the secondary applicants in the pool, 57 percent were female and 43 percent were male. Figure 5.3 Gender of all people included in EOIs as at 30 June 2004 Total = 13,020 8000 Principal Secondary 7000 6000 Number of people 5000 4000 3000 43% 57% 2000 65% 1000 35% 0 Male Gender Female Migration Trends 2003/2004 27

5.2.4 Points claimed by EOI applicants and SMC approvals This section includes information on the points claimed by EOI principal applicants, applicants issued an invitation to apply, and approvals through the SMC. Principal applicants claim points for employability and capacity building factors and must meet a minimum threshold of 100 points to submit an EOI into the pool. Table 5.2 provides a description of the SMC points. Different criteria operate within each point factor and more information can be obtained by consulting the NZIS website (www.immigration.govt.nz) Table 5.2 SMC Points for Employability and Capacity Building Factors Factors Points Skilled employment Current skilled employment in NZ for 12 months or more 60 Offer of skilled employment in New Zealand or current skilled employment in New Zealand for less than 12 months 50 Bonus points for employment or offer of employment in: An identified future growth area, identified cluster, area of absolute skills shortage 5 Region outside Auckland 10 Partner employment or offer of employment 10 Work experience 2 years 10 4 years 15 6 years 20 8 years 25 10 years 30 Additional bonus points if work experience in New Zealand: 2 years 5 4 years 10 6 years or more 15 Additional bonus points for work experience in an identified future growth area, identified cluster or area of absolute skills shortage: 2 to 5 years 5 6 years or more 10 Qualifications Recognised basic qualification (e.g. trade qualification, diploma, bachelors degree, bachelors degree with Honours) 50 Recognised post-graduate qualification (Masters degree, Doctorate) 55 Bonus points for: Recognised NZ qualification (and at least two years study in NZ) 10 Qualification in an identified future growth area, cluster or area of absolute skill 5 shortage Partner qualifications 10 Age (20 to 55 yrs) 20-29 30 30-39 25 40-44 20 45-49 10 50-55 5 Almost three quarters of SMC principal applicants approved for residence in 2003/2004 gained points for current employment. Of those with current employment (150 out of 215), Migration Trends 2003/2004 28

39 percent claimed the maximum 60 points for current employment in New Zealand for 12 months or more. Fourteen percent of approved principal applicants had 2 or more years work experience in New Zealand. Ninety-six percent of approved SMC principal applicants gained one or more bonus point factors for employment. Three-quarters of approvals gained points for a job or job offer in an area of absolute skills shortage, while 67 percent gained points for a job or job offer in a region outside of Auckland. All approved principal applicants gained points for work experience, and 74 percent gained bonus points for work experience in an area of absolute skills shortage. Three in four approved applicants had qualifications in a skills shortage area. Nine percent of principal applicants in the pool claimed points for a recognised New Zealand qualification, while only 1 percent of approved principal applicants gained points for this factor. Table 5.3 compares the proportions of points claimed by principal applicants in the pool, those with an invitation to apply, and those granted residence through the SMC as at 30 June 2004. Table 5.3 Comparison of points claimed by EOI principal applicants, those with an ITA, and approvals through the SMC as at 30 June 2004 Points Factor Proportion of principal applicants claiming points EOIs Submitted to date Applicants issued an ITA SMC approvals % % % Current employment 53 77 70 Offer of skilled employment 23 23 30 Bonus points for employment: Identified future growth area 14 23 24 Identified cluster 1 3 3 Area of absolute skills shortage 27 57 76 Region outside Auckland 44 71 67 Partner employment or job offer 9 15 15 Total claiming some bonus points 61 95 96 Relevant work experience 91 98 100 Bonus points for work experience: New Zealand work experience 12 17 14 Identified future growth area 11 23 24 Identified cluster 1 3 2 Area of absolute skills shortage 35 57 74 Total claiming some bonus points 41 68 91 Principal applicant's qualifications 93 100 100 Bonus points for qualifications: Recognised New Zealand qualification 9 4 1 Identified future growth area 10 20 22 Identified cluster 1 3 3 Area of absolute skills shortage 35 58 76 Partner qualifications 26 31 37 Total claiming some bonus points 61 83 93 Age 100 100 100 Total number of principal applicants 5,299 1,239 215 Migration Trends 2003/2004 29

Principal applicants residing in New Zealand at the time they submitted their EOI to the pool were more likely to claim points for a job or job offer than those residing offshore. Table 5.4 shows that 60 percent of principal applicants were onshore at the time their EOI was lodged and 98 percent of them claimed points for a job or job offer. Of the 40 percent of principal applicants residing offshore, less than half (46 percent) claimed points for a job or job offer. There was an average of 2.8 people per EOI for offshore applicants and 2.2 for onshore applicants. Table 5.4 EOIs submitted to date who claimed points for a job or job offer by location of principal applicant Total = 5,299 Points claimed for Skilled Onshore Offshore Total Employment in New Zealand n % n % n % Employed 12 months or more 1,479 46 76 4 1,555 29 Employed less than 12 months 1,185 37 93 4 1,278 24 Offer of employment 439 14 806 38 1,245 23 Neither a job nor a job offer 78 2 1,143 54 1,221 23 Total 3,181 100 2,118 100 5,299 100 5.2.5 Region of employment of SMC approvals The SMC recognises the value of immigration to regions where skill shortages can have an effect on economic growth. Bonus points are awarded for employment in a region outside of Auckland. This is to encourage migrant settlement outside of the major population centre. 7 At the end of the current period, 67 percent of approved principal applicants had been awarded this bonus point. Table 5.5 details the proportion of approved principal applicants by region of employment and the proportion of people approved overall. Table 5.5 Region of employment for SMC approvals as at 30 June 2004 Region Principal applicants All approvals n % n % Auckland 68 32 177 29 Canterbury 30 14 90 15 Waikato 26 12 73 12 Wellington 18 8 52 8 Otago 14 7 36 6 Bay of Plenty 13 6 36 6 Northland 13 6 40 7 Taranaki 7 3 25 4 Manawatu 6 3 26 4 Not stated 6 3 13 3 Others 14 7 45 7 Total 215 100 613 100 5.2.6 Distribution of point rankings in the pool Figure 5.4 illustrates the number of EOIs and people at each point rank for all EOIs submitted to date. A high number of principal applicants claimed points well in excess of the 100 point threshold, with an average (mean) point rank of 150 as at 30 June 2004. 7 Employment is outside the Auckland Region if the principal applicant s entire or principal place of work is not within one of the following Territorial Authorities: Rodney District Council; North Shore City Council; Waitakere City Council; Auckland City Council; Manukau City Council; Papakura District Council; Franklin District Council. Migration Trends 2003/2004 30

Figure 5.4 Distribution of point rankings for all EOIs submitted as at 30 June 2004 450 400 350 Number of EOIs (n = 5,299) Number of People (n = 13,020) 1200 1000 Number of EOIs 300 250 200 150 800 100 50 0 100 105 110 115 120 125 130 135 140 145 150 155 160 165 170 175 180 185 190 195 200 205 210 215 220 225 230 235 240 245 600 400 Number of People 200 0 Rank (Total points) On average, onshore principal applicants claimed a higher number of points than did those residing offshore (165 compared to 135). This reflects the higher proportion of onshore applicants claiming points for a job or job offer compared with those applicants residing offshore. Offshore applicants with a job or offer claimed, on average, the same number of points as onshore applicants with a job or offer. Figure 5.5 compares the point rank distribution for EOI principal applicants with, or without, a job or offer. 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 2004 Total = 5,299 450 400 350 EOIs without a job or offer (n = 1,221) EOIs with a job or offer (n = 4,078) Number of EOIs 300 250 200 150 100 50 0 100 105 110 115 120 125 130 135 140 145 150 155 160 165 170 175 180 185 190 195 200 205 210 215 220 225 230 235 240 245 Rank (Total points) Migration Trends 2003/2004 31

5.3 General Skills/Interim General Skills Categories The GSC/ISGC points system was designed to select highly skilled migrants who are likely to settle well and make a positive contribution to New Zealand. 5.3.1 GSC/IGSC approvals In 2003/2004, 42 percent (16,270) of all residence approvals were through the GSC/ISGC. Improved verification of job offers and documentation led to lower approval rates over the current period, which contributed to a marked decrease in approvals compared with 2002/2003. There were 6,851 approved applications in the current period compared with 10,851 in 2002/2003. The top ten nationalities of migrants approved are illustrated below in Figure 5.6. The three largest source countries in the current period were Great Britain (29 percent), China and South Africa (12 percent) and India (10 percent). There has been a notable change in the order of the largest source countries after the significant decline in approvals from India, and to a lesser extent, China, in the current period. Figure 5.6 Comparison of nationalities for GSC/IGSC approvals 2002/2003 (n = 26,650) 2003/2004 (n = 16,270) USA 2% Zimbabwe 2% Malaysia 3% Philippines 4% Fiji 5% Other 17% South Korea 6% South Africa 8% China 15% India 23% Great Britain 15% Malaysia 2% USA 2% Philippines 3% South Korea 3% Fiji 4% Zimbabwe 5% Other 17% India 10% South Africa 12% Great Britain 29% China 12% Applications from India declined steadily from November 2002. Application inflows averaged 740 per month in the four months prior to November 2002, and then fell to an average of 156 per month over the eight months to June 2003. Between July 2003 and until the IGSC closure in November 2003 application inflows from India through the IGSC averaged 102 per month. Figure 5.7 shows the decline in the number of approvals from India through the GSC/IGSC over the last two calendar years. The increase in approvals in the last two months of 2003/2004 reflects the overall increase in the number of GSC/IGSC applications processed during this period, of which a considerable proportion were from Indian applicants. Migration Trends 2003/2004 32

Figure 5.7 Approvals through the GSC/IGSC from India between July 2002 and June 2004 1000 900 800 number of approvals 700 600 500 400 300 200 100 0 Jul-02 Aug-02 Sep-02 Oct-02 Nov-02 Dec-02 Jan-03 Feb-03 Mar-03 Apr-03 May-03 Jun-03 Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03 Jan-04 Feb-04 Mar-04 Apr-04 May-04 Jun-04 month and year 5.3.2 Number of people per approved application There was an average of 2.4 people included in approved GSC/IGSC applications. The smallest application included one person and the largest included 9 people. 5.3.3 Age and gender of approvals Figures 5.8 and 5.9, below, show the age ranges and gender of those approved for residence through the GSC/IGSC in 2003/2004. Fifty-one percent of approvals were between the ages of 20 and 39 years, 31 percent were under 20 years and 18 percent were aged 40 or over. Only three percent of approvals were 50 years and over. The small proportion of GSC/IGSC migrants over the age of 50 is a reflection of the points system, which did not allow principal applicants to be older than 55 years at the time the application was made. Maximum points for age were awarded to those principal applicants aged between 25 and 29 years with points for age decreasing after this. Zero points were awarded to those aged between 50 and 55 years. Figure 5.8 Age ranges of GSC/IGSC approvals in 2003/2004 Total = 16,270 6000 5000 28% 31% Number of applicants 4000 3000 2000 20% 10% 1000 3% 5% 3% 0 Under 16 16 to 19 20 to 29 30 to 39 40 to 44 45 to 49 50 and over Age group Migration Trends 2003/2004 33

There was an equal proportion of males and females approved through the GSC/IGSC. Of the principal applicants approved, 61 percent were male and 39 percent were female. Of the non-principal applicants, 57 percent were female and 43 percent were male. These proportions are very similar to those seen in the last three years. Figure 5.9 Gender of GSC/IGSC approvals in 2003/2004 Total = 16,270 Principal applicant Non-principal applicant 9000 8000 7000 Number of applicants 6000 5000 4000 3000 43% 57% 2000 61% 1000 39% 0 Male Gender Female 5.3.4 Job search visa Between March 2000 and July 2003, principal applicants applying for residence through the GSC, and who were within five points of the passmark, could be invited to apply for an open work permit or JSV. The invitation was conditional upon the applicant not having been awarded points for an offer of employment and meeting the necessary health, character and English language requirements. A JSV enabled such applicants to search for a job in New Zealand for up to six months with the aim of obtaining a job offer and sufficient points for residence. The residence application was deferred for a period of up to nine months and then further assessed if an acceptable offer of employment was provided to the NZIS within the deferral period. Between 1998 and 2002, any job offer, regardless of relevance to an applicant s qualifications or work experience, could earn five points. From 4 February 2002, applicants for residence through the GSC were awarded maximum job offer points only if the job offer was relevant to their qualifications or work history. Non-relevant job offers attracted two settlement points. From 20 November 2002, JSVs were issued only to applicants with qualifications relevant to occupations on the Occupational Shortages List. The JSV was closed on 1 July 2003, therefore the following analysis relates only to those applications made prior to July 2003. Between July 2002 and June 2003, 1,674 principal applicants were issued with a JSV. The largest source countries were India (29 percent), China (16 percent) and Great Britain (15 percent). At the end of June 2004, 87 percent had converted to residence. With the closure of the JSV in July 2003, only 191 principal applicants were granted a JSV in the 2003/2004 financial year. At the end of the current period, 63 percent had converted to residence. Migration Trends 2003/2004 34

5.3.5 Talent visas and priority occupations list The Talent and Priority Occupations List (POL) policies enable applicants to work to residence. They are issued only to principal applicants, like other work permits. To qualify for a Talent Visa (Accredited Employer) an applicant needs to have an offer of employment in New Zealand for at least 24 months with an accredited employer and a minimum base salary of NZ$45,000 per annum. Alternatively, an applicant deemed to have exceptional talent in a declared field of art, culture or sport can be sponsored by a New Zealand organisation of national repute in the declared field. To qualify through the POL policy, a suitably qualified applicant needs to have an offer of employment in New Zealand for at least 24 months in an occupation that is included on the Priority Occupations List. The offer of employment must meet the specifications for that occupation. After two years permit holders may apply for residence if they continue to meet the requirements of the policy. Figure 5.10 shows the nationality of individuals issued a Talent Visa or POL work permit in 2003/2004. Permits were issued to a diverse range of nationalities, particularly those issued under the Talent (Arts, Culture, Sports) policy. The highest proportion of permit holders across all three work to residence policies was from Great Britain. Approximately half of those issued a POL or Talent Visa (Accredited Employer) work permit were from Great Britain (48 percent and 54 percent respectively), followed by South Africa (16 percent and 8 percent respectively). Figure 5.10 Nationality of work to residence permit holders for POL and Talent Visa work permits issued in 2003/2004 Combined total = 1,265 Other 23% Other 27% Great Britain 23% Other 26% USA 4% Germany 4% Canada 5% South Africa 16% Great Britain 48% India 5% Fiji 5% China 5% USA 5% Vietnam 6% South Africa 6% South Korea 18% China 3% USA 4% South Korea 5% South Africa 8% Great Britain 54% Priority Occupation List n = 546 Talent (Arts, Culture, sports) n = 62 Talent (Accredited Employer) n = 657 Figure 5.11 shows the increase in the number of Talent Visas and POL work permits issued to individuals in the current period. Over four times as many POL work permits were issued in 2003/2004 compared with 2002/2003 (546 compared with 120), while the number of Talent Visas (Accredited Employers) issued has doubled - 657 in 2003/2004 compared with 302 in 2002/2003. Migration Trends 2003/2004 35

Figure 5.11 2003/2004 Talent visas and Priority Occupations List work permits issued in 2002/2003 and 700 600 2002/2003 2003/2004 number of permits issued 500 400 300 200 100 0 Priority Occupation Talent - Arts, Culture and Sports Talent (Accredited Employer) Permit Type Work to residence permit holders are not counted in the number of residence approvals until the year in which they convert to residence. At the end of June 2004, very few people had held a Talent Visa or POL work permit for the 24 month period, yet a small number had gained residence through other categories. Since the work to residence policy came into effect, 1,711 people have been granted a Talent Visa or POL work permit. At the end of June 2004, 113 people (7 percent) had been granted residence. Table 5.6 shows the residence categories through which applicants were approved and the proportion approved through each category. Table 5.6 Residence categories through which Talent Visa and POL work permit holders were granted residence as at 30 June 2004 Residence Category Number of Approvals Proportion Approved 1995 General Skills 80 71% Skilled Migrant 21 19% Other 12 11% Total 113 100% 5.4 Business Categories Business immigration policy seeks to increase New Zealand s level of human and investment capital as well as increase enterprise, innovation, and foster international links. 5.4.1 Total business approvals In the 2003/2004 financial year, 3,712 people were approved for residence through the Business categories. This represented 9.5 percent of all residence approvals for the current period. In 2002/2003, 3,793 people were approved, and 4,517 were approved in 2001/2002. While the number of approvals in 2003/2004 was similar to the previous year, there has been considerable change in the number of approvals within the two main Business categories. The proportion of approvals through the Entrepreneur Category has increased to 43 percent of all Business approvals 1,600 in 2003/2004 compared with 256 in 2002/2003, while Investor Category approvals have declined 2,101 (57 percent of Business approvals) compared to 3,498 (92 percent of Business approvals) in 2002/2003. There were 11 Migration Trends 2003/2004 36

approvals through the Employees of Relocating Businesses Category in 2003/2004 (less than 1 percent), compared with 36 in 2002/2003. 5.4.2 Number of people per approved application There was an average of 3.4 people per approved Business category application in the current period. The Investor Category had an average of 3.3 people per approved application, the Entrepreneur Category had 3.4 and the Employees of Relocating Business Category had an average of 3.7 people per approved application. The average family size continues to be larger for approved applications through the Business categories than through the Skilled categories. 5.4.3 Investor Category Figure 5.12 compares the nationalities of approvals through the Investor Category in 2002/2003 with those approved in 2003/2004. There has been an increase in the diversity of nationalities. Approval numbers have increased for many of the source countries over the last 12 months. In 2003/2004 there were a greater number of investors from Great Britain, Singapore, Malaysia, Hong Kong and the United States of America. China remains the largest source country but approval numbers have declined significantly since November 2002. The number of approvals from Taiwan and South Korea has also fallen in 2003/2004. Figure 5.12 Nationality of Investor Category approvals 2002/2003 (n = 3,498) 2003/2004 (n = 2,101) Netherlands Hong Kong 1% 1% USA Malaysia 2% 3% Great Britain 6% Others 4% Hong Kong 3% Singapore 3% USA 5% Other 7% China 35% South Korea 11% Malaysia 6% China 57% Taiwan 10% Taiwan 15% South Korea 11% Great Britain 20% Figure 5.13 shows the extent of the decline in applications from China. Inflows fell from November 2002 because of changes to the English language requirements for principal applicants through this category and because of tighter requirements around the source of funds. Application flows from China have continued to decline throughout 2003/2004. Migration Trends 2003/2004 37

Figure 5.13 Application inflows through the Investor Category from July 2002 to June 2004 350 300 250 200 150 100 50 0 Jul-02 Aug-02 Sep-02 Oct-02 Nov-02 Dec-02 Jan-03 Feb-03 Mar-03 Apr-03 May-03 Jun-03 Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03 Jan-04 number of applications Feb-04 Mar-04 Apr-04 May-04 Jun-04 China Great Britain Other month and year Principal applicants through the Investor Category are awarded points for age, business experience and investment funds. The minimum amount of investment is NZ$1 million. Table 5.5 shows the points structure for the Investor Category. Table 5.5 Points Structure for the Investor Category Age Business Investment Funds Points Points (Years) Experience (Years) ($NZ) Points 25 29 10 2 years 1 $1,000,000 1 30 34 9 4 years 2 $1,500,000 2 35 39 8 6 years 3 $2,000,000 3 40 44 6 8 years 4 $2,500,000 4 45 49 4 10 years 5 $3,000,000 5 50 54 2 $3,500,000 6 55 64 0 $4,000,000 7 65 74-2 $4,500,000 8 75 84-4 $5,000,000 9 $5,500,000 10 $6,000,000 11 Table 5.6 provides a breakdown of points awarded for Investor Category migrants. The passmark was 12 in the current period. Two-thirds of Investor Category principal applicants were aged between 35 and 44 years and over half (63 percent) had at least 10 years prior business experience. A high proportion (77 percent) were making an investment of NZ$1 million, although 24 principal applicants were investing NZ$4 million or more. Migration Trends 2003/2004 38

Table 5.6 Breakdown of Investor Category points awarded to principal applicants approved in 2003/2004 Total = 629 Category Points breakdown Age -4 pts -2 pts 0 pts 2 pts 4 pts 6 pts 8 pts 9 pts 10 pts 0 (0%) 5 (1%) 18 (3%) 21 (3%) 71 (11%) 230 (37%) 181 (29%) 72 (11%) 31 (5%) Business 0 pts 1 pts 2 pts 3 pts 4 pts 5 pts experience 13 (2%) 13 (2%) 47 (7%) 105 (17%) 56 (9%) 395 (63%) Investment 1 pts 2 pts 3 pts 4 pts 5 pts 6 pts 7 pts 8 pts 9 pts 10 pts 11 pts funds 483 (77%) 19 (3%) 74 (12%) 4 (1%) 24 (4%) 1 (0%) 16 (3%) 0 (0%) 6 (1%) 0 (0%) 2 (0%) 5.4.4 Entrepreneur Category Figure 5.14 shows the nationality of people approved through the Entrepreneur Category in the current period. The number of people approved through this category has increased considerably during the current financial year as a growing number of people on LTBV s became eligible for residence (see 5.4.6 below). In the current year, 1,600 people (476 principal applicants) were approved, up from 256 people (86 principal applicants) in 2002/2003 and 77 people in 2001/2002. South Korea was the largest source country in 2003/2004 with half of all approvals (49 percent), followed by China (19 percent) and Fiji (7 percent). Figure 5.14 Nationalities of Entrepreneur Category approvals in 2003/2004 Total = 1,600 Other 17% South Africa 3% Great Britain 4% Fiji 7% South Korea 49% China 19% 5.4.5 Employees of Relocating Businesses Category Eleven people were approved through the Employees of Relocating Businesses Category in the current period 6 from China and 5 from Great Britain. 5.4.6 Long Term Business Visas and the Entrepreneur Category The LTBV is a temporary immigration policy that caters for people who are interested in establishing a business in New Zealand, and then subsequently applying for residence through the Entrepreneur Category. People can also use the LTBV if they are interested in establishing a business in New Zealand but are not living permanently in New Zealand. Until 20 November 2002, an LTBV was issued for three years and could be extended by a further three years if necessary. LTBV holders could apply for residence after being self-employed in the country for two years. The LTBV is now issued for 9 months. Within or at the end of the 9 month period, applicants need to provide evidence of having established a business to be granted an extension to their LTBV for the remainder of the 3-year term (including the Migration Trends 2003/2004 39

initial 9 months). The LTBV can still be renewed for 3 years if certain conditions are met, and holders can still apply for residence after being self-employed in the country for two years. Since the LTBV was introduced in March 1999, 10,919 people (4,417 principal applicants) have been approved for LTBVs. In 2003/2004, 1,024 people (433 principal applicants) were granted an LTBV. LTBV approvals began to decrease from the quarter beginning October 2002. The decline stemmed from the new requirements introduced in November 2002. The policy changes required applicants to meet a minimum standard of English (or pre-purchase English language tuition). The following analysis is of those principal applicants who would have spent over three years on an LTBV by June 2004 and examines their conversion rates to residence. Between 1 March 1999 and 30 June 2001, 1,037 principal applicants were granted an LTBV. By the end of June 2004, 573 of these 1,037 principal applicants (55 percent) had converted to residence (a minimum of three years after being approved for an LTBV). The following table lists the categories through which these LTBV holders converted to residence. As at 30 June 2004, 76 percent (435 people) converted via the Entrepreneur Category. These 435 people are 42 percent of the 1,037 principal applicants who were granted an LTBV between March 1999 and June 2001. Table 5.7 Residence categories through which LTBV holders (March 1999-June 2001) were granted residence Residence category Number of principal applicants Percent of conversions to residence Percent of LTBV principal applicants Entrepreneur category 435 76% 42% 1995 General skills 67 12% 6% Investor category 32 6% 3% 2001 Family sibling 13 2% 1% Partnership (includes Family Marriage and De facto 11 2% 1% Ministerial direction 5 1% 0% 2001 Family child adult 4 1% 0% Employees of businesses 2 0% 0% 1995 Humanitarian 2 0% 0% 1995 Family parent 2 0% 0% Total conversions 573 100% 55% Total LTBV principal applicants 1,037 100% Table 5.8 shows the overall numbers of LTBV holders (since the policy began in March 1999) who have converted to residence. The table is arranged in descending order of the categories through which principal applicants converted to residence. To date, the majority have been granted residence through the Entrepreneur Category and the GSC. Seventy-two percent of all principal applicants converted to residence through the Entrepreneur Category, up from 40 percent in 2002/2003. Migration Trends 2003/2004 40

Table 5.8 Residence categories of LTBV conversions to residence between March 1999 and June 2004 Residence category Number of LTBV principal applicants approved for residence Number of secondary applicants approved for residence Total number of LTBV applicants approved for residence Entrepreneur Category 569 973 1,542 1995 General skills 107 296 403 Investor category 52 167 219 Partnership (includes Family 25 16 41 Marriage and De facto) 2001 Family sibling 17 37 54 Ministerial direction 6 17 23 Employees of businesses 5 8 13 2001 Family child adult 5 8 13 1995 Humanitarian 3 8 11 Other 6 8 14 Total 795 1,538 2,333 From March 1999 until June 2004, 569 LTBV principal applicants were approved for residence through the Entrepreneur Category, or 1,542 people if secondary applicants are included. Altogether, 795 principal applicants (2,333 people in total) on an LTBV had become resident through a variety of residence categories. 5.5 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 sitting an English language assessment test. Secondary applicants can pre-purchase English language tuition in New Zealand. 8 The International English Language Testing System (IELTS) is used to assess ability in English. IELTS is jointly managed by the University of Cambridge Local Examinations Syndicate (UCLES), the British Council, and IDP Education Australia (IELTS Australia), and is an international test that provides an assessment of ability in English. Its General and Academic Modules provide band totals (test results) showing overall ability as well as performance in listening, reading, writing and speaking. The band scores range from 1 being a Non User to 9 being an Expert User of English. When English language skills are uncertain, prospective migrants can be asked to sit this test or to submit existing test results. People from English language backgrounds do not need to sit the IELTS test. Table 5.9 provides a very brief summary of what the scores in each band mean in a practical sense. 8 Under the SMC, a principal applicant s partner must have an English speaking background or have reached an average IELTS score of 6.5 if they are claiming points for a job or qualification. Migration Trends 2003/2004 41

Table 5.9 IELTS Test Results Description of Band Scores Scores Descriptions Has fully operational command of the language: appropriate, accurate 9 Expert User and fluent with complete understanding Has fully operational comment of the language with only occasional unsystematic inaccuracies, and inappropriacies. Misunderstandings 8 Very Good User may occur in unfamiliar situations. Handles complex detailed argumentation well. Has operational command of the language, though with occasional inaccuracies, inappropriacies and misunderstandings in some 7 Good User situations. Generally handles complex language well and understands detailed reasoning. Has generally effective command of the language despite some 6 Competent User inaccuracies, inappropriacies and misunderstandings. Can use and understand fairly complex language, particularly in familiar situations. Has partial command of the language, coping with overall meaning in 5 Modest User most situations, though is likely to make many mistakes. Should be able to handle basic communication in own field. Basic competence is limited to familiar situations. Has frequent 4 Limited User problems in understanding and expression. Is not able to use complex language. Conveys and understand only general meaning in very familiar 3 Extremely Limited User situations. Frequently breakdowns in communication occur. No real communication is possible except for the most basic information using isolated words or short formulae situations and to 2 Intermittent User meet immediate needs. Has great difficulty understanding spoken and written English. Essentially has no ability to use the language beyond possibly a few 1 Non User isolated words. 0 Did Not Attempt the Test No assessable information provided. As of 20 November 2002, GSC principal applicants (and IGSC principal applicants from 2 July 2003) had to score an average of 6.5 across all bands (listening, oral, reading, and writing). Principal applicants through the Business categories required an average of 5.0 across all bands. Secondary applicants 16 years and over had to have an English speaking background, an average IELTS score of 5, or have pre-purchased ESOL training if they did not meet the required standard. 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. Table 5.10 shows the overall average scores achieved in 2003/2004 by those required to provide an IELTS certificate for use in determining whether the applicant met the minimum standard of English. IELTS scores were available for 3,432 migrants, the majority of whom were approved through the GSC/IGSC. Principal applicants scored an overall average of 6.18 across all four bands and secondary applicants scored an average of 5.78. Scores were generally highest on oral (or speaking) and lowest on listening. Secondary applicants tended to score lower than principal applicants. In general, migrants scored at the competent or modest English user level. Scores lower than the expected 6.5 average may be due to people being approved who had lodged their applications prior to the increase in the IELTS scores discussed above. Approvals through the SMC scored at the competent or good user level, with principal applicants scoring an average of 7.11. The low overall average score for principal applicants through the Entrepreneur Category is likely to have resulted from the applicants having held an LTBV before November 2002, and Migration Trends 2003/2004 42

therefore eligible to apply through the Entrepreneur (Transitional) Category where the English language requirements were lower than they are through the Entrepreneur Category. The overall average for Entrepreneur Category approvals is higher when the Transitional approvals are excluded from the analysis. Appendix E provides a breakdown of the IELTS scores for the Skilled/Business Stream by the top 12 countries. Table 5.10 Skilled/Business Stream IELTS assessment scores 2003/2004 Total = 3,432 Application criteria Applicant type Number sitting test Average listening score Average oral score Average reading score Average writing score Average score 1995 General skills/ Principal 1,904 6.15 6.38 6.14 6.25 6.23 Interim General Skills Secondary 1,056 5.70 6.02 5.68 5.84 5.81 Entrepreneur Category Principal 84 4.98 5.68 5.19 5.30 5.29 Secondary 175 5.53 5.63 5.27 5.17 5.40 Investor Category Principal 119 5.70 6.03 5.73 5.71 5.79 Secondary 64 6.20 6.37 6.30 6.12 6.25 Skilled Migrant Principal 20 7.08 7.08 7.38 6.90 7.11 Secondary 10 6.30 6.30 6.25 6.10 6.24 Overall averages Principal 2,127 6.09 6.34 6.10 6.19 6.18 Secondary 1,305 5.70 5.99 5.66 5.77 5.78 The average score for Skilled/Business Stream principal applicants has increased across all bands compared with the 2002/2003 year. The average score for principal applicants was 6.18 in the current period compared with 5.93 in 2002/2003. 5.6 Occupations of residence approvals Occupational data is recorded for a number of residence categories. 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 (and subsequently IGSC) applicants, the migrants previous main occupation has been captured on the residence application form since 1 October 2001. In addition, the occupation of job offers (when required for points or residence) has been captured for GSC, IGSC and Family Category sibling and adult children migrants. The information about occupations presented below applies only to approvals through the Skilled categories. Experience shows that migrants are likely to settle quickly, remain permanently and make a greater contribution to New Zealand's economic and social well-being if they are able to apply their particular skills in satisfying employment. The information presented here provides a basis to evaluate the impact of migrants on the New Zealand labour market. 5.6.1 Methodology Principal applicants through the SMC and GSC/IGSC are currently required to respond to the question what is your main occupation? (Your main occupation is the job you spent most hours doing in the last 12 months. If you have not worked in the last 12 months, please state your previous occupation. If you have not worked for the last 5 years or more, please state Not applicable ). The New Zealand Standard Classification of Occupations is used to classify both the main occupation and job offer occupation. The occupations have been collapsed to level 1 for reporting purposes. The data is only collected for the principal applicant in each application. Migration Trends 2003/2004 43

5.6.2 Skilled Migrant Category The following analysis is of all principal applicants approved through the SMC as at 30 June 2004. Relatively few people have been approved to date and these principal applicants are likely to have scored a very high number of points (since the initial selection points were high). Therefore, this analysis is not necessarily representative of the people who will be approved through the SMC over the coming financial year. Table 5.11 shows the most common occupational groups for those approved to date. The majority of principal applicants had a main occupation classified as Professional, and in particular, recorded occupations in the health and education sectors. A lower 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. Table 5.11 Main occupational group for principal applicants approved through the SMC in 2003/2004 Total = 214 Main Occupation n % Legislators, Administrators, Managers 20 9.3 Professionals 154 72.0 Technicians and associate professionals 20 9.3 Clerks 0 0 Service and sales workers 1 0.5 Agriculture and fishery workers 1 0.5 Trades workers 18 8.4 Plant and machine operators and assemblers 0 0 Elementary occupations 0 0 Total 214 100 5.6.3 General Skills/Interim General Skills Categories Data is available for approximately 88 percent of the total number of approved principal applicants. There are a number of reasons for the incomplete dataset. Some principal applicants may have been approved on the pre-october 2001 application form and therefore did not record their main occupation. Under the GSC some principal applicants were able to claim enough points to meet the passmark without needing to claim points for a job offer. The main occupations of the principal applicants in the GSC/IGSC in 2003/2004 are illustrated in Table 5.12. Of the 6,036 principal applicants with data for a main occupation, 2,548 (42 percent) were classified as Professionals, followed by Technicians and associate professionals (17 percent) and Legislators, administrators and managers (16 percent). In 2002/2003, 42 percent were Professionals, 18 percent were Technicians and associate professionals and 17 percent were Legislators, administrators and managers. Migration Trends 2003/2004 44

Table 5.12 Main occupation for principal applicants in the GSC/IGSC in 2003/2004* Total =6,036 Occupation in home country n % Legislators, Administrators, Managers 956 16 Professionals 2,548 42 Technicians and associate professionals 1,056 17 Clerks 287 5 Service and sales workers 287 5 Agriculture and fishery workers 103 2 Trades workers 723 12 Plant and machine operators and assemblers 71 1 Elementary occupations 5 0.1 Total 6,036 100 * Note that for some applicants, the main occupation may be the one they had in New Zealand in the period prior to their residence approval, for other applicants it may have been their home country occupation. Table 5.13 illustrates the New Zealand job offer for the principal applicants in the GSC/IGSC. The occupation of the job offer was recorded for 6,006 principal applicants. The highest proportion of job offers was classified as Professionals (38 percent) followed by Technicians and associate professionals (17 percent) and Legislators, administrators and managers (16 percent). Twelve percent of job offers were for Trades workers. Table 5.13 Occupation of job offer in New Zealand for principal applicants in the GSC/IGSC in 2003/2004 Total = 6,006 Job offer occupation n % Legislators, Administrators, Managers 933 16 Professionals 2,290 38 Technicians and associate professionals 1,049 17 Clerks 394 7 Service and sales workers 380 6 Agriculture and fishery workers 122 2 Trades workers 732 12 Plant and machine operators and assemblers 87 1 Elementary occupations 19 0.3 Total 6,006 100 Table 5.14 provides a cross tabulation of the principal applicant s main occupation by job offer. Main occupation and job offer information was recorded for 5,382 principal applicants. Of the 2,548 applicants whose main occupation was classified as Professionals, 75 percent (1,911) had a job offer in the same classification. Overall, there appears to be a strong correlation between the occupational classification of the main occupation and the job offer in New Zealand an 80 percent match up from 74 percent in 2002/2003. However, the increasing proportion of applicants working in New Zealand prior to gaining residence may artificially inflate this correlation. When onshore applicants were excluded from the analysis the correlation decreased to 71 percent. Migration Trends 2003/2004 45

Table 5.14 Main occupation by job offer in New Zealand for GSC/IGSC principal applicants in 2003/2004 Total = 5,382 Main occupation Legislators, Administrators, Managers Legislators, Administrators, Managers Professionals Technicians and associate professionals Job offer occupation Clerks Service and sales workers Agriculture and fishery workers Trades workers Plant and machine operators and assemblers 538 74 42 33 33 2 12 4 0 738 Professionals 111 1,911 128 56 39 11 24 5 1 2,286 Technicians and associate professionals 63 106 687 16 26 8 29 9 2 946 Clerks 28 12 29 165 9 1 0 244 Service and sales workers 15 9 10 11 226 1 1 273 Agriculture and fishery workers 4 2 1 1 94 1 0 103 Trades workers 9 21 22 2 1 644 10 0 709 Plant and machine operators and assemblers Elementary occupations Total 2 1 5 1 7 51 1 68 Elementary occupations 5 2 0 0 2 1 0 1 4 15 Total 775 2,138 924 285 336 116 718 81 9 5,382 Migration Trends 2003/2004 46

6.1 Introduction 6 FAMILY SPONSORED STREAM This section provides a breakdown of approvals through the Family Category overall, and its various sub-categories. The characteristics of those approved through the former Humanitarian Category and the October 2000 Transitional Policy are also examined. This section also discusses the increasing demand for residence through the Family Sponsored Stream. Residence application inflows 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. Figure 6.1 shows the growth in the number of people on hand since October 2001. At the end of the current financial year there were 11,661 people in 7,799 applications waiting to have their applications processed. This is enough people on hand to fill approximately 86 percent of places in the 2004/2005 NZIP for the Family Sponsored Stream. The NZIP limit for 2004/2005 is 13,500 approvals (+1,500 if required). Unless there are changes made to the NZIP, further inflows of applications will inevitably lead to a backlog. Figure 6.1 Growth in the number of people on hand in the Family Sponsored Stream 13000 12500 12000 Number of people on hand 11500 11000 10500 10000 9500 9000 8500 8000 2001-10 2001-12 2002-02 2002-04 2002-06 2002-08 2002-10 2002-12 2003-02 2003-04 2003-06 2003-08 2003-10 2003-12 2004-02 2004-04 2004-06 Month and year * Note that the left-hand axis begins at 8,000. Inflows of people applying for residence through the Family Category fell after the policy changes in October 2001, particularly through the Family Parent and Family Sibling subcategories. Over the last three years however, the number of people applying has increased. Much of the growing demand has come from parents and partners of New Zealand citizens or residents. Figure 6.2 shows the number of people applying per month since October 2001. The dashed line indicates the growth trend in the number of people applying through this stream. The dotted line indicates the approximate number of approvals required per month to achieve the 13,500 limit set for this stream in 2003/2004. Not all people who apply will be approved for residence, but inflows are clearly outnumbering the places available in the NZIP. 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 Migration Trends 2003/2004 47

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. Figure 6.2 Number of people applying for residence through the Family Sponsored Stream from October 2001 1800 1700 1600 Number of people accepted 1500 1400 1300 1200 1100 1000 900 800 2001-10 2001-12 2002-02 2002-04 2002-06 2002-08 2002-10 2002-12 2003-02 2003-04 2003-06 2003-08 2003-10 2003-12 2004-02 2004-04 2004-06 Month and year Notes: 1. The dashed line indicates the growth trend in people applying for residence through this stream 2. The dotted line indicates the approximate number of approvals required per month to achieve the 13,500 limit set for the Family Sponsored Stream 3. The left-hand axis begins at 800. 6.3 Family Category Approvals The Family Category enables close family members of New Zealand residents and citizens to be granted residence in some circumstances. A total of 12,380 people (32 percent of all residence approvals) were approved for residence through the Family Category in 2003/2004. In 2002/2003, approvals through the Family Category were 13,045 (or 27 percent of all approvals), and in 2001/2002, 11,773 people (22 percent) were approved. 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 equally when applying for residence through the Family Category. Under Partnership policy a couple must provide evidence that their relationship is genuine and stable whether they are married or de facto. Applicants must have been living in a genuine and stable partnership for 12 months or more at the time they lodge their application. For the purpose of this analysis the Marriage, De facto and Partnership sub-categories have been combined (see Table 4.2 in Chapter 4 for approval numbers through the individual sub-categories). Figure 6.3 shows the sub-categories in the Family Category through which people were approved in 2002/2003 and in the current period. Over half (58 percent) of the people approved in 2003/2004 were the spouse or partner of a New Zealand citizen or resident. A further 21 percent of approvals were the parent of a person living in New Zealand, up from 18 percent in 2002/2003. Nine percent of people approved were the sibling of a New Zealand citizen or resident. 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 Migration Trends 2003/2004 48

source of approvals. Approvals from India, Samoa, Tonga and South Africa have been relatively stable since 1997/1998. In 2003/2004, 18 percent of approvals were from Great Britain, followed by China (12 percent), Fiji and India (9 percent each). Figure 6.3 Approvals through the Family Category in 2002/2003 and 2003/2004 2002/2003 (n = 13,045) 2003/2004 (n = 12,380) Dependent Child 8% Adult Child 3% Family quota 2% Adult Child 3% Dependent Child 8% Family quota 2% Sibling 10% Sibling 9% Parent 18% Marriage and De facto 60% Parent 21% Partnership 58% 6.3.1 Partnership A growing number of people applied for residence through Partnership policy (including Marriage and De facto sub-categories) in 2003/2004. Application inflows increased significantly in the first half of the year when the new Partnership policy came into effect. Figure 6.4 shows the largest source countries of approvals through the Partnership subcategory (including Marriage and De facto). The combined number of approvals through these sub-categories in 2003/2004 was 7,159 (58 percent of the Family Category), compared with 60 percent in 2002/2003. The largest source countries of approvals remained consistent from 2000/2001. Those same three countries (Great Britain, China and India) now account for a large proportion (43 percent) of Partnership approvals. Great Britain has been the largest source country of partnership approvals since 2000/2001. Figure 6.4 Nationality of approvals through the Partnership, Marriage and De facto subcategories 9 2002/2003 (n = 7,844) 2003/2004 (n = 7,159) Other 34% Great Britain 21% Other 32% Great Britain 23% Philippines 2% Japan 3% Tonga 3% Thailand 3% Samoa 5% USA 5% Fiji 5% India 8% China 11% Philippines 2% Thailand 3% Japan 3% Tonga 3% Samoa 3% Fiji 5% USA 6% India 9% China 11% 9 Partnership Policy came into effect in September 2003. The comparable categories in 2002/2003 were Family Marriage and Family De facto, and have been combined for the purpose of this analysis. The 2003/2004 chart combines Partnership, Marriage and Family De facto approvals. Migration Trends 2003/2004 49

6.3.2 Family Parent The number of people applying for residence through the Family Parent sub-category has gradually increased over the last 12 months. The demand through this sub-category is expected to increase further in 2004/2005. There was an overall decline in the flow of Family Parent applications after October 2001. Application flows from China declined from an average of 70 per month in the period October 2000 to September 2001, to an average of 23 per month in 2003/2004. Figure 6.5 shows the decline in the flow of applications immediately after the October 2001 policy changes and the gradual increase since that time. Figure 6.5 Residence application inflows in the Family Parent sub-category between October 2000 and June 2004 600 500 Number of applications 400 300 200 100 0 Oct-00 Dec-00 Feb-01 Apr-01 Jun-01 Aug-01 Oct-01 Dec-01 Feb-02 Apr-02 Jun-02 Aug-02 Oct-02 Dec-02 Feb-03 Apr-03 Jun-03 Aug-03 Oct-03 Dec-03 Feb-04 Apr-04 Jun-04 Month and Year The Family Parent sub-category had the second largest number of approvals through the Family Category, with 2,553 approvals in 2003/2004 (21 percent of the Family Category). The largest source countries of approvals in 2002/2003 and 2003/2004 are shown in Figure 6.6. In 2003/2004, the largest source country was Great Britain (22 percent), followed by India (14 percent) and China (12 percent). The largest source countries have remained the same since 2001/2002, although the proportion from Great Britain has increased while the proportion from China has decreased. The proportion of Family Parent approvals from China decreased from 27 percent in 2001/2002 to 12 percent in the current period. Figure 6.6 Nationality of approvals through the Family Parent sub-category 2002/2003 (n = 2,350) 2003/2004 (n = 2,553) Sri Lanka 2% Philippines 2% South Korea 4% Tonga 5% Samoa 5% Other 17% Great Britain 20% India 14% Sri Lanka 1% Philippines 2% South Korea 3% Samoa 5% Tonga 5% Other 18% Great Britain 22% India 14% South Africa 6% Fiji 11% China 14% South Africa 8% Fiji 9% China 12% Migration Trends 2003/2004 50

6.3.3 Other Family approvals Figure 6.7 shows the nationalities of those approved through other Family sub-categories in 2002/2003 and 2003/2004. These sub-categories include Family Dependent Child, Family Adult Child, Family Sibling and Family Quota. There were 2,668 people approved through these sub-categories in the current period, compared with 2,836 in 2002/2003. China has remained the largest source country since 2000/2001, accounting for 19 percent of approvals in 2003/2004. The largest source countries have remained fairly consistent since 2000/2001. Figure 6.7 Nationality of approvals through other Family sub-categories 2002/2003 (n = 2,836) 2003/2004 (n = 2,668) Other 19% China 21% Other 19% China 19% Thailand 2% South Korea 2% Philippines 3% South Africa 4% Tonga 6% Fiji 16% Hong Kong 2% South Korea 2% Philippines 3% South Africa 5% Tonga 7% Fiji 17% India 9% Samoa 9% Great Britain 9% India 7% Great Britain 9% Samoa 10% Family Sibling approvals accounted for 9 percent of the Family Category in 2003/2004. After October 2001 there was a large spike in application inflows through the Sibling sub-category (Figure 6.8). The policy changes introduced new provisions for adult siblings and adult children, allowing them to bring families whereas previously they needed to be single. The spike would appear to represent pent up demand for residence from siblings who also had their own family. Since the spike there has been a general decline in applications received. This sub-category has also been included in the three-year wait for sponsoring less dependent relatives and applications are expected to increase in 2004/2005. Figure 6.8 Residence application inflows in the Family Sibling sub-category between October 2000 and June 2004 120 110 100 90 Number of applications 80 70 60 50 40 30 20 10 0 Oct-00 Dec-00 Feb-01 Apr-01 Jun-01 Aug-01 Oct-01 Dec-01 Feb-02 Apr-02 Jun-02 Aug-02 Oct-02 Month and year Dec-02 Feb-03 Apr-03 Jun-03 Aug-03 Oct-03 Dec-03 Feb-04 Apr-04 Jun-04 Migration Trends 2003/2004 51

6.3.4 Number of people per approved application The average number of people per approved Family Category application was 1.3. A large proportion of approved applications (59 percent) consisted of only one person. The largest approved application included 10 people. 6.4 Humanitarian Category The Humanitarian Category enabled family members of New Zealanders to be granted residence where serious humanitarian circumstances existed and New Zealand residence was the only option to resolve those circumstances. This Category was closed from October 2001, but a large number of applications were lodged before the policy closed, creating a considerable backlog of applications at that time. Only a small number of applications remain and these approvals account for a small proportion of the Family Sponsored Stream in the current period. Migrants through this Category must have had a family member who was a resident or citizen of New Zealand to sponsor their application. 6.4.1 Humanitarian approvals In 2003/2004, 317 people (less than 1 percent of all residence approvals) were approved for residence through the Humanitarian Category. In 2002/2003, 867 people were approved through this category and in 2000/2001, 1,939 (4 percent of all residence approvals) were approved. The largest source countries in the current period were Fiji and Somalia (22 percent each) and China (10 percent). In 2003/2004 the average number of people per approved application was 2.7. The smallest approved application included one person and the largest included 10 people. 6.5 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. To qualify under this policy, applicants needed to have been resident in New Zealand for five years or more and to have no convictions. People who were lawfully in New Zealand and who otherwise met these conditions could also apply for a work permit, and then qualify for residence under this policy. 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. Overall, 2,045 applications with 2,882 people were approved through the Transitional Policy in the current period. A large proportion of people granted a work permit under his policy have now had their residence applications decided, and the number of approvals through this category is likely to decrease considerably in the next financial year. In the current period there were 518 approved Transitional Policy (Family Sponsored Stream) residence applications (765 people). Of these, 41 percent came from Tonga, 26 percent from Samoa and 9 percent from Tuvalu. There were a further 1,527 approved Transitional Policy (International/Humanitarian Stream) residence applications (2,117 people). The largest proportion came from Tonga (35 percent), followed by Samoa (31 percent). Migration Trends 2003/2004 52

7.1 Introduction 7 INTERNATIONAL/HUMANITARIAN STREAM This stream includes the Refugee Quota and other refugee-linked categories such as Refugee Status and the Refugee Family Sponsored Quota. Other categories include the Pacific Access Category and the Samoan Quota, ministerial exceptions to policy, the October 2000 Transitional Policy, and other miscellaneous policies. 7.2 Refugee Quota New Zealand is a signatory to the 1951 United Nations Convention and the 1967 Protocol Relating to the Status of Refugees and accepts an annual quota of refugees. These people are mandated as in need of resettlement by the United Nations High Commissioner for Refugees (UNHCR). 7.2.1 Numbers and composition of quota In 2003/2004, 865 people were accepted for resettlement to New Zealand under the Refugee Quota Programme. Table 7.1 shows the composition of the refugee cases accepted through the quota. Table 7.1 Composition of the Refugee Quota in 2003/2004 Total = 865 Sub-category Number of people Proportion Refugee Emergency 42 5% Refugee Medical 17 2% Refugee Other 605 70% Refugee Protection 166 19% Refugee Women at Risk 35 4% Total 865 100% 7.2.2 Nationalities of quota refugees People from a number of countries have been resettled in New Zealand through the quota in recent years. The main source countries in the past five years have included Iraq, Iran, Ethiopia, Somalia, and more recently, Afghanistan. In 1999 a special exercise allowed the resettlement of 404 Kosova Albanians in addition to the quota. In the current period there was a large increase in refugees from Afghanistan. This latter group of people were resettled in New Zealand as part of the family reunification exercise to reunite Tampa refugees with their families and spouses. 10 Figure 7.1 shows the nationalities of those accepted for resettlement in New Zealand in the last two financial years. The largest source countries in 2003/2004 were Afghanistan (58 percent), followed by Eritrea and Sudan (10 and 9 percent respectively). In 2002/2003, a high proportion of quota refugees were from Iraq (61 percent). 10 The family reunification exercise was approved by the Minister of Immigration in October 2003. Approvals through this exercise were not UNHCR referrals but were included in the Refugee Quota Programme. Migration Trends 2003/2004 53

Figure 7.1 Nationality of quota refugees accepted for resettlement 2002/2003 (n = 684) 2003/2004 (n = 865) Palestine 2% Myanmar 3% Sri Lanka 4% Iran 2% Sudan 2% Others 9% Myanmar 1% Iraq 4% Somalia 6% Ethiopia 7% Iran 1% Others 4% Stateless 4% Afghhanistan 13% Iraq 61% Sudan 9% Eritrea 10% Afghanistan 58% 7.2.3 Number of people per approved application There was an average of 3.4 people per approved Refugee Quota application. The smallest approved application included one person and the largest included 14 people. 7.3 Successful refugee status claimants As a signatory to the 1951 United Nations Convention and the 1967 Protocol on the Status of Refugees, New Zealand is obliged to consider all claims for refugee status (also called asylum). Successful refugee status claimants are asylum seekers who have had their status as refugees confirmed and are legally allowed to remain in New Zealand. Asylum seekers claim refugee status after they arrive in New Zealand. 7.3.1 Successful refugee status claimants In 2003/2004, 115 people were found to have successful claims for refugee status, down from 247 in 2002/2003 and 631 in 2001/2002. Figure 7.2 shows that the number of people claiming refugee status has steadily declined since 1998/1999. Figure 7.2 Number of people claiming refugee status between 1997/1998 and 2003/2004 3000 Number of people claiming refugee status 2500 2000 1500 1000 500 0 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 Financial year Migration Trends 2003/2004 54

7.3.2 Successful refugee status claimants granted residence Residence is approved separately from refugee status. In 2003/2004, 362 successful refugee status claimants were approved for residence, compared with 713 in 2002/2003, and 785 in 2001/2002. The downward trend in the number of successful refugee status claimants being approved for residence is likely to continue as fewer people seek asylum and are granted refugee status in New Zealand. 7.3.3 Nationality of successful refugee status claimants granted residence Figure 7.3 shows the nationality of the successful refugee status claimants approved for residence in the last two financial years. In both years Iran made up the highest proportion of approvals. There was a notable increase in the proportion of approvals from Zimbabwe in 2003/2004 (22 percent), up from only 4 percent in 2002/2003. The number of successful refugee claimants granted residence from Afghanistan and Sri Lanka has declined considerably over the last two years. Figure 7.3 Nationality of successful refugee status claimants granted residence 2002/2003 (n = 713) 2003/2004 (n = 362) Others 23% Iran 27% Pakistan 3% Others 16% Iran 30% Stateless 3% Sri Lanka 3% India 3% Zimbabwe 4% Syria 4% Kuwait 5% Somalia 5% China 6% Afghanistan 6% Sri Lanka 8% Iraq 14% Czech Republic 4% Somalia 6% Iraq 7% Zimbabwe 22% 7.3.4 Number of people per approved application There was an average of 2.3 successful refugee status claimants per approved residence application. The smallest approved application included one person and the largest included 12 people. 7.4 Samoan Quota The Samoan Quota 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 2003/2004, 641 people were granted residence. The smallest approved application included one person and the largest included 9 people. There were 463 people approved in 2002/2003 and 1,042 in 2001/2002. 7.5 Pacific Access Category The Pacific Access Category (PAC) is a residence category that was established in July 2002 with Pacific countries with which New Zealand has close cultural and historical ties. As with the Samoan Quota, principal applicants must have a job offer in New Zealand. The countries and the allocated annual quotas are: Tonga (250), Tuvalu (75), Kiribati (75) and Fiji (250). Migration Trends 2003/2004 55

Eligible applicants first lodge a registration application under the PAC to be entered into a pool. All registrations must meet the requirements for the PAC to be included in the pool. Registrations are drawn randomly from the pool and invited to apply for residence. There are separate registration pools for citizens of the four countries included in the PAC. The total number of successful registrations received for the 2003/2004 pool was 5,433 (of which 4,696 were from Fiji) covering 14,765 individuals, for 650 places. Table 7.2 details the number of PAC approvals in 2003/2004. Approvals in the current period relate to successful registrants from both the 2002/2003 ballot and the 2003/2004 ballot, as detailed below. Table 7.2 Pacific Access Category (PAC) Approvals in 2003/2004 Total = 292 Category 2002/2003 registrants approved in the current period PAC approvals in 2003/2004 2003/2004 registrants approved in the current period Total people approved Fiji -* 152 152 Tonga 64 42 106 Tuvalu 14 6 20 Kiribati 3 11 14 Total 81 211 292 *Fiji was not included in the PAC until April 2003. Migration Trends 2003/2004 56

8 LONG-TERM ABSENCE OF APPROVED RESIDENTS 8.1 Introduction One long-term measure of a migrant s successful settlement and contribution to the country is the extent to which they remain in a country in the years following arrival or approval. It is important, however, to realise that people may leave the country for a number of reasons, only some of which may be related to unsuccessful settlement. The globalisation of labour flows and opportunities means it is likely that skilled individuals will be mobile, which does not mean they do not contribute to the country while they are not here. Overseas family ties also mean that recent migrants are likely to spend time out of New Zealand. In this analysis, cohorts of migrants approved for residence during the calendar years of 1998 to 2001 are tracked using data from the Immigration database. For the purpose of this analysis, a person who has been absent for 181 days (approximately 6 months) or more will be regarded as being a long-term absent migrant. A sizeable lead-time is needed when undertaking this analysis. People approved at the end of a calendar year would have had up to a year to arrive, meaning that a person approved for residence at the end of 1998 could potentially have arrived as late as the end of December 1999. The analysis is presented in two sections, one for the 1998 cohort on its own, the other looking at comparisons between the cohort years 1998 to 2001. Table 8.1 looks at the situation for the 1998 cohort four and a half years after the last date a person could have arrived to take up residence. This time is sufficient to allow migrants to either successfully settle here, or make decisions about returning home or on-migration. Table 8.3 looks at each cohort and their long term absence rates at six-monthly intervals beginning eighteen months after the end of each calendar year. There are some known technical issues involved in matching a person s movements in the Customs and Immigration computer systems. 11 These issues mean that the following analysis should be seen as indicative of the patterns of absence rather than being definitive. 8.2 Overall number of people absent 1998 cohort Table 8.1 shows the rates of absenteeism from the country of the 27,338 people who were approved for residence in the 1998 calendar year. As can be seen, 97 percent of people actually arrived to take up residence, or were approved while they were onshore. 12 The analysis shows that as at 30 June 2004, 28 percent of people who had arrived or been approved onshore were absent from the country, and 21 percent had been absent for 181 days or more. Nineteen percent had been absent from the country for a year or more. Overall, the proportion absent for six months or more had increased by 2 percent from 19 percent as at 30 June 2003. 11 These problems include: The administrative process of client linking can mean that a client s original identity is not matched up with their later movement records. This can be a problem where a person uses two different passports. Duplicate client records can prevent correct application matching to movements. In a few cases an application was reopened and then finalised after the person had travelled to New Zealand. In some instances movement information is not successfully passed between Customs and Immigration, or is not successfully outputted by the Immigration system. 12 Because of technical issues around client linking from multiple databases, it is possible that more people have taken up residence than has been recorded. Migration Trends 2003/2004 57

Table 8.1 Long-term absence of a cohort of migrants approved for residence January 1998 to December 1998, as at 30 June 2004 Total in cohort 27,338 Those who arrived or who were approved onshore 26,556 Those in cohort with post approval movements 24,900 Absent from the country between 1 and 30 days 659 2.48% Absent from the country between 31 and 60 days 294 1.11% Absent from the country between 61 and 120 days 415 1.56% Absent from the country between 121 and 181 days 352 1.33% Absent from the country between 181and 365 days 704 2.65% Absent from the country for more than 365 days 4,967 18.70% Total absent from the country as at 30 June 2004 7,391 27.83% Absent from the country for 181 days or more as at 30 June 2004 5,671 21.35% 8.3 Application categories of long-term absent migrants Table 8.2 has a breakdown of residence categories to show which migrants are most likely to be absent for six months or more. This table shows a wide variation in the proportions of migrant absenteeism, depending on immigration approval category. Excluding the smaller categories where there were less than 50 migrants, categories where there are comparatively high rates of absenteeism include the 1995 Business Investor Category, the GSC, the Family Parent sub-category and the Family Child Dependent sub-category. Categories where there are notably low rates of absenteeism include the Humanitarian Category and the Refugee Quota. Table 8.2 Proportions of migrants approved for residence January 1998 to December 1998 who are long-term absent migrants, as at 30 June 2004 Category People who arrived, or were approved onshore 13 People absent Proportion absent Business Investor 152 41 26.97% General Skills 12,042 2,950 24.50% Family parent 3,962 949 23.95% Family child dependent 737 165 22.39% Family marriage 4,732 887 18.74% Family de facto 717 130 18.13% Family sibling 342 58 16.96% Family child adult 312 51 16.35% Refugee Status 342 55 16.08% Samoan Quota 933 148 15.86% Ministerial direction 197 33 16.75% Humanitarian 1,092 114 10.44% Refugee Quota 890 83 9.33% Transition 33(2) voluntary 71 5 7.04% Other Categories 35 2 4.44% Total 26,556 5,671 21.35% Appendix F details the rates of absence by country of origin. Countries of origin featuring migrants with higher rates of long-term absence (6 months or more) and with over 100 people approved for residence in 1998 were Taiwan (52 percent), followed by Singapore and 13 The numbers in this column vary slightly from year to year because they are extracted at different times from a dynamic database. Migration Trends 2003/2004 58

Hong Kong (38 percent each), Yugoslavia, Indonesia and Ireland (37 percent each), and the United States of America (35 percent). In contrast, Fiji, Tonga and Vietnam had low rates of absence (7, 6 and 6 percent respectively). 8.4 Absence rates for the 1998 to 2001 cohorts Table 8.3 and Figure 8.1 show the rates of absenteeism from the country of the people who were approved for residence in the 1998 to 2001 calendar years. The graphs are read as the cumulative proportion of migrants in each cohort who are long term absent at six-monthly intervals. To compare cohorts, the cells should be read diagonally, as shown, to identify the comparable time period after which migrants in a given cohort could have been expected to arrive. Generally, the trend appears to be that fewer migrants are absent for six months or more in successive cohorts. Table 8.3 Long-term absence at six-monthly intervals of the cohorts of migrants approved for residence between 1998 and 2001 Total absent from the country for 181 days or more as at date Cohort Year 1998 1999 2000 2001 n = 27,338 n = 30,830 n = 37,410 n = 53,711 % % % % 30 June 2000 11.34 31 December 2000 11.89 30 June 2001 13.1 10.48 31 December 2001 15.21 11.13 30 June 2002 16.33 11.9 9.38 31 December 2002 18.26 13.5 10.02 30 June 2003 19.08 14.66 10.99 9.87 31 December 2003 20.32 15.93 12.55 9.89 30 June 2004 21.35 16.91 13.92 11.27 Figure 8.1 shows that the rates of absence in any given cohort increase over time. For example, 11.34 percent of migrants in the 1998 cohort were absent for six months or more, six months after they could have been expected to arrive (30 June 2000). Four and a half years after the end of the 1998 cohort year (30 June 2004), 21.35 percent of migrants in this cohort had been absent for six months or more. Migration Trends 2003/2004 59

Figure 8.1 Long-term absence at six-monthly intervals of the cohorts of migrants approved for residence in 1998-2001 25 Proportion absent for more than six months 20 15 10 5 0 1998 1999 2000 2001 Jun 2000 Dec 2000 Jun 2001 Dec 2001 Jun 2002 Dec 2002 Jun 2003 Dec 2003 Jun 2004 Six monthly interval Migration Trends 2003/2004 60

9.1 Introduction 9 TEMPORARY MIGRATION This chapter provides information on the number of people coming to New Zealand on student and work permits and the proportions who subsequently convert to residence. All travellers arriving in New Zealand must produce a valid passport or another form of recognised travel document, including New Zealand citizens. Except for New Zealand citizens (who include people born in the Cook Islands, Niue and Tokelau), Australian citizens, and a small number of other people exempted under the Immigration Act 1987, everyone entering New Zealand is required to obtain a permit to be in New Zealand. People who are in New Zealand on temporary permits are a potentially valuable source of residents. Those in New Zealand on work permits often have skills that are in demand and have proven New Zealand work experience. Those here on student permits are likely to be young and able to offer employers recognised New Zealand qualifications. Having participated in New Zealand society, both workers and students are likely to settle well and contribute to advancing the government s growth policies. It is increasingly being accepted that linking temporary immigration policy with residence policy can have significant benefits for both migrants and New Zealand. 9.2 Residents who had previously held a temporary permit 14 Seventy-five percent of all principal applicants approved for residence in 2003/2004 had previously held a student, work or visitor permit at some stage since July 1997. 15 However, note the limitations section of the report (Section 3.3) regarding the undercounting of residents with previous visitor permits. In 2002/2003, 65 percent of principal applicants had previously held a temporary permit and in 2001/2002, only 54 percent had. 9.2.1 Nationality of residents who previously held a temporary permit Figure 9.1 shows the proportions of principal applicants by nationality who had held a temporary permit at some stage prior to being approved for residence. Of the top ten residence nationalities in 2003/2004, the highest proportions were from Tonga (90 percent), the Philippines, South Africa and South Korea (83 percent each). There has been a notable increase since 2000/2001 in the proportion of Indian and Chinese approvals who had previously held a temporary permit. For India, the increase has been substantial from 28 percent in 2000/2001 to 79 percent in 2003/2004. Note that the data below undercounts people here previously as visitors from visa waiver countries, which would help account for the comparatively low proportion of residents from, for example, Great Britain with a previous temporary permit. The increase in the proportion of Indian principal applicants who had previously held a temporary permit is mainly a result of an increase in the number of Indians coming on work permits. The main types of work permit they held were General (skill shortage) and those through Partnership policy (including spouse and de facto). In 1997/1998, 134 out of 202 Indian principal applicants who had previously held a temporary permit had held a General work permit. In 2003/2004, 701 out of 1,310 had held a General work permit. 14 Permit in this section of the report is used 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. 15 Only the principal applicant on the residence application was included in this analysis as they are the person assessed against the policy criteria. The analysis went back as far as 1 July 1997. This is as far back as reliable data was available from MIS. Migration Trends 2003/2004 61

The increase in the proportion of Chinese principal applicants who had previously held a temporary permit is mainly a result of an increase in the number of Chinese coming on work and student permits. The main types of work permit they held were General (skill shortage) and those through Partnership policy (including spouse and de facto). In 1997/1998, 285 out of 418 Chinese principal applicants who had previously held a temporary permit had held a General work permit and 87 a Spouse work permit. In 2003/2004, 871 held a General work permit and 454 came under Partnership policy, out of 2,009. In 1997/1998, 1 Chinese principal applicant had previously held a student permit and in 2003/2004, this had increased to 233. 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 Total = 15,487 100% 90% 80% 90% 83% 83% 83% 79% 79% 78% 76% 73% 78% 75% 70% Percentage 60% 50% 40% 60% 30% 20% 10% 0% Tonga Philippines South Africa South Korea India Samoa Fiji USA China Great Britain Others Average Country 9.2.2 Type of temporary permit most recently held Work permits were the most common and student permits were the least common. Of those principal applicants who had previously held a temporary permit, 74 percent had most recently held a work permit, 23 percent a visitor permit and 3 percent a student permit. 16 In 2002/2003, 70 percent had previously held a work permit, 26 percent a visitor permit and 4 percent a student permit. Table 9.1 shows the type of work permit held by the principal applicant prior to being approved for residence in 2003/2004. Skill shortage work permits were the most common, followed by those issued to partners of New Zealand citizens or residents and those issued under the October 2000 Transitional Policy. In 2002/2003, 26 percent had previously held a skill shortage work permit and 31 percent had held a work permit issued to partners of New Zealand citizens or residents. 16 The visitor permit figure does not include people who visited New Zealand for up to three months (or up to six months for citizens of Great Britain) 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 under-reported. If people from visa-waiver countries were included in the analysis, it is likely that visitor permits would have been the most common temporary permit type held prior to being approved for residence. Migration Trends 2003/2004 62

Table 9.1 Type of work permit held by principal applicant prior to being approved for residence Total = 11,491 Type of Work Permit held by principal applicant prior to being approved for residence n % Skill shortage 4,363 38 Partnership (spouse/partner) 3,415 30 Transitional policy 1,933 17 LTBV 345 3 s35a Request 303 3 Job search 283 2 Working holiday 172 1 Others 677 6 Total 11,491 100 9.3 Work and Student Permits issued 9.3.1 Work Permits The objective of New Zealand s work permit policy is to protect employment opportunities for New Zealand citizens and residents, while still allowing employers to recruit temporary workers from overseas to meet particular or seasonal skill needs which cannot be met from within New Zealand. Anyone who is not a New Zealand or Australian citizen or resident, and who wishes to work in New Zealand, must have a work permit. In addition, each year work permits may be issued to up to 31,000 young people (aged 18-30 years) participating in reciprocal working holiday schemes which New Zealand has established with a number of countries. 17 Partners (including spouses and de facto) of New Zealand citizens and residents can also be issued with a work permit. Job Search Visas, Talent Visas and Priority Occupations List Visas are also included here. The full list of work permits is given in Appendix D. This section details the number of individuals who were granted a work or student permit in 2003/2004. If a person had been issued more than one work permit in the current period they are only counted once. Therefore, this analysis is of individuals who at any time in the year had a permit, not of the number of permits issued per se. Table 9.2 shows the growth in work permit numbers since 1997/1998. In 2003/2004, 73,587 individuals were issued work permits, compared with 66,827 in 2002/2003. Great Britain was the largest source country in the current period (26 percent), followed by Japan (9 percent). Tables 9.2 and 9.3 are ordered by the top twelve countries of approvals in the year to date. 17 The number of eligible places in Working Holiday Schemes was increased from 25,000 to 31,000 in November 2003. Migration Trends 2003/2004 63

Table 9.2 Work permits Principal Applicants granted work permits in top twelve countries 1997/1998 to 2003/2004* Country 1997/ 1998 1998/ 1999 1999/ 2000 2000/ 2001 2001/ 2002 2002/ 2003 2003/ 2004 Proportion 2003/2004 Great Britain 7,332 8,366 8,785 12,475 15,114 17,473 19,185 26% Japan 3,934 4,891 5,545 6,074 6,716 7,664 6,957 9% USA 2,419 2,629 2,621 2,803 3,201 3,990 4,504 6% China 1,306 1,420 1,120 1,955 3,156 3,618 4,023 5% India 850 978 1,281 2,233 3,639 3,450 3,659 5% Germany 573 612 725 1,116 1,923 2,601 3,530 5% South Korea 491 603 694 1,431 2,587 2,768 3,311 4% South Africa 1,000 1,168 1,278 1,632 2,509 2,861 3,062 4% Ireland 536 549 761 1,235 1,543 2,403 2,609 4% Canada 1,220 1,307 1,367 1,422 1,812 2,121 2,427 3% Fiji 946 730 798 1,410 1,779 1,534 1,680 2% France 296 370 569 669 909 1,262 1,471 2% Others 5,433 7,897 8,531 12,147 14,260 15,082 17,169 23% Total 26,336 31,520 34,075 46,602 59,148 66,827 73,587 100% * This table analyses individuals rather than the number of permits issued. If a person had been issued more than one work permit in any year, they are counted only once. Figure 9.3 shows the trends for the top 6 countries. Growth in the number of people obtaining a work permit is particularly noticeable after the 1999/2000 year. The rate of growth slowed somewhat from 2001/2002. There was a notable decline in principal applicants from Japan in the current period. Figure 9.3 Work permits Principal Applicants given work permits in top six countries 1997/1998 to 2003/2004* 40000 80000 Great Britain 35000 Japan 70000 People approved as PAs on work permits by nationality 30000 25000 20000 15000 10000 5000 USA China India Germany Others Total 60000 50000 40000 30000 20000 10000 TOTAL people approved 0 1997/1998 1998/1999 1999/2000 2000/2001 2001/2002 2002/2003 2003/2004 0 Financial year * The total line is read off the right-hand axis all others are read off the left-hand axis. Migration Trends 2003/2004 64

Approximately 34 percent of the 47,000 work permit increase since 1997/1998 can be attributed to a growth in skill shortage work permits (which are labour market related). The remainder is mainly due to the expansion of working holiday schemes, and the introduction of a variety of new permits such as the Job Search Visa (now closed) and Talent Visas. In addition, some of the applicants in the GSC/IGSC application backlog would have entered the country on a work permit prior to gaining residence. The objective of skill shortage work permits is to fill skill shortages in New Zealand. They consist of General, Talent (Accredited Employer), Priority Occupations List, Medical, some Business policies, Machinery installers, Specialist skill areas and Japanese interpreters. 18 See Appendix D for a list of work permits that are classified as skill shortages. Table 9.3 shows the growth in skill shortage work permit numbers. In 1997/1998, 11,255 people were granted a skill shortage work permit. By 2002/2003 this had doubled to 23,200. In 2003/2004, 27,426 people were granted a skill shortage work permit. Great Britain has remained the largest source country with 22 percent of all skill shortage work permits, followed by Japan with 9 percent. Table 9.3 Skill shortage work permits Principal Applicants given skill shortage work permits in top twelve countries 1997/1998 to 2003/2004* Country 1997/ 1998/ 1999/ 2000/ 2001/ 2002/ 2003/ Proportion 1998 1999 2000 2001 2002 2003 2004 2003/2004 Great Britain 3,188 2,926 3,218 3,590 4,015 4,807 6,081 22% Japan 847 969 1,992 2,415 2,430 2,721 2,409 9% USA 949 1,032 1,101 1,074 1,198 1,964 2,129 8% China 561 289 257 564 795 1,078 1,933 7% South Africa 845 989 1,032 1,046 1,399 1,702 1,787 7% India 540 515 599 888 1,174 1,492 1,655 6% South Korea 167 140 213 286 383 779 1,426 5% Zimbabwe 12 18 27 269 520 1,146 990 4% Czech Republic 7 4 16 48 92 155 696 3% Canada 722 566 472 417 478 553 672 2% Fiji 483 367 483 656 774 638 667 2% Germany 363 298 309 468 525 526 600 2% Others 2,571 3,164 3,867 4,204 4,848 5,639 6,381 23% Total 11,255 11,277 13,586 15,925 18,631 23,200 27,426 100% * 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. Figure 9.4 shows the trends for the top six countries. Consistent growth in numbers is evident after the 1998/1999 financial year, although the rate of growth has increased somewhat from 2001/2002. 18 The General work permit is the standard skill shortage work permit consisting of occupations on the Occupational Shortages List (OSL) and employment where a labour market test has been conducted to ensure no New Zealanders are available to do the work. Migration Trends 2003/2004 65

Figure 9.4 Skill Shortage Work permits - Principal Applicants given skill shortage work permits in top six countries 1997/1998 to 2003/2004* People approved as PAs on skill shortage work permits by nationality 14000 12000 10000 8000 6000 4000 2000 Great Britain Japan USA China South Africa India Others Total 28000 24000 20000 16000 12000 8000 4000 TOTAL people approved 0 1997/1998 1998/1999 1999/2000 2000/2001 2001/2002 2002/2003 2003/2004 Financial year 0 * The total line is read off the right-hand axis all others are read off the left-hand axis. 9.3.2 Occupations of people on skill shortage work permits This section details the types of occupations recorded against work permit holders where the granting of the work permit is subject to a labour market check. This analysis excludes work permit holders who have been approved on the basis of a family relationship, a working holiday scheme, refugee claimants or the October 2000 Transitional Policy. Table 9.4 lists the most common occupational groups recorded against skill shortage work permit holders and Table 9.5 lists the top fifteen occupations recorded. The most common occupational group was Professional (28 percent), followed by Service and sales workers (24 percent). Occupations in the tourism and travel industry feature prominently, with approximately 13 percent of recorded occupations as travel attendants or tour guides. Table 9.4 Most common occupational groups of work permit holders Total = 18,764* Occupational Code Number recorded Proportion Legislators, Administrators, Managers 1,483 8% Professionals 5,293 28% Technicians and associate professionals 2,295 12% Clerks 453 2% Service and sales workers 4,590 24% Agriculture and fishery workers 1,950 10% Trades workers 1,937 10% Plant and machine operators and assemblers 682 4% Elementary occupations 81 0% Total 18,764 100% *In 2003/2004, 24,426 individuals were issued a skill shortage work permit. However, the occupation of the principal applicant was not recorded in every instance. Migration Trends 2003/2004 66

Table 9.5 Most common occupations of work permit holders Total = 18,764 9.3.3 Student Permits Occupation Number recorded Proportion Travel Attendant 1,238 7% Chef 1,076 6% Tour Guide 854 5% Fruit Grower, Worker 640 3% Registered Nurse 448 2% Orchard Worker 425 2% Staff Nurse 412 2% Secondary School Teacher 373 2% Tour and Travel Guide 234 1% Business Owner 179 1% Electrician 178 1% University Lecturer 162 1% Motor Mechanic 141 1% Dairy Farm Manager 140 1% Project Manager 116 1% Other 12,148 65% Total 18,764 100% People who are not residents and who are attending a course for 3 months or less are not required to obtain a student permit. International students attending courses lasting over 3 months need to apply for a student visa before travelling or, if they are from a visa waiver country, may apply for a student permit in New Zealand. Table 9.6 shows the dramatic growth in student numbers since 1997/1998. China is currently the largest source country followed by South Korea. Currently almost half of all international students are from China. The slight decrease in the current year (from 87,838 in 2002/2003 to 87,075 in 2003/2004) belies a significant decline in international student numbers. The three largest source countries for international students (China, South Korea and Japan) have all decreased for the first time since 1997/1998. Table 9.6 Student permits Principal Applicants who held student permits in top twelve countries from 1997/1998 to 2003/2004* Country 1997/ 1998/ 1999/ 2000/ 2001/ 2002/ 2003/ Proportion 1998 1999 2000 2001 2002 2003 2004 2003/ 2004 China 193 1,851 5,566 14,655 32,424 41,598 40,748 47% South Korea 2,765 2,627 3,892 7,216 12,510 15,590 13,729 16% Japan 2,873 3,255 3,586 4,060 4,529 4,770 4,608 5% USA 692 1,024 1,151 1,360 1,657 2,211 2,740 3% Great Britain 331 459 543 681 961 1,499 2,330 3% Thailand 1,315 1,412 1,569 2,076 2,475 2,474 2,256 3% India 118 149 256 727 1,834 2,076 2,174 2% Germany 424 601 666 1,007 1,180 1,483 1,953 2% Taiwan 1,197 1,362 1,476 1,656 1,832 1,672 1,493 2% Malaysia 1,763 1,685 1,363 1,250 1,194 1,230 1,350 2% Hong Kong 851 981 1,099 1,292 1,392 1,374 1,316 2% Fiji 744 776 766 1,167 1,254 1,117 1,142 1% Others 4,657 6,238 6,612 8,672 10,281 10,744 11,236 13% Total 17,923 22,420 28,545 45,819 73,523 87,838 87,075 100% * This table analyses individuals rather than number of permits issued. If a person had more than one student permit in any year, they are counted only once. Migration Trends 2003/2004 67

Figure 9.5 shows the growth in international student numbers since 1997/1998. The rate of growth, which increased sharply in 1999/2000, slowed somewhat from 2001/2002 and declined in 2003/2004. Figure 9.5 Student permits - Principal Applicants holding student permits in top six countries 1997/1998 to 2003/2004* People approved as PAs on student permits by nationality 50000 45000 40000 35000 30000 25000 20000 15000 10000 China South Korea Japan USA Great Britain Thailand Others Total 100000 90000 80000 70000 60000 50000 40000 30000 20000 TOTAL people approved 5000 10000 0 1997/1998 1998/1999 1999/2000 2000/2001 2001/2002 2002/2003 2003/2004 Financial year 0 * The total line is read off the right-hand axis all others are read off the left-hand axis. The overall growth in international student numbers, combined with events that have drawn considerable media attention, has led to a growing interest in international students in New Zealand. The decline in overall numbers in the current period is the result of a decline in the number of students applying offshore a decline which began in January 2002. Offshore approvals declined from 37,364 in 2001/2002, to 32,526 in 2002/2003. The decline over the last twelve months has been more significant with 23,627 offshore approvals in 2003/2004. In Figure 9.6 below, the decline in offshore approvals for Chinese and South Korean students is most notable, with the number from China less than one third of what it was two years ago from 20,461 in 2001/2002 to 6,762 in 2003/2004. Offshore approvals from South Korea were less than half what they were two years ago down from 2,162 in 2001/2002 to 971 in 2003/2004. Migration Trends 2003/2004 68

Figure 9.6 Number of students approved offshore for the top ten source countries between 2001/2002 and 2003/2004 20000 2001/2002 2002/2003 2003/2004 Number of offshore approvals 15000 10000 5000 0 China Japan USA Great Britain Germany Thailand South Korea Country India Taiwan Brazil Figure 9.7 shows the number of offshore student approvals since 1997/1998 for the largest three source countries. The decline in offshore approvals from China has had a significant effect on the overall number of offshore approvals. Offshore approvals have grown for a number of the other main source countries. In particular, approvals from the United States of America, Great Britain and Germany have increased steadily over the last two years. Figure 9.7 Number of students approved offshore for the largest three source countries between 1997/1998 and 2003/2004 25000 China Number of offshore applications 20000 15000 10000 5000 Japan South Korea 0 1997/1998 1998/1999 1999/2000 2000/2001 Financial year 2001/2002 2002/2003 2003/2004 9.4 Residence approval for people previously in New Zealand on a temporary permit Tables 9.7 to 9.9 below show the total number of principal applicants approved for work and student permits between 1997/1998 and 2003/2004 and the cumulative number of these people who were subsequently approved for residence. If a person had more than one work or student permit in a year, only their most recent permit was counted. However, if a person had more than one work or student permit over the six- Migration Trends 2003/2004 69

year period they will be captured more than once in the data. For example, if a person held a work permit in 1997/1998 and then again in 1998/1999 they will be recorded once in each year. Therefore, a person s tendency to be approved for residence or not is also counted in each of these years. Tables 9.7 to 9.9 illustrate that an increasing number of people approved for a work or student permit over the years have transferred to residence (although the proportion may stay the same, or be lower, than previous years). 19 Table 9.7 shows that 29 percent of people issued with a work or student permit in 1997/1998 had become a resident by June 2004. Table 9.7 Total principal applicants approved for student and work permits between 1997/1998 and 2003/2004 and the numbers subsequently approved for residence 20 Year subsequently approved for residence (cumulative) 1997/1998 1998/1999 1999/2000 2000/2001 2001/2002 2002/2003 2003/2004 1997/ 1998 2,209 (5%) 6,281 (14%) 9,038 (21%) 10,632 (24%) 11,576 (26%) 12,320 (28%) 12,911 (29%) 1998/ 1999 3,116 (6%) 8,241 (15%) 11,462 (21%) 13,269 (25%) 14,514 (27%) 15,468 (29%) Year approved for student or work permit 1999/ 2000 4,015 (6%) 9,485 (15%) 12,890 (21%) 15,043 (24%) 16,711 (27%) 2000/ 2001 5,546 (6%) 12,529 (14%) 18,489 (20%) 23,579 (26%) 2001/ 2002 6,701 (5%) 15,725 (12%) 23,695 (18%) 2002/ 2003 7,986 (5%) 17,776 (12%) 2003/ 2004 8,141 (5%) Total principal applicants approved for work and student permits in each year (originally identified cohort) 43,822 53,508 62,303 92,015 132,124 153,984 159,396 The subsequent two tables show that people on work permits are more likely to convert from a temporary permit to residence than are students. This finding is as expected. Overall, 36 percent of people issued with a work permit in 1997/1998 have subsequently been approved for New Zealand residence. The comparable figure for students is 20 percent. 19 The total permit number for each year in these tables is the number of people identified when this analysis was first completed. Because of the dynamic nature of the immigration databases, these numbers differ slightly from the numbers presented in Tables 9.2 and 9.3, which were produced more recently. 20 Work permits were not counted if they were issued for the reason of replace, vary conditions or assess overseas recruitment. Migration Trends 2003/2004 70

Table 9.8 Total principal applicants approved for work permits between 1997/1998 and 2003/2004 and the numbers subsequently approved for residence Year subsequently approved for residence (cumulative) 1997/1998 1998/1999 1999/2000 2000/2001 2001/2002 2002/2003 2003/2004 1997/ 1998 1,973 (8%) 5,241 (20%) 7,242 (28%) 8,192 (31%) 8,675 (33%) 9,025 (34%) 9,327 (36%) 1998/ 1999 2,591 (8%) 6,494 (21%) 8,582 (27%) 9,529 (30%) 10,111 (32%) 10,498 (34%) Year approved for work permit 1999/ 2000 3,277 (10%) 7,148 (21%) 9,139 (27%) 10,223 (30%) 10,848 (32%) 2000/ 2001 4,375 (9%) 9,083 (20%) 12,778 (27%) 15,628 (34%) 2001/ 2002 5,316 (9%) 11,749 (20%) 16,685 (28%) 2002/ 2003 6,495 (10%) 13,576 (20%) 2003/ 2004 6,345 (9%) Total principal applicants approved for work permits in each year (originally identified cohort) 26,105 31,310 33,954 46,479 59,148 66,827 73,587 Table 9.9 Total principal applicants approved for student permits between 1997/1998 and 2003/2004 and the numbers subsequently approved for residence Year subsequently approved for residence (cumulative) 1997/1998 1998/1999 1999/2000 2000/2001 2001/2002 2002/2003 2003/2004 1997/ 1998 238 (1%) 1,060 (6%) 1,841 (10%) 2,499 (14%) 2,971 (17%) 3,364 (19%) 3,654 (20%) 1998/ 1999 535 (2%) 1,811 (8%) 2,978 (13%) 3,859 (17%) 4,534 (20%) 5,105 (23%) Year approved for student permit 1999/ 2000 764 (3%) 2,428 (9%) 3,866 (14%) 4,945 (17%) 5,994 (21%) 2000/ 2001 1,235 (3%) 3,615 (8%) 5,925 (13%) 8,203 (18%) 2001/ 2002 1,454 (2%) 4,232 (6%) 7,329 (10%) 2002/ 2003 1,578 (2%) 4,508 (5%) 2003/ 2004 1,866 (2%) Total principal applicants approved for student permits in each year (originally identified cohort) 17,920 22,416 28,552 46,038 73,523 87,838 87,075 Figures 9.8 and 9.9 below provide a graphical representation of Tables 9.8 and 9.9. The graphs are read as the cumulative proportion of each cohort (e.g. 1997/1998) who subsequently took up residence in New Zealand. As illustrated in Figure 9.8, the take-up of Migration Trends 2003/2004 71

residence by those previously approved for a work permit tends to be greatest the year after the work permit was issued and then tails-off. Figure 9.8 Cumulative residence take-up by principal applicants approved for a work permit between 1997/1998 and 2003/2004 Proportion 40% 35% 30% 25% 20% 15% Year approved for work permit 1997/1998 1998/1999 1999/2000 2000/2001 2001/2002 2002/2003 2003/2004 10% 5% 0% 1997/1998 1998/1999 1999/2000 2000/2001 2001/2002 2002/2003 2003/2004 Year approved for residence Figure 9.9 shows that the take-up of residence by those previously approved for a student permit tends to increase by approximately equal amounts for the first two or three years after a student permit was issued, and then tails-off. These cohorts of students and workers will continue to be tracked. Figure 9.9 Cumulative residence take-up by principal applicants approved for a student permit between 1997/1998 and 2003/2004 25% Proportion 20% 15% 10% Year approved for student permit 1997/1998 1998/1999 1999/2000 2000/2001 2001/2002 2002/2003 2003/2004 5% 0% 1997/1998 1998/1999 1999/2000 2000/2001 2002/2002 2002/2003 2003/2004 Year approved for residence Migration Trends 2003/2004 72

10 CONCLUSIONS The main aim of this report was to identify and discuss trends in residence approvals during the period 1 July 2003 to 30 June 2004. Overall, this report improves our understanding of the trends and highlights a number of issues, some of which are noted below. The current period saw significant changes to skilled immigration policy. The GSC was closed in July 2003 and a large number of lower quality GSC applications were lapsed. The IGSC introduced new requirements around job offers, which reduced the number of people applying. The SMC, introduced in December 2003, was a significant change to the way skilled migrants could be granted residence. SMC policy has a strong focus on improving settlement outcomes with people selected for their ability to settle and contribute to New Zealand. Together these policy changes had an impact on the number of skilled migrants being approved for residence. Fewer skilled migrants were approved for residence than allowed for in the NZIP. This is expected to be a one-off reduction. In 2003/2004, 39,017 people were approved for residence in 20,631 applications. The greatest number of people approved was through the Skilled/Business Stream (53 percent of all approvals), 35 percent were through the Family Sponsored Stream and 13 percent through the International/Humanitarian Stream. Residence approvals in the Skilled/Business Stream were fewer in the current period (16,883) than in 2002/2003 (26,650), contributing to an overall decrease in the number of people approved. A growing number of people were approved through the Entrepreneur Category. 10.1 General residence trends 10.1.1 Residence application inflows A steady flow of EOIs were received after the SMC came into effect on 17 December 2003. In just over six months, 6,684 EOIs had been received and a high proportion met the requirements for entry into the pool. Inflows of GSC applications ceased after June 2003 with the closure of this category, while inflows through the IGSC continued from July through to its closure in November 2003. Inflows through the Business categories remained steady throughout the current period, although lower than in previous years. Inflows from South Korea were higher than those from China. Inflows through the Family Sponsored Stream remained high throughout 2003/2004. Demand for residence through this stream has grown steadily, resulting in an increasing number of people waiting to have their applications processed. Much of the increasing demand has come from parents and partners of New Zealand citizens and residents. Demand is expected to increase over the next financial year. Inflows through the International/Humanitarian Stream have gradually declined over the current financial year. 10.1.2 Increasing diversity in people approved for residence There was an increasing diversity in the nationality of people approved for residence in 2003/2004. Approvals from India have declined significantly and many other countries now have a greater share of residence approvals. In 2003/2004, Great Britain and China accounted for 33 percent of residence approvals (21 percent and 12 percent respectively). The next six largest source countries shared between 5 and 8 percent of approvals each. These countries included India, South Africa, Fiji, Samoa, Tonga, and South Korea. 10.1.3 Increase in the proportion of people applying onshore There was an increase in the proportion of approved principal and secondary applicants applying onshore 55 percent compared with 37 percent in 2002/2003. Sixty-three percent of approved principal applicants applied onshore, up from 48 percent in 2002/2003. Migration Trends 2003/2004 73

10.2 Skilled Categories 10.2.1 Skilled Migrant Category At the end of June 2004 there had been over 5,500 EOIs submitted to the pool, with an average of 2.5 people per EOI. Britain was the largest source country (37 percent) of EOIs in the pool, followed by India (10 percent), China and South Africa (7 percent). Threequarters of principal applicants submitting an EOI to date claimed points for current skilled employment or a job offer and 29 percent claimed points for current employment in New Zealand for 12 months or more. Ten draws took place since February 2004 and 3,812 EOIs (9,216) people were selected. The selection point was set at 195 for the first draw in February and was lowered in successive draws, coming down to 150 in the last draw of 2003/2004. Since March 2004, when the first people were approved for residence through the SMC, there have been 613 people (215 principal applicants) approved. Sixty-seven percent of principal applicants had a job or offer of employment outside of the Auckland region. More EOIs were submitted by onshore applicants than offshore applicants and on average, onshore applicants claimed a higher number of points than offshore applicants. This reflects the higher proportion of onshore applicants having a job or job offer compared with those residing offshore. 10.2.2 Changes in skilled category source markets Early indications from the EOI pool show that the increasing proportion of skilled migrants from Britain is likely to continue. Over one third (36 percent) of EOIs were submitted from British principal applicants, and at the end of the current period half of all principal applicants invited to apply for residence were British. Great Britain overtook India as the largest source country of GSC/IGSC approvals in the current period, accounting for 29 percent of approvals compared to India s 10 percent of approvals. Application inflows from India through the GSC/IGSC declined from an average of 740 per month just prior to November 2002 to an average of 102 per month between July 2003 and the closure of the IGSC in November 2003. India accounted for 10 percent of EOIs submitted to date. 10.2.3 High proportion of principal applicants with points for job offers All principal applicants approved through the SMC gained points for a job or job offer, and 39 percent had been in employment for twelve months or more at the time their application was made. Of all the EOIs submitted to date, 98 percent of onshore applicants claimed points for a job or offer, and just under half had been working in New Zealand for twelve months or more. Thirty-eight percent of offshore applicants claimed points for a job offer. 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. Lower proportions had main occupations classified as Legislators, Administrators, Managers and Technicians and associate professionals (9 percent each), and 8 percent were classified as Trades workers. 10.3 Business categories Approvals through the Business categories have gradually declined since 2001/2002, though the decline eased somewhat in the current period. Application inflows through the Investor Category declined considerably after November 2002, particularly from China. The proportion of approvals in the Investor Category from China in 2003/2004 was 35 percent Migration Trends 2003/2004 74

compared with 57 percent in 2002/2003, while approvals from Great Britain have increased significantly. A growing number of people on LTBV s are becoming eligible for residence and this is reflected in the increase in approvals through the Entrepreneur Category. In 2003/2004, 1,600 people were approved compared with just 256 in 2002/2003. Fifty-five percent of the principal applicants (573 of 1,037) who were granted an LTBV between 1 March 1999 and 30 June 2001 had converted to residence by 30 June 2004. Of these, over three quarters (76 percent) converted to residence through the Entrepreneur Category. 10.4 Family Sponsored Stream The number of people applying for residence through the Family Sponsored Stream currently outnumbers the places available in the NZIP. The demand for residence through the Family Category is expected to increase further in 2004/2005. Demand through Partnership policy remains high while inflows through the Family Parent sub-category began to increase over the current financial year. At the end of the 2003/2004 the number of people waiting to have their applications processed was considerable. There were enough people on hand to fill approximately 86 percent of the 13,500 places available in 2004/2005. Over half (58 percent) of the people approved through the Family Category were the spouse or partner of a New Zealand citizen or resident (including Family Marriage, De facto, and Partnership approvals). A further 21 percent were approved through the Family Parent subcategory and 9 percent through the Family Sibling sub-category. 10.5 International/Humanitarian Stream There was an increase in the number of approvals through the International/Humanitarian Stream in 2003/2004 (4,959) compared with 2002/2003 (3,802). The major categories in this stream (Refugee Quota, Samoan Quota and PAC) all had a greater number of approvals in the current period than in 2002/2003. The October 2000 Transitional Policy accounted for 43 percent of the approvals through this stream. 10.6 Absence from New Zealand Of those approved for residence in 1998, 21 percent had been absent from the country for six months or more as at 30 June 2004, 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. Categories with comparatively high rates of absenteeism for the 1998 cohort included the 1995 Business Investor Category, the GSC, the Family Parent sub-category and the Family Child Dependent sub-category. Migrants from Taiwan, Singapore, Hong Kong, Indonesia, Yugoslavia, the United States of America and Ireland had absence rates of one third or more. 10.7 Principal applicants with previous New Zealand experience The proportion of principal applicants who previously held a temporary permit continued to increase in the current period, now 75 percent up from 65 percent in 2002/2003 and 54 percent in 2001/2002. The proportion of Chinese and Indian principal applicants approved for residence with prior experience of New Zealand increased, most notably for those from India where 79 percent now have prior experience compared with 28 percent in 2000/2001. The increase was Migration Trends 2003/2004 75

mainly a result of an increase in the number of Indians coming on work permits, in particular, General (skill shortage) and Partnership (including spouse and de facto). For Chinese principal applicants, the increase was mainly a result of an increase in the number coming on work and student permits. The main types of work permit they held were General (skill shortage) and Partnership. 10.8 Temporary migration 10.8.1 International student numbers The number of people on a student permit fell for the first time since 1997/1998. Chinese students continued to make up a large proportion of all international students, but the number of new students from China has declined significantly over the last two years, and this decline will cause overall student numbers to continue falling. The number of offshore applications fell from 37,364 in 2001/2002 to 23,627 in 2003/2004 and the decrease from China alone accounted for most of this. Offshore applications from South Korea, India and Taiwan also fell over the last two years. 10.8.2 Increasing number of people on work permits The number of people on work permits has more than doubled since 1997/1998 from 26,336 to 73,587 in 2003/2004. Great Britain has remained the largest source country with 26 percent and almost three times as many people on work permits as the next largest source country Japan. There were 6,821 more work permits issued to individuals in the current period than in 2002/2003. Similarly, over 4,200 more skill shortage work permits were issued in the current period than were issued in 2002/2003. 10.8.3 High residence uptake by students and workers Of the people issued with a work or student permit in 1997/1998, 36 percent of workers have subsequently taken up residence, compared with 20 percent of students. Similar trends were evident for subsequent cohorts, with growing numbers transferring to residence. The take-up of residence by those previously approved for a work permit tended to be greatest the year after the work permit was issued and then tailed-off. In contrast, the take-up of residence by those previously approved for a student permit tended to increase at a steady rate for the first two or three years after a student permit was issued, and then tailed off. Migration Trends 2003/2004 76

Appendix A: Permanent and temporary residence approval categories The Immigration Programme In planning the level of immigration, the Government approves an annual immigration programme (the New Zealand Immigration Programme, or NZIP), including the number of persons that may be granted residence. 21 The programme represents the upper limit on the number of persons who may be approved for residence in a financial year. There is no lower limit. If, therefore, insufficient numbers of applicants meet the minimum residence criteria, fewer approvals will be made. The importance of stability in immigration flows is one of the factors taken into account by the government when setting the NZIP. General rules The principal applicant must meet the policy of the relevant category and, where appropriate, they can include their spouse/partner and dependent children in their application. Everyone included in an application must pass a health check, a character (police clearance) check (if they are 17 years or over) and, where necessary, meet English language requirements. New health and disability screening requirements are being phased in during 2004/2005. Currently, everyone seeking to enter New Zealand for two years or more (and who is not a New Zealand or Australian citizen or permanent resident) is required to undergo medical screening to ensure they have an acceptable level of health for immigration purposes. This includes screening for tuberculosis (TB). All temporary entry applicants seeking to stay for more than 12 months, as well as all residence applicants, will be required to undergo a full medical examination. The new requirements will fully implemented by April 2005. The health policy changes will also strengthen TB screening for those people from countries with a high incidence of TB. The following three tables provide a description of the categories that fall within each of the three residence streams of the NZIP and summarise the key policy features for each category. Below, descriptions are also provided for temporary permit types. The information in this section describes the key policy features only a more comprehensive overview of the specific requirements can be found on the Department of Labour s Immigration Service website at: http://www.immigration.govt.nz. Residence categories Table A.1 Category Skilled Migrant (from 17 December 2003) General Skills (closed 1 July 2003) Interim General Skills (closed 12 November 2003) Entrepreneur Skilled/Business Stream Key Policy Features Applicants must meet a minimum threshold of 100 points to register an expression of interest into a pool. Expressions of interest are selected from the pool based on a selection point that currently can change fortnightly. After initial verification, applicants are invited to apply through the Skilled Migrant Category. Applicants were required to meet a minimum level of points, earned through a combination of their qualifications, work experience, offer of skilled employment in New Zealand, age (no older than 55 years), and settlement factors. Replaced the GSC from 2 July 2003 until its closure on 12 November 2003. Policy requirements were the same as they were under the GSC with the exception that applicants were required to have a skilled job offer in New Zealand. Established for people who can demonstrate they have successfully set up and operated a business in New Zealand. See the note on Long Term 21 It should be noted that the approval programme relates to residence approvals rather than arrivals. Migration Trends 2003/2004 77

Investor Employees of relocating businesses Work to residence Business Visas under Temporary Categories later in this section. Based on the principal applicant meeting a minimum level of points, earned through a combination of the money they have available for investment (minimum of $1 million), age, and business experience. Established for key people in a business relocating to New Zealand who do not qualify for residence under any other residence category. There is a two year employment period before the residence permit is endorsed. This category provides a pathway to residence for holders of permits granted under three specific work policies: Talent (Accredited Employers); Talent (Arts, Culture, and Sports); and Priority Occupations List. Table A.2 Category Partnership (from 29 September 2003) Parent Sibling Dependent Child Adult Child Family Quota October 2000 Transitional Policy (now closed) Humanitarian (closed 1 October 2001) Family Sponsored Stream Key Policy Features Enables the partner (including spouse, de facto and same-sex partner) of a New Zealand citizen or resident to apply for residence. Applicants must provide evidence that they have been living in a partnership that is genuine and stable for 12 months or more. Enables the parent(s) of a New Zealand citizen or resident to apply for residence if either: they have no dependent children and all of their children live outside of the parent s home country; or the centre of gravity of their family is in New Zealand. The applicant s child must be an eligible sponsor. Enables siblings of New Zealand citizens or residents to gain residence. Applicants must have no immediate family in their home country, have an acceptable offer of employment in New Zealand, be able to financially support any dependents, and have an eligible sponsor. Enables dependent children of parents with New Zealand residence to gain residence. The applicant must have been born or adopted before his or her parents applied for residence and have been declared on his or her parents application for residence; or have been born after his or her parents applied for residence; or have been adopted by his or her parents as a result of a New Zealand adoption or an overseas adoption recognised under New Zealand law. Enables adult children of New Zealand citizens or residents to gain residence. Applicants must have no immediate family in their home country, have an acceptable offer of employment in New Zealand, be able to financially support any dependents, and have an eligible sponsor. Enables New Zealand citizens and residents to sponsor family members who do not qualify for residence under any other residence policies. Family sponsors register their relative by way of a ballot from which a set number of applicants are drawn annually. This Quota only operates when there are sufficient places in the Family Sponsored Stream (that is, at times of low demand). This policy (now closed) offered well-settled overstayers the opportunity to apply for a two year work permit and then transition to residence. Applicants must have been in New Zealand for five years or more and have had no convictions. An applicant whose partner was a New Zealand citizen or resident, or had a New Zealand born child was counted through the Family Sponsored Stream. The remainder were counted through the International/ Humanitarian Stream. This policy (now closed) allowed people to enter New Zealand in situations where serious humanitarian circumstances existed and there was a close family connection with New Zealand. Migration Trends 2003/2004 78

Table A.3 International/Humanitarian Stream Category Refugee Quota 1995 Refugee Status Refugee Family Sponsored Quota Samoan Quota Pacific Access Category (PAC) Ministerial Direction Section 35A Victims of Domestic Violence Key Policy Features New Zealand provides assistance to mandated refugees (people determined to be refugees by the United Nations High Commission for Refugees (UNHCR) before arrival in New Zealand). The Government sets the number of places available for mandate refugees under the Refugee Quota (currently 750 persons per year). To be eligible to claim refugee status, a claimant (asylum seeker) must be in New Zealand at the time of making a claim, and may be in New Zealand either lawfully or unlawfully. Successful refugee claimants (Convention refugees) may apply for residence. This policy facilitates the successful resettlement of refugees resident in New Zealand by providing them with an opportunity to sponsor family members, who with the exception of the Family Quota category, do not qualify for residence under any other category of Government residence policy. Places in this quota (currently 300) are balloted. Allows for up to 1,100 Samoan citizens, including partners and dependent children, to be granted residence in New Zealand each year. Applicants must have an acceptable offer of employment, be aged 18-45 years, and meet minimum income requirements if they have dependants. Places in this quota are balloted. The PAC allows up to 250 citizens of Tonga, 75 citizens of Tuvalu, 75 citizens of Kiribati, and 250 citizens of Fiji (including the spouses, de facto partners and dependent children of principal applicants), to be granted residence in New Zealand each year. Applicants must have an acceptable offer of employment, be aged 18-45 years, and meet minimum income requirements if they have dependants. Places in this quota are balloted. In special circumstances, the Minister of Immigration (or delegate) may give any immigration officer a special direction in relation to any person, permit, visa or document. No person has the right to apply for a special direction, and the Minister is not obliged to consider the application, nor give reasons for any decision on it, other than that section 7(4) and section 130(6)(b)(i) of the Immigration Act 1987 apply. In special circumstances, a person unlawfully in New Zealand may be granted a permit as a special case under section 35A of the Immigration Act 1987. No person has the right to apply for a permit if they are unlawfully in New Zealand, and neither the New Zealand Immigration Service nor the Minister is required to consider any request made. A person may be granted residence under this policy if they have, or have had, a marriage or relationship with a New Zealand citizen or resident that has ended due to domestic violence by the New Zealand citizen or resident; and the person is unable to return to their home country because they would be disowned by their family and community as a result of their relationship; and would have no means of independent support. Temporary categories Visitor The aim of visitor policy is to facilitate the entry of genuine visitors (i.e. people who will not work illegally, commit crime, or overstay their permits) to benefit New Zealand s economy. At present, the nationals of 48 countries do not need to apply for a visa before travelling to New Zealand, and will be granted a permit upon arrival as long as they: have sufficient funds to cover their stay; have an outward ticket to a destination which will accept them and which means they intend to stay for three months or less (six months if they are citizens of the United Kingdom); and Migration Trends 2003/2004 79

do not represent a character risk to New Zealand. Australian nationals are treated like New Zealanders (unless they have some criminal convictions) and Australian permanent residents are treated like New Zealand permanent residents. Other nationals have to apply in advance, demonstrate they meet the tests above (genuine, sufficient funds, outward ticket etc), and obtain a visa to travel here. Student The main aim of student policy is to facilitate the entry of foreign students to help develop international linkages (including through exchange schemes) and to earn foreign exchange. Work The aim of work policy is to contribute to building New Zealand s human capability base. This is done through facilitating the access of New Zealand employers and New Zealand industry to global skills and knowledge, while complementing the Government's education and employment policies. Work permits allow employers to recruit temporary workers from overseas to meet particular or seasonal work shortages that cannot be met from within New Zealand, while protecting employment opportunities for New Zealand citizens and residents. In addition, a wide range of people may be granted open work permits usually with some conditions relating to the amount of time they can work. Any employer may hire a person holding an open work permit without having to prove that a New Zealander is not available. They include: people on working holiday schemes. These are reciprocal arrangements with 19 countries for young people (usually aged 18 30) to travel and work; students who have completed a degree (for up to two years) or who are undertaking long term study and are therefore allowed to work part time; refugee status applicants who have been granted a work permit while their application is being determined; and spouses and partners (who are entitled to a work permit). Work to residence policy facilitates the entry of people whose skills are in demand and provides them with a pathway from temporary to permanent residence. People granted a work permit under this policy may qualify for residence in two years as long as they still have an offer of ongoing employment: Priority Occupations occupations deemed to be in absolute shortage (not enough skilled workers in New Zealand) so employers do not have to prove an individual need. Talent Visa allows employers who have been accredited to recruit directly from overseas, without having to prove an individual need, and allows individuals with an international reputation in a cultural or sporting field to be granted a talent visa. 22 Long Term Business Visa The Long Term Business Visa (LTBV) is a three year permit for people aiming to set up a business in New Zealand and thus qualify for residence under the Entrepreneur policy. The most important prerequisite for approval through this sub-category is a viable business plan. 22 To be an accredited employer an employer must meet criteria such as having good HR practices and a history of compliance with relevant immigration and employment legislation. A salary floor of $45,000 pa applies. Migration Trends 2003/2004 80

Appendix B: Residence approvals between 1 July 2003 and 30 June 2004 Country Skilled/ Family International/ Business Sponsored Humanitarian Total Afghanistan 1 50 503 554 Albania 5 7 1 13 Algeria 8 5 13 American Samoa 16 8 24 Argentina 59 21 1 81 Austria 23 8 31 Azerbaijan 3 4 7 Bahamas 1 1 Bangladesh 39 45 8 92 Barbados 3 3 Belarus 6 8 14 Belgium 7 15 22 Bolivia 3 1 4 Bosnia & Herzegovina 1 10 11 Brazil 44 39 2 85 Bulgaria 14 26 40 Burundi 3 3 Cambodia 24 194 2 220 Canada 136 167 11 314 Chile 11 20 9 40 China 3,027 1,641 141 4,809 Colombia 10 12 3 25 Congo 2 5 7 Costa Rica 1 1 Croatia 6 14 20 Cuba 1 1 Czech Republic 23 16 20 59 Democratic Republic of Congo 1 1 Denmark 26 21 47 Ecuador 4 4 Egypt 26 24 4 54 El Salvador 1 1 Eritrea 1 87 88 Estonia 1 1 2 Ethiopia 62 77 139 Fiji 809 1,146 352 2,307 Finland 1 12 13 France 60 60 1 121 French Polynesia 3 3 Georgia 1 2 3 Germany 223 152 3 378 Ghana 3 6 1 10 Great Britain 5,652 2,430 83 8,165 Greece 2 2 4 Guyana 1 1 Haiti 1 1 Honduras 3 1 4 Hong Kong 129 141 7 277 Hungary 44 11 2 57 Iceland 3 3 India 1,738 1,223 96 3,057 Indonesia 204 92 43 339 Migration Trends 2003/2004 81

Country Skilled/ Family International/ Business Sponsored Humanitarian Total Iran 20 66 135 221 Iraq 24 78 66 168 Ireland 131 140 2 273 Israel 95 21 1 117 Italy 33 18 1 52 Ivory Coast 2 2 Japan 235 201 11 447 Jordan 10 5 1 16 Kazakhstan 9 9 Kenya 12 11 2 25 Kiribati 4 10 48 62 Kuwait 2 7 9 Laos 6 2 8 Latvia 2 6 8 Lebanon 1 12 1 14 Libya 1 1 Lithuania 11 11 Macau 6 6 Macedonia 15 24 39 Madagascar 2 2 Malawi 3 3 Malaysia 482 163 87 732 Maldives 3 1 1 5 Malta 5 5 Mauritius 17 4 21 Mexico 19 12 31 Moldova 4 3 7 Mongolia 4 1 5 Morocco 5 1 6 Mozambique 1 1 Myanmar 4 7 13 24 Namibia 10 4 14 Nauru 9 9 Nepal 7 13 1 21 Netherlands 227 102 6 335 Nicaragua 1 1 Nigeria 24 16 40 Norway 3 9 12 Oman 1 1 Pakistan 99 102 26 227 Palestine 1 1 2 Panama 1 1 2 Papua New Guinea 2 12 1 15 Paraguay 1 1 Peru 7 21 6 34 Philippines 516 305 52 873 Poland 27 23 2 52 Portugal 9 10 19 Romania 180 21 201 Russia 91 142 2 235 Rwanda 5 5 Samoa 20 856 1,327 2,203 Serbia & Montenegro* 1 1 Sierra Leone 4 4 Singapore 176 41 6 223 *See also Yugoslavia Migration Trends 2003/2004 82

Country Skilled/ Family International/ Business Sponsored Humanitarian Total Slovakia 13 6 19 Slovenia 6 3 9 Solomon Islands 5 3 2 10 Somalia 136 85 221 South Africa 2,113 477 40 2,630 South Korea 1,564 280 24 1,868 Spain 2 14 16 Sri Lanka 114 104 22 240 St Kitts Nevis 1 1 Stateless 3 2 5 Sudan 4 79 83 Suriname 1 1 Swaziland 5 5 Sweden 12 45 4 61 Switzerland 23 29 2 54 Syria 13 25 38 Taiwan 252 92 7 351 Tanzania 2 1 3 Thailand 74 271 109 454 Togo 2 1 3 Tonga 80 826 895 1,801 Trinidad and Tobago 2 2 Turkey 4 12 16 32 Tuvalu 8 94 165 267 Uganda 2 2 Ukraine 11 63 1 75 United Arab Emirates 2 2 United States of America 468 462 24 954 Unknown 5 4 1 10 Uruguay 5 1 6 Uzbekistan 2 2 Vanuatu 3 11 14 Venezuela 4 4 8 Vietnam 29 140 44 213 Yemen 2 5 7 Yugoslavia* 19 41 7 67 Zambia 37 8 1 46 Zimbabwe 834 73 97 1,004 Total 20,596 13,462 4,959 39,017 *See also Serbia and Montenegro Migration Trends 2003/2004 83

Migration Trends 2003/2004 84

Appendix C: Numbers of people, by country, issued with one or more work or student permits between 1 July 2003 and 30 June 2004. Country Work Student Total Afghanistan 39 1 40 Albania 12 2 14 Algeria 22 1 23 American Samoa 2 3 5 Andorra 1 1 Angola 1 1 Argentina 421 93 514 Armenia 2 2 Austria 146 91 237 Azerbaijan 3 1 4 Bahamas 1 2 3 Bahrain 2 15 17 Bangladesh 133 103 236 Barbados 3 3 6 Belarus 3 5 8 Belgium 99 42 141 Belize 2 2 Bermuda 1 1 Bhutan 7 7 Bolivia 10 16 26 Bosnia & Herzegovina 5 5 10 Botswana 7 6 13 Brazil 451 678 1,129 British Indian Ocean Territory 1 1 Brunei Darussalam 3 27 30 Bulgaria 64 37 101 Burundi 2 2 Cambodia 209 257 466 Cameroon 1 1 Canada 2,430 579 3,009 Cayman Islands 1 1 Chad 3 3 Chile 405 128 533 China 4,061 40,750 44,811 Colombia 53 106 159 Congo 5 1 6 Costa Rica 8 10 18 Croatia 50 31 81 Cuba 39 3 42 Cyprus 2 1 3 Czech Republic 817 84 901 Democratic Republic of Congo 8 3 11 Denmark 429 159 588 Dominica 1 1 East Timor 6 6 Ecuador 10 11 21 Egypt 65 25 90 Migration Trends 2003/2004 85

Country Work Student Total El Salvador 1 1 Eritrea 5 2 7 Estonia 27 7 34 Ethiopia 23 3 26 Faeroe Islands 1 1 Federated States of Micronesia 2 7 9 Fiji 1,691 1,140 2,831 Finland 47 42 89 France 1,472 404 1,876 French Polynesia 4 6 10 Gabon 1 1 Gambia 2 2 4 Georgia 8 1 9 Germany 3,530 1,953 5,483 Ghana 25 9 34 Great Britain 19,226 2,394 21,620 Greece 15 2 17 Guatemala 2 8 10 Guinea 1 1 Guyana 2 2 Haiti 2 2 Honduras 2 2 Hong Kong 353 1,316 1,669 Hungary 292 73 365 Iceland 8 11 19 India 3,675 2,179 5,854 Indonesia 727 630 1,357 Iran 192 75 267 Iraq 82 17 99 Ireland 2,608 59 2,667 Israel 220 63 283 Italy 331 183 514 Ivory Coast 1 2 3 Jamaica 24 1 25 Japan 7,006 4,607 11,613 Jordan 27 23 50 Kazakhstan 4 10 14 Kenya 29 43 72 Kiribati 58 57 115 Kosovo 3 3 Kuwait 4 1 5 Kyrgyzstan 5 2 7 Laos 7 38 45 Latvia 35 25 60 Lebanon 18 8 26 Lesotho 2 2 Liberia 4 4 Libya 3 2 5 Liechtenstein 2 2 Lithuania 16 6 22 Luxembourg 3 2 5 Migration Trends 2003/2004 86

Country Work Student Total Macau 1 34 35 Macedonia 49 24 73 Madagascar 3 3 Malawi 10 3 13 Malaysia 966 1,350 2,316 Maldives 4 71 75 Malta 6 4 10 Marshall Islands 1 1 2 Mauritius 18 18 36 Mexico 54 82 136 Moldova 12 5 17 Mongolia 10 17 27 Morocco 18 4 22 Mozambique 3 3 Myanmar 36 36 72 Namibia 13 16 29 Nauru 5 18 23 Nepal 89 53 142 Netherlands 1,279 138 1,417 New Caledonia 9 9 Nicaragua 2 2 Nigeria 54 35 89 North Korea 1 2 3 Norway 87 334 421 Oman 91 91 Pacific Island Trust Territory 1 1 Pakistan 204 123 327 Palau 1 3 4 Palestine 6 6 Panama 2 7 9 Papua New Guinea 67 122 189 Paraguay 2 17 19 Peru 43 29 72 Philippines 914 263 1,177 Poland 517 23 540 Portugal 17 24 41 Romania 280 55 335 Russia 448 413 861 Rwanda 3 3 Samoa 421 204 625 Saudi Arabia 9 133 142 Senegal 13 1 14 Seychelles 2 30 32 Sierra Leone 6 6 Singapore 227 252 479 Slovakia 67 31 98 Slovenia 35 20 55 Solomon Islands 43 97 140 Somalia 27 5 32 South Africa 3,072 1,116 4,188 South Korea 3,343 13,734 17,077 Migration Trends 2003/2004 87

Country Work Student Total Soviet Union 1 1 Spain 95 13 108 Sri Lanka 273 221 494 St Lucia 1 4 5 Stateless 7 4 11 Sudan 9 5 14 Suriname 1 1 Swaziland 1 1 Sweden 551 321 872 Switzerland 270 262 532 Syria 23 11 34 Taiwan 546 1,493 2,039 Tajikistan 1 5 6 Tanzania 4 6 10 Thailand 1,012 2,256 3,268 Timor Leste 4 4 Togo 3 3 Tonga 436 238 674 Trinidad and Tobago 6 8 14 Tunisia 2 2 Turkemenistan 1 2 3 Turkey 103 60 163 Tuvalu 67 58 125 Uganda 9 3 12 Ukraine 1,198 32 1,230 United Arab Emirates 4 4 United Nations 1 1 United States of America 4,510 2,748 7,258 Unknown 5 1 6 Uruguay 76 20 96 US Outlying Islands 1 1 Uzbekistan 16 11 27 Vanuatu 16 44 60 Venezuela 13 12 25 Vietnam 214 977 1,191 Yemen 2 7 9 Yugoslavia 47 12 59 Zambia 53 33 86 Zimbabwe 1,401 518 1,919 Total 75,306 87,166 162,472 Note: The figures in this table include secondary applicants and may differ from others presented in the report. Migration Trends 2003/2004 88

Appendix D: Current work permit criteria including skill shortage work permits Work Permit Criteria Argentina Working Holiday Scheme Approved in Principal Assess Overseas Recruitment Asylum Seeker BIC Residence Direct Investor Canada Working Holiday Scheme Chile Work Holiday Scheme Crew Of Foreign Fishing Vessel Dance/Music Examiner Denmark Work Holiday Scheme Domestic Staff For Consular Personnel Domestic Staff For Seconded Business Personnel Domestic Staff For Seconded Senior Executive Entertainer/Performing Artist & Support Exchange (Work), Private Fiancé of NZ Citizen/Resident French Working Holiday Scheme German Law Student/Graduate German Working Holiday Scheme Hong Kong Working Holiday Scheme Irish Working Holiday Scheme Italian Working Holiday Scheme Japan Working Holiday Scheme Job Search Kiribati Work Permit Scheme Korea/NZ Working Holiday Scheme Long Term Business Malaysia Working Holiday Scheme Medical & Dental Trainee Minister/Missionary/Pastor Netherlands Working Holiday Scheme NZ Racing Conference Apprentice Normal Oct 2000 5 Yrs In NZ Oct 2000 5 Yrs In NZ (Lawful) Oct 2000 De facto To NZ Citizen/Resident Oct 2000 De facto To NZ Citizen/Resident (Lawful) Oct 2000 Marriage To NZ Citizen/Resident Oct 2000 Marriage To NZ Citizen/Resident (Lawful) Oct 2000 Parent Of NZ Born Child Oct 2000 Parent Of NZ Born Child (Lawful) Operation Deep Freeze Partner/Dependent Of US Govt Personnel Partner of NZ Citizen/Resident Partner of Worker Partner & Child Of NZ Citizen/Resident Classified as a Skill Shortage Work Permit Migration Trends 2003/2004 89

Work Permit Criteria Partnership Partnership deferral Reconsideration Replace Research/Post Doctoral Fellow S35a Request Show Judge/Sports Referee Singapore/NZ Work Exchange Programme Skilled Migrant Specific Purpose or Event Sports Player/Professional Coach Spouse/Partner Long Term Business Visa Swedish Citizens Working Holiday Scheme Taiwan/NZ Working Holiday Scheme Talent Arts, Culture and Sports Tuvalu Work Permit Scheme United Kingdom Citizens Working Holiday Scheme United States/ NZ Working Holiday Scheme University Lecturers Uruguay Working Holiday Scheme Vary Conditions Victims Of Domestic Violence Work Experience For Student Business long term executive Business short term General Japanese interpreter Machinery installer/servicer Medical & dental personnel Specialist Skills Priority Occupations Talent Visa (Accredited Employer) Classified as a Skill Shortage Work Permit Yes Yes Yes Yes Yes Yes Yes Yes Yes Migration Trends 2003/2004 90

Appendix E: Skilled/Business Stream IELTS assessment scores by top 12 countries in 2003/2004 23 Total = 3,432 Country Netherlands South Africa Germany Philippines India Fiji Romania Indonesia Japan China South Korea Taiwan Other countries Overall Averages Applicant Type Number sitting test Average listening score Average oral score Average reading score Average writing score Average score Principal 41 7.51 7.51 7.27 7.22 7.38 Secondary 43 7.26 7.09 7.01 6.73 7.02 Principal 49 7.00 7.65 7.32 7.47 7.36 Secondary 60 6.66 7.39 6.57 6.92 6.88 Principal 39 6.99 7.42 6.94 7.15 7.13 Secondary 35 6.46 6.70 6.86 6.71 6.68 Principal 138 6.66 6.77 6.35 6.64 6.60 Secondary 72 5.99 6.06 5.81 6.03 5.97 Principal 393 6.41 6.81 6.22 6.76 6.55 Secondary 248 5.75 6.31 5.54 6.21 5.95 Principal 62 6.40 6.82 6.00 6.37 6.40 Secondary 33 5.32 6.29 5.32 5.82 5.69 Principal 64 6.20 6.47 6.08 6.25 6.25 Secondary 48 5.58 6.22 5.50 5.57 5.72 Principal 48 6.17 5.97 6.09 5.63 5.96 Secondary 38 5.91 5.38 5.72 4.89 5.48 Principal 62 5.91 6.05 5.91 5.82 5.92 Secondary 32 5.16 5.34 5.38 5.20 5.27 Principal 705 5.67 5.81 5.87 5.77 5.78 Secondary 289 5.16 5.32 5.34 5.32 5.29 Principal 173 5.41 5.62 5.54 5.49 5.52 Secondary 157 5.35 5.32 5.19 5.02 5.22 Principal 42 5.43 5.45 5.51 5.29 5.42 Secondary 12 5.08 5.50 5.29 5.08 5.24 Principal 311 6.35 6.76 6.33 6.38 6.45 Secondary 238 5.98 6.34 5.93 5.94 6.04 Principal 2,127 6.09 6.34 6.10 6.19 6.18 Secondary 1,305 5.70 5.99 5.66 5.77 5.78 23 The 12 countries with the most principal applicants sitting the IELTS test are ranked in this table in descending order of the principal applicants average total score. Migration Trends 2003/2004 91

Migration Trends 2003/2004 92

Appendix F: Rates of long-term absence among 1998 residence approvals by country of origin, as at 30 June 2004 Countries with more than 100 people approved for residence in 1998 People who had taken up NZ residence People absent for 6 months or more Percent absent Taiwan 377 196 51.99% Singapore 260 100 38.46% Hong Kong 307 116 37.79% Indonesia 163 61 37.42% Yugoslavia 153 57 37.25% Ireland 137 50 36.50% United States of America 742 257 34.64% Canada 308 101 32.79% Malaysia 309 87 28.16% Japan 304 83 27.30% India 2,033 540 26.56% Netherlands 252 66 26.19% China 3,388 855 25.24% Sri Lanka 595 150 25.21% Iraq 242 61 25.21% Switzerland 141 35 24.82% Germany 379 85 22.43% Great Britain 4,259 923 21.67% Iran 119 23 19.33% Ethiopia 117 21 17.95% Pakistan 118 21 17.80% South Africa 3,296 581 17.63% Thailand 201 35 17.41% Samoa 1,518 257 16.93% Russia 235 39 16.60% South Korea 497 75 15.09% Somalia 428 60 14.02% Philippines 603 67 11.11% Cambodia 333 32 9.61% Fiji 1,565 115 7.35% Tonga 1,016 61 6.00% Vietnam 123 7 5.69% Total for countries with 100 or more migrants 24,518 5,217 21.28% Total 'other' countries 2,038 454 22.28% Combined Total 26,556 5,671 21.35% Migration Trends 2003/2004 93