General Publications
Department of Labour Annual Report 2006
Vote Immigration
Output class: Services to increase the capacity of New Zealand through immigration
Objective: Objective: Increasing the size and quality of New Zealand’s workforce to support economic growth
Increasing the size and quality of the workforce supports economic growth by increasing labour utilisation and labour productivity. New Zealand must attract and retain skilled people if it is to maintain and improve its competitive position in the world economy, and it must do so amid increasing international demand for skilled labour.
New Zealand is currently experiencing a skill and labour shortage and the demand in the short to medium term cannot be met by the local workforce. Attracting expatriates back to New Zealand will increase the size and quality of the workforce, but temporary and permanent migration will also be needed to meet these shortages. Migrants’ ability to participate in the workforce requires a supportive environment. Family reunification is an important part of that environment.
Business migration provides business expertise and investment capital to establish enterprises, contribute to economic growth and create employment opportunities. Visitors and students contribute to the growth of the tourism and international education industries, which in turn support economic growth and create employment.Activities
Activities carried out included:
- encouraging employers to increase labour utilisation, draw on a more diverse labour force and contribute to improving skill levels
- encouraging skilled expatriates to return to New Zealand
- meeting New Zealand’s acute labour needs through temporary immigration
- bringing in skilled migrants to increase workforce Capacity
- bringing in investment capital and entrepreneurial capacity through business migration
- facilitating student and visitor entries in line with tourism and international education strategies
- facilitating family reunification for migrants
- research and evaluation to determine the success of interventions and their impact on the business sector and the economy.
Performance information
Results measures
Performance standard
Performance to 30 June 2006
Percentage of people approved residence under the skilled stream overseas in the 2004/05 year that take up residence in New Zealand by 30 June 2006. Standard: 95%.
96% or 7,736 of the 8,061 people issued with a residence visa under the skilled stream overseas in 2004/05 arrived in New Zealand by 30 June 2006. This is higher than in 2004/05 when 89% (8,443 of 9,493) of people approved in 2003/04 had arrived by 30 June 2005.
Arriving in New Zealand and taking up residence is a prerequisite for migrants’ ability to contribute to New Zealand’s capacity.
Percentage of Skilled Migrant principal applicants who have jobs or job offers. Standard: 50%.
Employment in an occupation in which the applicant is experienced or has a related qualification is an indicator of skill transfer and utilisation in New Zealand.
In 2005/06, 77% or 9,496 of the 12,321 Skilled Migrant principal applicants issued with a residence visa or permit had relevant job offers. This is lower than in 2004/05, when 91% had jobs or job offers.
This reflects the lowering of the Expression of Interest selection point which made it easier for the Expression of Interest to be selected without a job or job offer.
To lodge an application under the Skilled Migrant Category, the Expression of Interest must be selected from the pool and an Invitation to Apply issued.
Percentage of Skilled Migrant principal applicants in employment within six months of arrival, or, if on shore, from time of approval. Standard: 75%.
2,173 Skilled Migrant principal applicants returned the New Migrant Follow Up Survey.5
94% or 2,047 people indicated that they were in employment after six months of approval onshore or arrival in New Zealand.
There have been some problems with the survey sample. A number of respondents answer anonymously and are therefore unable to be identified as having been approved during a particular year. As a result, the information is reported on the number sent out since the survey began on 17 December 2003. Also, not all of the surveys that are sent out are recorded in the database, which affects the survey’s response rate. The survey will be superseded by the Settlement Experiences Feedback Survey from July 2006.
Percentage of migrant approvals under the skilled stream category. Standard: 60%.
62% or 31,870 of the total of 51,236 people were approved for residence under the Skilled/Business stream. The following number of people were approved for residence:
• 31,870 (62%) people were approved under the Skilled/Business stream
• 14,967 (29%) people were approved under the Family Sponsored stream
• 4,399 (9%) people were approved under the International/Humanitarian stream.
In 2005/06, there were a maximum of 51,500 places available under the New Zealand Residence Programme.
Percentage of businesses established under the Long-term Business Category operating according to their business plan at the end of the nine-month renewal period. Standard: 75%.
70 businesses established under the Long-term Business Category became eligible for their nine-month renewal assessment during 2005/06.
All (100%) were assessed as operating according to their business plan and accordingly were granted a permit for the balance of three years.
Three months was allowed for the renewal application processing time.
Proportion of work permits and talent visas granted in known skill shortage areas. Standard: > 2004/05 result.
37,340 work or talent applications (General, Talent and Long-term Skill Shortage List) that were subject to labour market tests were issued during 2005/06.
For 35,619 applications (where occupation information had been entered) 26.0% or 9,272 applications were approved for occupations in known skill shortage areas. This is slightly lower than the 26.5% recorded in 2004/05.
The number of work permits and talent visas issued is outside the Department’s control, as the number of decisions made is demand driven.
Provide a report on initiatives to build and maintain positive relationships with educational institutions and tourism bodies.
Education
A presentation was given, on the benefits of using Students Online, to fourteen institutions that could potentially meet the Students Online criteria. All expressed an interest in the service.
Ten were successful in their applications to become online partners, the majority of which are private training establishments. At the end of the year, there were 41 institutions using Students Online and 28% of all student application decisions were decided via Students Online, a reflection of the success of the service.
A Students Online education cross-sector working group was set up to work through key issues such as the development of an operational manual for Students Online users, ongoing systems review and development. The Department ran workshops with regional cluster groups to identify problems with student processing, and explore options for an online solution for smaller providers that do not meet the Students Online size requirements.
The Department worked closely with New Zealand Trade and Enterprise, educational institutions and the New Zealand Study Group, including attending education fairs and expos in various countries, and supporting education agents who promote New Zealand education.
The Department started to develop a preferred agent group in India with NZ Trade and Enterprise. The group will access enhanced/express visa services, which will improve New Zealand’s competitiveness in the education market.
Presentations were given at various education conferences, including Education NZ and International Education Professionals in Australia and New Zealand. A presentation was also given to the New Zealand Union of Students’ Association delegates on developments for international students, including the new graduate work permits.
Tourism
The Department worked with NZ Trade and Enterprise and Tourism New Zealand to promote the Working Holiday Scheme. In Thailand, a competition was held to promote the Thai Working Holiday Scheme with sponsorship from various sources. The schemes for The Netherlands, Germany and Nordic countries were promoted through the use of media releases and events.
During the year, the NZ Trade and Enterprise New Zealand Focus Centre opened in Hong Kong. The Department has a permanent presence in the centre to promote New Zealand as a destination for tourists and students, and resulted in attracting some Hong Kong agents to start promoting study opportunities in New Zealand.
Percentage of customers satisfied with the quality of the Department’s service. New measure.
The customer satisfaction survey is currently underway.
Activity information
Expected number of temporary visa and permit decisions. Estimate: 510,000
397,296 temporary visa and permit decisions were made during the year.
In the year to date, the number of temporary decisions made for the following permit types were:
• Visitor: 158,690
• Student: 99,161
• Work: 139,445.
Visitors decisions overall were 6% below forecast. The only markets above forecast for the year were the Pacific, E-Services and the Central/Southern region.
Student decisions were 18% below forecast overall. Three markets were above forecast: E-Services, the Pacific and Asia/Middle East.
Temporary entry work visa and permit decisions overall were 5% below forecast. The markets above forecast for the year were the Central/Southern region, the Pacific and E-Services.
Compared to 2004/05, more temporary entry decisions were made. This was due to work visa and permit decisions increasing from 113,719 in 2004/05. In contrast, fewer visitor and student visa and permit decisions were made.
Number of employers accredited and corresponding talent visas issued monitored
• employees accredited
• talent visas issued.
In 2005/06:
• 87 employers were newly accredited
• 327 employers renewed their accreditation for another year
• 1,490 talent visas were issued to accredited employers.
Number of expected residence decisions (by stream). Estimate: 29,413.
29,301 residence decisions were made in 2005/06, more than the 27,525 decisions made in 2004/05. Of these:
• 14,819 were made under the Skilled/Business stream
• 12,450 were made under the Family Sponsored stream
• 2,032 were made under the International/Humanitarian stream.
Number of Expressions of Interest received. New measure.
18,522 Skilled Migrant Category Expressions of Interest were received during the year.6
Number of Invitations to Apply issued. New measure.
16,151 Skilled Migrant Category Invitations to Apply were issued during the year.7
Number of Skilled Migrant Category decisions. Estimate: 12,088.
13,043 Skilled Migrant Category decisions were made during the year.
Percentage of visa and permit decisions decided in accordance with critical elements of government policy. Estimate: 95%.
A random sample of temporary permit and residence decisions made at each branch are selected and checked on a monthly basis.
Based on these results, 97.1% of temporary permit decisions and 97.8% of residence decisions were made in accordance with critical elements of Government policy.
Number of Removal Review Authority appeals received. Estimate: 400.
During 2005/06:
• 329 appeals were received by the Removal Review Authority
• 237 were referred to members for decision
• 303 appeals were finalised.
As at 30 June 2006, there were 149 appeals on hand, 37% fewer than on 30 June 2005. The number of appeals received is outside the control of the Department and is demand driven.
Number of Residence Review Board appeals received. Estimate: 500.
During 2005/06:
• 372 appeals were received by the Residence Review Board, 9% lower than 2004/05
• 305 were referred to members for decision
• 635 appeals were finalised, significantly higher than the 418 appeals finalised during 2004/05.
As at 30 June 2006, there were 258 appeals on hand, 55% fewer than on 30 June 2005. This is due to the lower number of appeals being received by the Residence Review Board and the significantly higher number of appeals finalised during the year.
Number of ministerial appeals received. Estimate: 4,000.
During the year:
• 3,279 ministerial appeals were received, compared to the 4,029 received in 2004/05 and 2,745 in 2003/04
• 3,152 responses were completed.
As at 30 June 2006, there were 698 appeals on hand.
Services in this area are demand driven.
Footnotes
5 The information gathered from the survey forms does not disclose the identity of individuals, and the results are used for research purposes only. The survey forms are sent out only to those migrants aged 16 years and over.
6 The number of new Expressions of Interest received is defined as the number submitted to the pool for the first time and appropriate payment received, thereby making them available in the pool for selection.
7 Invitations to Apply issued in the year do not necessarily relate to the Expressions of Interest selected in 2005/06, but may relate to those selected in 2004/05.
