Home > Publications > General > Statement of intent > Statement of Intent 2012-2015 > Operating Intentions

Statement of Intent 2012-2015

Previous | Table of Contents | Next

Operating Intentions

People thrive through work

Outcome
People thrive through work
Intermediate outcomes
New Zealand has a well-performing labour market People participate in productive work Employers and communities have greater access to the skills and workers they need[2] Injury incidence in and impact on the community is minimised[3]
Our contribution
Labour market decision makers are better informed Labour market regulatory settings enable a well-performing labour market Workers’ skills meet industry needs and are utilised in workplaces New Zealanders’ employment opportunities are protected in immigration decision-making Attracting the people and skills New Zealand needs Advice and monitoring to ensure a well-performing accident compensation scheme
Our outputs and activities
Providing analysis of labour market information, and labour market development Providing policy advice, research, evaluation, monitoring, and ministerial servicing Providing immigration promotion, attraction, and marketing services Providing visa services
Our output expenses
Vote Employment
Labour market information and facilitation services		 Vote Employment
Policy advice and related outputs		 Vote Immigration
Policy advice and related outputs		 Vote Immigration
Immigration services		 Vote ACC
Policy advice and related outputs		 Vote ACC
Regulatory services
We work with
Government departments, agencies, and associated Crown entities, including central agencies, Ministry of Education, Ministry of Social Development, Ministry of Economic Development, Accident Compensation Corporation, Dispute Resolution Services Limited, and Tertiary Education Commission Industry, sector, union, and employer groups, including Business New Zealand, New Zealand Council of Trade Unions, industry training organisations, Chambers of Commerce, and immigration advisers Authorities and advisory groups including local government International agencies including the International Labour Organization

Work is central to most people’s lives and is the main source of income for most families.  Work enhances people’s physical and mental wellbeing.

What are we seeking to achieve?

The Department wants to achieve the following results:

What will we do to achieve this?
New Zealand has a well-performing labour market

The Department will provide advice to Ministers to support them in delivering a unified, cross-government Skills Action Plan to ensure businesses have access to the skills they need, and improve the incentives for businesses to develop and effectively use their employees’ skills.  To support this, the Department will:

People participate in productive work

Although New Zealand has a high rate of labour force participation, some groups are under–represented in the labour force.  The Department will:

Employers and communities have greater access to the skills and people they need

Skill and labour shortages reduce the ability of businesses to grow.  Skills can be developed in existing workers or attracted from overseas.

The Department will:

Injury incidence in and impact on the community is minimised

The accident compensation scheme reduces the economic and social costs of injury, and contributes to the productivity of the labour market through preventing injuries and promoting swift return to work.

The Department will:

How will we demonstrate success in achieving this?

People thrive through work
Indicators of success Baseline Trend Desired result/trend/target
Outcome
People thrive through work, as measured by the proportion of workers in skilled jobs. December 2010:
58.7% are in skilled work		 December 2011:
58.8% are in skilled work		 Increase the proportion of people in skilled jobs
Source: Household Labour Force Survey, Statistics New Zealand.
People thrive through work, as measured by annual growth in GDP per capita. March 2010:
$43,352		 March 2011:
Real GDP per capita was unchanged		 Increase real GDP per capita
Source: Real GDP (production measure) per capita, National Accounts, Statistics New Zealand.
New Zealand has a well-performing labour market
Outcome
Labour market effectiveness, as measured by labour productivity. March 2010:
Increased by 3.7%		 March 2011:
Decreased by 0.1%		 Improve productivity
Source: Productivity Statistics, Statistics New Zealand.
Impact
Provision to Ministers of authoritative, strategic, and integrated advice on improving the labour market and its contribution to the economy, as measured by: June 2010: June 2011: Maintain (or improve) ratings
  • an annual survey of Vote Ministers:
     
    • Vote Labour
Satistisfied
Good
  
    • Vote Immigration
 Satistisfied
Good
  
    • Vote Employment
 Satistisfied Good  
Source: Annual survey with Vote Ministers as reported in the Department of Labour’s Annual Report; and the New Zealand Institute of Economic Research, Quality of Policy Review: Report to the Department of Labour.
People participate in productive work
Outcome
Labour market effectiveness, as measured by: December 2010: December 2011: Increase participation
  • general labour participation rates
68.1%
68.4%
  
  • participation of vulnerable groups (under represented) including:
  
    • Māori
66.4%
65.9%
  
    • Pacific
60.7%
62.2%
  
    • youth (15-24 years).
60.4%
60.3%
  
Source: Household Labour Force Survey, Statistics New Zealand.
The proportion of young people ‘Not in Employment, Education and Training’ (NEET) has reduced. December 2010:
13.3%		 December 2011:
13.1%		 Decrease young people in NEET
Source: Household Labour Force Survey, Statistics New Zealand.
The proportion of unemployed people who have been unemployed for one year or more as a share of total unemployment. December 2010:
8.1%		 December 2011:
8.1%		 Decrease proportion of people unemployed for one year or more as a share of total unemployment
Source: Household Labour Force Survey, Statistics New Zealand.
Employers and communities have greater access to the skills and people they need
Outcome
Access to skills and workers, as measured by proportion of employers who found it harder to find skilled staff. December 2010:
Net 7% found it harder to get skilled staff than three months ago		 December 2011:
Net 19% found it harder to get skilled staff than three months ago		 Improve access to skills and workers
Source: Quarterly Survey of Business Opinion, New Zealand Institute of Economic Research.
Injury incidence in and impact on the community is minimised
Outcome
Effective rehabilitation in New Zealand, as measured by:
 June 2010: June 2011: Improve rehabilitation
  • return to work rates
 86% 87%  
  • durable return to work rates.
 77% 78%  
Source: Australia and New Zealand Return to Work Monitor, Campbell Research & Consulting.
Impact
Financial performance, as measured by: 2009/10: 2010/11: Improve financial performance
  • progress to full funding of Accident Compensation Corporation Accounts
Progress made
The Earners’ and Work
Accounts achieved 100%
solvency
  
  • the change in levy rates:
      
    • Work Account
$1.31 per $100 liable earnings[6] (GST excl)
$1.47 per $100 liable earnings[6] (GST excl)
  
    • Motor Vehicle Account
$287.00[7]
$334.52[7]
  
    • Earners’ Account
$1.70 per $100 liable earnings[8] (GST excl)
 1.78 per $100 liable earnings[8] (GST excl)  
  • the rate of change in the Government’s direct investment
$1,263 million
$1,247 million
  
  • the proportion and cost
    distribution of claims to
    Accident Compensation
    Corporation (workplace
    injuries):
      
    • Up to $500
78%
76%
    • $501 to $20,000
21%
21%
    • More than
      $20,000.
1%
3%
Source: Operational Data, Accident Compensation Corporation.
Provision to the Minister of authoritative, strategic, and integrated advice on improving the labour market
and its contribution to the economy, as measured
by:		 June 2010: June 2011: Maintain (or improve) ratings
  • an annual survey of the Vote Minister for Vote ACC
Satisfied
Satisfied
  • New Zealand Institute of Economic Research’s assessment of policy advice.
7.3 out of 9
7.2 out of 9
Source: Annual survey with the Minister for ACC as reported in the Department of Labour’s Annual Report; and the New Zealand Institute of Economic Research, Quality of Policy Review: Report to the Department of Labour.

Best people brought to New Zealand

Outcome
Best people brought to New Zealand
Intermediate outcomes
People with investment capital, entrepreneurial and other skills are attracted to New Zealand[9] Employers and communities have greater access to the skills and people they need[10] People can enter New Zealand with ease New Zealand is protected from people who pose a risk to New Zealand’s interests Migrants settle and work
Our contribution
Attracting the people and skills New Zealand needs Making fast and accurate immigration and protection decisions Managing the movement of people across the border Regulating immigration advisers
Ensuring compliance with New Zealand’s immigration laws Managing international relationships that support the functioning and security of the immigration system Supporting migrants and refugees to settle  
Our outputs and activities
Providing policy advice, research and evaluation, and ministerial servicing Providing immigration promotion, attraction, and marketing services Providing visa services Managing the Immigration Advisers Authority
Providing risk and compliance services Providing settlement and retention services Providing refugee customer services  
Our output expenses
Vote Immigration
Policy advice and related outputs		 Vote Immigration
Immigration services		 Vote Immigration
Regulation of immigration advisers		 Vote Immigration
Refugee and protection services
We work with
Government departments, agencies, and associated Crown entities, including Ministry of Education, Department of Internal Affairs, Ministry of Primary Industries, Ministry of Foreign Affairs and Trade, New Zealand Customs Service, Tourism New Zealand, Education New Zealand, New Zealand Police, and the Immigration and Protection Tribunal Industry, sector, union and employer groups, including Business New Zealand, and New Zealand Association for Migration and Investment Specialist groups, including immigration advisers, and refugee and migrant bodies International agencies, including International Organization for Migration, Intergovernmental Consultation on Migration, Asylum and Refugees, United Nations High Commissioner for Refugees, Asia Pacific Economic Community, and Five Country Conference

Immigration plays a key role in growing New Zealand’s economy, with people flows underpinning trade, tourism, export education, investment, and innovation linkages, as well as supporting New Zealand’s labour market needs.

What are we seeking to achieve?

The Department wants to achieve the following results:

What will we do to achieve this?

The Department, through Immigration New Zealand, supports wider economic growth objectives by supporting the growth of important export sectors such as tourism and education, and overseas business investment in New Zealand.  One in four New Zealand workers is a migrant and the inflow of migrants is estimated to be worth about $1.9 billion per year.

People with investment capital, entrepreneurial and other skills are attracted to New Zealand

The Department will:

People can enter New Zealand with ease

To make it easier for people to enter New Zealand, the Department is maintaining and enhancing its current service delivery in the short-term while implementing a new service delivery model in the long-term.
The new service delivery model will have two crucial elements that will allow greater reach, better customer service, and significant savings:

Also, the Department will:

New Zealand is protected from people who pose a risk to New Zealand’s interests

The Department will:

Migrants settle and work

The Department will:

How will we demonstrate success in achieving this?

Best people brought to New Zealand
Indicators of success Baseline Trend Desired result/trend/target
Outcome
Economic contribution to New Zealand’s economy from: March 2010: March 2011: Grow economic value
  • tourist
$5,539 million
$4,991 million
  • international students[11]
$1,735 million
$1,799 million
Target: Increase contribution of export education to $5 billion over the next 15 years.
Source: Balance of Payments, Statistics New Zealand.
Proportion of recent skilled principal migrants who: September 2010:
 September 2011:
 Maintain (or improve) levels of satisfaction and recommendation
  • say they are satisfied with life in New Zealand
89%
90%
  • would recommend New Zealand to friends and family as a place to live.
89%
92%
Source: Immigration Survey Monitoring Programme, Department of Labour.
Proportion of permanent migrants who are absent from New Zealand for six months or longer as of 30 June: 2009/10: 2010/11: Improve retention of migrants
  • Skilled/business
16%
15%
  • Uncapped family sponsored
12%
12%
  • Humanitarian
5%
6%
Source: Migration Trends and Outlook 2010/11 Report, Department of Labour.
People with investment capital, entrepreneurial and other skills are attracted to New Zealand
Impact
Value of migrant investors’ investment in New Zealand. $155 million
(July 2009 - March 2011)		 $235 million
(July 2009 - December 2011)		 Improve levels of investment
Source: Operational data, Department of Labour.
New Zealand is protected from people who pose a risk to New Zealand’s interests
Impact
Intelligence, risk, and integrity services effectively deter illegal migration and fraud, as measured by: 2009/10: 2010/11: Improve security
  • people deported
720
776
  • boarding denied
1,341
1,110
  
  • voluntary departures.
1,367
1,163
 
Source: Operational Data, Department of Labour.
People can enter New Zealand with ease
Impact
Applicants satisfied with the overall quality of service delivery by the Department of Labour (Immigration New Zealand). June 2011:
74%		 December 2011:
85%		 Improve satisfaction
Source: Quarterly Immigration New Zealand Customer Satisfaction Survey, Department of Labour.
Proportion of customers who were satisfied overall with immigration advisers. June 2010:
75%		 June 2011:
75%		 Improve satisfaction
Source: Survey of New Zealand Visa and Permit Applicants who have used an Immigration Adviser, Immigration Advisers Authority.
Migrants settle and work
Outcome
Proportion of working-age permanent migrants receiving a core welfare benefit. June 2009:
4.7%		 June 2010:
5.2%		 Improve migrants’ participation in employment
Source: Benefit Receipt by Migrants to New Zealand 2007-2010, Department of Labour.
Impact
Migrants who settle and work, as measured by the proportion of skilled principal migrants who report that their occupations in New Zealand match their skills and qualifications. September 2010:
81%		 September 2011:
84%		 Improve skills matching
Source: Immigration Survey Monitoring Programme, Department of Labour.

Safe and fair workplaces

Outcome
Safe and fair workplaces
Intermediate outcomes
Workplaces are healthy and safe
Employment relationships are fair and sustainable
Injury incidence in and impact on the community is minimised[12]
People with investment capital, entrepreneurial and other skills are attracted to New Zealand[13]
Our contribution
Workplaces develop better health and safety, and employment relations
Employers and employees understand their rights and comply with their health and safety, and employment relations obligations
Labour market regulatory settings enable a well-performing labour market
New Zealand’s reputation for having a fair and effective employment relations system is maintained and upheld
Advice and monitoring to ensure a well-performing accident compensation scheme
Our outputs and activities
Providing authoritative information, guidelines and standards to workplaces (Educate)
Working with a range of stakeholders to effect change in workplaces (Engage)
Monitoring compliance in workplaces and taking enforcement action as required (Enforce)
Providing policy advice, research and evaluation, and ministerial servicing
Managing New Zealand’s international labour commitments
Our output expenses
Vote Labour
Health and safety services		 Vote Labour
Hazardous substances and amusement devices services		 Vote Labour
Employment relations services		 Vote ACC
Regulatory services
Vote ACC
Policy advice and related outputs		 Vote Labour
Policy advice and related outputs		 Vote Immigration
Immigration services		 Vote Immigration
Policy advice and related outputs
We work with
Government departments, agencies, and associated Crown entities, including Accident Compensation Corporation, Ministry of Economic Development, Ministry of Health, Ministry of Social Development, Maritime New Zealand, Environmental Protection Authority, Civil Aviation Authority, Dispute Resolution Services Limited, and Canterbury Earthquake Recovery Authority Industry, sector, union and employer groups, including Business New Zealand, New Zealand Council of Trade Unions, Federated Farmers, Chief Executives Health and Safety Forum, and the Employers and Manufacturers Association Authorities and advisory or specialist groups, including medical professional bodies, and associated health practitioner bodies International agencies, including the International Labour Organization, Asia Pacific Economic Community, and the Organisation for Economic Co-Operation and Development

Safer and fairer workplaces produce higher productivity and a better quality of life for everyone.

What are we seeking to achieve?

The Department wants to achieve the following results:

What will we do to achieve this?

The Department works with businesses to achieve compliance with health and safety, and employment law by providing information and guidance to employers and employees, and undertaking assessment, investigation, and enforcement activities.

Workplaces are healthy and safe

New Zealand’s rate of workplace fatalities is almost four times higher than that of the United Kingdom.  The direct and indirect cost of workplace fatalities, injuries and disease is estimated at $16 billion annually.  The Department has set a target of a 25 percent reduction in workplace fatalities and serious harms by 2020, and demonstrable improvements in occupational health.

The Department will:

Employment relationships are fair and sustainable

The Department will support the Government’s changes to employment relations legislation to ensure the employment relations regulatory framework provides the flexibility to increase employment and productivity.  The changes propose to allow for a starting-out wage for young employees and young people who are coming off a benefit, improve collective bargaining, and provide for more flexible rest and meal breaks.

Also, the Department will:

How will we demonstrate success in achieving this?

Safe and fair workplaces
Indicators of success Baseline Trend Desired result/trend/target
Outcome
Healthy and safe workplaces, as measured by a decrease in the rate of workplace fatalities per 100,000 workers. 2007:
3.7 per 100,000 workers		 2008:
3.8 per 100,000 workers		 Fewer workplace fatalities
Target: 25% reduction in fatalities by 2020
Supporting information: The total number of workplace fatalities notified to the Department of Labour for 2010/11 was 74 compared to 56 in 2009/10.
Source: Serious Injury Outcome Indicators 1994-2010, Statistics New Zealand.
Healthy and safe workplaces, as measured by a decrease in the rate of serious workplace injuries per 100,000 workers. 2008:
17 per 100,000 workers		 2009:
15 per 100,000 workers		 Fewer serious workplace injuries
Target: 25% reduction in serious workplace injuries by 2020
Source: Serious Injury Outcome Indicators 1994-2010, Statistics New Zealand.
Fair workplaces, as measured by international benchmarks on the level of co-operation reported in labour-employer relations[14]. 2010/11:
New Zealand scored 5.5, with a ranking of 13 out of 139 countries		 2011/12:
New Zealand scored 5.4, with a ranking of 13 out of 142 countries		 Improve international rankings
Source: Executive Opinion Survey, The Global Competitiveness Report, World Economic Forum, 2011 and 2012.
Dispute resolution, as measured by the number of workplace stoppages due to industrial action. 2010:
18		 2011:
12		 Maintain (or improve) early dispute resolution
Baseline Source: Work Stoppages, Hot Off The Press, Statistics New Zealand.
Trend Source: Work Stoppages, Operational Data, Department of Labour.
Workplaces are healthy and safe
Impact
Healthy and safe workplaces, as measured by a decrease in the rate of serious workplace injuries in priority sectors[15] per 1,000 workers. 2008: 2009: Fewer serious workplace injuries
  • Agriculture, forestry and fishing[16] sector
33 per 1,000 workers
27 per 1,000 workers
Target: 30% reduction in quad bike related injuries by July 2013
  • Manufacturing sector
30 per 1,000 workers
24 per 1,000 workers
  • Construction sector
31 per 1,000 workers
24 per 1,000 workers
 
Source: Work Related Claims, Injury Statistics, Statistics New Zealand.
Proportion of employers who report they made changes to their workplace health and safety practices as a result of contact with the Department of Labour’s: 2011/12: To be established in 2012/13 Improve workplace practices
  • health and safety services
60%
  • hazardous substances and new organisms services.
50%
Source: Service Excellence Survey (Labour Group), Department of Labour.
Employers’ survey measuring the proportion of employee participation in health and safety systems / procedures. December 2011:
61%		 To be established in 2012/13 Increase in employee participation
Source: National Survey of Employers, Department of Labour.
Employment relationships are fair and sustainable
Impact
Proportion of employment relations problems resolved at mediation (without referral to the Employment Relations Authority). 2009/10:
92.3%		 2010/11:
95.7%		 Maintain (or improve) early dispute resolution
Source: Operational Data, Department of Labour.
Proportion of employers who state that their employees have written employment agreements in place. December 2010:
93%		 December 2011:
84%		 Improve workplace practices
Baseline Source: Brand Health Survey, Department of Labour.
Trend Source: National Survey of Employers, Department of Labour.
Proportion of employers who report they made changes to their workplace employment practices as a result of contact with the Department of Labour’s: 2011/12: To be established in 2012/13 Improve workplace practices
  • labour inspectorate services
55%
  • mediation services.
57%
Source: Service Excellence Survey (Labour Group), Department of Labour.

 

[2] This intermediate outcome is reported here but can also contribute to “Best people brought to New Zealand”.

[3] This intermediate outcome is reported here but can also contribute to “Safe and fair workplaces”.

[4] 7.6 represents the averaged score for quality policy advice for Votes Labour, Immigration and Employment.  Refer to page 17 for the Vote ACC results for June 2010.

[5] 7.5 represents the averaged score for quality policy advice for Votes Labour, Immigration and Employment.  Refer to page 17 for the Vote ACC results for June 2011.

[6] This includes employers and self-employed people in the Work Account.

[7] Combined average motor vehicle levy in the Motor Vehicle Account.

[8] Combined earners’ levy in the Earners' Account.

[9] This intermediate outcome is reported here but can also contribute to “Safe and fair workplaces”.

[10] This intermediate outcome also supports, and is reported under, “People thrive through work”.

[11] International students are a key target group for the export education industry.  Immigration New Zealand contributes through facilitation by way of processing visas.

[12] This intermediate outcome also supports, and is reported under, “People thrive through work”.

[13] This intermediate outcome also supports, and is reported under, “Best people brought to New Zealand”.

[14] Level of co-operation is measured using a scale of 1 = “generally confrontational” through to 7 = “generally co-operative”.

[15] The Department of Labour’s priority sectors are agriculture, construction, forestry, and manufacturing.

[16] Maritime New Zealand investigates serious workplace injuries in the fishing industry.

Previous | Table of Contents | Next