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Migration Trends and Outlook 2010-2011

5   RESIDENCE APPROVALS

5.1   Introduction

This section describes the characteristics of people approved for residence in 2010/11 and immigration trends since 2002/03. Further information about the characteristics of approvals in each residence stream is in chapters 6-8.

5.2   Residence approvals by New Zealand Residence Programme stream

In 2010/11, 40,737 people were approved for residence from 23,149 applications; an average of two people per application. Table 5.1 shows residence approval numbers by New Zealand Residence Programme stream. For residence approvals in 2010/11 by category, see Appendix M.

Table 5.1 Residence approvals by New Zealand Residence Programme stream, 2009/10-2010/11

New Zealand Residence Programme stream	Approvals		Percentage of total (%)		Percentage change from 2009/10
	2009/10	2010/11	2009/10	2010/11
Skilled/Business	28,473	23,145	62	57	-18.7
Uncapped Family	9,862	9,597	22	24	-2.7
Capped Family	4,708	5,229	10	13	11.1
International/ Humanitarian	2,676	2,766	6	7	3.4
Total	45,719	40,737	100	100	-10.9

Source: Department of Labour.

The number of people approved for residence was below the minimum of the target range for 2010/11 of 45,000. The number has decreased 11 percent since 2009/10. This is largely due to the decrease in the number of people approved through the Skilled Migrant Category, down 20 percent. There are several reasons for the decrease in Skilled Migrant Category approvals. The relatively weak labour market, particularly in the Canterbury region following the earthquake, has lessened opportunities for Skilled Migrant Category applicants to obtain job offers, a key component of the points system. As a result, fewer applications made enough points to be selected from the Expression of Interest pool. Additionally, a lower number of Essential Skills work visa applicants and approvals since the onset of the recession continues to have an effect on residence approvals.

The continuing decrease in migrants from the United Kingdom, which is likely due to the uncertain job market as well as difficulty selling property in the United Kingdom in the current economic climate, also contributed to the overall decrease.

The number of residence approvals through the Capped Family Stream increased 11 percent. This increase is mainly due to people approved through the Parent Policy (see section 7.3).

Figure 5.1 shows the number of people approved for residence through the streams compared to planned levels under the New Zealand Residence Programme from 2002/03 to 2010/11.

Figure 5.1: Number of people approved for residence compared to the New Zealand Residence Programme planned level, 2002/03 - 2010/11

Data table for Figure 5.1

5.3   Location of residence approvals

In 2010/11, 81 percent of residence applications were approved in New Zealand (onshore), down from 83 percent in 2009/10 (Figure 5.2). This continues the trend of people living and working in New Zealand before applying for residence, and the immigration policies that support this transition.^[44]

Figure 5.2: Proportion of applications approved onshore under the New Zealand Residence Programme, 2001/02 - 2010/11

Data table for Figure 5.2

There are significant differences by stream, with 86 percent of Skilled/Business Stream and Uncapped Family Stream applicants, and 85 percent of International/Humanitarian Stream applicants being approved onshore compared to only 49 percent of Capped Family Stream applicants.

The number of Skilled/Business Stream applications that were approved onshore decreased 16 percent between 2009/10 and 2010/11. International/Humanitarian Stream applications decreased 11 percent, Uncapped Family Stream applications decreased 2 percent and Capped Family Stream applications approved onshore increased 4 percent between 2009/10 and 2010/11.

5.4   Number of people per approved application

The average number of people per approved application is an indication of family size. On average, two people were approved per residence application in 2010/11. This average has changed very little since 1999/2000, but varies across the New Zealand Residence Programme streams (Table 5.2).

Table 5.2 Average number of people per approved residence application by New Zealand Residence Programme stream, 2008/09-2010/11

New Zealand Residence Programme stream	2008/09	2009/10	2010/11
Skilled/Business	2.3	2.3	2.2
Skilled Migrant Category	2.3	2.3	2.1
Other Skilled/Business	2.5	2.5	2.6
Uncapped Family	1.1	1.1	1.1
Capped Family	2.0	1.9	1.9
International/Humanitarian	2.7	2.5	2.6
Samoan Quota and Pacific Access Category	3.0	2.9	2.9
Other International/Humanitarian	2.4	2.2	2.3
Total	1.9	1.8	1.8

Source: Department of Labour.

The average family size is generally larger for applications approved under the International/Humanitarian Stream than under the other streams. This is mainly due to the larger average family size for applications approved under the Samoan Quota and Pacific Access Category.

The average family size has implications for the New Zealand Residence Programme because it affects the number of applications needed to meet the target range of approvals.

5.5   Source country of residence approvals

Figure 5.3 compares the source countries of residence approvals from 2008/09 to 2010/11. The United Kingdom remains the largest source country of residence approvals (16 percent). The proportion from the United Kingdom increased significantly in the first half of the decade (from 14 percent in 2002/03 to 29 percent in 2005/06), but has decreased since then. China is the second-largest source country (13 percent), followed by India (10 percent) and South Africa (8 percent).

Figure 5.3: Comparison of residence approvals by largest source countries, 2008/09 – 2010/11

Data table for Figure 5.3

In 2010/11, residence approvals from the United Kingdom and China decreased 16 percent and 11 percent respectively. Growth in residence approvals were seen from India (up 14 percent) and Samoa (up 10 percent).

5.5.1   Source country by residence stream

The main source countries of migrants in the Skilled/Business Stream are similar to the main source countries for all migrants coming to New Zealand under the New Zealand Residence Programme. This is because the Skilled/Business Stream covers almost two-thirds of migrants coming to New Zealand.

The largest source country of Skilled/Business Stream migrants in 2010/11 was the United Kingdom (19 percent), followed by India and South Africa (both 12 percent), and the Philippines (11 percent). Of these four largest source countries, only migrants from India increased in the last year (up 27 percent from 2009/10).

The United Kingdom (15 percent) and China (13 percent) were the largest source countries of migrants in the Uncapped Family Stream in 2010/11. Compared to 2009/10, the number of migrants from the United Kingdom decreased 7 percent while migrants from China decreased by 9 percent.

China (40 percent), the United Kingdom, and India (both 11 percent) were the largest source countries of migrants in the Capped Family Stream in 2010/11. Over the last 3 years, migrants from China in the Capped Family Stream have grown steadily with 30 percent growth in the last year and 16 percent per year for the previous 2 years.

Two out of the three largest source countries of migrants in the International/Humanitarian Stream in 2010/11 were Pacific countries, reflecting the high proportion of approvals in this stream through the Samoan Quota and Pacific Access Category. Samoa was the largest source country in this stream (34 percent), followed by Burma (13 percent, comprising refugees who came through the annual Refugee Quota programme) and Tonga (12 percent).

For residence approvals in 2010/11 by source country and New Zealand Residence Programme stream, see Appendix N.

5.6   Gender and age of residence approvals

5.6.1   Gender by stream

In 2010/11, more females (51 percent) were approved for residence than males (49 percent). This is mainly due to the high proportion of females in the Uncapped Family Stream and the Capped Family Stream, as shown in Table 5.3.

Table 5.3 Proportion of males and females approved by New Zealand Residence Programme stream and type of applicant, 2010/11

New Zealand Residence Programme stream	Principal (%)		Secondary (%)		Total (%)
	Male	Female	Male	Female	Male	Female
Skilled/Business	66	34	41	59	53	47
Skilled Migrant Category	65	35	42	58	53	47
Other Skilled/Business	74	26	35	65	50	50
Uncapped Family	39	61	47	53	40	60
Capped Family	45	55	47	53	46	54
International/Humanitarian	54	46	47	53	50	50
Samoan Quota and Pacific Access Category	55	45	53	47	53	47
Other International/Humanitarian	54	46	42	58	47	53
Total	53	47	43	57	49	51

Source: Department of Labour.

5.6.2   Age by applicant type

The median age of people approved for residence in 2010/11 was 30 years. The median age of principal applicants was 32 years, with 67 percent aged between 20-39. The median age of secondary applicants was 19 years, with 50 percent of secondary applicants younger than 20 years (mainly children of principal applicants).

Figure 5.4 shows the number and proportion of principal and secondary applicants by age group for all people approved for residence in 2010/11.

Figure 5.4: Age of people approved for residence by applicant type, 2010/11

Data table for Figure 5.4

For the percentage of females granted residence by age and source country in 2010/11, see Appendix O.

5.6.3   Age by New Zealand Residence Programme stream

Information on median age (that is, the age at which half are older and half are younger) gives an indication of the composition of migrants under the respective residence streams. Table 5.4 shows that the median age has changed little over the last 3 years, but there are differences between residence streams.

Table 5.4 Median age of migrants by New Zealand Residence Programme stream, 2008/09-2010/11

New Zealand Residence Programme stream	Median age (years)
	2008/09	2009/10	2010/11
Skilled/Business	28	28	29
Skilled Migrant Category	28	28	29
Other Skilled/Business	34	33	33
Uncapped Family	27	28	28
Capped Family	56	56	57
International/Humanitarian	24	23	23
Samoan Quota and Pacific Access Category	20	21	20
Other International/ Humanitarian	27	25	25
Total	29	29	30

Source: Department of Labour.

The median age of residence approvals was 30 years. This is less than the median age of 36 years for the usual resident population in the 2006 census.^[45]

In 2010/11, the median age of Skilled/Business Stream migrants was 29 years, with 80 percent younger than 40 years. This is because the Skilled Migrant Category, which accounts for most people in the Skilled/Business Stream, has an age limit of 55 years. Another factor is the flow-on effect of students applying for residence after the completion of their studies.

The median age for Uncapped Family Stream migrants was 28 years, with 86 percent younger than 40 years.

For Capped Family Stream migrants, the median age was 57 years. Seventy-two percent of migrants in this stream were aged 50 and over, reflecting that most migrants approved through this stream are sponsored parents.

The median age of migrants under the International/Humanitarian Stream was 23 years. This shows that a large proportion of migrants under the International/Humanitarian Stream were young people (64 percent aged under 30 years). Furthermore, the median age of migrants under the Samoan Quota and Pacific Access Category was 20 years, reflecting the trend in young families from the Pacific migrating to New Zealand.

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