Migration movements

Permanent and long-term arrivals and departures

Permanent and long-term (PLT) arrivals include people who arrive in New Zealand intending to stay for 12 months or more (visitors, students, workers, and people granted permanent residence) and New Zealand residents returning after an absence of 12 months or more.

PLT departures include people leaving New Zealand after a stay of 12 months or more (visitors, students, and workers) and New Zealand residents departing for an intended period of 12 months or more.

In 2008/09, there were 88,300 PLT arrivals and 75,700 PLT departures, leading to a positive net migration of 12,500. Figure 1 shows PLT arrivals and departures from 1978/79 to 2008/09.^[3]

Figure 1: Permanent and long-term arrivals and departures, 1978/79–2008/09

Source: Statistics New Zealand.

Data table for Figure 1

The total number of people migrating to and from New Zealand fluctuates greatly from year to year but cyclical patterns emerge over time. Despite these fluctuations, the general trend has been one of continual growth. Since 2001/02, net migration has been positive. The net inflow of 42,500 in 2002/03 was the highest in three decades.

Recent trends show the impact of the global economic slowdown on PLT migration flows. The rise in net migration in 2008/09 was driven by more New Zealanders returning home and fewer leaving. The latter trend, which has had the greatest impact on net migration, is a result of fewer New Zealanders leaving for Australia. This most likely reflects the weakened labour market with fewer opportunities abroad with many New Zealanders staying in New Zealand or deferring their travel. This is discussed further in chapter 9.

Residence approvals

The quantum and composition of the New Zealand Residence Programme (NZRP), which governs permanent residence approvals, is set annually. The planning level for 2008/09 financial year was 45,000-50,000 approvals. Factors taken into account when setting the level include net migration flows and the impacts of a given level of immigration inflows on the economy, infrastructure and social cohesion. Table 1 shows the number of people granted residence in New Zealand in 2008/09 by residence stream and category.

Table 1: Residence approvals by stream and category, 2008/09

Residence stream	Category	Approved applications	Approved people
Total		24,572	46,097
Business/Skilled	Employee of Businesses	3	13
	Entrepreneur	131	380
	General Skills	4	11
	Investor	11	33
	Partnership Deferral Skilled	2	2
	Skilled Migrant	11,973	27,011
	Work to Residence	465	1,097
	Total	12,589	28,547
Uncapped Family Sponsored	Dependant Child	1,096	1,096
	Marriage	3	8
	Partnership	6,952	7,814
	Partnership Deferral Family	26	28
	Total	8,077	8,946
Parent Sibling Adult Child	Adult Child	90	212
	Humanitarian	2	18
	Parent	2,037	3,570
	Sibling	457	1,300
	Total	2,586	5,100
International/ Humanitarian	1995 refugee status	101	207
	Other	293	637
	Pacific Access	114	360
	Refugee Quota	241	757
	Samoa Quota	388	1,122
	Section 35a	93	141
	Special Samoan Quota and Pacific Access Category places	90	280
	Total	1,320	3,504

Source: Department of Labour.

In 2008/09, 46,097 people were approved for residence in 24,572 applications.^[4] Of these individuals, 28,574 (62 percent) were approved through the Skilled/Business Stream, 14,046 through the Family Sponsored Stream (30 percent), and 3,504 through the International/ Humanitarian Stream (8 percent).

The proportion of applicants across all streams is comparable to the figures for 2007/08, noting that before 2007/08 the Parent Sibling Adult Child and Uncapped Family Sponsored Streams were both included in the Family Sponsored stream. Table 2 shows the top 10 source countries of all people approved for permanent residence in 2008/09 (Appendix A provides further detail).

Table 2: Residence approvals by top 10 source countries, 2008/09

Source country	Approved people	Percentage (%)
Total	46,097	100
United Kingdom	8,641	19
China	6,790	15
South Africa	5,344	12
Philippines	3,484	8
Fiji	3,413	7
India	3,155	7
Samoa	2,110	5
United States	1,100	2
South Korea	854	2
Tonga	710	2
Other	10,496	23

Source: Department of Labour.

Residence approvals by category

Skilled Migrant Category

The Skilled Migrant Category (SMC) was implemented in December 2003. The aim of the SMC is to meet New Zealand's identified labour market 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.

From 30 July 2007, changes to the structure of the SMC points system came into effect. These changes meant that applicants became eligible for an increased number of bonus points for skilled employment, recognised qualifications, and work experience in an identified future growth area. Changes have also been made to the allocation of bonus points for study in New Zealand and for partners' offers of skilled employment and their qualifications.

In 2008/09, 27,011 people were approved for residence through the SMC (11,973 principal applicants). SMC approvals accounted for 59 percent of all residence approvals in 2008/09.

The United Kingdom remains the largest source country of skilled migrants (22 percent), despite the proportion from the United Kingdom declining in recent years. Approvals from South Africa increased substantially in 2008/09 (up 40 percent from the previous year), and South Africa is now the second largest source country with 18 percent of SMC approvals. Table 3 shows the source countries of people approved through the SMC in 2008/09.

Table 3: Source countries of Skilled Migrant Category approvals, 2008/09

Source country	Approved people	Percentage (%)
Total	27,011	100
United Kingdom	6,006	22
South Africa	4,763	18
China	3,754	14
Philippines	2,949	11
Fiji	1,899	7
India	1,601	6
Other	6,039	22

Source: Department of Labour.

Figure 2 shows the gender of the 27,011 people approved through the SMC in 2008/09. A slightly larger proportion of men (52 percent) than women were approved. A much larger proportion of principal applicants were men (65 percent) while 58 percent of the secondary applicants approved in 2008/09 were women.

Figure 2: Gender of Skilled Migrant Category approvals by applicant type, 2008/09

Source: Department of Labour.

Data table for Figure 2

Business Categories

A new business migration package was introduced in July 2009, which aims to boost economic performance by making New Zealand more attractive for business and entrepreneurial migrants (see chapter 8). This section describes the number of people approved for residence through the former Business Categories (the Entrepreneur and Investor Categories).

In 2008/09, 413 people were approved for residence through the Business Categories, representing approximately 1 percent of all residence approvals in that financial year. Figure 3 shows the composition of Business Category approvals from 2002/03 to 2008/09.

Figure 3: Business Category approvals, 2002/03–2008/09

Source: Department of Labour.

Data table for Figure 3

In 2008/09, 380 principal applicants were granted residence through the Entrepreneur Category. Figure 4 compares the source countries of Entrepreneur Category approvals in recent years. Approvals from the United Kingdom have remained relatively steady since 2005/06 while approvals from South Korea and China have decreased. In 2008/09, approvals from the United Kingdom contributed 41 percent of the 380 approvals.

Figure 4: Source country of Entrepreneur Category approvals, 2002/03–2008/09

Source: Department of Labour.

Data table for Figure 4

In 2008/09, only 33 people were approved for residence through the Investor Category. The number of Investor Category approvals has been low since the policy change in 2005 (see chapter 8). Table 4 compares the source countries of Investor Category approvals from 2002/03 to 2008/09. In 2008/09, the United Kingdom was still the largest source country with 12 approvals.

Table 4: Source country of Investor Category approvals, 2002/03-2008/09

Source country	2002/03	2003/04	2004/05	2005/06	2006/07	2007/08	2008/09
Total	3,494	2,101	1,361	538	129	87	33
United Kingdom	225	412	383	196	25	48	12
United States	75	104	95	56	13	9	9
China	1,958	715	545	44	43	12	6
Other	1,236	870	338	242	48	18	6

Source: Department of Labour.

Investor Categories

The Active Investor Migrant Policy became operational at the end of November 2007 and replaced the previous Investor Policy. The policy aimed to provide residence to a small number of business people (approximately 300 applications per year) who want to invest in New Zealand firms. The policy had three segmented categories, tailored to different types of investor migrant.

• Global Investors - This category is the top priority category for migrants investing $20 million (including $5 million in active investment). The category has minimal policy controls and facilitated, fast-track processing.
• Professional Investors - This category is for high-value migrants investing $10 million (including $2 million in active investment). The category has moderate policy controls and facilitated, fast-track processing.
• General (Active) Investors - The minimum investment for this category is semi-active, which means migrants can invest (at least $2.5 million) in New Zealand firms through managed funds. The category has stringent policy controls, and applicants are selected through a points system.

New Zealand launched a new business migration package in July 2009 to streamline the three categories listed above into two categories, and introduce a new Entrepreneur Plus Category (see chapter 8). The new business migration scheme is designed for migrants who want to invest or set up a business in New Zealand and gain permanent residence.

Family sponsored migrants

The Uncapped Family Sponsored and Parent Sibling Adult Child Streams enable New Zealand citizens and permanent residents to sponsor their close family members for residence.

In 2008/09, 14,046 people were approved for residence through these two streams, down from 14,636 in 2007/08. The 14,046 approvals made up 30 percent of residence approvals through New Zealand Residence Programme in 2008/09.

The Partnership Category is the main category in the Uncapped Family Sponsored Stream, and 7,850 people were approved through this category in 2008/09. Partnership Category approvals accounted for 17 percent of all residence approvals in 2008/09, which was similar to the 18 percent in 2007/08.

The Parent Category accounts for most approvals in the Parent Sibling Adult Child Stream. A total of 3,570 people were approved for residence through the Parent Category in 2008/09. The Parent Category made up 8 percent of all residence approvals in 2008/09, unchanged from 2007/08.

The remainder of these two streams were approvals through the uncapped Dependent Child Category (1,096 people), Sibling Category (1,300 people), and Adult Child Category (212 people).

China, the United Kingdom, India, Fiji, and Samoa have been the largest source countries of Family Sponsored migrants since 2006/07. China was the largest source country of residence approvals through the Partnership Category (17 percent) and the Parent Category (31 percent) in 2008/09.

Samoan Quota

In 2008/09, 1,122 people were approved for residence through the Samoan Quota compared with 1,202 in 2007/08.

Pacific Access Category

In 2008/09, 360 people were approved for residence through the Pacific Access Category compared with 1,117 in 2007/08.^[5] Table 5 provides a breakdown of the number of people approved for residence through the Pacific Access Category in 2008/09.

Table 5: Pacific Access Category approvals, 2008/09

Pacific Access Category	Number of people
Total	360
Pacific Access Category Tonga	152
Pacific Access Category Kiribati	99
Pacific Access Category Tuvalu	75
Pacific Access Category Fiji	34

Source: Department of Labour.

Special Samoan Quota Places and Special Pacific Access Category Places Polices

In 2008/09, 280 people were approved for residence through the Special Samoan Quota Places and Special Pacific Access Category Places Polices. Fiji was the largest source country (147 people), followed by Tonga (55 people) and Samoa (31 people).

Successful refugee status claimants granted residence

Permanent residence is granted separately from a refugee status claim. In 2008/09, 207 successful refugee status claimants were approved for residence compared with 213 in 2007/08 and 191 in 2006/07.

Residence trends for women

In 2008/09, 46 percent (11,234) of the principal applicants approved for residence were female. A total of 23,577 women were approved in 2008/09 compared with 23,559 in 2007/08.

Thirty-five percent (4,199) of SMC principal applicants approved were female. Females made up 59 percent (6,290) of the principal applicants approved under the Family Sponsored Stream, the majority of whom were approved under Partnership Policy (4,390).

Females made up 43 percent (574) of the total number of principal applicants approved under the International/Humanitarian Stream, including the:

• Samoan Quota (148)
• Pacific Access Category (58)
• Refugee Quota (86).

In total, females (adults and children) made up 51 percent (385) of Refugee Quota arrivals in 2008/09.

Temporary entry approvals

Visitors

In 2008/09, around 1.4 million people were granted a temporary visitor, student, or work permit on arrival in New Zealand. Most (80 percent) were from visa-waiver countries.^[6] In addition, over 753,000 Australian citizens travelled to New Zealand.^[7] The largest visitor source countries in 2008/09 were Australia, the United Kingdom (242,000), and the United States (183,000), followed by China (95,000), Japan (83,000), and South Korea (63,000).

New Zealand's tourism industry has been adversely affected by the global economic recession, with total visitor numbers in 2008/09 down 3 percent on the previous year.^[8] Visitor arrivals from the Oceania region remained strong with those coming from Australia reaching just over 1 million in 2008/09, up 4 percent on the previous year. The positive growth in tourism from Australia and other parts of Oceania partly offset the decreasing numbers from Asia, Europe, and the Americas.

Tourism from Asia has been most adversely affected by the economic downturn, with a 15 percent decrease in visitor arrivals in 2008/09 from the previous year. There was a large decrease in the number of visitors from China (down 13 percent), Japan (down 23 percent), South Korea (down 31 percent), and Taiwan (down 24 percent). Tourism from Asia was further affected by the global Influenza A (H1N1) pandemic, which compounded the weakening of this market in May and June 2009.^[9]

The trend for visitors from Europe and the Americas was mixed, with falling numbers from the largest source countries, including the United Kingdom (down 10 percent) and the United States (down 9 percent), but gains from smaller source countries such as France, Germany, and Spain. Overall, visitor numbers fell 5 percent from Europe and 7 percent from the Americas in 2008/09.

Workers

Anyone who wishes to work in New Zealand (except New Zealand and Australian citizens or residents) must have a work permit. The objective of work permit policy is to contribute to developing New Zealand's capability base by allowing New Zealand employers to access global skills and knowledge. Work permit policy also aims to ensure that the employment of temporary migrants does not undermine wages and conditions of New Zealand workers.

Some policies allow employers to recruit temporary workers from overseas to meet particular or seasonal skill needs that cannot be met from within New Zealand. In addition, a large number of work permits are issued to young people (aged 18-30 years) participating in working holiday schemes and through family-related policies. Partners of New Zealand citizens, residents, work permit holders, and some students may be issued with a work permit under certain circumstances.

The number of people issued with work permits has increased in recent years, although the economic recession has had a significant impact on labour migration (see chapter 9). In 2008/09, 136,481 individuals were issued work permits (see Figure 5).

Figure 5: Number of people approved work permits, 1997/98–2008/09

Source: Department of Labour.

Data table for Figure 5

After an average growth of 15 percent over the last decade, the growth in the number of people issued work permits slowed to just 2 percent from 2007/08 to 2008/09. Although some categories of work permits showed strong growth, these were largely offset by the large decrease in the number of essential skills work permits, which is the main labour market-driven policy.

The number of people on Working Holiday Schemes increased by 4,325 (12 percent) in 2008/09 as three new schemes were introduced and caps were lifted on other schemes. Seasonal workers increased 3,740 (61 percent) as the number of places available was increased.^[10] However, essential skills approvals decreased by 5,972 (18 percent). This was due to both a decrease in the number of applications being made (10 percent fewer in 2008/09 than in 2007/08) and an increase in the decline rate of those applications (14 percent in 2008/09 compared with 8 percent in 2007/08).

In 2008/09, the United Kingdom was the largest source country with more than 20,000 people approved to work (15 percent), followed by China (9 percent). The number of Chinese workers approved decreased significantly (18 percent) in 2008/09. This was largely due to the decreasing numbers approved under the Study to Work Policies, whereby international students may apply for work permits once they have completed their New Zealand qualification. The number of students from China approved the graduate job search work permit decreased 24 percent from 2007/08 to 2008/09. This is a flow-on effect from lower international student numbers from China in recent years.

India also showed strong growth in the number of temporary work approvals. Table 6 shows the top source countries of people approved work permits.

Table 6: Top source countries of people approved work permits, 2006/07-2008/09

Source country	2006/07	2007/08	2008/09
Total	118,693	134,025	136,481
United Kingdom	19,070	20,680	20,315
China	15,057	15,294	12,592
India	5,797	7,299	9,019
Germany	7,342	8,050	8,713
United States	7,221	7,882	7,508
Philippines	4,158	6,255	6,867
Others	60,048	68,565	71,467

Note: This table analyses individuals rather than the number of permits issued. Therefore, a person issued more than one work permit in any year is counted only once.

Source: Department of Labour.

Working Holiday Schemes allow people aged 18-30 years to holiday for 12 months (6 months for participants from Malaysia and Singapore, and 23 months for participants from the United Kingdom) in the partner country and undertake work and study of a temporary nature.^[11] In February 2009, policy changes removed the cap on the number of places available in many schemes. New Zealand had Working Holiday Schemes with 30 countries as at 30 June 2009.

The number of young people coming to New Zealand as working holidaymakers has increased steadily over the years, as has the number of agreements. In 1997/98, 8,803 people were approved on seven schemes. In 2008/09, 38,946 people were approved through 30 schemes. The greatest numbers came from the United Kingdom and Germany, contributing 26 percent and 17 percent of all working holidaymakers respectively. Table 7 shows the number of working holidaymakers by country in 2008/09.

Table 7: Number of working holidaymakers by scheme, 2008/09

Working holiday schemes	Annual places available in the scheme	Number of working holidaymakers 2008/09
Total		38,946
Argentina	1,000	1,000
Belgium#	Unlimited	200
Brazil*	300	295
Canada#	Unlimited	1,713
Chile	1,000	979
China*	1,000	647
Czech Republic^	1,200	897
Denmark#	Unlimited	207
Estonia	100	57
Finland#	Unlimited	182
France#	Unlimited	2,666
Germany	Unlimited	6,732
Hong Kong	200	239
Ireland#	Unlimited	2,355
Italy#	Unlimited	461
Japan	Unlimited	1,963
Latvia*	100	21
Malaysia	1,150	778
Malta	50	8
Mexico	200	244
Netherlands	Unlimited	792
Norway	Unlimited	68
Singapore	200	34
South Korea^	1,800	2,089
Sweden	Unlimited	630
Taiwan	600	652
Thailand	100	77
United Kingdom	Unlimited	10,172
United States#	Unlimited	2,593
Uruguay	200	195

Note: The start dates of new schemes or changes to existing schemes generally do not align with financial years, in some cases this affects uptake figures.

* These new schemes came into effect at various times throughout the financial year.

^ The number of places available on these schemes was increased during the financial year.

# The cap on these schemes was removed during the financial year.

Source: Department of Labour.

In 2008/09, there was an even distribution of males and females on working holidays (Figure 6) but the gender split varied within individual schemes. The number of female working holidaymakers from Japan, Taiwan, Thailand, and Hong Kong was more than double the number of males from those countries. The number of male working holidaymakers from Italy was more than double the number of females from Italy. Forty-six percent of working holidaymakers were aged 21-25 years.

Figure 6: Age and gender of working holidaymakers, 2008/09

Source: Department of Labour.

Data table for Figure 6

Students

International education is estimated to contribute around $2.1 billion annually to New Zealand's economy.^[12] Host countries benefit from the improvement of political and economic relations with the source countries in addition to the financial gain from student migration. In New Zealand, international students can also play an important role in the labour market through their labour participation post-study, particularly if they gain employment in areas with skill shortages.

A student permit is required for any course longer than 3 months. Potential students from a visa-waiver country may enter as visitors and apply for a student permit in New Zealand. For courses of up to 3 months' duration, non-New Zealand residents are not required to obtain a student permit, but must still hold a temporary permit to be in New Zealand.

New Zealand's international student population decreased between 2002/03 and 2006/07 but increased in both 2007/08 and 2008/09. However, the number of students coming from New Zealand's main source country, China, continues to decrease. The lower number of Chinese students has had a marked impact on the overall number of international students, but the growing number from many other source countries has offset the downward trend.

In 2008/09, 73,926 international students were approved to study in New Zealand. This was a 6 percent increase from 2007/08. The number of Chinese student approvals decreased by 1,322 (8 percent) over the same period, but this reduction was offset by increases from other source countries. International students come from a diverse range of countries, with over 155 nationalities recorded for students in 2008/09. Table 8 provides a breakdown of the top source countries since 2004/05.

In 2008/09, China was still the largest source country at 20 percent of those approved to study, followed by South Korea (14 percent). India continued its strong growth as a source of international students, increasing 42 percent in 2008/09.

Table 8: Number of people approved student permits by source country, 2004/05-2008/09

Source country	2004/05	2005/06	2006/07	2007/08	2008/09
Total	78,079	70,003	67,614	69,614	73,926
China	34,173	26,834	20,275	16,399	15,077
South Korea	11,358	10,118	11,169	11,072	10,715
India	2,260	2,454	3,105	5,769	8,204
Japan	4,353	3,995	3,691	3,511	3,310
Fiji	1,302	1,730	2,126	2,784	3,295
Germany	2,073	2,476	2,659	2,733	3,267
United States	2,933	2,707	2,756	2,740	2,817
South Africa	1,182	1,160	1,528	2,035	2,386
Philippines	320	807	1,470	1,801	2,263
Thailand	1,950	1,721	1,825	2,001	2,149
Other	16,175	16,001	17,010	18,769	20,443

Note: This table analyses individuals rather than number of permits issued. Therefore, a person issued with more than one student permit in any year is counted only once.

Source: Department of Labour.

In 2008/09, 28,669 student permits were approved offshore, an increase of 11 percent from 2007/08. Offshore approvals are used as a proxy for the number of 'new' students applying to study. In 2008/09, India was the largest source of offshore student approvals and continued to show strong growth with an increase of 38 percent in offshore student approvals. Figure 7 shows the top source countries of offshore approvals, which comprise about 50 percent of all offshore approvals.

Figure 7: Number of students approved offshore from the top source countries, 2006/07–2008/09

Source: Department of Labour.

Data table for Figure 7

Temporary entry trends for women

In 2008/09, 45 percent of the 136,471 people approved work permits were female. Of these, 11,567 females were issued with labour market-tested work permits^[13] (out of a total of 37,278). Long-term business visas (interim visas) were issued to 111 females to allow them to establish businesses in New Zealand and progress to permanent residence through the Entrepreneur Category.

Of the 73,925 people issued with student permits in 2008/09, 33,633 were female. In addition, 2,252 were issued graduate job search permits^[14] (out of a total 5,913), and 921 were issued a 2-year work permit to obtain practical experience suitable to their course or qualification gained in New Zealand (out of 2,341). Of the 25,620 people issued work permits under Partnership Policy, 17,667 were female.

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