An Evaluation of work policies that provide a pathway to permanent residence in New Zealand

Conclusions

The purpose of this research was to describe the trends in Talent Visa and LTSSL Occupation applications since the policies came into effect, the characteristics of accredited employers and the migrants they employ, and the strengths and limitations of Talent (Accredited Employers) policy. This report provides a timely evaluation of three work to residence policies that facilitate the transition from skilled worker to permanent resident.

This research shows that the employer accreditation scheme and the associated Talent (Accredited Employers) work permit policy has worked well to enable accredited employers to recruit skilled and talented people from offshore to fill skill shortages. Accredited employers who responded to the online survey reported high rates of retention of the migrants they employed. An analysis of residence transition patterns showed that, compared to other work to residence work permit holders, Talent (Accredited Employers) work permit holders tended to remain on their work permit for longer before applying for residence.

The Talent (Accredited Employers) policy’s salary threshold was seen by some stakeholders as a barrier to employing migrants, but this was shown to be occupation-specific. The majority of migrants employed through the Talent (Accredited Employers) policy had highly skilled occupations, and many earned well in excess of the salary threshold of $45,000 per annum. The salary threshold was a greater barrier for employers recruiting in particular occupation groups, such as Trades Workers, although these groups made up a relatively small proportion of work permit holders.

Applicants for a work permit through the Talent Visa and LTSSL Occupation policies are not required to meet a minimum standard of English. Similarly, there is no minimum standard of English for principal applicants who apply for residence through the Talent Visa and LTSSL residence categories. However, there was no evidence in this research to suggest that these policies had created an incentive for non-English speaking migrants to circumvent the English language requirements of other skilled residence policies. The four largest source countries for Talent Visa and LTSSL Occupation work permits were all English-speaking nations, and together accounted for 69 percent of approvals.

An analysis of the rates of transition to permanent residence for Talent Visa and LTSSL Occupation work permit holders showed that many work permit holders gained residence within 24 months of being issued their work permit – less time than intended by the work to residence policies. However, the majority of those who gained residence did so through a skilled residence category, even if it was not the route intended by work to residence policy.

There was a strong tendency for LTSSL Occupation work permit holders to gain residence through the SMC, often well within two years of being granted a work permit. LTSSL Occupation work permit holders are highly skilled, with the qualifications and work experience that are in high demand in New Zealand. To some extent, SMC policy competes with LTSSL residence policy because both policies aim to attract the same highly skilled migrants. SMC policy not only recognises the skills, qualifications, and experience of people with occupations on the LTSSL, but offers bonus points for these attributes. Therefore, SMC policy can often provide a quicker route to residence for LTSSL Occupation work permit holders than would otherwise be the case through the LTSSL residence policy.

New Zealand’s skilled immigration policies aim to attract qualified and skilled migrants who will contribute to New Zealand’s economic transformation. This report will be used to inform the development of these policies to ensure that they continue to select migrants with the skills and talent to live and work successfully in New Zealand. The report will also help ensure that the policies remain responsive to New Zealand’s needs in the future.