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

Talented migrants: Transitions to permanent residence

Introduction

This chapter describes the characteristics of Talent Visa and LTSSL Occupation work permit holders who have gained permanent residence in New Zealand. The work to residence policies provide a pathway to residence for work permit holders, and the intended route to residence is via the Talent and LTSSL residence categories described below. However, highly skilled and talented migrants working in New Zealand have others options available to them to gain permanent residence. One such option is to apply for residence through the Skilled Migrant Category (SMC). The work to residence policies do not preclude work permit holders applying for residence through other policies, or ‘category jumping’ as it is referred to in this report.

Residence policy for Talent Visa and LTSSL work permit holders

Three residence policies complement the Talent Visa and LTSSL Occupation work permit policies. Talent Visa and LTSSL Occupation work permit holders may be granted residence through the associated residence policies after holding their work permit for 24 months. Applicants must have met the employment conditions of their work permit for the 24-month period. Talent (Accredited Employers) and LTSSL Occupation applicants must have full-time employment with a minimum base salary (calculated on the basis of a 40-hour week) of $45,000.¹ A policy change in April 2004 determined that people applying for residence through the Talent Visa and LTSSL Occupation residence categories must be in New Zealand at the time they lodge their application.

Number of people approved for residence

Between April 2002 and October 2005, 4,064 people were issued a work permit through the Talent Visa and LTSSL Occupation policies. As at 31 October 2005, 1,184 work permit holders (29 percent) had gained permanent residence.

Proportion of work permit holders converting to residence

Many Talent and LTSSL Occupation work permit holders gained residence prior to holding their work permit for 24 months or more, and through categories other than the intended residence from work route.

Table 4.1 shows that 83 percent of those approved for residence as at 31 October 2005 had held their work permit for less than 24 months before gaining residence. Between April 2002 and October 2005, almost one in four people (24 percent) who were issued a work permit through the Talent Visa and LTSSL Occupation policies gained residence less than 24 months after their work permit was issued.

People issued a work permit through the LTSSL Occupation work policy were more likely than Talent Visa work permit holders to gain residence prior to the 24 months eligibility threshold. Thirty-one percent of LTSSL Occupation permit holders (445 people) had been approved for residence as at 31 October 2005. Of these, 94 percent were approved for residence less than 24 months after the work permit was issued. Of the people issued a work permit through the LTSSL Occupation policy since April 2002, 29 percent had gained residence in under 24 months.

Table 4.1a Number of people converting to residence by Talent Visa and LTSSL Occupation work permit category

Work permit criteria	Total work permits	Total residence approvals	% gained residence
Talent (Accredited Employers)	2487	695	28%
LTSSL Occupation	1427	445	31%
Talent (Arts, Culture and Sports	150	44	29%
Total	4,064	1,184	29%

Table 4.1b Number of people converting to residence by Talent Visa and LTSSL Occupation work permit category

Work permit criteria	Time taken to transition (months)	n	% of residence approvals	% of work permits
Talent (Accredited Employers)	24	541	78%	22%
Talent (Accredited Employers)	24+	154	22%	6%
LTSSL Occupation	<24	417	94%	29%
LTSSL Occupation	24+	28	6%	2%
Talent (Arts, Culture and Sports	<24	28	64%	19%
Talent (Arts, Culture and Sports	24+	16	36%	11%
Total	<24	986	83%	24%
Total	24+	198	17%	5%

Nationality of people approved for residence

Table 4.2 provides a breakdown by nationality of the rate of transition to residence for work permit holders. Work permit holders from the largest source countries had similar patterns of transition to residence, with between 19 and 43 percent of work permit holders gaining residence. Only 8 percent of Canadian work permit holders had converted to residence. Further analysis showed that of the 253 Canadians issued a work permit, a high proportion (22 percent) had left New Zealand and had been out of the country for six months or more at the end of the analysis period.

South Koreans also had a relatively low rate of transition to residence (19 percent). Of the 13 South Koreans who had converted to residence, a greater than average proportion did so after holding their work permit for 24 months, indicating a low rate of ‘category jumping’. Of the larger source countries, work permit holders from India had the highest rate of transition to residence (43 percent). Of the 40 Indian work permit holders who converted to residence, the majority (93 percent) were granted residence within 24 months of being issued their work permit.

Table 4.2 Nationality of work permit holders who gained permanent residence1

Nationality	Time taken to transition (months) <24 months (n)	Time taken to transition (months) <24 months (row %)	Time taken to transition (months) 24+ months (n)	Time taken to transition (months) 24+ months (row %)
UK	492	82%	111	18%
South Africa	146	86%	24	14%
Canada	17	85%	3	15%
USA	41	93%	3	7%
Germany	29	74%	10	26%
India	37	93%	3	8%
Fiji	25	93%	2	7%
Philippines	22	85%	4	15%
Ireland	16	84%	3	16%
Zimbabwe	25	83%	5	17%
South Korea	9	69%	4	31%
China	18	72%	7	28%
Others	109	85%	19	15%
Total	986	83%	198	17%

Table 4.2a Nationality of work permit holders who gained permanent residence1

Nationality	Total residence approvals (n)	Total work permits (n)	% gained residence
UK	603	1,947	31%
South Africa	170	435	39%
Canada	20	253	8%
USA	44	181	24%
Germany	39	154	25%
India	40	92	43%
Fiji	27	85	32%
Philippines	26	81	32%
Ireland	19	75	25%
Zimbabwe	30	72	42%
South Korea	13	70	19%
China	25	60	42%
Others	128	559	23%
Total	1,184	4,064	29%

1 Percentages are rounded and therefore not all row totals add to 100 percent.

Age and gender of people approved for residence

Table 4.3 provides a breakdown by age group of the rate of transition to residence for work permit holders. In general, older work permit holders had a higher rate of transition to residence than those in the younger age ranges (excluding under 20 year olds and over 55 year olds, where the numbers were small). Those aged 35 years or more had a higher than average rate of transition to residence (between 30 and 37 percent) compared to those under 35 (between 16 to 29 percent). Older work permit holders were also more likely to gain residence within 24 months of being issued their work permit.

Table 4.3 Age of work permit holders who gained permanent residence1

Age	Time taken to transition (months) <24 months (n)	Time taken to transition (months) < months (row %)	Time taken to transition (months) 24+ months (n)	Time taken to transition (months) 24+ months (row %)
Under 20	4	80%	1	20%
20-24	21	70%	9	30%
25-29	168	85%	29	15%
30-34	233	80%	58	20%
35-39	212	80%	53	20%
40-44	196	88%	28	13%
45-49	95	85%	17	15%
50-55	54	95%	3	5%
Over 55	3	100%	0	0%
Total	986	83%	198	17%

Table 4.3a Age of work permit holders who gained permanent residence1

Age	Total residence approvals (n)	Total work permits (n)	% gained residence
Under 20	5	14	36%
20-24	30	189	16%
25-29	197	800	25%
30-34	291	999	29%
35-39	265	879	30%
40-44	224	602	37%
45-49	112	351	32%
50-55	57	183	31%
Over 55	3	47	6%
Total	1,184	4,064	29%

1 Some age groups contain a very low number of approvals.

There were no differences in the transition rates for men and women issued work permits through the Talent Visa and LTSSL Occupation policies (29 percent of male and female work permit holders converted to residence). However, a slightly higher proportion of women who converted to residence (88 percent) did so within 24 months of being issued their work permit, compared to men (82 percent).

Occupation of people approved for residence

Table 4.4 provides a breakdown by occupational group of the rate of transition to residence for work permit holders. There was little variation in the rates of transition to residence for work permit holders in the largest three occupational groups (29 to 32 percent of work permit holders gained residence). However, of the largest three occupational groups, work permit holders classified as Professional had a greater tendency to convert to residence within 24 months of being issued their work permit.

Amongst the smaller occupational groups, Service and Sales Workers had the highest rate of transition to residence (58 percent), and were the most likely to gain residence after holding their work permit for 24 months or more. Plant and Machinery Operators were the least likely to convert to residence. Of those who gained residence, 89 percent did so within 24 months of being issued their work permit.

Table 4.4 Occupational group of work permit holders who gained permanent residence1

Occupational Group	Time taken to transition (months) <24 months (n)	Time taken to transition (months) <24 months (row %)	Time taken to transition (months) 24+ months (n)	Time taken to transition (months) 24+ months (row %)
Legislators, Administrators and Managers	117	82%	25	18%
Professionals	394	93%	29	7%
Technicians and Associate Professionals	137	84%	27	16%
Clerks	9	69%	4	31%
Service and Sales Workers	13	20%	52	80%
Agriculture and Fishery Workers	2	67%	1	33%
Trades Workers	64	90%	7	10%
Plant and Machine Operators and Assemblers	8	89%	1	11%
Elementary Occupations2	20	65%	11	35%
Total	764	83%	157	17%

Table 4.4a Occupational group of work permit holders who gained permanent residence1

Occupational Group	Total residence approvals (n)	Total work permits (n)	% gained residence
Legislators, Administrators and Managers	142	451	31%
Professionals	423	1,470	29%
Technicians and Associate Professionals	164	518	32%
Clerks	13	45	29%
Service and Sales Workers	65	112	58%
Agriculture and Fishery Workers	3	23	13%
Trades Workers	71	234	30%
Plant and Machine Operators and Assemblers	9	120	8%
Elementary Occupations2	31	87	36%
Total	921	3,060	30%

1 Occupations were not recorded for 25 percent of Talent Visa and LTSSL work permit applications.
2 Includes elementary occupations, occupations not listed in the NZSCO codes, and those not able to be coded.

Residence approval category

Table 4.5 shows the residence categories through which Talent Visa and LTSSL Occupation work permit holders have gained permanent residence. The majority of Talent Visa and LTSSL Occupation work permit holders approved for residence to date (839 out of 1,184, or 71 percent) have been approved through the SMC. A further 18 percent were approved through the Talent Visa and LTSSL Occupation residence categories, while the remainder were approved through the General Skills Category (7 percent), Partnership policy (2 percent), or other residence categories.²

Overall, 96 percent of Talent Visa and LTSSL Occupation work permit holders approved for residence have been approved through skilled categories. Of the 445 LTSSL Occupation work permit holders approved for residence, 84 percent were approved through the SMC and 4 percent were approved through the LTSSL Occupation residence category.

Table 4.5 Residence categories through which Talent Visa and LTSSL Occupation work permit holders gained residence approval

Residence approval category	Talent (Accredited Employers) (n)	Talent (Accredited Employers) (%)	LTSSL (n)	LTSSL (%)
Skilled Migrant	451	65%	376	84%
Talent (Accredited Employers)	181	26%	0	0%
1995 General Skills	39	6%	44	10%
Partnership	14	2%	6	1%
LTSSL Occupation	0	0%	16	4%
Talent - Sports	0	0%	0	0%
Talent - Arts and Culture	0	0%	0	0%
Ministerial direction	5	1%	1	0%
Others	5	1%	2	0%
Total	695	100	445	100

Table 4.5a Residence categories through which Talent Visa and LTSSL Occupation work permit holders gained residence approval

Residence approval category	Talent (Arts, Culture and Sports) (n)	Talent (Arts, Culture and Sports) (%)	Total (n)	Total (%)
Skilled Migrant	12	27%	839	71%
Talent (Accredited Employers)	0	0%	182	15%
1995 General Skills	0	0%	83	7%
Partnership	4	9%	24	2%
LTSSL Occupation	0	0%	16	1%
Talent - Sports	13	30%	13	1%
Talent - Arts and Culture	9	20%	9	1%
Ministerial direction	2	5%	8	1%
Others	4	9%	10	1%
Total	44	100	1,184	100

Source: Statistics New Zealand 2001 Census

Table 4.6 shows the residence approval categories through which work permit holders were approved and whether the transition to residence was before or after the work permit holder met the 24-month eligibility criteria. In total, 986 out of 1,184 people (83 percent) approved for residence did so less than 24 months after work permit approval. Of the 986, 83 percent were approved through the SMC, and 12 percent were approved through other residence categories, mostly General Skills Category (GSC) or Partnership policy.

The transition to residence through the Talent Visa and LTSSL Occupation residence categories tends to be greater for those approved the work permit through the Talent (Accredited Employers) and Talent (Arts, Culture and Sports) policies. Of the Talent (Accredited Employers) and Talent (Arts, Culture and Sports) work permit holders who held their permit for 24 months or more before gaining residence, most gained residence through the associated Talent Visa or LTSSL Occupation residence category.

Of those approved for residence after holding their work permit for 24 months or more (198 out of 1,184), 86 percent were approved through the residence from work categories, 11 percent were approved through the SMC, and 3 percent were approved through other residence categories.

Of the 154 Talent (Accredited Employers) work permit holders approved for residence after holding their work permit for 24 months or more, 95 percent were approved through the Talent (Accredited Employers) residence category. Thirteen of the 16 Talent (Arts, Culture and Sports) work permit holders approved for residence after holding their work permit for 24 months or more were approved through the Talent (Arts, Culture and Sports) residence categories.

Table 4.6 Residence approval categories for work permit holders approved before or after meeting the 24-month qualifying period

Work permit category	Months to residence	Residence approval category
		Residence from Work		Skilled Migrant		Other		Total
		n	%	n	%	n	%	n	%
Talent (Accredited Employers)	<24	34	6%	445	82%	62	11%	541	78%
	24+	147	95%	6	4%	1	1%	154	22%
	Total	181	26%	451	65%	63	9%	695	100%
LTSSL Occupations	<24	5	1%	363	87%	49	12%	417	94%
	24+	11	39%	13	46%	4	14%	28	6%
	Total	16	4%	376	84%	53	12%	445	100%
Talent (Arts, Culture and Sports)	<24	10	36%	10	36%	8	29%	28	64%
	24+	13	81%	2	13%	1	6%	16	36%
	Total	23	52%	12	27%	9	20%	44	100%
Total	<24	49	5%	818	83%	119	12%	986	83%
	24+	171	86%	21	11%	6	3%	198	17%
	Total	220	19%	839	71%	125	11%	1184	100%

Time taken to transition to residence

Twenty-nine percent of people issued a Talent Visa or LTSSL Occupation work permit between April 2002 and October 2005 had been approved for residence by October 2005. The majority of these people gained residence within 24 months of being issued their work permit. Of the 1,184 people approved for residence to date, the average time taken from work permit approval to residence approval was 13 months. On average, LTSSL Occupation work permit holders who gained residence did so in less time than the Talent Visa work permit holders.

Of the 445 LTSSL Occupation work permit holders approved for residence to date, the average time taken to make the transition was 11 months. The comparable figure for Talent (Accredited Employers) work permit holders approved for residence was 13 months, and for Talent (Arts, Culture and Sports) the average was 18 months.

Figure 4.1 shows the number of months taken from work permit approval to residence approval for Talent Visa and LTSSL Occupation work permit holders who had been approved for residence as at 31 October 2005. There is a stronger tendency for LTSSL Occupation work permit holders to transition to residence prior to reaching the 24-month qualifying period. Sixty-five percent of those approved for residence made the transition within 12 months. For Talent (Accredited Employers) work permit holders, there is a greater tendency to reach the 24-month qualifying period before gaining residence approval.

Figure 4.1 Months taken for work permit holders to transition to residence (n=1,184)

Description of Figure 4.1

Work permit holders not taking up residence after 24 months

The following analysis looks at those people issued a work permit through the Talent Visa and LTSSL Occupation policies who had not gained residence at the end of the analysis period.

Of the 4,064 people issued a work permit through the Talent Visa and LTSSL Occupation policies to date, 719 people (18 percent) had been issued their work permit at least 24 months prior to 31 October 2005. Of these, 419 (58 percent) had made the transition to residence while the remaining 300 had not. Three main reasons accounted for why these people had not been approved for residence: they had applied for residence but a decision had not been made at the time of analysis; they had left New Zealand permanently; or they had changed to another temporary permit type, for example, a General work permit.

As at 31 October 2005, 27 out of 300 (9 percent) had residence applications pending, and a further 82 (27 percent) had time remaining on their 30-month work permit. Of the remaining 191 people, most (88 percent) were absent from New Zealand, and the majority had been absent for six months or more.

Work permit holders leaving New Zealand without applying for residence

Research has shown that some migrants are highly mobile, spending large amounts of time out of New Zealand, while others leave New Zealand permanently within a few years of being granted residence.³ This analysis looks at the time spent in New Zealand after the initial Talent Visa or LTSSL Occupation work permit was issued (or the date of arrival in New Zealand for those issued a work visa offshore). As at 31 October 2005, 8 percent of all people issued a work permit through the Talent Visa and LTSSL Occupation work policies (339 out of 4,064) had left New Zealand and been absent for six months or more.

Figure 4.2 shows the number of months spent in New Zealand after approval or arrival before leaving the country long term. Sixty-one percent of those who had been absent from New Zealand for six months or more had left the country within six months of being approved for the work permit (or within six months of arrival if approved offshore). Of the 339 people who had left New Zealand long term, 23 percent had left within two months of their work permit approval/arrival, and 83 percent had left within 12 months.

Figure 4.2 Number of months spent in New Zealand after work permit approval (or arrival) before departing long term (n=339)

Description of Figure 4.2

Work permit category of people leaving New Zealand without applying for residence

People issued a work permit through the Talent (Arts, Culture and Sports) policy were more likely to leave New Zealand long term and not apply for residence than were those approved through the Talent (Accredited Employers) and LTSSL Occupation policies. Of the 150 people issued a work permit through the Talent (Arts, Culture and Sports) policy, 23 people (15 percent) left New Zealand before applying for residence and had been absent for six months or more as at 31 October.

Twelve percent of people issued a work permit through the LTSSL Occupation policy (175 out of 1,427) had left New Zealand before applying for residence and were long-term absent as at 31 October 2005. People issued work permits through the Talent (Accredited Employers) policy were the least likely to leave New Zealand long term without applying for residence. Of the 2,487 people issued a work permit through the Talent (Accredited Employers) policy, 141 people (6 percent) had left the country long term and had not applied for residence.

Nationality of work permit holders leaving New Zealand without applying for residence

Of the top source countries, rates of absence were highest for Canadians, with 22 percent of work permit holders leaving New Zealand long term and not applying for residence. Lower rates of absence were recorded for work permit holders from Fiji, the Philippines, and Zimbabwe. Table 4.7 provides a breakdown of work permit holders by nationality who left New Zealand long term without applying for residence.

Table 4.7 Number of work permit holders leaving New Zealand by nationality

Nationality	Number of work permits issued	Number of people who left NZ	% absent
UK	1,947	132	7%
South Africa	435	38	9%
Canada	253	55	22%
USA	181	14	8%
Germany	154	11	7%
India	92	7	8%
Fiji	85	0	0%
Philippines	81	2	2%
Ireland	75	7	9%
Zimbabwe	72	2	3%
South Korea	70	8	11%
China	60	5	8%
Others	559	58	10%
Total	4,064	339	8%

Source: Statistics New Zealand 2001 Census

Long-term absent residence approvals

At the end of the analysis period, only 12 people approved for residence had been absent from New Zealand for six months or more. Of these, six had been approved for residence through the SMC, and six had been approved through the GSC.

Transition to residence for work permit holders approved onshore versus offshore

There is some evidence to suggest that Talent Visa and LTSSL Occupation applicants who applied for their work permit offshore were more likely to ‘category jump’ than those who applied for the work permit onshore. Permanent residence brings greater certainty to migrants and their families. Anecdotal evidence from the survey of accredited employers suggested that for some migrants, particularly those coming to New Zealand for the first time, there was a strong desire to gain permanent residence rather than live in New Zealand on a temporary permit. Table 4.8 shows that 61 percent of Talent Visa and LTSSL Occupation work permit holders who gained residence through the SMC were originally granted their work permit offshore.

For those approved for residence through the Talent Visa and LTSSL Occupation residence categories (220 people in total), only 40 percent had originally been approved their work permit offshore.

Table 4.8 Work permit approval location by residence approval category

Residence approval category	Onshore (n)	Onshore (%)	Offshore (n)	Offshore (%)	Total
Skilled Migrant	324	39%	515	61%	839
Talent (Accredited Employers)	101	55%	81	45%	182
1995 General Skills	53	64%	30	36%	83
Partnership	19	79%	5	21%	24
LTSSL Occupation	9	56%	7	44%	16
Talent - Sports	12	92%	1	8%	13
Talent - Arts and Culture	9	100%	0	0%	9
Ministerial direction	6	75%	2	25%	8
Others	9	90%	1	10%	10
Total	542	46%	642	54%	1,184

Source: Statistics New Zealand 2001 Census

Table 4.9 shows the residence approval location for all Talent Visa and LTSSL Occupation work permit holders approved for residence. Ninety percent of Talent Visa and LTSSL Occupation work permit holders approved for residence had their residence applications processed onshore. This result is as expected, given that most Talent Visa and LTSSL Occupation work permit holders would have been living and working in New Zealand at the time they applied for residence. Furthermore, since April 2004, Talent Visa and LTSSL Occupation work permit holders applying for residence through the Talent Visa and LTSSL residence categories were required to be in New Zealand at the time they lodge their application.

Table 4.9 Residence approval category by approval location

Residence approval category	Onshore (n)	Onshore (%)	Offshore (n)	Offshore (%)	Total
Skilled Migrant	750	89%	89	11%	839
Talent (Accredited Employers)	182	100%	0	0%	182
1995 General Skills	61	73%	22	27%	83
Partnership	23	96%	1	4%	24
LTSSL Occupation	16	100%	0	0%	16
Talent - Sports	13	100%	0	0%	13
Talent - Arts and Culture	9	100%	0	0%	9
Ministerial direction	8	100%	0	0%	8
Others	8	80%	2	20%	10
Total	1,070	90%	114	10%	1,184

Source: Statistics New Zealand 2001 Census

Summary

• Between April 2002 and October 2005, 29 percent of Talent Visa and LTSSL Occupation work permit holders gained permanent residence.
• The majority of people approved for residence did so within 24 months of holding their work permit, and through categories other than the residence from work categories.
• The majority of people approved for residence had applied through the Skilled Migrant Category. LTSSL Occupation work permit holders were more likely to ‘category jump’ than Talent Visa work permit holders.
• Eight percent of Talent Visa and LTSSL Occupation work permit holders left New Zealand without applying for residence. Of these, almost two-thirds left within six months of gaining their work permit.
• Talent (Accredited Employers) work permit holders were more likely to remain in New Zealand and apply for permanent residence, and least likely to ‘category jump’.

Footnotes

1 No salary threshold exists for Talent (Arts, Culture and Sports) applicants, although the applicant (or their partner or children) must not have applied for or been granted welfare assistance at any time since the grant of their work permit.

2 The GSC came into effect in 1995 and closed in July 2003. Applications received prior to the closure were accepted for processing, so applicants continued to be approved after July 2003.

3 Shorland, P., (2006): People on the Move: A study of migrant movement patterns to and from New Zealand.