An Evaluation of work policies that provide a pathway to permanent residence in New Zealand
Working to residence: Talent and LTSSL work permit trends
Introduction
This chapter describes the trends in the number of people issued a work permit through the Talent (Accredited Employers), Talent (Arts, Culture and Sports), and Long Term Skill Shortage List Occupation (LTSSL) policies between April 2002 and October 2005. It also describes the characteristics of migrants approved to work in New Zealand under these three categories.
Talent Visa and LTSSL Occupation work permit policy
To qualify for a work permit through the Talent (Accredited Employers) policy, an applicant must have an offer of employment with an accredited employer. The job offer must be for at least two years, be full-time, and have a minimum base salary of $45,000. Applicants must be no older than 55 and meet health and character requirements.
Applicants through the Talent (Arts, Culture and Sports) policy must have exceptional talent in a declared field of art, culture, or sport.1 Applicants must be sponsored by a New Zealand organisation of national repute. Sponsoring organisations are required to undertake an initial two-year commitment of support, accommodation and, if required, repatriation. Applicants must be no older than 55 and meet health and character requirements.
Under LTSSL Occupation policy, applicants must have an offer of employment in an occupation that is included on the Long Term Skill Shortage List, and must meet the specifications for the occupation.2 The job offer must be for at least two years, be full-time, and applicants must be suitably qualified by training and/or experience to undertake the offer of employment (including any specific requirements set out on the Long Term Skill Shortage List). There is no specific age limit for applicants through LTSSL Occupation work permit policy, although applicants must be no older than 55 to apply for permanent residence through LTSSL Occupation residence policy.
Approval numbers
Between April 2002 and October 2005, 4,064 people were approved through the Talent Visa and LTSSL Occupation policies. Of the total, 2,487 were approved through the Talent (Accredited Employers) policy, 1,427 through the LTSSL Occupation policy, and the remaining 150 were approved through the Talent (Arts, Culture and Sports) policy.
The number of people approved through the Talent (Accredited Employers) and LTSSL Occupation policies increased steadily in the two years after they came into effect in April 2002. Since July 2004, approvals through the Talent (Accredited Employers) policy averaged approximately 98 per month. Over the same period, LTSSL Occupation approvals numbered around 50 per month. Approvals through the Talent (Arts, Culture and Sports) policy have remained steady, but low, since the policy came into effect, with an average of 4 people approved per month.
Figure 3.1 Number of people approved through Talent Visa and LTSSL Occupation policies between June 2002 and October 2005
Rate of approval
Overall, approval rates through the Talent Visa and LTSSL Occupation policies have been high, with an average of 97 percent since the policy came into effect. The approval rate for applicants through the General work policy during the same period was 91 percent.3 Of the three work to residence policies, the Talent (Accredited Employers) had the highest rate of approval at 98 percent. Table 3.1 shows the approval rates for the three policies since April 2002.
Work permit criteria |
Approved | Declined | Total | ||
|---|---|---|---|---|---|
| (n) | (%) | (n) | (%) | ||
| Talent (Accredited Employers) | 2,487 | 98% | 56 | 2% | 2,543 |
| LTSSL Occupation | 1,427 | 96% | 55 | 4% | 1,482 |
| Talent (Arts, Culture and Sports) | 150 | 85% | 27 | 15% | 177 |
| Total | 4,064 | 97% | 138 | 3% | 4,202 |
Onshore versus offshore approval
Almost two-thirds (64 percent) of Talent Visa and LTSSL Occupation applications were processed offshore. Of the three policies, LTSSL Occupation applications were the most likely to have been approved offshore (76 percent), and Talent (Arts, Culture and Sports) were the least likely (25 percent). Table 3.2 shows the proportional split of onshore and offshore approvals by policy category.
Work permit criteria |
On-shore (n) |
On-shore (%) |
Off-shore (n) |
Off-shore (%) |
Total |
|---|---|---|---|---|---|
| Talent (Accredited Employers) | 989 | 40% | 1,498 | 60% | 2,487 |
| LTSSL Occupation | 344 | 24% | 1,083 | 76% | 1,427 |
| Talent (Arts, Culture and Sports) | 112 | 75% | 38 | 25% | 150 |
| Total | 1,445 | 36% | 2,619 | 64% | 4,064 |
Overall, there was very little difference in approval rates for onshore versus offshore approval, with 98 percent of offshore applications approved and 95 percent of onshore applications approved. The greatest difference occurred with LTSSL Occupation applications, where 98 percent of offshore applications were approved and 92 percent of onshore applications were approved.
Timeliness
Compared to the time taken to process General work permits, processing times for applications through the Talent Visa and LTSSL Occupation policies were substantially quicker. Between April 2002 and October 2005, the average number of days taken to process a General work permit was 51 days.4 Over the same period, the average number of days taken to process a Talent Visa and LTSSL Occupation application was just 12 days. LTSSL Occupation applications had the shortest processing time with an average of 12 days. For Talent (Accredited Employers) applications, the average was 13 days, while Talent (Arts, Culture and Sports) applications took longer (32 days on average).
Nationality of approvals
The diversity of applicants across all three permit types was broad, with combined approvals from over 85 nationalities. However, the five largest source countries accounted for almost three-quarters of all approvals (73 percent). Applicants from the UK accounted for 48 percent of people approved overall. UK applicants made up over half (53 percent) of Talent (Accredited Employers) approvals, 42 percent of LTSSL Occupation approvals, and 24 percent of Talent (Arts, Culture and Sports) approvals. South Africa was the second largest source country overall, with 11 percent of approvals. The other main source countries included Canada, the USA, Germany, and India. Figure 3.2 shows the nationalities of people approved work permits under the Talent Visa and LTSSL Occupation policies. A full list of approvals by nationality is provided in Appendix B.
Figure 3.2 Nationalities of Talent Visa and LTSSL Occupation permit holders between April 2002 and October 2005.
a) Talent (Accredited Employers) n=2,487
c) Talent (Arts, Culture and Sports) n=150
Occupation
The New Zealand Standard Classification of Occupations (NZSCO) was used to classify the occupations recorded for people approved through the Talent Visa and LTSSL Occupation policies. Using the NZSCO, occupations are coded to a hierarchical classification with 5 levels, with each level representing a greater level of specificity. In the following analysis, the occupational group (NZSCO level 1) and the occupation description (NZSCO level 5) was recorded for 75 percent of Talent Visa and LTSSL Occupation approvals.
Table 3.3 shows the proportion of Talent Visa and LTSSL Occupation work permit approvals in each of the nine occupational groups. Overall, 48 percent recorded occupations classified as Professional, and in particular, recorded occupations in the education, health, and construction sectors. Fifteen percent of approvals were Legislators, Administrators and Managers, most (93 percent) of whom were approved through the Talent (Accredited Employers) policy.
Sixty-eight percent of LTSSL Occupation approvals were classified as having Professional occupations, reflecting the high proportion of professional occupations listed on the Long Term Skill Shortage List. Forty-two percent of Talent (Accredited Employers) approvals had occupations classified as Professionals.
Eighty-one percent of Talent (Arts, Culture and Sports) approvals were classified as Technicians and Associate Professionals, the majority of whom were sports people. Fifteen percent of LTSSL Occupation approvals were classified as Trades Workers, compared to 5 percent of Talent (Accredited Employers) approvals.
Occupational group |
Talent (Accredited Employers) (n) |
Talent (Accredited Employers) (5) |
|---|---|---|
| Legislators, Administrators and Managers | 419 | 21% |
| Professionals | 837 | 42% |
| Technicians and Associate Professionals | 311 | 15% |
| Clerks | 39 | 2% |
| Service and Sales Workers | 108 | 5% |
| Agriculture and Fishery Workers | 18 | 1% |
| Trades Workers | 98 | 5% |
| Plant and Machine Operators/Assemblers | 112 | 6% |
| Elementary Occupations2 |
73 | 4% |
| Total approvals3 | 2,015 | 100% |
Occupational group |
LTSSL Occupation1 (n) |
LTSSL Occupation2 (%) |
|---|---|---|
| Legislators, Administrators and Managers | 28 | 3% |
| Professionals | 630 | 68% |
| Technicians and Associate Professionals | 116 | 12% |
| Clerks | 5 | 1% |
| Service and Sales Workers | 4 | 0% |
| Agriculture and Fishery Workers | 4 | 0% |
| Trades Workers | 136 | 15% |
| Plant and Machine Operators/Assemblers | 7 | 1% |
| Elementary Occupations2 | 3 | 0% |
| Total approvals3 | 933 | 100% |
Occupational group |
Talent (Arts, Culture and Sports) (n) |
Talent (Arts, Culture and Sports) (%) |
Total (n) |
Total (%) |
|---|---|---|---|---|
| Legislators, Administrators and Managers | 4 | 4% | 451 | 15% |
| Professionals | 3 | 3% | 1470 | 48% |
| Technicians and Associate Professionals | 91 | 81% | 518 | 17% |
| Clerks | 1 | 1% | 45 | 1% |
| Service and Sales Workers | ||||
| Agriculture and Fishery Workers | 1 | 1% | 23 | 1% |
| Trades Workers | ||||
| Plant and Machine Operators/Assemblers | 1 | 1% | 120 | 4% |
| Elementary Occupations2 | 11 | 10% | 87 | 3% |
| Total approvals3 | 112 | 100% | 3,060 | 100% |
1 A small number of people approved through the LTSSL Occupation policy had their permit issued for an occupation on the Immediate Skill Shortage List as opposed to the Long Term Skill Shortage List (for example, ski instructors).
2 Includes elementary occupations, occupations not listed in the NZSCO codes, and those not able to be coded.
3 Occupations were not recorded for 25 percent of Talent Visa and LTSSL Occupation applications.
Tables 3.4 and 3.5 provide examples of the most common occupations in each of the major occupation groups for people approved a work permit through the Talent (Accredited Employers) and LTSSL Occupation policies.
Table 3.4 Examples of the most common occupations of people approved through the Talent (Accredited Employers) policy
Occupational group
- Examples of occupations
Legislators, Administrators, Managers
- Managers (General/Project/Construction)
- Sales and/or Marketing Manager
- Branch/Area Manager
- Production Manager
- Retail Manager
Professionals
- University Lecturer
- Engineer (Civil/Structural/Electrical/ Mechanical)
- Optometrist
- Accountant
- IT Consultant
Technicians and Associate Professionals
- Quantity Surveyor
- Engineering Technician
- Graphic Designer/CAD Draughtsperson
- Industrial Laboratory Technician
Clerks
- Researcher
- Legal Secretary
- Personal Assistant
- Bank Officer
- Gaming Table Supervisor
Service and Sales Workers
- Police Officer
- Chef/Head Chef
- Sales Consultant
- Naval Officer
Agriculture and Fishery Workers
- Arborist
- Dairy/Poultry Farm Manager
- Vineyard Supervisor
- Landscape Contractor
Trades Workers
- Electrician
- Construction Foreman
- Mechanic (Diesel, Motor)
- Fitter Welder
Plant and Machine Operators and Assemblers
- Line Mechanic
- Aluminium Joiner
- Crane Operator
- Earthmoving Machine Operator
- Mine Worker
Elementary Occupations
- Building Construction Labourer
- Technician
- Boat and Ship Cargo Loader
Table 3.5 Examples of the most common occupations of people approved through the LTSSL Occupation policy
Occupational group
- Examples of occupations
Legislators, Administrators, Managers
- IT Manager
- Project Manager
- General Manager
- Software Project Manager - IT
Professionals
- Nurse
- Secondary Teacher
- University Lecturer
- General Practitioner
- Anaesthetist
- Midwife
Technicians and Associate Professionals
- Occupational Therapist
- Anaesthetics Technician
- Medical Laboratory Technician
Service and Sales Workers
- Chef
Trades Workers
- Electrician
- Mechanic (Diesel, Motor)
- Fitter and Turner
- Plumber
- Fitter Welder
The most common occupations of people approved through the Talent (Arts, Culture and Sports) policy were sports coaches or trainers, professional sportspersons, and musicians.
Region of employment
The majority of people approved a work permit through the Talent Visa and LTSSL Occupation policies were concentrated in the main population centres. Of those whose region of employment was recorded (80 percent overall), over half (55 percent) had an offer of employment in the Auckland region, followed by Wellington (12 percent), and Canterbury (9 percent).
Table 3.6 shows that people approved through the Talent (Accredited Employers) policy were more heavily concentrated in Auckland (63 percent) compared to those approved through the LTSSL Occupation policy (38 percent) or the Talent (Arts, Culture and Sports) policy (56 percent). Since the work to residence policies came into effect, 61 percent of accredited employers have been located in Auckland (see Chapter 2, section 2.6).
There was a much greater regional spread of people approved through the LTSSL Occupation policy than through the Talent Visa policies. The concentration in Auckland was considerably less, with a greater spread into regions such as Otago, Manawatu, Hawkes Bay, Northland, and Wanganui.
Region |
Talent (Accredited Employers) |
LTSSL Occupation |
Talent (Arts, Culture and Sports) |
|---|---|---|---|
| Auckland | 63% | 38% | 56% |
| Wellington | 11% | 13% | 13% |
| Canterbury | 8% | 10% | 9% |
| Waikato | 4% | 5% | 5% |
| Otago | 2% | 5% | 2% |
| Bay of Plenty | 2% | 3% | 1% |
| Hawkes Bay | 1% | 4% | 3% |
| Northland | 1% | 4% | 1% |
| Manawatu | 1% | 5% | 0% |
| Taranaki | 2% | 1% | 0% |
| Southland | 1% | 2% | 4% |
| Nelson | 1% | 2% | 2% |
| Wanganui | 0% | 2% | 1% |
| Other | 2% | 7% | 4% |
| Total | 100% | 100% | 100% |
| Total people | 2,082 | 1,065 | 118 |
Region |
Total (n) |
Total (%) |
|---|---|---|
| Auckland | 1,790 | 55% |
| Wellington | 378 | 12% |
| Canterbury | 291 | 9% |
| Waikato | 142 | 4% |
| Otago | 93 | 3% |
| Bay of Plenty | 81 | 2% |
| Hawkes Bay | 80 | 2% |
| Northland | 69 | 2% |
| Manawatu | 63 | 2% |
| Taranaki | 60 | 2% |
| Southland | 38 | 1% |
| Nelson | 37 | 1% |
| Wanganui | 26 | 1% |
| Other | 117 | 4% |
| Total | 3,265 | 100% |
| Total people | - | - |
Source: Statistics New Zealand 2001 Census
Age and gender of approvals
Applicants through the Talent (Accredited Employers) and Talent (Arts, Culture and Sports) policies must be aged 55 years or under at the time they apply. There is no age limit for applicants through the LTSSL Occupation work policy, although the age limit (55 or under) applies if the work permit holder applies for residence through the LTSSL Occupation residence policy.
Overall, two-thirds of people approved through the Talent Visa and LTSSL Occupation policies were aged between 25 and 40, with a mean age of 35. The age profiles of approvals through the Talent (Accredited Employers) and LTSSL Occupation policies were very similar, with the greatest concentration between the ages of 30 and 34. A greater proportion of younger people were approved through the Talent (Arts, Culture and Sports) policy (19 percent under 25 years) compared to people approved through the other two policies (4 percent each under 25 years).
Figure 3.3 Age of people approved through the Talent Visa and LTSSL Occupation policies between April 2002 and October 2005 1
1 With the exception of the LTSSL Occupation policy, applicants must be age 55 years or under at the time they apply. The small number of people aged over 55 were either granted a ministerial exception to policy (the age requirement was waived) or were 55 or under at the time of application, but over 55 at the time of approval.
Men accounted for almost three-quarters (74 percent) of people approved through the Talent Visa and LTSSL Occupation policies. Table 3.7 shows that the overall ratio was 279 men to 100 women, and men outnumbered women almost 4 to 1 in the age range 35 to 45 years. There were also gender differences between the individual policies. A much greater proportion of women were approved through the LTSSL Occupation policy (39 percent), compared to the Talent (Accredited Employers) and Talent (Arts, Culture and Sports) policies (19 percent and 22 percent respectively).
Age group |
Talent (Accredited Employers) (n) |
Talent (Accredited Employers) (m/f) |
|---|---|---|
| Under 20 | 3 | - |
| 20-24 | 104 | 2.06 |
| 25-29 | 492 | 2.39 |
| 30-34 | 638 | 3.43 |
| 35-39 | 572 | 6.94 |
| 40-44 | 377 | 7.98 |
| 45-49 | 198 | 7.25 |
| 50-55 | 97 | 5.47 |
| Over 55 | 6 | - |
| Total | 2,487 | 4.21 |
Age group |
LTSSL Occupation (n) |
LTSSL Occupation (m/f) |
|---|---|---|
| Under 20 | 6 | - |
| 20-24 | 61 | 0.97 |
| 25-29 | 274 | 1.32 |
| 30-34 | 324 | 1.47 |
| 35-39 | 291 | 1.62 |
| 40-44 | 210 | 2 |
| 45-49 | 144 | 1.15 |
| 50-55 | 79 | 2.04 |
| Over 55 | 38 | 4.43 |
| Total | 1,427 | 1.54 |
Age group |
Talent (Arts, Culture and Sports) (n) |
Talent (Arts, Culture and Sports) (m/f) |
Total (n) |
Total (m/f) |
|---|---|---|---|---|
| Under 20 | 5 | - | 14 | 6 |
| 20-24 | 24 | 3 | 189 | 1.66 |
| 25-29 | 34 | 3.86 | 800 | 1.96 |
| 30-34 | 37 | 5.17 | 999 | 2.56 |
| 35-39 | 16 | 2.2 | 879 | 3.68 |
| 40-44 | 15 | 4 | 602 | 4.23 |
| 45-49 | 9 | - | 351 | 2.77 |
| 50-55 | 7 | - | 183 | 3.16 |
| Over 55 | 3 | - | 47 | 4.88 |
| Total | 150 | 3.55 | 4,064 | 2.79 |
1 Ratios were not computed for cells containing less than 10 records.
Summary
- Between April 2002 and October 2005, 2,487 people were approved through the Talent (Accredited Employers) policy, 1,427 through the LTSSL Occupation policy, and 150 through the Talent (Arts, Culture and Sports) policy.
- Work permit approval rates were high overall (97 percent of applicants approved), particularly for Talent (Accredited Employers) work permit applications (98 percent approval rate).
- Processing times for Talent (Accredited Employers) and LTSSL Occupation work permits averaged 12 days. Processing times for General work permits averaged 51 days.
- Work permits were issued to migrants from a broad range of nationalities. The UK was the largest source country for each of the three permit types, accounting for 48 percent of the combined total. The other main source countries included South Africa, Canada, and the USA.
- Work permit holders were employed in a broad range of occupations, particularly those approved through the Talent (Accredited Employers) policy. However, 80 percent overall worked in occupations classified in the top three occupational groups.
- Talent Visa and LTSSL Occupation work permit holders were employed throughout New Zealand, particularly LTSSL Occupation work permit holders. Talent Visa work permit holders were more heavily concentrated in Auckland.
- Men accounted for 74 percent of work permit approvals through the Talent Visa and LTSSL Occupation policies.
Footnotes
1 Applicants are considered to have an exceptional talent in a declared field of art, culture, or sport where the applicant:
- has an international reputation and record of excellence in that declared field, and
- is still prominent in that declared field, and
- their presence in New Zealand will enhance the quality of New Zealand’s accomplishments and participation in the declared field.
2 The Long Term Skill Shortage List is a list in which the Department of Labour, in consultation with Industry New Zealand, relevant industry groups and unions, has identified an absolute (sustained and ongoing) shortage of skilled workers. The list is reviewed bi-annually.
3 The General work permit is the most common type of work permit issued to non-New Zealanders. To qualify for a General work permit, applicants must usually have an offer of employment in an occupation listed on the Immediate Skill Shortage List (ISSL), a list that is maintained by the Department of Labour. The ISSL is a list of occupations in shortage in one or more of the main regions in New Zealand. The General work permit may also be issued in a number of other specific circumstances, such as when a labour market test has shown that no New Zealanders are available to do the work.
4 Based on the weighted average of processing times for General work permit applications.