In April 2002, the Department of Labour (DoL) introduced three new temporary work permit policies that were designed to provide a direct pathway from skilled temporary worker to permanent resident. The three policies included the Talent Visa (Accredited Employers), Talent Visa (Arts, Culture and Sports), and the Long Term Skill Shortage List (LTSSL) Occupation work permit. These ‘work to residence’ policies were designed to help New Zealand employers recruit and retain highly skilled and talented migrants.
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 as experienced by key stakeholders.
The research involved a quantitative analysis of the Department of Labour’s Immigration database, an online survey of accredited employers, and qualitative interviews undertaken with immigration advisers and immigration officers at the Business Migration Branch in Wellington.
Key Results
Key findings: Accredited employers and the migrants they employ
The Talent (Accredited Employers) policy allows accredited employers to recruit highly talented workers from overseas to supplement their own New Zealand workforce. Between April 2002 and October 2005, 565 employers were accredited and approximately 61 percent have maintained their accreditation status over time.
Accredited employers represented a broad range of industries, they tended to be larger than the average New Zealand business, well established, and many were based in Auckland (61 percent). The largest accredited employers employed the majority of work permit holders approved through the Talent (Accredited Employers) policy. Small employers (fewer than 20 employees) accounted for 21 percent of accreditations but employed only 6 percent of Talent (Accredited Employers) work permit holders. Overall, most accredited employers employed fewer than six Talent (Accredited Employers) work permit holders.
A combination of administrative data and survey data showed that the salaries paid to Talent (Accredited Employers) work permit holders tended to be well in excess of the policy threshold of $45,000 per annum. However, there were significant differences between occupational groups. On average, the salaries paid to work permit holders in Service and Sales, Agriculture and Fishery, Trades, and Plant and Machine Operators tended to be nearer the $45,000 threshold than other occupational groups.
In general, accredited employers had found that being accredited brought with it a number of advantages, not least of which they found that being accredited expedited the recruitment of overseas workers. Furthermore, being able to offer migrants a job through a policy that would lead to permanent residence was seen as an attractive incentive for potential migrants.
However, some employers felt that the Talent (Accredited Employers) policy was undermined by the Skilled Migrant Category (SMC), which came into effect after the Talent Visa was introduced. Some employers felt their ability to retain work permit holders was lessened by the ease of which many of the migrants they employed could gain permanent residence through the SMC, or ‘category jump’, instead of following the work to residence route intended by the Talent (Accredited Employers) policy.
Key findings: Talent Visa and LTSSL work permit holders
Between April 2002 and October 2005, 4,064 people were approved through the three work to residence policies. Sixty-one percent (2,487 people) were approved through the Talent (Accredited Employers) policy, 35 percent (1,427 people) through the LTSSL Occupation policy, and the remaining 4 percent (150 people) through the Talent (Arts, Culture and Sports) policy.
Overall, Talent Visa and LTSSL Occupation work permit approval rates was high, particularly for Talent (Accredited Employers) applications (98 percent approval rate). Applications were processed very quickly compared to work permits issued through General work permit policy. On average, Talent (Accredited Employers) and LTSSL Occupation work permits were processed in 12 days. The processing times for General work permits over the same analysis period averaged 51 days.
Talent Visa and LTSSL Occupation work permits were issued to migrants from a broad range of nationalities, although the top five nationalities accounted for 73 percent of approvals. The UK was the largest source country for each of the three permit types, accounting for 48 percent of the combined total. Fifty-three percent of migrants employed through the Talent (Accredited Employers) policy were from the UK, as were 42 percent of LTSSL Occupation work permit holders. The other main source countries for the work to residence policies included South Africa, Canada, and the USA.
Work permit holders were employed in a broad range of occupations, although 80 percent overall worked in occupations classified as Legislators, Administrators and Managers, Professionals, or Technicians and Associate Professionals. A further 8 percent were classified as Trades Workers. The high concentration in these occupational groups indicates the degree to which these policies are enabling the recruitment of skilled or talented migrants.
Talent Visa and LTSSL Occupation work permit holders were employed in regions throughout New Zealand. Those employed through the LTSSL Occupation policy had the greatest spread, with only 38 percent recording employment in Auckland. Sixtythree percent of Talent (Accredited Employers) work permit holders were employed in Auckland, reflecting the large proportion of accredited employers based there. The majority of those employed through the Talent (Arts, Culture and Sports) policy worked in New Zealand’s three main population centres.
Key findings: Transitions to permanent residence
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. However, the work to residence policies do not preclude migrants from applying for permanent residence through other residence policies, or ‘category jumping’.
Twenty-nine percent of Talent Visa and LTSSL Occupation work permit holders gained permanent residence between April 2002 and October 2005. The majority of these people were approved through residence categories other than the intended residence from work routes, but nearly all were approved through skilled categories.
Of those who gained permanent residence, 18 percent were approved through the associated residence from work policies and 78 percent were approved through other skilled categories, most notably the SMC. Most of the remaining four percent were approved through Partnership policy. Of the three work to residence policies, those who held a LTSSL Occupation work permit were most likely to gain residence within 24 months of being issued their work permit. They were also more likely to gain residence through the SMC. LTSSL Occupation work permit holders are highly skilled, with qualifications and work experience that enables them to work in occupations on the LTSSL. These skilled workers are able to meet the policy requirements of the SMC, so it is not unexpected that many endeavour to obtain permanent residence through this policy route.2
Not all migrants issued a work to residence permit remain in New Zealand. This research shows that a small proportion (eight percent) of Talent Visa and LTSSL Occupation work permit holders left New Zealand without applying for residence and were absent for six months or more at the time of analysis. Of the eight percent, almost two-thirds left New Zealand within six months of gaining their work permit. Of the three policies, Talent (Accredited Employers) work permit holders were the most likely to stay in New Zealand, and many gained residence through the intended policy route.