This research was carried out by the Department of Labour’s Immigration Service as part of our work in responding to a Cabinet decision in November 2003 authorising a further increase in the Working Holiday Scheme cap [CAB Min (03) 38/12 refers]. Cabinet noted that the Department of Labour would gather evidence on Working Holidaymakers and their impacts to inform advice on increases to the annual cap over 31,000. The objective of the research was to review Working Holiday Scheme participation with a focus on Working Holidaymakers’ labour force participation in New Zealand, including any impact on regional labour markets.
New Zealand has established Working Holiday Schemes with 21 countries. The schemes allow young people (between the ages of 18 and 30 years) to visit New Zealand for a period not exceeding 12 months, and to undertake some employment during their stay. Most of the schemes are reciprocal. The number of Working Holiday Scheme visas approved increased by 137 percent in the six years between 1998 and 2003, largely due to the increase in the year 2000 total cap from 10,000 to 20,000. The two largest schemes in 1998 were Japan and the United Kingdom (UK), and these schemes remained the largest throughout the period ending in 2003.
Purpose
The research in this report had two broad objectives. The first was to identify occupational areas in which Working Holidaymakers are employed. The second was to provide evidence of any impacts of Working Holidaymakers on regional labour markets. The reason for this focus was to provide some data that would allow the impacts of future increases to the Working Holiday Scheme annual cap to be better understood.
Methodology
A variety of methods were used to meet the objectives of the research. Quantitative data about the demographic and immigration characteristics of Working Holidaymakers between 1998 and 2004 was extracted from the Department of Labour’s Immigration database. Information about Working Holidaymakers’ participation in the labour market was derived from an array of quantitative and qualitative sources including:
• a survey of Working Holidaymakers undertaken by Ken Newlands (Programme Leader in the School of Management and Entrepreneurship at Auckland’s Unitec). This survey obtained responses from 218 Working Holidaymakers in New Zealand. Responses were received between August 2003 and April 2004
• a survey of New Zealand Immigration Service (NZIS) Branch Managers (Service Leaders and Service Managers) located onshore. This information was collected via semi-structured interviews conducted via phone and email
• a survey of the Ministry of Social Development’s Work and Income Regional Commissioners in ten locations throughout New Zealand. This survey was conducted in 2000
• anecdotal information from two trade union officials (including a representative from the Council of Trade Unions).
A report titled ‘The Working Holidaymaker Scheme and the Australian Labour Market’ was published in 2002 and this report draws from its findings.