Almost 35k residency visas and 243k work visas approved in July year

Work visa approvals are growing strongly while residence visa approvals are declining and student visas flat, Greg Ninness discovers

28th Aug 19, 9:47am by Greg Ninness

By Greg Ninness

The number of people gaining New Zealand residency has dropped by a third over the last three years, while those being granted work visas have increased by almost 16% over the same period.

Figures compiled by the Ministry of Business, Innovation and Employment (MBIE) show that the number of residence visas approved by Immigration New Zealand has been steadily declining for the last three years, from a peak of 51,750 in the 12 months to the end of July 2016, to 34,881 in the 12 months to the end of July this year, a reduction of 16,899 (-32.6%).

That is the lowest number approved for that time period since MBIE started collating the data in 2010 (see accompanying graph).

Conversely, the number of work visas being issued has increased steadily in each of the last seven years.

In the 12 months to the end of July, 243,195 work visas were approved, which was 12,189 more (+5.2%) than were issued in the previous 12 months and 15.7% more than were issued in the 12 months to July 2016 (see graph below).

But while work visas are up and residence visas are down, student visa numbers appear relatively flat.

The MBIE figures show student visa numbers rose steadily from 77,796 in the 12 months to July 2013 to a peak of 107,931 in the 12 months to July 2017, then dropped back to 104,781 in the 12 months to July 2018 and were barely changed at 104,868 in the 12 months to July this year (see graph below).

The comment stream on this story is now closed.

Source: MBIE

Source:MBIE

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61 Comments

by sharetrader | 28th Aug 19, 10:09am 1566943771

I would love to see the number of people unemployed on the work visas graph
last quarter was 109000 people out of work (looking) so that is 1/2 the work visas we approve why?
not all them don't want to work, yet we bring in 2 to 1 to work

by Lapun | 28th Aug 19, 10:17am 1566944236

Not just the unemployed but also the under-employed - with zero hour contracts you only have to work one hour per week to be 'employed'.

by 2 Tooth Bora | 28th Aug 19, 10:49am 1566946186

Agree, No Work No Benefit.
There are currently 292,000 working-age people 18-64 receiving the benefit. Your not doing them or TAX payers any favours importing immigrants to do the low skilled jobs that locals can do.

by Boatman | 28th Aug 19, 11:58am 1566950280

We should force these lazy sods into getting skills so they can actually contribute to society instead of sitting on their deaf and dumb at home smoking dope and brawling with their partners , and everyone around them

by sharetrader | 28th Aug 19, 12:06pm 1566950775

so according to you we have 100k of these people
do you not see something wrong with that
I know many that would love a job but get overlooked,
and we are talking the lower end where an employer will go for a CHEAP worker who is totally subservant
and its mostly big companies that push the politicians to keep the doors open

by Smalltown | 28th Aug 19, 12:17pm 1566951441

When I was a poor student I spent the summers working on a hay carting gang in Aust. The work was brutal but the hourly wages were hollywood - way, way above what was being paid for a untrained 9-5 job.Now I am seeing a lot of strawberry fields, orchards and the like crying in the media that they cant get pickers and want to bring in 3rd world labourers on short term visas. Well tough titty - if you cant pay decent wages that will attract the attention of kiwis for what is often hard back breaking work for short term employment often living in shyteboxes away from family then your model is kaput so let the fruit rot.

by John | 28th Aug 19, 12:48pm 1566953332

Agree however the result if you let the food rot may be to consolidate food production into a few big farms, automation will become viable and we will need less unskilled people and the wealth will be consolidated into fewer hands and it can then be spread around by the tax system.

By not paying a fair price for the fruit, due to supermarket dominance, growers are stuck between a rock and a hard place. how can they pay a living wage when they are not paid enough for their produce.

by Laminar | 29th Aug 19, 5:22pm 1567056129

Actually that would generate great jobs as those machines need operators, programmers, fitters and turners, sales people etc.

by Casual Observer | 30th Aug 19, 12:05pm 1567123511

Once student loans were introduced NZ student job applicants all but disappeared for orchard work. The good pickers in our orchard were earning up to $33/hr last season. The kiwi students that were here were usually in Supervisory roles. For some people outside the area, to move in to what is a high cost of living area (Central Otago) for just a few weeks work, doesn't always make financial sense. The higher cost of labour, the higher return the grower needs. NZ consumers on average spend a lesser percentage of their weekly income on food now than they did decades ago. In relative terms food has got cheaper, especially fruit and vegetables. NZ is not an outlier in this.

by Yvil | 28th Aug 19, 4:43pm 1566967416

We are accomodating 25 men from Vanuatu at our Motel for 7 months, it's only a fraction of a total 160 men from Vanuatu working on various orchards. I was curious and asked the manager "why do you bring these men into NZ to work, don't you have to pay them minimum wage just like Kiwis?" "Of course we do we but Kiwis don't want to do that type of work, it's that simple"

Interesting

by RickStrauss | 28th Aug 19, 5:15pm 1566969321

It's also not that simple. It's simple that Kiwis have better options now than that seasonal work for the minimum wage.

My father used to pick fruit for seasonal work. However, we worked it out using a wage inflation calculator...and in those days he was being paid the equivalent of $36 per hour and received free accommodation at the orchard. Dormitories at the orchard were the norm, he said, as there was no way folk could afford to go paying for accommodation nearby for a seasonal job.

$36 per hour is considerably more than the minimum wage.

So it's definitely not simply a matter of locals not wanting to do "that type of work". It's also a case of orchardists being able to import cheap labour as a workaround for normal market supply and demand.

by Laminar | 29th Aug 19, 5:25pm 1567056303

Dead right, the statement should read 'the simple truth is we cant employ kiwis for the pittance we call a paycheck'. And imo if they cant pay a market rate then the industry should be broken up and its capital recycled in to more competitive industries.

by Advisor | 28th Aug 19, 10:58am 1566946719

Migrants aren't exactly taking away jobs from unemployed people in NZ. A lot of migrants have the right attitude and advanced skillset that unemployed people in NZ obviously don't. Why would so many of them be out of work in a time where our jobless rate is at decades-low?

But to your point, a good number of migrants on open visas (recent intl. grads, holidaymakers, partners, etc.) are flooding our job market and we limited evidence over how much of an impact this has on our quality of life, unemployment and wages.

by RickStrauss | 28th Aug 19, 11:10am 1566947411

Migrants aren't exactly taking away jobs from unemployed people in NZ. A lot of migrants have the right attitude and advanced skillset that unemployed people in NZ obviously don't.

This is a mantra, but I'd be curious as to its actual substance.

I know quite a number of migrants who are very hard working and quite a number who work as little as possible and having now progressed through the system receive Working for Families or the Accommodation Supplement. (Note, you might logically expect quite a number to be receiving these benefits given three of the top four "skilled" categories have been in retail and hospitality.

Just like there are plenty of hard working and plenty of lazy locally sourced folk.

by Lapun | 28th Aug 19, 11:24am 1566948270

Absolutely correct. The word 'immigrant' is a very big blanket. The checkout operators at my local supermarket are young Indian women - very good at the job, perfect English, etc but do they benefit me - couldn't I mange with a more surly currently unemployed Kiwi doing the same job? On the other hand I wouldn't trade my originally Iranian doctor for the world.
It is for the INZ to sort the sheep from the goats and they could do a better job.

by RickStrauss | 29th Aug 19, 10:07am 1567030042

When you consider that for those ones on low wages we eventually end up subsidising wages via WFF or the Accommodation Supplement it's absurd that we're importing people for low wage jobs and are in the process effectively subsidising the businesses who employ them. Why are we subsidising our hospitality sector off taxpayers' backs?

by Lapun | 28th Aug 19, 11:18am 1566947919

I thought there was plenty of evidence that jobs that are mainly done by immigrants have had minimal pay rises since those immigrants started to take over. Bus drivers, fast food operatives, elderly care workers.
Then there are those who read newspapers and sites like Interest and the upper and middle classes whether student, worker or retiree who benefit from cheap coffee shops and restaurants. They also enjoy seeing their houses or their elderly parents houses endlessly going up in price.
It all comes down to whether we are willing to pay more for our strawberries this Xmas.

by b21 | 1st Sep 19, 8:14pm 1567325652

Probably near to zero. For immigrants it is pretty hard if not impossible to come to NZ with a work visa without a job offer as those are part of very limited schemes.

by Lapun | 28th Aug 19, 10:18am 1566944307

There are arguments for more immigrants and aguments for fewer; both sides can marshall good arguments.
There can be no disagreement in condemning the current INZ not for its choice of quota but for how they are implementing it via dire bureaucratic nightmare delays. This is terrible for potential immigrants and terrible for businesses; the truly gifted immigrants will chose Canada, Australia, UK, etc and NZ will be left with those who would not be accepted elsewhere.
Sadly the INZ has the tools it needs - adjust the point counts and salary levels to reduce numbers and increase visa processing fees to do the job promptly (as per the passport office).

by SmoKey | 28th Aug 19, 10:28am 1566944890

When are we going to have a nation wide, binding referendum on immigration, followed by numerical quotas for different types of visas ? Till then it is always going to be shooting in the dark and hoping it hits the mark.

by Lapun | 28th Aug 19, 11:31am 1566948710

I believe there are quotas but they are secret. If they were to be set via public debate it might easily descend into the loudest racists making the most noise. However that does not stop our elected representatives discussing the matter in parliament with the speaker instantly ruling out any racist remarks. Failure to discuss immigration and jobs leaving America is why Trump was elected. Can't blame voters for identifying with their country.

by hemihua | 28th Aug 19, 12:02pm 1566950566

There are plenty of reasons to turn down/off the tap without resorting to accusations of racism.

by Lapun | 28th Aug 19, 12:11pm 1566951103

I totally agree. The fact that there is a quota however little it is discussed means our govt thinks open door immigration is wrong. If it is wrong then why not say why (eg lack of infrastructure) and then the onus is on the govt to explain why they believe our current immigration rate is good not on us to explain why it is bad.

by rastus1 | 28th Aug 19, 12:21pm 1566951699

It's bigger than this. It is a population issue. How many people do we want living here?

When we set the number, then the next question is how do we achieve this? If we want more, do we go for 8 kids with 8 different fathers...or discourage this behavior and go for 8 skilled from overseas?

Sort out what is best for the planet, the community and the economy.

by Chairman Moa | 28th Aug 19, 10:33am 1566945219

welcome, haere mai..

by HouseHunter | 28th Aug 19, 10:44am 1566945868

Residency visas are only declining because INZ are taking twice as long to process them...

by VeryInterested | 28th Aug 19, 10:57am 1566946656

How many more like this bloke!

https://i.stuff.co.nz/business/114713580/christchurch-woman-helps-migra….

Ways to better protect the 22,000 Filipino migrant workers employed in New Zealand will be covered when labour officials from both countries meet on Wednesday and the opening of a Philippines Overseas Labour Office (POLO) in Wellington is on the agenda.

by Lapun | 28th Aug 19, 11:38am 1566949089

And https://www.stuff.co.nz/business/113639803/shameful-exploitation-of-vul…?

My interest started with Prof Stringer's report on worker exploitation and how it invariably involves low paid immigrants. Published in 2016. Since then a similar report at least once a week in the media and still no serious attempt to do anything about it. Both govt's should be condemned.
see https://www.auckland.ac.nz/en/about/news-events-and-notices/news/news-2… - it was published in the Herald with the headline "No sex - no visa"!

by Smalltown | 28th Aug 19, 12:31pm 1566952306

Then there is Semenoff telling his Filipino truck drivers to ignore safety laws else they are going home.
https://www.stuff.co.nz/business/112845400/secret-video-appears-to-show…

by Lapun | 28th Aug 19, 12:59pm 1566953949

I estimate at least one similar report every week for 3 years now - I ought to have kept the links. Mr Lees-Galloway is slightly bettter than his predecessor - at least he admits a problem exists. But he runs much the same system - even the reduction in numbers for permanent residency is partly due to changes in salary requirements made by the Nats and partly just a shameful slowing down of processing to meet the unpublished lower target.

by Camel's back | 29th Aug 19, 1:02pm 1567040545

How many of these work visas and student visas are actually leaving?
How long are they staying?
That's 340,000 new renters... not including residents... about 8% of the total population?

by Boatman | 28th Aug 19, 11:55am 1566950128

Well blow me down ........... quarter of a million work visa's?

Methinks ( or suspects) that the Government is messing with the numbers to get PR down , but still allowing migrants in .

So you did previously need 100 points to get in with PR now its 180 points so almost no one can get PR as a migrant , but you can get in with a "work visa" if you have a job offer and as long as you have not been in jail , you qualify ( or so it seems )

The whole thing poses way more questions than I have time for ..........but

Are the work visa's for seasonal workers who are crop picking ?
What is the average stay of the person with a work visa?
If a student or under 30 comes on a working holiday , is that a work visa ?
How many visa's were issued to people like builders or construction workers who may stay here ?
Its really hard to get permanent residence , so is the Government just issuing work visa's INSTEAD of giving people PR , and thereby fudging the numbers to meet its immigration election promises , to 'HIT THE PAUSE BUTTON ' as Winston promised ?

by Lapun | 28th Aug 19, 12:18pm 1566951489

Really hard to get a residency visa? Yes if you are a business urgently requiring a specialist skill (say brain surgeon or IT security expert). Not so hard if you bribe someone to offer you a job at the salary boundary and you just wait and wait and wait.

Solution - dutch auction for permanent residency visas. If you really want a specific skill you will pay for it.

by SmoKey | 28th Aug 19, 10:16pm 1566987396

Business interest which want to go on making profits on the back of poorly paid, housed and even cheated imported workers is driving this immigration policy. Legacy of Key's administration's business friendly policies. Labour and NZ First who came on the promise of containing immigration have ditched the NZ public. What is the reason ? Epic phail, all around. In the meantime, Auckland bursting at the seams, with overcrowding in small residences, traffic congestion, infrastructure shortage, even water scarcity, increase in crime/fraud, misbehaviour on the roads and in cars, so on, so on.
We are out to destroy the beautiful Kiwi living experience, which has seen an accelerated deterioration during the last decade.
We need a Trump of our own, soon.

by Fritz | 28th Aug 19, 10:23pm 1566987792

'Business interest which want to go on making profits on the back of poorly paid, housed and even cheated imported workers is driving this immigration policy.'

You nailed it.

by SmoKey | 28th Aug 19, 10:15pm 1566987331

First off, they should stop giving work visas to spouses of student visa holders...

by hemihua | 28th Aug 19, 12:00pm 1566950420

More bad news for renters, I thought we had a crisis yet we roll out the welcome mat. Wtf.

by Lapun | 28th Aug 19, 12:19pm 1566951570

Don't worry the welcome mat is at the front door but we lose Kiwis from the back door.

by BeSensible | 28th Aug 19, 1:27pm 1566955670

Bring in those tradies, we need those houses built..

how else do you think record 14k houses consented this year...

by Voiceofreason | 28th Aug 19, 2:46pm 1566960419

Interesting that. If you read about Spain’s housing bubble and collapse, they imported more and more workers for construction as the bubble expanded, everything seemed great, as those imported workers also needed somewhere to live! As it started to implode, construction work declined, those workers left (to find work elsewhere presumably) and it compounded the decline. Would be interested to know how many are working in property and construction related jobs.

by BeSensible | 28th Aug 19, 3:00pm 1566961230

its a pity we don't get that breakup!!!

by Voiceofreason | 28th Aug 19, 3:09pm 1566961777

Not yet.

by Davo36 | 28th Aug 19, 9:07pm 1566983267

But they're not tradies, they're cafe managers and baristas and students.

by WestieAJ | 28th Aug 19, 2:58pm 1566961123

Why can't the reserve bank generate any inflation despite the lowest interest rates in decades? See above. In a globalised world it is difficult to control the import of "cost of goods deflation" from economies with lower cost structures than ours. But we are going one better and actively importing "cost of services" deflation by bringing the actual low wage workers from those countries here as well. A lot of them through various mechanisms imposed and accepted earn an hourly rate well below the legal New Zealand minimum wage.

by Fritz | 28th Aug 19, 3:10pm 1566961821

For housing, permanent residency is obviously the most significant indicator.

by Fritz | 28th Aug 19, 5:16pm 1566969364

The student visas numbers are interesting. I thought the govt was supposed to be cracking down on all those low quality courses?

by Lapun | 28th Aug 19, 7:05pm 1566975945

Maybe they are all top engineers and mathematicians and intend staying in NZ. I hope so. But doubt it; usually they go to California's silicon valley or UK's silicon glen. Hard to prove but I suspect many are just using it as a means of moving to a country with a welfare state - no love of NZ but a desire to leave countries with corrupt institutions.

by SmoKey | 28th Aug 19, 10:18pm 1566987522

Students get work visa for their spouses, no incentive to finish studies or leave.

by KH | 28th Aug 19, 8:25pm 1566980729

We need to be a higher wage economy, not keeping wages low by bringing immigrants. So your restaurant worker has to be paid say $30 ph. Yes, it's going to mean change If some businesses don't hack that, are they businesses we need.
Also it's very harmful for New Zealand to allow any more increase in population.

by The_4th_estate | 28th Aug 19, 9:57pm 1566986255

Far too high and when I go past my winz office I see immigrants being assisted in the office, what is that about? When there is supposed to be a skills shortage you should not need winz...or did you move here for welfare?

by Ngrrk | 29th Aug 19, 7:24am 1567020264

To be fair, how do you now they are recent immigrants, they could have been hear for 20 years paying tax and have just fell on hard times.

by The_4th_estate | 31st Aug 19, 4:42pm 1567226532

Could be, however I suspect that after a few years in the country they have their hands out for wff and other goodies not available in their country of origin.

by NZChinese | 29th Aug 19, 9:30am 1567027823

People I have hired so far: 1 Brazilian business analyst, 1 Filipino tester and 1 Indian developer. All of them are on work visa. In case you are wondering why there's no any kiwi, well my boss and my boss' boss are kiwis. And they are your typical middle aged white men LOL.

by Foyle | 29th Aug 19, 10:45am 1567032332

We have near record low unemployment, so I am very happy that they are here.

by Chairman Moa | 29th Aug 19, 12:37pm 1567039073

What's the going rate for good BA these days in NZ/Auckland?

by NZChinese | 29th Aug 19, 3:22pm 1567048933

$115k-125k p.a

by Chairman Moa | 29th Aug 19, 4:05pm 1567051541

yeah, same as Brisbane. Sydney and Melbourne may be another 20K

by Lapun | 29th Aug 19, 1:21pm 1567041719

If you are paying them over $100,000pa then they have my approval and i hope they love NZ and choose to become permanent residents and citizens. BTW that figure is below the average pay for Auckland council IT department a few years ago.

by Henry_Tull | 31st Aug 19, 8:16am 1567196219

Here's a well known use case out of Auckland.

Recentish arrival, in business, has preference to employ just arriveds from same said country (you do not want to hear reasons given why).

Same as above, following the just arriveds meeting with recentish arrival, the just arrived is asked to make the $13,500 payment so they secure the job with the recentish arrival.

Blessard is the middle man, a mate of the recentish arrival!

by b21 | 1st Sep 19, 8:15pm 1567325721

It would be interesting to be able to tell the average/medium salary of those on work visas and how many hours they actually work.

by b21 | 1st Sep 19, 8:19pm 1567325973

More relevant than a picture of packed airport terminal, which depicted people would likely be mostly New Zealanders and tourists, and which is implicitly leading to the reader to some opinion, would be one of the hard working immigrants we welcome every year and that help us with their talent and labour.