Statistics New Zealand’s October 2011 report on international travel and migration is out and it makes for worrying reading.
While the official report warbles happily about more tourists attracted by the Rugby World Cup it is strangely quiet on a red-hot political topic: the number of New Zealanders leaving for Australia.
Some alert journalists have picked up on this, but even the most hard-working journo simply reads the full report looking for a headline. A little effort turns up the worrying cause and implications of this unprecedented situation: where more people are leaving such a popular country than arriving.
1) New Zealanders crossing the ditch
Kiwis are leaving New Zealand in almost record numbers and the report confirms a 20% increase over last year.
Actually numbers heading to most locations around the world are down on the last couple of years but with one highly notable exception: Australia. Numbers are up by 41% on last year with 49,460 (well over half of all outbound kiwis) choosing Australia as their new permanent home.
Many migrants are worried about this and rightly asking why so many Kiwis are leaving.
What official statistics confirm is that there is a normal cycle of New Zealanders heading to and from Australia every year. While the numbers leaving right now are high what we are seeing appears to be simply a big rise in the high point of that cycle and nothing that hasn’t happened before.
So why has NZ hit negative migration for the first time?
2) Current Migrant numbers
A quick check through this year’s Statistics NZ report to October shows that international migration – people coming in and out of New Zealand from other countries – is largely unchanged since last year with just a 2% rise.
Numbers from China, Ireland and France are up (1,391, 700 and 566 respectively), while arrivals from Australia, India and Fiji are down (1,200, 838 and 241 respectively).
But this apparent stability is false simply reflecting that the huge changes quietly made in 2009 and 2010 have now had time to settle down to ‘business as usual’.
3) The real reason for negative migration
Go back a year to the October 2010 stats report and you can see what has really happened.
Imagine that the number of people coming in and out of New Zealand is a pool of water. Up to a million New Zealanders live overseas in a normal year but the pool stays nicely full despite the ebb and flow because a steady and controlled flow of migrants tops it up. Even in a year like this when large numbers leave (and in 2008 even more Kiwis left NZ) the pool doesn’t empty.
But what would happen if you made big cuts in the number of migrants?
When you hit the high point of the cycle with a lot of people leaving you run the risk of the pool running dry and that is exactly what has happened.
Very few people are aware that from 2009 the government began cutting migrant numbers, concentrating on reducing the number of highly skilled workers needed to fill New Zealand’s skill gaps.
In January 2010 the number of applications accepted by the immigration department through the Skilled Migrant residency category were slashed by 30%.
The October 2010 Statistics NZ report confirms that international immigration was down by 3,809. Not only were migrants from Europe down by 12.2% (2,812) but numbers from the UK (NZ’s biggest contributor) had fallen by 36% (3,350) from 9,183 to 5,833.
Government reports have blamed everything from the global recession to (somehow retrospectively) the Canterbury earthquakes.
To get to the bottom of this I entered a request under the Official Information Act but got fluff and nonsense back with no solid figures or data.
What government reports never mention are the systematic, ruthless but silent cuts to the number of skilled workers being allowed into the country.
This is confirmed by the immigration department’s first ever failure to meet it’s own quota for the year to July 2011. They didn’t miss by a little, they missed by 10% or 4,263 people, and nothing has changed since.
After the first quarter of the 2012 year the immigration department is on track for even greater failure next year as shown by the graph above but according to the Minister has no intention of changing the quotas it is failing to meet!
4) Just the beginning
New Zealand is and always has been a very popular country for migrants looking for balanced family life and a clean green accessible environment to play in. Unfortunately that is changing.
I have spoken to thousands of migrants and know that lifestyle trumps high wages as a priority. However families still need sufficient income to achieve their goals of a good work/life balance, comfortable home and great recreation.
New Zealand is my home. I love it here and I would never live anywhere else, but over the past three years I have sadly watched this country change beyond all recognition.
A good a practical immigration system has been broken and twisted into something which is no longer ‘migrant friendly’. Vulnerability of migrants and immigration bureaucracy has massively increased while transparency on applications has become a thing of the past.
The New Zealand government is forcing globally mobile migrants to take their skills elsewhere as I mentioned in June with New Zealand cutting its skilled immigration programme while Australia and Canada have increased theirs.
Skilled Migration Comparison

Making it harder to get in and stay is one thing, but at the same time New Zealand has become less attractive to globally mobile workers.
- Wages have dropped while the cost of living has rocketed meaning that the numbers no longer add up in New Zealand for many migrants. For example a nurse in New Zealand currently earns a little over half of what the would earn in Australia and many Australian nurses are currently striking for even better pay and conditions.
- Changes to employment law have stripped migrants of any ability to get the rock solid offer of work they need for visas.
- Two major draw-cards for migrants are being systematically dismantled: the amazing ACC with protection and far reaching social benefits, and the best education system in the world which is now being forced into the same tragic and dysfunctional model as the UK.
- Even the clean, green countryside is disappearing with agricultural pollution, mining and now oil spills which are likely to be the precursor to another ‘Deepwater Horizon’ disaster as NZ allows oil companies to drill even deeper test wells without controls or safeguards.
Australia is well aware of the international battle for skills and has recently opened two new visa centres in Christchurch and Auckland.
As NZ citizens do not need a visa and (in my experience) getting a visitor’s visa for Australia takes a travel agent a matter of seconds these centres are clearly aimed at attracting more of New Zealand’s skilled migrant population over the ditch.
With higher wages, a stronger economy, similar cost of living and better job security many migrants from western countries are now clearly finding their sums add up to Australia rather than New Zealand and Aotearoa is clearly losing the international battle for skills.
5) Christchurch Rebuild
Pushing globally mobile skilled migrants elsewhere seems crazy to me. New Zealand already has massive skill shortages in certain areas like medical, engineering and IT and this is getting worse.
By my calculations cuts to skilled migration have lost New Zealand well over a billion dollars in direct income let alone the indirect value of taxes etc.
There is also the matter of the Canterbury rebuild requiring around 8,000 people from overseas. While numbers heading permanently into Christchurch have dropped by 25.5% this is in line with government cuts and not something to worry about.
What is increasingly apparent is that these jobs will be temporary. Migrants will be expected to travel half-way around the world with their families for a few years of poor wages but without the offer of permanent status – after their contribution they will be expected to leave.
Summary
This fall into negative territory should be a warning flag to New Zealand – not only that Kiwis are leaving but that immigration has become a broken a twisted wreck, choked by bureaucracy and making it increasingly safer to go elsewhere instead. If New Zealand does not change this pattern soon it will take many years to put this right.
Move2NZ has been waving a flag for three years now to warn about this, let’s just hope that it is not already too late.
Mike
Site architect move2nz.com
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Immigration New Zealand: weird selections continue
October 26, 2011Please note that I am not a licensed immigration adviser and the following is intended as general immigration commentary, not personal advice.
Big Skilled Migrant Selection for migrants with Work Experience
Between 45,000 and 50,000 visas are granted every year through New Zealand’s Permanent Residency programme. The Skilled Migrant Category (SMC) is the route for skilled workers and their families, making up approximately 58% of this programme.
Expressions of Interest (EOIs) for residency through the SMC go into a pool and every fortnight the immigration department pull a number of these out for processing to mee their annual quota of between 25,000 and 27,000 SMC applications approved.
In Move2NZ’s October newsletter I reported on the smallest Skilled Migrant selection made since the programme was introduced in December 2005 with just 496 applications collected for processing.
Falling numbers
From January 2007 through to May 2009 on average 774 SMC applications were selected each fortnight, but numbers have been falling since to an average of just 563 through 2011. This drop has lead to the immigration department failing to meet its quota with just 21,212 applications approved, well short of the 25,000 minimum as can be seen from the graph aside.
With the SMC being such an important part of the Residency programme this has been a major cause of the entire programme to fail in meeting targets – in 2010/11 just 40,737 applications were approved – well short of the minimum 45,000.
The graph aside shows in blue the applications approved and in red the applications declined. Because of the significant drop in applications accepted through 2010/11 the department was never likely to meet the quota. Numbers have continued to fall since.
Government sources state that this is because of a drop in interest from migrants, however I have seen no evidence to support this and the number of applications sitting for months in the pool has risen to almost record numbers.
Although the Minister has confirmed there is no intent to reduce Residency numbers or change the current practices this process of declining numbers has continued through 2011/12.
Three months in to the year (which started on 1st July) 2011/12 numbers selected are already down 7 percent on last year, and approvals are down 11 percent. Crunching the numbers and using patterns from the past five years I believe I have generated an accurate projection of the total number of EOIs through the Skilled Migrant Category likely to be selected and approved in 2011/12.
This figure of just 19,417 applications likely to be approved is even further away from the 25,000 minimum quota.
October 5th Selection
As if the immigration department heard last newsletter’s questions the selection made on October 5th was unusual. For one thing the number of applications pulled from the pool jumped to 628 – not enough to make much of a difference over the year (unless selections of this size continue) but a rise none the less. We’ll see if this trend continues.
The second and most surprising thing about this selection was where those extra numbers came from. People reading my commentaries on this blog and move2nz will have heard me talking about the seven groups that EOIs fall into (see table below), and applicants with EOIs in group 4 (those without a job offer and claiming 15 points for work experience) will be celebrating.
Nearly 5 times the 2011 average were pulled from the pool in one go. You have to go right back to January 2007 to see anything like this ever happening before.
For so many applications without job offers to be selected gives hope to many applicants who are not able to travel to New Zealand to obtain offers of work, widening New Zealand’s pool of available talent and putting a little equality back into the process. We’ll keep watching to see if this trend continues.
Here are the numbers from the latest selection:
More reports to come on what is becoming a completely unpredictable immigration system.
Mike Bell
site architect, move2nz.com
Tags: bonus points, immigration, immigration commentary, move2nz, permanent residency, residency programme, skilled migrant category, work experience
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