infonews.co.nz
INDEX
MIGRATION

Fewer migrants on benefits shows policy working

Infonews Editor

Tuesday 24 April 2007, 10:32AM

By Infonews Editor

262 views

A strong economy and changes to immigration policy have led to a big fall in the number of recent migrants needing financial support, says Immigration Minister David Cunliffe.

A Department of Labour report shows the number of recent migrants receiving benefits is at the lowest point since research began in 2001, when 6.7 per cent of those here less than two years got a benefit. The 2006 figure is 2.3 per cent.

"Some migrants, particularly refugees, need financial support while they build their new life in New Zealand, particularly refugees. However, it is vital skilled people coming here contribute to our workforce straight away," Mr Cunliffe said.

"That's why immigration policy has shifted focus to selecting migrants who are more likely to be employable.

"For example, in 2003 we introduced the Skilled Migrant Category (SMC) - which places increased emphasis on having a skilled job before residence is granted.

"Policy changes like this are working. The rate for skilled and business migrants receiving a benefit during their first two years in New Zealand has dropped from 1.3 per cent in 2001 to just 0.4 per cent in 2006.

"This is much lower than the average across the whole population and indicates the skilled people we're selecting are getting jobs and keeping them, contributing successfully to our labour market. "

The report supports research by the department earlier this year that found 94 per cent of skilled and business migrants who gained residence in 2004 were working for pay or profit.

"Clearly, migrants, like thousands of other New Zealanders, are benefiting from our strong economy and the buoyant labour market."

The majority (54 per cent) of migrants receiving benefits in 2006 had been granted residence under the 'Family Parent Category'. However, most of those migrant parents had been granted residence prior to a policy change in 2001. Sponsors under this category are now required to provide accommodation and support to their parents in their first two years in the country.

The Department of Labour report integrated information with the Ministry of Social Development in looking at how many migrants received benefits between 2001 and 2006.