There has been a large drop in the number of migrants receiving financial support.

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.

“It is vital skilled people coming here contribute to our workforce straight away,” Immigration Minister David 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.

China was the most common nationality of migrants in receipt of a benefit. China is also the second largest source of migrants.

The majority (56 per cent) of migrants receiving benefits in 2006 had been granted residence under the International/Humanitarian Stream.

Despite the fact that migrants are generally ineligible to receive benefits other than the Emergency Benefit (EB) within the first two years of residence, a minority were accessing other benefits. This is due to reciprocal arrangements with other countries.