EmploymentDefinitionThe proportion of the population aged 15–64 years who are in paid employment for at least one hour per week.RelevanceThe employment rate is the best available indicator of the prevalence of paid employment. It is affected by trends in both unemployment and labour force participation (the proportion of the working-age population either employed or unemployed). Current level and trendsIn 2005, 74.6 percent of 15–64 year olds (2.019 million people) were employed for one hour or more per week. This was higher than the rate recorded in 1986 (72.3 percent). The employment rate has been rising since 1992, except during the economic downturn in 1997 and 1998. The increase from 65.4 percent in 1992 to 74.6 percent in 2005 corresponds to a rise of 515,200 in the number of employed people aged 15–64 years. Over the same period, the number of people aged 15–64 years increased by 406,200. The full-time employment rate declined sharply between 1986 (60.4 percent) and 1992 (51.5 percent), and had almost recovered to the mid-1980s level by 2005 (58.7 percent). The part-time employment rate increased throughout the period, from 11.9 percent in 1986 to 15.9 percent in 2005. Although the part-time rate has almost doubled for men since 1986, women (23.8 percent) continue to have a higher part-time employment rate than men (7.7 percent). Figure PW2.1 Employment rate, 1986–2005
Source: Statistics New Zealand, Household Labour Force Survey Age and sex differencesThe fall in the employment rate between 1987 and 1992 affected all age groups but was most pronounced for young people aged 15–24 years. Youth employment rates have remained relatively low during the period of employment growth since 1992, possibly due to a growth in their participation in tertiary education and training. Conversely, employment rates for people aged 45–64 years have grown strongly since 1992, driven mainly by the phasing in of the higher age of eligibility for New Zealand Superannuation, rising employment among women, and an increase in the demand for labour. The employment rate for women is significantly lower than that for men, although the gap has narrowed substantially since the mid-1980s. This is mainly because women spend more time on childcare and other unpaid household work, and are more likely than men to undertake some form of study or training. Table PW2.1 Employment rates (%), by age and sex, selected years, 1986–2005
Source: Statistics New Zealand, Household Labour Force Survey Ethnic differencesThe employment rates for Māori and Pacific peoples showed the steepest fall between 1987 and 1992, but have also shown the strongest recovery since then. In 2005, the Māori employment rate, at 63.8 percent, had surpassed the 1986 level (61.2 percent). However, Pacific peoples were still less likely to be employed in 2005 (61.8 percent) than in 1986 (68.4 percent). The European ethnic group, with the highest employment rate, has also surpassed the level of the mid-1980s (79.7 percent employed in 2005, compared with 73.8 percent in 1986). The employment rate for the Other ethnic category has fallen from being the second highest in the late-1980s to the lowest since the mid-1990s (59 percent in 2005). Figure PW2.2 Employment rate, by ethnic group, 1986–2005
Source: Statistics New Zealand, Household Labour Force Survey International comparisonIn 2004, New Zealand was ranked fifth highest of 30 OECD countries with an employment rate of 73.5 percent for people aged 15–64 years. This was well above the OECD average of 65.3 percent. Iceland had the highest employment rate in 2004 (82.8 percent). The New Zealand rate in 2004 was equal to Sweden’s, similar to those of the United Kingdom (72.7 percent) and Canada (72.6 percent) and higher than those of the United States (71.2 percent) and Australia (69.5 percent). New Zealand had a higher female employment rate than the United States and Australia in 2004.52 |
