One in six New Zealand workers over 55

14 June 2007

New Zealand has more workers aged 55 and over than ever before, according to a report on older workers released today, Department of Labour Acting Deputy Secretary for Work Directions Alison Dalziel said.

“This annual Older Workers’ Labour Market Outcomes Report focuses on changes for New Zealanders aged 55 years and over (older workers) in the past five years and notes the labour market is entering new territory. One in six workers is 55 and over and older workers account for 43% of total employment growth in the five years to March 2007,” Ms Dalziel said.

“New Zealand is near the top of the OECD (Organisation for Economic Co-Operation and Development) in rates for workforce participation among older workers. Our rate reached 40.7% for the year to March 2007, the highest in the 21-year history of the Household Labour Force Survey (HLFS).

“Of course the workforce participation rate for the 55-64 band (72.1%) is far higher than the 65-plus band (13.2%) as the latter includes many retired people in their 80s and 90s.

“With no official retirement age and a number of Government policies focused on flexible workplaces and work-life balance, New Zealanders are embracing opportunities to extend their working lives. This has important social and economic benefits as older workers are able to remain active and enjoy the health benefits that brings.

“In a strong labour market, employers are looking to involve older workers and fully utilise their skills and experience. Clearly the results are there for both employers and workers because workforce participation rates for older workers continue to rise.

“The number of older workers has grown by 5.9% for the year to March 2007, compared to growth in total employment of 1.9% for the same period.

“Across broad occupation groups, older workers have achieved stronger employment growth in the faster growing highly-skilled occupations such as managers, professionals, trades and technicians. These occupations are generally higher skilled, more knowledge intensive and more likely to command better prospects and higher wages. In fact, the average (mean) hourly wage has grown significantly for the over 55s between 2001 and 2006.”

The Older Workers’ Labour Market Outcomes Report is a new annual report with data sourced mainly from Statistics New Zealand’s quarterly Household Labour Force Survey (HLFS).

The report is a response to a market need for information on and analyses of specific labour market trends, such as youth, Maori and older workers. The implications of an aging workforce will continue to be a major focus of the Department’s work on labour market futures. This underscores the need for continuing work on flexible workplaces and work-life balance.

The Older Workers’ Labour Market Outcomes Report is available

ENDS