General Publications
Department of Labour Annual Report 2006
Report on the Department's Activities in 2005/06
The Labour Market
Watching the Trends
It is vital for the Department to understand the unique ways that the labour market works and the changing trends in New Zealand and overseas.
New Zealand’s long-term prosperity depends on strong economic performance, backed by a high-performing labour market.
Labour Market Information and trends:
- the estimated population of New Zealand was 4.14 million at 30 June 2006, up 1% from a year before. our population is ageing, with the number of children aged under 15 down 0.5% over the year to an estimated 875,650 and the number of people aged 65 or older up 3.1% to an estimated 512,950.
- over the year to June 2006, the working-age population grew 1.4% to 3,212,000 people. among those working-age people, participation in the labour force increased to 68.8%.
- the number of people employed increased 3% to 2,129,000 between June 2005 and June 2006, and the number of people not in the labour force fell 2% to 1,002,000. the number of people unemployed increased 1.5% to 79,000 but, due to the increase in the working age population, the unemployment rate remained unchanged at 3.6% compared with June 2005.
- total hours worked in New Zealand increased 0.3% between June 2005 and June 2006.
Understanding the labour market helps the department respond to the ongoing changes in the market. we currently have low population growth, low unemployment and high labour market participation, so the department is working to increase labour productivity – the real value generated by each hour worked. this work supports the Government’s priority themes for the next decade: economic transformation, national identity, and families – young and old.
Labour Market Population Flows as at June 2006
Labour Market Terms
Population: people living in New Zealand.
Working-age population: people living in New Zealand aged 15 years and over.
Employed: people who work at least one hour per week.
Unemployed: people who do not work but who are actively seeking work.
Labour force: people employed or unemployed.
Not in the labour force: people in the working-age population who are neither employed or unemployed.
Notes
*PLT = permanent and long-term migrants in the year to June 2006.
Population: number of peopel at 30 June 2006.
Working-age population, not in the labour force, labour force, employed, unemployed: number of people seasonally adjusted average for 3 months to June 2006.
Flows are the number of people moving between labour market states in the year to June 2006.
Births and deaths are for the year to June 2006.
Figures may not add to total due to rounding.
Economic Transformation
The Department is leading the Innovative and Productive Workplaces theme of the Government’s economic transformation agenda. We are working on the Innovative and Productive Workplaces theme in partnership with business and unions and other government agencies.
This work aims to make New Zealand workplaces among the best in the world at providing the environment, incentives and opportunities for people to be innovative, creative and responsive to change by:
- improving the quality of workplace leadership and management skills
- improving the way that work is organised in firms
- creating a culture of networking and collaboration
- improving foundation skills in the workplace
- ensuring firms can access the skills they need now and into the future
- facilitating workplace practices that encourage innovation
- optimising labour market participation.
National Identity
The Department has a key role to play in national identity by advising the Government on immigration policy and managing the immigration programme. This leads to improved global connections, building the labour force and population base of New Zealand, adding to the richness of our society and managing risks to New Zealand’s security.
Families — Young and Old
The Department’s programme will improve choices about work and family arrangements, assisting youth into employment and enhancing employment for groups who are currently under-represented in the labour force. We provide a significant contribution to the Government’s policy agenda to ensure that all families, young and old, have the support and choices they need to reach their full potential.