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Regional Labour Market reports

AUCKLAND - QUARTERLY REGIONAL LABOUR MARKET UPDATE - SEPTEMBER 2011

EXECUTIVE SUMMARY

The labour force participation rate in Auckland stood at 67.9% during the year to September 2011 up from 67.6% the year before. In comparison, the national average participation rate was 68.3% for the year to September 2011.

The unemployment rate in Auckland fell to 7.5% for the year to September 2011 (national average: 6.6%) from 8.0% in the year to September 2010

There were 16,719 working aged people receiving unemployment benefits from Work and Income in the Auckland region at the end of September 2011.

BACKGROUND

This report includes information relating to the area covered by the Auckland region as described below:

The Auckland regional council area has a population of 1,303,068 and is located between Northland in the north and Waikato in the south. It has 7 territorial authority areas from north to south: Rodney with a population of 89,562; North Shore with a population of 205,608; Waitakere with a population of 186,444; Auckland with a population of 404,658; Manukau with a population of 328,968; Papakura with a population of 45,183; and Franklin with a population of 43,015.
Source: Population Census 2006, Statistics New Zealand

This report is a quarterly update of current labour market conditions in the Auckland region.The sources of statistics are the Statistics New Zealand Household Labour Force Survey (HLFS) and the Ministry of Social Development (MSD). To counter the effects of seasonality and low sample size when making comparisons over time, the figures presented are averages for the year up to the quarter indicated, unless otherwise stated.

Table 1: Key labour market data for the Auckland region
  Auckland New Zealand
HLFS Indicator year to
September 2010
year to
September 2011
year to
September 2010
year to
September 2011
Participation rate, ann ave 67.6% 67.9% 68.1% 68.3%
Employment rate, ann ave 62.2% 62.8% 63.6% 63.8%
Unemployment rate, ann ave 8.0% 7.5% 6.6% 6.6%

Table 1b: Key labour market data for the Auckland region
Unemployment Beneficiary
Indicator
Auckland New Zealand
End of
September 2011
End of
September 2011
% change since September
2010
Number Share in NZ
Working aged UB/UBH recipients
(aged 18-64)
16,719 30.0% 55,661 -14.7%
Source: HLFS, Statistics New Zealand; Ministry of Social Development

In the year to September 2011 the working-age population in the Auckland region was 1,084,200. The labour force participation rate was 67.9% while 736,300 people were in the labour force and 347,900 people were 'not in the labour force'. Of those people who were in the labour force, 7.5%, or 54,900 were unemployed and 681,400 were employed.
Source: HLFS, Statistics New Zealand

Notes:

  1. Participation rate: proportion of the working-age population that is in the labour force.
  2. Employment rate: proportion of the working-age population that is employed.
  3. Unemployment rate: proportion of the labour force that is unemployed.

POPULATION

The working-age population in the Auckland region is estimated at 1,084,200 in the year to September 2011.

LABOUR FORCE

The participation rate in Auckland stood at 67.9% during the year to September 2011 up from 67.6% the year before. In comparison, the national average participation rate was 68.3% for the year to September 2011.

The number of people in the labour force in the Auckland region is estimated to be 736,300 in the year to September 2011.

Figure 1: Regional and national trends in the participation rate
annual average,% Auckland New Zealand
Sep 02 66.0 66.6
Sep 03 65.6 66.4
Sep 04 66.7 66.7
Sep 05 66.7 67.7
Sep 06 67.3 68.3
Sep 07 67.6 68.3
Sep 08 68.4 68.3
Sep 09 68.4 68.5
Sep 10 67.6 68.1
Sep 11 67.9 68.3
Source: HLFS, Statistics New Zealand

EMPLOYMENT

The employment rate (the proportion of the working-age population that is employed) in Auckland stood at 62.8% during the year to September 2011 up from 62.2% the year before. In comparison, the national average employment rate was 63.8%.

Employment in the Auckland region was 681,400 in the year to September 2011.

Figure 2: Regional and national trends in the employment rate
annual average, % Auckland New Zealand
Sep 02 62.7 63.0
Sep 03 62.9 63.1
Sep 04 64.0 63.8
Sep 05 64.2 65.1
Sep 06 64.9 65.6
Sep 07 64.9 65.8
Sep 08 65.5 65.6
Sep 09 64.1 64.7
Sep 10 62.2 63.6
Sep 11 62.8 63.8
Source: HLFS, Statistics New Zealand

UNEMPLOYMENT

The region's unemployment rate declined to 7.5% in the year to September 2011, from 8.0% the year before.In comparison, the national average unemployment rate was 6.6% for the year to September 2011.

The number of unemployed people in the region (as measured by the official statistics) is estimated at 54,900 for the year to September 2011.

Figure 3: Regional and national trends in the unemployment rate
annual average, % Auckland New Zealand
Sep 02 5.0 5.4
Sep 03 4.1 4.9
Sep 04 4.1 4.3
Sep 05 3.7 3.8
Sep 06 3.7 3.9
Sep 07 3.9 3.8
Sep 08 4.3 3.9
Sep 09 6.2 5.5
Sep 10 8.0 6.6
Sep 11 7.5 6.6
Source: HLFS, Statistics New Zealand

The Household Labour Force Survey provides an estimate of all persons in the working-age population who during a particular week were without a paid job, available for work and had either actively sought work in the previous four weeks, or had a new job to start within four weeks of the survey week. These numbers will not align exactly with numbers receiving an income tested benefit such as Unemployment Benefit (see next page). There are a range of reasons for this. For example, recipients of income tested benefits can be employed part time up to specified income limits, whereas a respondent to the Household Labour Force Survey must have worked less than an hour during the week being surveyed to count as officially unemployed.

UNEMPLOYMENT BENEFITS

The Ministry of Social Development has recently begun to make information on numbers receiving social security benefits available for Territorial Local Authorities. This information also supports display by Regional Council area, the same geographic basis on which other information in this report has been displayed. It will be some time yet before this is available as an annual time-series, so comparisons over time are provided for New Zealand as a whole.

There were 16,719 working aged people receiving unemployment benefits from Work and Income in the Auckland region at the end of September 2011. Their characteristics are shown in the next table.

Table 2: Working aged unemployment benefit recipients (aged 18-64) in the Auckland region and nationally during September 2011
  Region New Zealand Region's share
of New Zealand (%)
Share (%) Number Share (%) Number
Total   16,719   55,661 30.0
Male
69.8 11,663 70.8 39,421 29.6
Female
30.2 5,056 29.2 16,240 31.1
Maori
28.8 4,808 36.2 20,143 23.9
Pacific People
21.5 3,602 9.1 5,074 71.0
18-24 years
26.7 4,462 28.1 15,629 28.5
25-39 years
32.0 5,358 31.3 17,398 30.8
40-54 years
28.8 4,823 28.1 15,668 30.8
55-64 years
12.4 2,076 12.5 6,966 29.8
Source: Ministry of Social Development
Figure 4: Clients receiving Unemployment Benefits for the whole of New Zealand, September 2010 - September 2011
  Maori NZ
European
Pacific
Island
Other
Sep 10 23,163 25,638 6,757 9,723
Dec 10 23,923 26,409 6,568 10,184
Mar 11 21,284 23,634 5,921 9,101
Jun 11 19,409 23,083 5,309 8,463
Sep 11 20,143 22,484 5,074 7,960
Source: MSD

Notes: Other includes not specified. Values for the end of the September quarter.

GLOSSARY

Working-age population: population aged 15 years and over.

Labour force: number of people who are either in work or are available and actively seeking work (that is, employed or unemployed as defined below).

Employment: number of people in work of one hour or more per week.

Unemployment: number of people who are not in work, but who are available for and actively seeking work.

Not in the labour force: number of people who are not in work and are either not available or not actively seeking work (that is, they are not employed and not unemployed). This includes for example, retired people, students and people at home with children.

Labour force participation rate: proportion of the working-age population that is in the labour force.

Unemployment rate: proportion of the labour force that is unemployed.

Employment rate: proportion of the working-age population that is employed.

Highly skilled workers: legislators, administrators and managers, and professionals.

Skilled workers: technicians and associate professionals, and trades workers.

Semi-skilled/elementary: clerks, services/sales workers, plant/machinery workers, and elementary workers.

Annual average: the average for a whole year (eg year to December 2006).

Annual average percentage change: the percentage change between the average for a whole year (eg the year to December 2006) and the previous year (eg the year to December 2005). Unless stated, all growth rates are annual average percentage changes.

LINKS TO OTHER LABOUR MARKET REPORTS

Annual in-depth regional labour market reports: 12 reports that provide a detailed look at the drivers of regional labour market dynamics with sub-regional (Territorial Authority) information included where available. They contain detailed and wide-ranging labour market statistics supplemented by qualitative information from the regions.

Labour market outlook: provides an outlook for the labour market over the next two years. The forecasts are detailed in a table and accompanied by descriptive analysis and a table of comparative forecasts is presented in an Appendix.

Employment and unemployment: a report that summarises results from the latest Household Labour Force Survey released by Statistics New Zealand.

Wage growth: a report that examines the wage growth measures for the latest quarter from the Labour Cost Index (LCI) and Quarterly Employment Survey (QES) released by Statistics New Zealand. A technical note and data tables are included in the appendices.

Labour Market Reports: the Department of Labour produces a range of reports which focus on labour market statistics and trends in New Zealand.

Contact: The Department of Labour at info@dol.govt.nz

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