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Regional Labour Market reports

BAY OF PLENTY - QUARTERLY REGIONAL LABOUR MARKET UPDATE - SEPTEMBER 2011

EXECUTIVE SUMMARY

The labour force participation rate in Bay of Plenty stood at 65.2% during the year to September 2011 up from 65.0% the year before. In comparison, the national average participation rate was 68.3% for the year to September 2011.

The unemployment rate in Bay of Plenty fell to 7.4% for the year to September 2011 (national average: 6.6%) from 8.0% in the year to September 2010

There were 2,971 working aged people receiving unemployment benefits from Work and Income in the Bay of Plenty region at the end of September 2011.

BACKGROUND

This report includes information relating to the area covered by the Bay of Plenty region as described below:

The Bay of Plenty regional council area has a population of 257,379 and is located between Waikato in the west and Gisborne in the east. It has 7 territorial authority areas from north to south: Western Bay of Plenty with a population of 42,078; Tauranga with a population of 103,635; Rotorua with a population of 65,901; Whakatane with a population of 33,300; Kawerau with a population of 6,921; Opotiki with a population of 8,976; and Taupo with a population of 32,421.
Source: Population Census 2006, Statistics New Zealand

This report is a quarterly update of current labour market conditions in the Bay of Plenty 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 Bay of Plenty region
  Bay of Plenty New Zealand
HLFS Indicator year to
September 2010
year to
September 2011
year to
September 2010
year to
September 2011
Participation rate, ann ave 65.0% 65.2% 68.1% 68.3%
Employment rate, ann ave 59.8% 60.4% 63.6% 63.8%
Unemployment rate, ann ave 8.0% 7.4% 6.6% 6.6%

Table 1b: Key labour market data for the Bay of Plenty region
Unemployment Beneficiary
Indicator
Bay of Plenty 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)
2,971 5.3% 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 Bay of Plenty region was 199,800. The labour force participation rate was 65.2% while 130,200 people were in the labour force and 69,600 people were 'not in the labour force'. Of those people who were in the labour force, 7.4%, or 9,500 were unemployed and 120,700 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 Bay of Plenty region is estimated at 199,800 in the year to September 2011.

LABOUR FORCE

The participation rate in Bay of Plenty stood at 65.2% during the year to September 2011 up from 65.0% 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 Bay of Plenty region is estimated to be 130,200 in the year to September 2011.

Figure 1: Regional and national trends in the participation rate
annual average, % Bay of Plenty New Zealand
Sep 02 64.2 66.6
Sep 03 62.7 66.4
Sep 04 64.9 66.7
Sep 05 64.8 67.7
Sep 06 67.1 68.3
Sep 07 66.3 68.3
Sep 08 64.0 68.3
Sep 09 65.0 68.5
Sep 10 65.0 68.1
Sep 11 65.2 68.3
Source: HLFS, Statistics New Zealand

EMPLOYMENT

The employment rate (the proportion of the working-age population that is employed) in Bay of Plenty stood at 60.4% during the year to September 2011 up from 59.8% the year before. In comparison, the national average employment rate was 63.8%.

Employment in the Bay of Plenty region was 120,700 in the year to September 2011.

Figure 2: Regional and national trends in the employment rate
annual average, % Bay of Plenty New Zealand
Sep 02 59.1 63.0
Sep 03 58.4 63.1
Sep 04 61.3 63.8
Sep 05 62.1 65.1
Sep 06 64.2 65.6
Sep 07 63.9 65.8
Sep 08 61.2 65.6
Sep 09 61.1 64.7
Sep 10 59.8 63.6
Sep 11 60.4 63.8
Source: HLFS, Statistics New Zealand

UNEMPLOYMENT

The region's unemployment rate declined to 7.4% 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 9,500 for the year to September 2011.

Figure 3: Regional and national trends in the unemployment rate
annual average, % Bay of Plenty New Zealand
Sep 02 7.9 5.4
Sep 03 6.8 4.9
Sep 04 5.5 4.3
Sep 05 4.2 3.8
Sep 06 4.4 3.9
Sep 07 3.5 3.8
Sep 08 4.3 3.9
Sep 09 6.1 5.5
Sep 10 8.0 6.6
Sep 11 7.4 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 2,971 working aged people receiving unemployment benefits from Work and Income in the Bay of Plenty 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 Bay of Plenty region and nationally during September 2011
  Region New Zealand Region's share of New Zealand (%)
Share
(%)
Number Share
(%)
Number
Total   2,971   55,661 5.3
Male
70.4 2,092 70.8 39,421 5.3
Female
29.6 879 29.2 16,240 5.4
Maori
61.8 1,835 36.2 20,143 9.1
Pacific People
2.3 69 9.1 5,074 1.4
18-24 years
26.9 799 28.1 15,629 5.1
25-39 years
32.3 961 31.3 17,398 5.5
40-54 years
29.1 866 28.1 15,668 5.5
55-64 years
11.6 345 12.5 6,966 5.0

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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