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Regional Labour Market reports

NORTHLAND - QUARTERLY REGIONAL LABOUR MARKET UPDATE - DECEMBER 2011

EXECUTIVE SUMMARY

The labour force participation rate in Northland stood at 63.3% during the year to December 2011 up from 62.7% the year before. In comparison, the national average participation rate was 68.4% for the year to December 2011.

The unemployment rate in Northland fell to 8.5% for the year to December 2011 (national average: 6.5%) from 8.9% in the year to December 2010

There were 3,881 working aged people receiving unemployment benefits from Work and Income in the Northland region at the end of December 2011.

BACKGROUND

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

The Northland regional council area has a population of 148,470 and is located to the north of Auckland. It has 3 territorial authority areas from north to south: Far North with a population of 55,845; Whangarei with a population of 74,463; and Kaipara with a population of 18,132.
Source: Population Census 2006, Statistics New Zealand

This report is a quarterly update of current labour market conditions in the Northland 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 Northland region
  Northland New Zealand
HLFS Indicator year to
December 2010
year to
December 2011
year to
December 2010
year to
December 2011
Participation rate, ann ave 62.7% 63.3% 68.1% 68.4%
Employment rate, ann ave 57.1% 57.9% 63.6% 63.9%
Unemployment rate, ann ave 8.9% 8.5% 6.5% 6.5%

Table 1b: Key labour market data for the Northland region
  Northland New Zealand
  End of
December 2011
End of
December 2011
% change since
Unemployment Beneficiary Indicator number share in NZ number December 2010
Working aged UB/UBH recipients (aged 18-64) 3,881 6.5% 59,964 -10.6%
Source: HLFS, Statistics New Zealand; Ministry of Social Development

In the year to December 2011 the working-age population in the Northland region was 121,900. The labour force participation rate was 63.3% while 77,100 people were in the labour force and 44,800 people were 'not in the labour force'. Of those people who were in the labour force, 8.5%, or 6,600 were unemployed and 70,500 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 Northland region is estimated at 121,900 in the year to December 2011.

LABOUR FORCE

The participation rate in Northland stood at 63.3% during the year to December 2011 up from 62.7% the year before. In comparison, the national average participation rate was 68.4% for the year to December 2011.

The number of people in the labour force in the Northland region is estimated to be 77,100 in the year to December 2011.

Figure 1: Regional and national trends in the participation rate
annual average, % Northland New Zealand
Dec 02 61.0 66.6
Dec 03 61.9 66.4
Dec 04 60.4 67.0
Dec 05 65.1 67.8
Dec 06 66.0 68.3
Dec 07 65.3 68.5
Dec 08 63.2 68.5
Dec 09 63.3 68.3
Dec 10 62.7 68.1
Dec 11 63.3 68.4
Source: HLFS, Statistics New Zealand

 

EMPLOYMENT

The employment rate (the proportion of the working-age population that is employed) in Northland stood at 57.9% during the year to December 2011 up from 57.1% the year before. In comparison, the national average employment rate was 63.9%.

Employment in the Northland region was 70,500 in the year to December 2011.

Figure 2: Regional and national trends in the employment rate
annual average, % Northland New Zealand
Dec 02 55.2 63.0
Dec 03 56.7 63.2
Dec 04 57.5 64.3
Dec 05 61.4 65.2
Dec 06 62.6 65.6
Dec 07 62.5 66.0
Dec 08 59.6 65.6
Dec 09 57.7 64.1
Dec 10 57.1 63.6
Dec 11 57.9 63.9
Source: HLFS, Statistics New Zealand

 

UNEMPLOYMENT

The region's unemployment rate declined to 8.5% in the year to December 2011, from 8.9% the year before.In comparison, the national average unemployment rate was 6.5% for the year to December 2011.

The number of unemployed people in the region (as measured by the official statistics) is estimated at 6,600 for the year to December 2011.

Figure 3: Regional and national trends in the unemployment rate
annual average, % Northland New Zealand
Dec 02 9.5 5.3
Dec 03 8.5 4.8
Dec 04 4.8 4.1
Dec 05 5.7 3.8
Dec 06 5.2 3.9
Dec 07 4.3 3.7
Dec 08 5.8 4.2
Dec 09 8.8 6.1
Dec 10 8.9 6.5
Dec 11 8.5 6.5
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 3,881 working aged people receiving unemployment benefits from Work and Income in the Northland region at the end of December 2011. Their characteristics are shown in the next table.

Table 2: Working aged unemployment benefit recipients (aged 18-64) in the Northland region and nationally during December 2011
  Region New Zealand Region's share of New Zealand (%)
Share (%) Number Share (%) Number
Total   3,881   59,964 6.5
Male 72.6 2,819 69.1 41,416 6.8
Female 27.4 1,062 30.9 18,548 5.7
Maori 63.3 2,455 37.1 22,245 11.0
Pacific People 1.2 47 8.7 5,246 0.9
18-24 years 25.2 977 30.4 18,198 5.4
25-39 years 29.3 1,138 31.0 18,604 6.1
40-54 years 32.6 1,264 27.1 16,262 7.8
55-64 years 12.9 502 11.5 6,900 7.3
Source: Ministry of Social Development

Note: rounding errors mean these figures may differ slightly from official MSD fact sheets.

Figure 4: Clients receiving Unemployment Benefits for the whole of New Zealand, December 2010 - December 2011
  Maori NZ European Pacific Island Other
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
Dec 11 22,245 23,728 5,246 8,745
Source: MSD

Notes: Other includes not specified. Values for the end of the December 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 Reports: the Department of Labour produces a range of reports which focus on labour market statistics and trends in New Zealand.

For further information please visit http://dol.govt.nz/research or email research@dol.govt.nz.

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