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Regional Labour Market reports

WAIKATO - QUARTERLY REGIONAL LABOUR MARKET UPDATE - SEPTEMBER 2011

EXECUTIVE SUMMARY

The labour force participation rate in Waikato stood at 69.5% during the year to September 2011 up from 67.9% the year before. In comparison, the national average participation rate was 68.3% for the year to September 2011.

The unemployment rate in Waikato increased to 6.9% for the year to September 2011 (national average: 6.6%) from 6.0% in the year to September 2010

There were 4,314 working aged people receiving unemployment benefits from Work and Income in the Waikato region at the end of September 2011.

BACKGROUND

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

The Waikato regional council area has a population of 382,713 and is located between Auckland in the north, Bay of Plenty in the east, and Manawatu-Wanganui to the south. It has 12 territorial authority areas from north to south: Franklin with a population of 15,917; Thames-Coromandel with a population of 25,938; Hauraki with a population of 17,193; Waikato with a population of 43,959; Matamata-Piako with a population of 30,480; Waipa with a population of 42,501; Hamilton with a population of 129,249; Otorohanga with a population of 9,075; South Waikato with a population of 22,641; Waitomo with a population of 9,438; 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 Waikato 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 Waikato region
  Waikato New Zealand
HLFS Indicator year to
September 2010
year to
September 2011
year to
September 2010
year to
September 2011
Participation rate, ann ave 67.9% 69.5% 68.1% 68.3%
Employment rate, ann ave 63.8% 64.7% 63.6% 63.8%
Unemployment rate, ann ave 6.0% 6.9% 6.6% 6.6%

Table 1b: Key labour market data for the Waikato region
Unemployment
Beneficiary
Indicator
Waikato 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)
4,314 7.8% 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 Waikato region was 311,000. The labour force participation rate was 69.5% while 216,100 people were in the labour force and 94,900 people were 'not in the labour force'. Of those people who were in the labour force, 6.9%, or 14,800 were unemployed and 201,300 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 Waikato region is estimated at 311,000 in the year to September 2011.

LABOUR FORCE

The participation rate in Waikato stood at 69.5% during the year to September 2011 up from 67.9% 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 Waikato region is estimated to be 216,100 in the year to September 2011.

Figure 1: Regional and national trends in the participation rate
annual average, % Waikato New Zealand
Sep 02 68.3 66.6
Sep 03 69.0 66.4
Sep 04 67.9 66.7
Sep 05 69.1 67.7
Sep 06 69.0 68.3
Sep 07 69.3 68.3
Sep 08 70.0 68.3
Sep 09 69.4 68.5
Sep 10 67.9 68.1
Sep 11 69.5 68.3
Source: HLFS, Statistics New Zealand

EMPLOYMENT

The employment rate (the proportion of the working-age population that is employed) in Waikato stood at 64.7% during the year to September 2011 up from 63.8% the year before. In comparison, the national average employment rate was 63.8%.

Employment in the Waikato region was 201,300 in the year to September 2011.

Figure 2: Regional and national trends in the employment rate
annual average, % Waikato New Zealand
Sep 02 64.4 63.0
Sep 03 65.6 63.1
Sep 04 65.4 63.8
Sep 05 66.3 65.1
Sep 06 66.3 65.6
Sep 07 66.8 65.8
Sep 08 67.2 65.6
Sep 09 65.3 64.7
Sep 10 63.8 63.6
Sep 11 64.7 63.8
Source: HLFS, Statistics New Zealand

UNEMPLOYMENT

The region's unemployment rate increased to 6.9% in the year to September 2011, from 6.0% 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 14,800 for the year to September 2011.

Figure 3: Regional and national trends in the unemployment rate
annual average, % Waikato New Zealand
Sep 02 5.8 5.4
Sep 03 5.0 4.9
Sep 04 3.7 4.3
Sep 05 4.1 3.8
Sep 06 3.9 3.9
Sep 07 3.6 3.8
Sep 08 4.1 3.9
Sep 09 5.9 5.5
Sep 10 6.0 6.6
Sep 11 6.9 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 4,314 working aged people receiving unemployment benefits from Work and Income in the Waikato 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 Waikato region and nationally during September 2011
  Region New Zealand Region's share of
New Zealand (%)
Share
(%)
Number Share
(%)
Number
Total   4,314   55,661 7.8
Male
71.5 3,083 70.8 39,421 7.8
Female
28.5 1,231 29.2 16,240 7.6
Maori
49.5 2,135 36.2 20,143 10.6
Pacific People
3.4 147 9.1 5,074 2.9
18-24 years
29.3 1,266 28.1 15,629 8.1
25-39 years
32.5 1,404 31.3 17,398 8.1
40-54 years
26.4 1,138 28.1 15,668 7.3
55-64 years
11.7 506 12.5 6,966 7.3
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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