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Regional Labour Market reports

BAY OF PLENTY - QUARTERLY REGIONAL LABOUR MARKET UPDATE - DECEMBER 2009

EXECUTIVE SUMMARY

The labour force participation rate in Bay of Plenty stood at 65.1% during the year to December 2009 up from 64.3% the year before. In comparison, the national average participation rate was 68.3% for the year to December 2009.

The unemployment rate in Bay of Plenty increased to 6.8% for the year to December 2009 (national average: 6.1%) from 4.5% in the year to December 2008

There were 4,460 working aged people receiving unemployment benefits from Work and Income in the Bay of Plenty region at the end of December 2009.

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
December 2008
year to
December 2009
year to
December 2008
year to
December 2009
Participation rate, ann ave 64.3% 65.1% 68.5% 68.3%
Employment rate, ann ave 61.4% 60.6% 65.6% 64.1%
Unemployment rate, ann ave 4.5% 6.8% 4.2% 6.1%

Table 1b: Key labour market data for the Bay of Plenty region
  Bay of Plenty New Zealand
  End of
December 2009
End of
December 2009
% change since
Unemployment Beneficiary Indicator ('000) share in NZ ('000) December 2005
Working aged UB/UBH recipients (aged 18-64) 4,460 6.7% 66,328 29.0%
Source: HLFS, Statistics New Zealand; Ministry of Social Development

In the year to December 2009 the working-age population in the Bay of Plenty region was 191,000. The labour force participation rate was 65.1% while 124,300 people were in the labour force and 66,700 people were 'not in the labour force'. Of those people who were in the labour force, 6.8%, or 8,500 were unemployed and 115,800 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 191,000 in the year to December 2009.

LABOUR FORCE

The participation rate in Bay of Plenty stood at 65.1% during the year to December 2009 up from 64.3% the year before. In comparison, the national average participation rate was 68.3% for the year to December 2009.

The number of people in the labour force in the Bay of Plenty region is estimated to be 124,300 in the year to December 2009.

Figure 1: Regional and national trends in the participation rate
annual average, % Bay of Plenty New Zealand
Dec 00 63.4 65.3
Dec 01 62.4 65.8
Dec 02 64.0 66.6
Dec 03 62.7 66.4
Dec 04 65.5 67.0
Dec 05 65.2 67.8
Dec 06 66.8 68.3
Dec 07 65.8 68.5
Dec 08 64.3 68.5
Dec 09 65.1 68.3
Source: HLFS, Statistics New Zealand

For a more detailed explanation of the labour force and the participation rate, go to the Department of Labour publication: workINSIGHT, issue 5, page 35, The Labour Market Explained: The Labour Force Participation Rate at www.workINSIGHT.govt.nz.

EMPLOYMENT

The employment rate (the proportion of the working-age population that is employed) in Bay of Plenty stood at 60.6% during the year to December 2009 down from 61.4% the year before. In comparison, the national average employment rate was 64.1%.

Employment in the Bay of Plenty region was 115,800 in the year to December 2009.

Figure 2: Regional and national trends in the employment rate
annual average, % Bay of Plenty New Zealand
Dec 00 58.4 61.3
Dec 01 57.1 62.2
Dec 02 59.1 63.0
Dec 03 58.5 63.2
Dec 04 62.2 64.3
Dec 05 62.5 65.2
Dec 06 64.0 65.6
Dec 07 63.4 66.0
Dec 08 61.4 65.6
Dec 09 60.6 64.1
Source: HLFS, Statistics New Zealand

For a more detailed explanation of employment, go to the Department of Labour publication: workINSIGHT, issue 4, page 32, The Labour Market Explained: Employment at www.workINSIGHT.govt.nz.

UNEMPLOYMENT

The region's unemployment rate increased to 6.8% in the year to December 2009, from 4.5% the year before.In comparison, the national average unemployment rate was 6.1% for the year to December 2009.

The number of unemployed people in the region (as measured by the official statistics) is estimated at 8,500 for the year to December 2009.

Figure 3: Regional and national trends in the unemployment rate
annual average, % Bay of Plenty New Zealand
Dec 00 7.9 6.2
Dec 01 8.4 5.5
Dec 02 7.6 5.3
Dec 03 6.7 4.8
Dec 04 5.0 4.1
Dec 05 4.2 3.8
Dec 06 4.3 3.9
Dec 07 3.6 3.7
Dec 08 4.5 4.2
Dec 09 6.8 6.1
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 4,460 working aged people receiving unemployment benefits from Work and Income in the Bay of Plenty region at the end of December 2009. 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 December 2009
  Region New Zealand Region's share of New Zealand (%)
Share (%) Number Share (%) Number
Total   4,460   66,328 6.7
Male 71.5 3,189 71.0 47,092 6.8
Female 28.5 1,270 29.0 19,235 6.6
Maori 58.3 2,600 34.4 22,796 11.4
Pacific People 2.1 94 10.8 7,136 1.3
18-24 years 33.3 1,482 34.0 22,531 6.6
25-39 years 32.9 1,469 33.1 21,921 6.7
40-54 years 24.3 1,081 23.5 15,560 7.0
55-64 years 9.6 425 9.5 6,307 6.8
Source: Ministry of Social Development

These values occur against a backdrop of significant reductions in the number of current unemployment benefits over time at the national level.

Figure 4: Clients receiving Unemployment Benefits for the whole of New Zealand, December 2005 - December 2009
('000) Maori NZ European Pacific Island Other
December 2005 18,655 20,919 4,075 7,777
December 2006 14,174 15,573 3,235 5,814
December 2007 8,684 8,706 1,883 3,475
December 2008 11,061 11,804 2,846 4,797
December 2009 22,798 26,049 7,136 10,345
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 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.

Skills in the labour market: summarises quarterly information on skill shortages, primarily focused on the Quarterly Survey of Business Opinion (QSBO) from the New Zealand Institute of Economic Research (NZIER) and the Job Vacancy Monitor (JVM) from the Department of Labour.

Contact: Iain McLean Department of Labour Communications Advisor (04) 915-4458

Disclaimer: The Department of Labour has made every effort to ensure that the information contained in this report is reliable, but makes no guarantee of its accuracy or completeness and does not accept any liability for any errors. The information and opinions contained in this report are not intended to be used as a basis for commercial decisions and the Department accepts no liability for any decisions made in reliance on them. The Department may change, add to, delete from, or otherwise amend the contents of this report at any time without notice. The material contained in this report is subject to Crown copyright protection unless otherwise indicated. The Crown copyright protected material may be reproduced free of charge in any format or media without requiring specific permission. This is subject to the material being reproduced accurately and not being used in a derogatory manner or in a misleading context. Where the material is being published or issued to others, the source and copyright status should be acknowledged. The permission to reproduce Crown copyright protected material does not extend to any material in this report that is identified as being the copyright of a third party. Authorisation to reproduce such material should be obtained from the copyright holders.