LABOUR FORCE AND STUDY PARTICIPATION

Key findings

• Migrant youth had lower rates of labour force participation and higher rates of study participation than New Zealand-born youth. Around twice the proportion of migrant compared with New Zealand-born 18- to 24-year-olds were studying full time.
• Higher rates of labour force participation and part-time employment were of note in 2006 compared with previous Censuses of Population and Dwellings (censuses) for 18- to 24-year-olds who had been in New Zealand for less than nine years. Over the three censuses, the proportion of migrants aged 18 to 24 years in part-time employment increased notably, and the number of 18- to 24-year-olds combining study with part-time work also increased.
• Of the 15- to 17-year-old migrants, those from Australia; Europe (including Russia), South Africa, and North America (ESANA); and United Kingdom (UK)/Ireland tended to have higher labour force participation rates than others. These youth were mainly employed part time, although those from Australia and UK/Ireland had higher rates of full-time employment than other 15- to 17-year-old migrants.
• Eighteen- to 24-year-olds from Australia and UK/Ireland had the highest labour force participation and full-time employment rates. Those from ESANA, UK/Ireland, and South Asia had higher rates of part-time employment than others. Australian-born youth in both age groups had similar labour force participation rates to their New Zealand-born counterparts.
• Generally, labour force participation rates steadily increased with duration of residence in New Zealand. It is of note that 18- to 24-year-olds who had recently arrived from Australia and the UK/Ireland had labour force participation rates that were similar to all youth from these regions.
• North Asian 18- to 24-year-olds had much lower labour force participation rates than others (and the highest study participation rates), yet labour force participation and part-time employment rates increased markedly for this group between 2001 and 2006.
• Migrant youth unemployment rates increased slightly with longer duration of residence in New Zealand (although began to decrease slightly after 15 or more years in New Zealand), which is the reverse trend to that of the total migrant population. Increasing unemployment rates are likely to reflect increased numbers of migrant youth moving into the labour force over time and taking longer to find work than other migrants because they are less experienced.
• Service and Sales Workers was the most common occupational grouping for both age groups, but particularly 15- to 17-year-olds. The second and third most common occupational groupings for 15- to 17-year-olds were Clerks and Labourers and Related Elementary Service Workers. For 18- to 24-year-olds the most common occupational groupings were Clerks and Technicians and Associate Professionals.
• Youth aged 18 to 24 years from the Pacific, Australia, and UK/Ireland had lower rates of full-time study compared with those from other regions.

Introduction

This chapter examines patterns in labour force participation, employment, unemployment, and study participation for migrant youth. Previous studies have noted an increase in the number of youth combining work and study, and this is explored in this chapter.^[53] The focus is on the two age groups 15- to 17-year-olds (school age) and 18- to 24-year-olds (post-school age).^[54] These groups will have different labour force and study patterns, since it would be expected that many 15- to 17-year-olds would still be at school. The main occupations and highest qualifications of youth are also explored in this chapter.

Note that the data in this chapter does not provide official employment or unemployment rates, but rather the proportions involved in the relevant activities.^[55] It is also important to bear in mind the problems associated with using the census to accurately measure study participation (this is described further in sections 1.8 and 4.4).

Labour force status

Participation in the labour force remained fairly steady for 15- to 17-year-old migrant youth with 36 percent to 37 percent either employed or unemployed and actively seeking work at each census (see Table 4.1).^[56] New Zealand-born youth in this age bracket had a higher rate of participation, with the proportion in the labour force decreasing slightly from 57 percent in 1996 to 53 percent in 2006. The labour force participation rate for 18- to 24-year-old migrants in 2006 was 62 percent, and the comparative figure for New Zealand-born 18- to 24-year-olds was 79 percent. The lower rates of labour force participation for migrant youth reflect their higher rates of study participation (see section 4.4).

Overseas-born 15- to 17-year-olds were less likely than their New Zealand-born counterparts to be employed full time or part time. Migrants aged 18 to 24 years were less likely than their New Zealand-born counterparts to be employed full time, while the rates of part-time employment were more similar between the groups. Part-time employment increased among 18- to 24-year-old migrants from 14 percent in 1996 to 20 percent in 2006.

Recent migrants tended to have lower labour force participation rates than all migrant youth.^[57] Over the censuses the proportion of recent youth in the labour force increased (from 21 percent in 1996 to 29 percent in 2006 for 15- to 17-year-olds and from 40 percent in 1996 to 54 percent in 2006 for 18- to 24-year-olds). Over the same period, part-time employment for both age groups increased notably (from 12 percent to 18 percent for 15- to 17-year-olds and from 9 percent to 20 percent for 18- to 24-year-olds). Full-time employment for recent 18- to 24-year-old migrants increased slightly from 23 percent in 1996 to 26 percent in 2006.

Table 4.1 Labour force status for youth (15-24 years), 1996, 2001, and 2006

Labour force status	15-17 years		18-24 years
	Overseas-born	NZ-born	Overseas-born	NZ-born
1996
Employed full time (%)	5	11	36	54
Employed part time (%)	23	35	14	15
Unemployed and actively seeking work (%)	9	11	10	11
Not in labour force (%)	64	43	40	21
Total (%)	100	100	100	100
Total number	21,510	129,552	48,864	307,608
2001
Employed full time (%)	5	10	30	50
Employed part time (%)	21	32	15	17
Unemployed and actively seeking work (%)	10	12	11	11
Not in labour force (%)	64	45	43	22
Total (%)	100	100	100	100
Total number	26,364	129,096	64,209	265,914
2006
Employed full time (%)	5	12	33	54
Employed part time (%)	23	31	20	17
Unemployed and actively seeking work (%)	9	10	9	8
Not in labour force (%)	63	47	38	21
Total (%)	100	100	100	100
Total number	32,868	145,260	94,419	269,982

Note:
Due to rounding, percentages may not sum to 100 percent.

Labour force status by region of birth

Table 4.2 shows the labour force status for migrant youth by region of birth. Of the 15- to 17-year-olds, those from Australia, ESANA, and UK/Ireland tended to have higher labour force participation rates than others in this age group. Typically, these youth were employed part time, although youth from Australia and UK/Ireland had higher rates of full-time employment than others. More than 80 percent of North Asian 15- to 17-year-old migrants were not in the labour force, although this rate declined slightly from 88 percent to 83 percent over the three censuses.

Table 4.2 Labour force status for migrant youth (15-24 years) by region of birth, 1996, 2001, and 2006

Region of birth	15-17 years				18-24 years
	Employed full time (%)	Employed part time (%)	Un-employed and actively seeking work (%)	Not in labour force (%)	Employed full time (%)	Employed part time (%)	Un-employed and actively seeking work (%)	Not in labour force (%)
1996
Australia	10	36	11	43	55	16	9	20
ESANA	4	34	9	53	40	20	9	32
Pacific	7	19	13	61	39	14	14	33
North Asia	1	8	4	88	14	9	6	71
South Asia	2	25	8	65	31	15	12	42
South-East Asia	3	19	8	71	20	11	9	60
United Kingdom/ Ireland	8	41	11	41	56	18	8	18
Other	3	24	8	65	28	16	15	42
2001
Australia	12	33	13	42	48	18	12	22
ESANA	4	32	11	52	37	21	11	31
Pacific	5	15	13	66	38	15	15	32
North Asia	1	7	6	86	11	8	9	72
South Asia	3	24	10	63	27	23	13	38
South-East Asia	3	18	10	69	28	16	11	45
United Kingdom/ Ireland	7	36	12	44	49	20	9	21
Other	3	19	11	67	23	18	16	43
2006
Australia	12	32	11	45	55	17	8	20
ESANA	5	31	9	55	42	23	8	27
Pacific	6	14	10	70	43	16	11	31
North Asia	1	10	6	83	15	21	10	54
South Asia	2	27	9	62	35	27	8	30
South-East Asia	2	20	9	68	32	21	9	39
United Kingdom/ Ireland	7	35	9	48	53	20	7	20
Other	3	23	11	61	33	19	10	38

Notes:
Due to rounding, percentages may not sum to 100 percent.
ESANA = Europe (including Russia), South Africa and North America.

Eighteen- to 24-year-olds from Australia and UK/Ireland had the highest labour force participation and full-time employment rates. It is of note that Australian youth in both age groups had similar labour force participation, employment, and unemployment rates to their New Zealand-born counterparts (see above for New Zealand-born figures). Those from ESANA and UK/Ireland (and South Asia in 2001 and 2006) had high rates of part-time employment. Between 1996 and 2006, the proportion of South-East Asians employed part time increased steadily. North Asian 18- to 24-year-olds had much lower rates of labour force participation than others. The proportion of North Asians in the labour force increased substantially from 2001 (28 percent) to 2006 (46 percent), and the proportion in part-time work also increased (8 percent in 2001 and 21 percent in 2006). Analysis shows an increase in Asian migrants combining study and part-time employment over the period (see section 4.6).

Similar trends were apparent by region of origin for recent youth. Those aged 15 to 17 years from Australia and the UK/Ireland had the highest labour force participation rates, although the rates were lower than for all migrant youth from these regions. Recent 18- to 24-year-olds from Australia and the UK/Ireland had labour force participation rates that were similar to those of all youth from these regions (about 80 percent at each census). Recent 18- to 24-year-olds from regions other than Australia and the UK/Ireland tended to have lower labour force participation rates than all migrants from these regions. The gap between recent and all youth participation rates decreased over the three censuses.

Labour force status by duration of residence

Table 4.3 shows the labour force status of migrant youth by length of time in New Zealand. Note that some changes within each age group would be a result of increasing age (for example, 15- to 17-year-olds transitioning from school to employment and 18- to 24-year-olds transitioning from tertiary studies to employment).

At each census, labour force participation for both age groups increased steadily with duration of residence. For 15- to 17-year-olds who arrived in the two years before the census, labour force participation rates were 21 percent in 2006 , compared with 43 percent for 15- to 17-year-olds who had been in New Zealand for 10 to 14 years. There was a subsequent increase in full-time and part-time employment with increased duration in the country. The proportion of unemployed 15- to 17-year-olds tended to increase slightly with duration of residence. This trend differs from that for all migrants, who have a lower overall rate of unemployment that decreases with length of time in New Zealand. It has been noted that unemployment has a disproportionate impact on youth.^[58] The increase in unemployment is likely to reflect increased numbers of migrant youth moving into the labour force over time and taking longer to find work as a result of having less New Zealand work experience than all migrants have.

For 18- to 24-year-olds, labour force participation increased with duration in New Zealand and full-time and part-time employment rates also increased. Part-time employment and unemployment rates decreased slightly for 18- to 24-year-olds who had been in New Zealand for 15 or more years. Higher labour force participation and part-time employment rates are of note in 2006 compared with in previous censuses for those who had been in New Zealand for less than nine years.

Table 4.3 Labour force status for migrant youth (15-24 years) by length of time in New Zealand, 1996, 2001, and 2006

Length of time (years)	15-17 years				18-24 years
	Employed full time (%)	Employed part time (%)	Unemployed and actively seeking work (%)	Not in labour force (%)	Employed full time (%)	Employed part time (%)	Unemployed and actively seeking work (%)	Not in labour force (%)
1996
Under 2	2	10	5	83	25	8	8	59
2-4	3	17	7	73	20	12	9	60
5-9	5	28	10	57	34	17	11	38
10-14	5	36	10	48	45	20	11	24
15 and over	10	40	11	38	52	18	10	20
2001
Under 2	2	8	7	82	21	8	10	62
2-4	4	20	10	66	25	17	11	46
5-9	4	25	10	61	25	17	11	47
10-14	5	28	12	54	37	21	12	29
15 and over	12	32	12	44	46	20	11	24
2006
Under 2	3	11	7	78	31	12	8	48
2-4	3	22	9	66	23	23	10	44
5-9	5	26	10	60	34	22	10	34
10-14	5	29	9	56	37	23	9	31
15 and over	11	34	10	44	49	20	8	22

Notes:
Excludes 6,393 in 1996, 7,761 in 2001 and 6,705 in 2006 who did not specify their length of time in New Zealand.
Due to rounding, percentages may not sum to 100 percent.

Occupation

Table 4.4 shows the main occupational groupings for employed migrant youth. At each census, Service and Sales Workers was the most common occupational grouping for both age groups, but particularly 15- to 17-year-olds. The next most common occupational groups for 15- to 17-year-olds were Labourers and Related Elementary Service Workers and Clerks. The second and third most common occupational groups for 18- to 24-year-olds were Clerks and Technicians and Associate Professionals. In 2006, a slightly larger proportion of 18- to 24-year-olds were recorded as Legislators, Administrators and Managers and Technicians and Associate Professionals than in previous censuses.

New Zealand-born 15- to 17-year-olds were also concentrated in the Service and Sales, Clerks, and Labourers and Related Elementary Service Workers occupational groupings, although the spread across other occupations was greater than that for overseas-born youth. New Zealand-born 15- to 17-year-olds were more likely than their overseas-born counterparts to work as Agricultural and Fishery Workers. At each census, around half of New Zealand-born 18- to 24-year-olds were employed in one of Service and Sales, Clerks, and Technicians and Associate Professionals.

Large concentrations of overseas-born 15- to 17-year-olds from all regions worked as Service and Sales Workers. In 2006, more than half from ESANA, North Asia, South-East Asia, and the UK/Ireland were in this occupational group as well as 67 percent from South-East Asia. North Asian 18- to 24-year-olds had the largest concentrations of Service and Sales Workers - 39 percent in 2006. Youth in this age bracket from the Pacific were more likely than youth from other regions to work as Plant and Machine Operators and Assemblers and in Labourers and Related Elementary Occupations.

For recent migrants, Service and Sales was also the most popular occupational grouping with more than half the 15- to 17-year-olds and around one-third of the 18- to 24-year-olds at each census working in this group.

Table 4.4 Occupations of employed migrant youth (15-24 years), 1996, 2001, and 2006

Occupation	1996		2001		2006
	15-17 years (%)	18-24 years (%)	15-17 years (%)	18-24 years (%)	15-17 years (%)	18-24 years (%)
Legislators, Administrators and Managers	1	5	1	5	0	7
Professionals	0	8	1	10	0	10
Technicians and Associate Professionals	2	11	3	11	6	14
Clerks	16	17	18	17	18	15
Service and Sales Workers	48	28	48	32	52	31
Agriculture and Fishery Workers	7	5	6	4	3	3
Trades Workers	3	9	3	7	3	7
Plant and Machine Operators and Assemblers	4	8	4	7	3	5
Labourers and Related Elementary Service Workers	19	9	16	7	14	8
Total (%)	100	100	100	100	100	100
Total number	5,103	21,534	5,964	24,981	7,374	45,384

Notes
Excludes 3,732 in 1996, 4,782 in 2001, and 5,421 in 2006 who did not specify their occupation.
Due to rounding, percentages may not sum to 100 percent.

Study participation

This section examines youth involvement in study.

The limitations of using census data to measure study participation should be considered. In particular, the census is conducted in early March when many students are still on term break, and the question on study participation differed in each of the three censuses (see Appendix B).^[59] Due to lack of comparability, 2001 data is not included in this section.^[60] The 1996 and 2006 questions were similar, so are comparable.^[61] Also, the study participation question tends to have a high rate of non-response (8.6 percent of youth in 1996 and 9.3 percent in 2006).

A larger proportion of overseas-born than New Zealand-born 15- to 17-year-olds were studying full time at both censuses (see Table 4.5). The proportions studying part time were small. Overseas-born 18- to 24-year-olds were also more likely than their New Zealand-born counterparts to be studying, with around double the proportion studying full time. The proportions of New Zealand-born and overseas-born 18- to 24-year-olds studying part time were similar.

Table 4.5 Study participation for youth (15-24 years), 1996, 2001, and 2006

Study participation	Overseas-born		NZ-born
	15-17 years (%)	18-24 years (%)	15-17 years (%)	18-24 years (%)
1996
Full-time study	78	41	67	21
Part-time study	2	6	3	6
Not studying	19	53	30	73
Total	100	100	100	100
2006
Full-time study	85	52	74	25
Part-time study	2	7	3	8
Not studying	14	42	23	66
Total	100	100	100	100

Notes
Excludes 45,870 in 1996 and 53,004 in 2006 who did not specify their study participation.
The proportion for full-time study includes a small number who were studying both full time and part time.
Due to rounding, percentages may not sum to 100 percent.

For both age groups, study participation rates tended to be highest for those who had been in New Zealand for less than five years and then decreased after this point. For example, in 2006, 60 percent of recent migrants aged 18 to 24 years were studying compared with 52 percent of all overseas-born 18- to 24-year-olds.

Of the 15- to 17-year-old migrants, those from the Pacific and Australia were less likely than those from other regions to be studying full time (71 percent from the Pacific and 75 percent from Australia were studying full time in 2006). These youth had slightly higher rates of part-time study than others. At least 80 percent of 15- to 17-year-olds from regions other than the Pacific and Australia were studying full time.

Figure 4.1 shows rates of full-time study participation for 18- to 24-year-olds. Study participation rates increased from 1996 to 2006 for youth from all regions other than North Asia and South-East Asia. North Asian 18- to 24-year-olds had the highest study participation rates with around 75 percent studying in both 1996 and 2006. Youth aged 18 to 24 years from the Pacific, Australia, and UK/Ireland had lower full-time study rates than those from other regions.

Figure 4.1 Full-time study participation for 18-24-year-olds by region of birth, 1996 and 2006

Data table for Figure 4.1

Note:
ESANA = Europe (including Russia), South Africa and North America; UK = United Kingdom.

Qualifications

This section explores the highest qualifications of migrants aged 18 to 24 years. An analysis of only this group of youth is relevant because a large proportion of younger youth will still be at school and in the process of gaining qualifications. Of course, many 18- to 24-year-olds will also be in the process of gaining qualifications.

Table 4.6 shows that migrant youth were more qualified than their New Zealand-born counterparts with a smaller proportion of them having no qualifications. The proportion of migrant youth with no qualifications decreased from 16 percent in 1996 to 7 percent in 2006, and the proportion with university and vocational qualifications was higher in 2006 than in previous years. The most common highest qualification for both migrant and New Zealand-born youth was a school qualification, and a larger proportion of migrant than New Zealand-born youth had a school qualification. Migrant youth were more likely than their New Zealand-born counterparts to have a university qualification and less likely to have a vocational qualification as their highest qualification. The finding that migrant youth were more qualified is not surprising given that the purpose of the Skilled/Business Stream is to attract skilled and qualified migrants and many overseas-born youth come to New Zealand to study.

Migrant youth were more qualified than all migrants (16 percent of all migrants had no qualifications in 2006). The proportion of recent migrant youth with no qualifications was similar to that of all migrant youth.

Migrant youth from the Pacific were the most likely to have no qualifications (16 percent in 2006), yet, in 2006, they were the most likely to hold a vocational qualification as their highest qualification (22 percent). Youth from South Asia were more likely than youth from other regions to have a university qualification (26 percent in 2006). North Asian youth were the most likely to have a school qualification as their highest qualification (65 percent in 2006), yet this group was most often in New Zealand studying towards a higher qualification (see section 4.4). As with all youth, a large proportion of recent migrants from South Asia had university qualifications (27 percent in 2006). UK/Ireland recent migrants stood out with large proportions having university and vocational qualifications (21 percent and 23 percent in 2006 respectively).

Table 4.6 Highest qualification for 18-24-year-olds by birthplace, 1996, 2001, and 2006

Birthplace	School qualification (%)	Post-school (vocational) (%)	Bachelor degree or higher (%)	No qualification (%)
1996
Overseas-born	59	13	11	16
NZ-born	53	18	8	21
2001
Overseas-born	67	13	11	9
NZ-born	55	19	10	17
2006
Overseas-born	60	18	15	7
NZ-born	52	20	10	18

Notes
Excludes 53,481 in 1996, 36,852 in 2001 and 36,315 in 2006 who did not specify their qualifications.
Due to rounding, percentages may not sum to 100 percent.

Combined labour force and study participation

Table 4.7 shows the rates of youth combining work and study.^[62] The caveats described above should be kept in mind when using census data to measure study participation. Due to lack of comparability, 2001 data is excluded from this section (see section 4.4 for further details).

Fifteen- to 17-year-olds were more likely than 18- to 24-year olds to be studying and not in the labour force. A larger proportion of migrants than New Zealand-born youth were in this category (56 percent of migrants at both censuses). The second most common group of 15- to 17-year-olds was employed part time and studying, with a larger proportion of New Zealand-born than overseas-born youth involved simultaneously in these activities. New Zealand-born 15- to 17-year-olds were more likely than migrant 15- to 17-year-olds to be employed full time and not studying (8 percent compared with 3 percent at both censuses).

Overseas-born 18- to 24-year-olds were much more likely than their New Zealand-born counterparts to be studying and not in the labour force (29 percent compared with 11 percent in 2006). Just under half of New Zealand-born 18- to 24-year-olds were working full time and not studying compared with 26 percent of the overseas-born in 2006. There was an increase in the proportion of both overseas-born and New Zealand-born youth working part time and studying between 1996 and 2006, although this increase was larger for overseas-born youth. In 2006, a larger proportion of migrant 18- to 24-year-olds than New Zealand-born 18- to 24-year-olds were working part time and studying.

Of 15- to 17-year-old migrants, North Asians had the highest rates of studying while not in the labour force (84 percent in 1996 and 76 percent in 2006). South and South-East Asian migrants were also likely to be studying while not in the labour force and, as with North Asian migrants, the proportions decreased from 1996 to 2006 (from 61 percent to 56 percent for South Asians and from 65 percent to 61 percent for South-East Asians). The decrease in the proportion of 15- to 17-year-olds from Asia who were not in the labour force and studying was accompanied by an increase in the proportion employed part time and studying. Australian 15- to 17-year-olds were more likely than others to be working full time and not studying (9 percent in 2006 - similar to the proportion of New Zealand-born 15- to 17-year-olds). From 1996 to 2006, the proportion of 15- to 17-year-olds from the Pacific studying while not in the labour force increased (from 37 percent to 53 percent).

Similar trends were apparent for 18- to 24-year-old migrants. North Asians had the highest rate of studying while not in the labour force with a decrease from 1996 to 2006 (68 percent to 48 percent). From 1996 to 2006, the proportions also decreased of South Asians (24 percent to 21 percent) and South-East Asians (51 percent to 32 percent) not in the labour force and studying. The rate of studying while working part time more than doubled for 18- to 24-year-olds from Asia during the same period. Australian and UK/Ireland 18- to 24-year-olds were the most likely to be working full time and not studying (46 percent in 2006 for both regions). Around one-third from ESANA and the Pacific were working full time and not studying.

Overall, a larger proportion of recent 18- to 24-year-old migrants were studying and not in the labour force than were all 18- to 24-year-old migrants (37 percent compared with 29 percent in 2006). The proportion of recent and all migrant 18- to 24-year-olds working part time and studying was the same in 2006 (16 percent).

Table 4.7 Combined labour force and study participation for youth (15-24 years), 1996 and 2006

Labour force/study participation	Overseas-born		NZ-born
	15-17 years (%)	18-24 years (%)	15-17 years (%)	18-24 years (%)
1996
Employed full time and not studying	3	31	8	47
Employed full time and studying	1	4	2	6
Employed part time and not studying	3	5	6	6
Employed part time and studying	20	9	29	8
Unemployed and not studying	2	6	4	7
Unemployed and studying	6	5	7	3
Not in labour force and not studying	10	12	11	11
Not in labour force and studying	56	29	31	10
Total	100	100	100	100
2006
Employed full time and not studying	3	26	8	46
Employed full time and studying	2	7	3	9
Employed part time and not studying	2	4	4	6
Employed part time and studying	22	16	28	11
Unemployed and not studying	2	3	3	5
Unemployed and studying	7	6	7	3
Not in labour force and not studying	7	8	7	10
Not in labour force and studying	56	29	39	11
Total	100	100	100	100

Notes
Due to rounding, percentages may not sum to 100 percent.
Some figures in this table may differ slightly from other tables in this report, because the 'not specified' responses for both the labour force and study participation questions have been excluded.

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