Labour market statistics: March 2018 quarter
Labour market statistics provide a picture of the New Zealand labour market, including unemployment and employment rates, demand for labour, and changes in wages and salaries.
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Household labour force survey: March 2018 quarter – tables
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Labour cost index wage rates: March 2018 quarter – supplementary tables
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Labour cost index wage rates: March 2018 quarter – tables
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Labour market statistics: March 2018 quarter – CSV
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Quarterly employment survey: March 2018 quarter – supplementary tables
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Quarterly employment survey: March 2018 quarter – tables
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Key facts
Labour market at a glance
- Unemployment rate fell to 4.4 percent.
- Underutilisation rate fell to 11.9 percent.
- Employment rate was unchanged at 67.7 percent.
- Filled jobs fell 0.2 percent.
- Average ordinary time hourly earnings increased to $30.96.
- Annual wage inflation remained unchanged at 1.8 percent.
Employment at a glance (seasonally adjusted) |
Mar 2018 |
Quarterly |
Annual |
|
Percent |
Percentage points |
|||
Unemployment rate |
4.4 |
-0.1 |
-0.5 |
|
Underutilisation rate |
11.9 |
-0.3 |
-0.3 |
|
Employment rate |
67.7 |
0.0 |
0.5 |
|
Labour force participation rate |
70.8 |
-0.1 |
0.2 |
|
(000) |
Percent |
|||
Unemployed |
119 |
-2.6 |
-8.7 |
|
Employed |
2,618 |
0.6 |
3.1 |
|
Filled jobs |
1,936 |
-0.2 |
1.2 |
|
Working-age population |
3,866 |
0.6 |
2.2 |
|
Wages at a glance |
Index |
Percent |
||
Wage inflation (salary and wage rates, including overtime) |
All sectors |
1162 |
0.3 |
1.8 |
Private sector |
1168 |
0.3 |
1.9 |
|
Public sector |
1143 |
0.3 |
1.5 |
|
LCI analytical unadjusted |
1295 |
0.6 |
3.2 |
|
|
Level |
Percent |
||
Average ordinary time hourly earnings |
$30.96 |
0.9 |
3.5 |
|
Hours at a glance (figures seasonally adjusted) |
Hours |
Percent |
||
Average weekly paid hours for FTEs (QES) |
Ordinary time |
37.97 |
0.1 |
0.2 |
Total |
38.75 |
0.1 |
0.3 |
|
|
(millions) |
Percent |
||
Total weekly paid hours (QES) |
60.4 |
0.1 |
2.0 |
|
Total actual weekly hours worked (HLFS) |
88.7 |
1.7 |
4.9 |
|
Note: |
|
|
|
Unemployment, underutilisation, and NEET
In the March 2018 quarter, the seasonally adjusted unemployment and underutilisation rates both fell.
- The unemployment rate fell to 4.4 percent, down from 4.5 percent
- The underutilisation rate fell to 11.9 percent, down from 12.2 percent
- The unemployment rates for men and women fell to 3.9 percent and 4.9 percent, respectively.
- The unadjusted unemployment rate for Māori was 9.6 percent, down from 10.4 percent a year ago.
- The unadjusted unemployment rate for Pacific people was 8.3 percent, down from 11.0 percent a year ago.
For the second consecutive quarter, Gisborne/Hawke’s Bay had the largest annual decrease in its regional unemployment rate, down to 5.1 percent.
The underutilisation rate is as important as the unemployment rate, as it provides a more inclusive view of changes in New Zealand’s labour market than the unemployment rate alone. It better captures differences in the groups of interest to policy-makers.
The fall in underutilisation mainly reflects 9,000 fewer people being underemployed, which includes 8,000 fewer women.
People who are underemployed are those in part-time employment who would like to, and are available to, work more hours.
- The underutilisation rate for women fell to 14.6 percent, down from 15.2 percent in the December 2017 quarter.
- The underutilisation rate for men was unchanged, at 9.4 percent.
Compared with the March 2017 quarter, there were 4,500 fewer people underutilised in Gisborne/Hawke’s Bay. This was mainly due to 2,800 fewer underutilised women.
The seasonally adjusted rate for young people (15–24 years) who were not in employment, education, or training (NEET) rose to 12.4 percent, up from 11.8 percent in the December 2017 quarter.
This reflects a rise in the NEET rate for men, to 12.1 percent (from 10.2 percent), which was partly offset by a fall for women, to 12.8 percent (from 13.6 percent).
Employment and the labour force
The employment rate was unchanged in the March 2018 quarter, at 67.7 percent, as employment kept pace with growth in the working-age population. Women were at their highest-ever rate of employment (62.6 percent).
In the latest quarter, employment rose 0.6 percent, the majority of which came from more women (up 0.8 percent) than men (up 0.4 percent) gaining employment. Annually, employment increased 3.1 percent, which was also driven by women (up 3.7 percent) when compared with men (up 2.6 percent).
Compared with the same quarter in 2017, employment growth was strongest in:
- Auckland, up 33,700 (3.8 percent)
- Otago, up 11,600 (9.8 percent)
- Canterbury, up 9,600 (2.8 percent)
- Waikato, up 9,300 (3.9 percent).
In the year to the March 2018 quarter, 4,500 (1.5 percent) more Māori and 12,000 (8.5 percent) more Pacific people gained employment.
In the latest quarter, the seasonally adjusted labour force participation rate fell to 70.8 percent. This fall is a result of growth in the labour force (up 13,000 or 0.4 percent to 2,738,000) being outpaced by growth in the working-age population (up 23,000 or 0.6 percent to 3,866,000).
Not in the labour force
The number of people not in the labour force (NILF) rose in the March 2018 quarter, up 10,000 (0.9 percent). Annually, people NILF increased 17,000 (1.5 percent).
Men were the key contributor to the quarterly and annual increases, up 8,000 (1.8 percent) and 12,000 (2.9 percent), respectively.
Annually, the largest increases in NILF came from those aged 70–74 years (up 8,400 or 6.2 percent).
Industry and occupation
In the March 2018 quarter, 12,000 (0.6 percent) more people were working full time and 3,000 (0.5 percent) more were working part time. Rises in full-time and part-time work were mainly influenced by women, up 9,000 and 2,000, respectively.
In the year to the March 2018 quarter, the following occupations increased:
- managers, up 33,600 (6.8 percent)
- professionals, up 29,000 (4.9 percent)
- community and personal services workers, up 20,200 (9.3 percent).
The increase in community and personal services workers mainly reflected people working as hospitality workers, emergency service personnel, or personal carers.
Annually, employment (as measured by the HLFS) increased in several industries. The main industries with significant growth were:
- professional, scientific, technical, administrative, and support services, up 22,300 (7.2 percent)
- retail trade and accommodation services, up 20,100 (5.3 percent)
- public administration and safety, up 12,600 (9.1 percent).
Filled jobs (as measured by the QES) increased 1.2 percent (unadjusted) for the year to the March 2018 quarter – 22,400 more jobs. The three main industries contributing to this growth were:
- professional, scientific, technical, administrative, and support services, up 12,200 jobs (4.5 percent)
- retail trade, up 10,700 (5.5 percent)
- education and training, up 9,500 (7.5 percent).
Wages
All the following movements are for the year to the March 2018 quarter.
Average ordinary time hourly earnings in the QES increased 3.5 percent to $30.96, the largest annual increase since the March 2012 quarter. Nearly one-third of this growth came from the healthcare and social assistance, and the professional, scientific, technical, administrative, and support services industries.
Average total weekly earnings for a full-time equivalent employee increased 3.9 percent, to $1,204.85. This was the largest annual increase since the September 2011 quarter.
The number of part-time jobs decreased 4.9 percent over the year, while full-time jobs increased 2.9 percent. A fall in the proportion of people employed part-time can raise average earnings because part-time jobs generally have lower wage rates than full-time positions.
Growth in QES average hourly earnings is often compared with the LCI salary and ordinary time wage rates. However, the QES average earnings statistics reflect not only changes in salary and wage rates, but also compositional changes between and within businesses in surveyed industries (eg people shifting to full-time employment or to higher paying industries).
LCI salary and wage rates (including overtime) increased 1.8 percent for the year.
The Care and Support Worker (Pay Equity) Settlement Act 2017, which came into effect on 1 July 2017, continued to contribute to higher wages, most notably for private sector care workers. Had this Act not come into effect, LCI wages and salaries would have increased 1.6 percent. The Act also continues to be a key contributor to QES wage growth.
Public sector salary and wage rates (including overtime) increased 1.5 percent, with increases in central government (up 1.4 percent) and local government (up 1.7 percent). Private sector salary and wage rates (including overtime) increased 1.9 percent.
The LCI is a key measure of wage inflation, reflecting changes in the rates employers pay to have the same job done to the same standard.
The analytical unadjusted LCI reflects price change and quality change within occupations, such as individual performance or years of service, as well as changes in salary and wage rates for a fixed quantity of labour. It increased 3.2 percent.
The LCI is often compared with the consumers price index (CPI) to see how wage inflation compares with consumer inflation (ie the change in prices of goods and services bought by households). Annual CPI inflation decreased to 1.1 percent in the year ended March 2018, down from 1.6 percent in the year ended December 2017, reflecting cheaper tertiary education.
On 1 April 2018, the Government increased the minimum wage by 75 cents to $16.50 an hour. We expect to see these changes reflected in the June 2018 quarter. However, the LCI has started to see some minor movement within the retail, accommodation and food services, and the manufacturing industries.
Definitions and metadata
Labour market statistics period specific information – DataInfo+ gives labour market statistics information that changes between periods.
Labour market statistics – DataInfo+ gives general methodology used to produce this release, and related metadata.
Household Labour Force Survey – DataInfo+ gives general methodology used to produce household labour force statistics, and related metadata.
Labour cost index – DataInfo+ gives general methodology used to produce labour cost index statistics, and related metadata.
Quarterly Employment Survey – DataInfo+ gives general methodology used to produce quarterly employment survey statistics, and related metadata.
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