Desired outcomes
Everybody has access to meaningful, rewarding and safe employment. An appropriate balance is maintained between paid work and other aspects of life.
Introduction
Paid work has an important role in social wellbeing. It provides people with incomes to meet their basic needs and to contribute to their material comfort, and it gives them options for how they live their lives.
Paid work is also important for the social contact and sense of self-worth or satisfaction it can give people.
The desired outcomes highlight five aspects of paid work: access to work; the financial return from work; the safety of the working environment; satisfaction with work; and the balance between work and other areas of life.
For most people, income from paid work is the main factor determining their material standard of living. Wage and salary income makes up around two-thirds of the total income received by New Zealanders aged 15 years and over. Income saved during their working life contributes to the standard of living of many retired people.
The social and personal dimensions of paid work are both important. Ideally, work should not only be materially rewarding but it should contribute to other aspects of wellbeing. Meeting challenges at work can contribute to a sense of satisfaction and self-worth. Paid work is more likely to be satisfying where people can find employment to match their skills and abilities.
Social contact is an important part of wellbeing. For many people, much of their social contact is through their jobs. People often gain a sense of belonging or identity from their jobs, identifying themselves and others through the organisation they work for or the type of work they do.
Conversely, unemployment can isolate people from society and cause them to lose self-confidence.
Unemployment is associated with poorer mental and physical health, and lower levels of satisfaction with life.
The quality of work is critically important. A meaningful job can enhance people’s satisfaction with their work. An unsafe job, on the other hand, places people’s wellbeing at risk.
Work can also be stressful. People may be required to work longer hours than they want to or need to.
The desired outcomes acknowledge that wellbeing is best served by maintaining a balance between paid work and other aspects of life including spending time with family and friends, taking part in leisure and recreational activities, and doing unpaid work such as housework and voluntary work.
Where that balance lies will differ from person to person.
Indicators
Six headline indicators are used in this chapter. They are: the unemployment rate; the employment rate;
median hourly earnings; work-related injury claims; job satisfaction; and satisfaction with work-life balance.
standard measure, allowing international comparisons. Information about long-term unemployment is also provided.
The second indicator, the employment rate, complements the unemployment rate indicator by
measuring actual engagement in work among the population aged 15–64 years. Full-time and part-time employment rates are included.
The third indicator is median hourly earnings from waged and salaried employment. The level of financial return from paid employment, independent of the number of hours worked, is a key determinant of the standard of living that people can attain.
Workplace safety is important in its own right, but may also be a proxy for the quality of employment.
Jobs should not pose an unreasonable risk to people’s lives, or their physical or mental wellbeing. The fourth indicator is the rate of serious non-fatal work-related injury per 100,000 person-years at risk.
The fifth indicator is the proportion of the population in paid employment who are satisfied with their job, while the final indicator looks at people’s satisfaction with their work-life balance.
Domain summary
The ongoing impacts of the 2008 Global Financial Crisis are reflected in the Paid Work domain
outcomes, with some people more affected by economic events than others (ie Māori, Pacific peoples, females). Forrecent-changethere is a mix of stable and improving results.
In terms ofrecent-change,there have been improvements for the unemployment and employment indicators, but the impacts of the Global Financial Crisis are still apparent formedium-term-change, with both indicators worsening over the latter period. While increasing formedium-term-change (particularly before the 2008 Global Financial Crisis), real median hourly earnings have not improved forrecent-change, and females continue to receive lower median hourly earnings than males.
In terms ofmedium-term-change, job satisfaction and satisfaction with work-life balance are showing improvement. Job satisfaction does show a flat result forrecent-change, but continues to remain strongly in positive territory.
In terms of work-related injury, there has been an improvement formedium-term-changeand a flat result for recent-change. Males are more likely to be injured at work, as are older people and Māori.
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Unemployment
Definition
The number of people aged 15 years and over who were not employed and who were actively seeking and available for paid work, expressed as a percentage of the total labour force.
Relevance
Unemployment is a key indicator of labour market outcomes and the lack of access to employment. The unemployment rate is an important reflection of overall economic conditions, and it gives some sense of the ease with which people are able to move into employment.
Current level and trends
In the year ended December 2014, 5.8 percent of the labour force (or 140,800 people) were
unemployed and actively seeking work, a decrease from 6.2 percent (or 148,400 people) in the year ended December 2013.
Historically, the unemployment rate reached a peak of 10.7 percent in 1992 (180,900 unemployed people). The lowest unemployment rate recorded was 3.7 percent in 2007. The impact of the 2008 Global Financial Crisis is clearly seen over the more recent period. The unemployment rate increased from 2007 to peak at 6.9 percent in 2009, before again falling.
In 2014, the duration rate (ie those unemployed for a continuous period of one year of more) was 13.6 percent (16,700 unemployed people). This was an increase compared with the previous year (12.2 percent). The duration rate peaked at 33.7 percent in 1993 (52,400 unemployed people). The lowest duration rate was 4.6 percent in 2008.
The proportion of people seeking full-time work (30 hours or more per week) in the year ended
December 2014 was 4.7 percent (4.2 percent for males and 5.4 percent for females). For those seeking part-time work (less than 30 hours per week), the proportion was 9.2 percent (10.7 percent for males and 8.7 percent for females).
Figure PW1.1 – Unemployment rate, 1986–2014
Source: Statistics New Zealand, Household Labour Force Survey Note: Year ended December.
Age and sex differences
Unemployment rates for different age groups follow similar trends, but are consistently higher among youth. In 2014, the unemployment rate for 15–24 year olds (15.0 percent) was close to three times the rate of the next highest age group – those aged 25–34 years (5.9 percent).
Unemployment rates for males and females have followed similar trends over time, but which sex has had the higher rate has changed a number of times over the period of the survey. In 2014, females had the higher rate at 6.5 percent compared with 5.0 percent for males, a pattern that has persisted since 2006.
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Table PW1.1 – Unemployment rate, by age group and sex, selected years 1986–2014
Year 15–24 25–34 35–44 45–54 55–64 Male 15+ Female 15+ Total 15+
1986 8.1 4.0 2.3 2.1 1.6 3.7 4.9 4.2
Source: Statistics New Zealand, Household Labour Force Survey Note: Year ended December.
Ethnic differences
The Māori unemployment rate peaked at 25.6 percent in 1992, and reached a low of 7.9 percent in 2007.
The Māori unemployment rate in 2014 was 12.3 percent, a decrease from 13.1 percent at the same time the previous year. The Pacific peoples’ unemployment rate peaked at 27.5 percent in 1991 and reached a low of 6.5 percent in 2005. The Pacific peoples’ unemployment rate in 2014 was 12.0 percent, a
decrease from a rate of 15.3 percent at the same time the previous year. Pacific peoples and Māori consistently have higher unemployment rates than the population overall.
The European/Other unemployment rate peaked at 8.6 percent in 1991 and reached a low of 2.9 percent in 2007. The European/Other unemployment rate in 2014 was 4.4 percent, a decrease from 4.9 percent at the same time the previous year. The Asian unemployment rate peaked at 13.4 percent in 1991 and reached a low of 4.3 percent in 1987. The Asian unemployment rate in 2014 was 6.8 percent, an increase from 6.5 percent at the same time the previous year.
As noted, youth experience higher unemployment rates. This is a particular concern for Māori and Pacific peoples, who have relatively youthful populations. In 2014, for those aged 15–24 years, Pacific peoples, Māori, those in the Asian ethnic group and European/Other had unemployment rates of 25.9, 22.5, 16.0 and 12.4 percent respectively.
Figure PW1.2 – Unemployment rate, by ethnic group, 1986–2014
Source: Statistics New Zealand, Household Labour Force Survey
Notes: Year ended December. For 2007 and earlier, people are counted in only one ethnic group (ethnicities are prioritised).
From 2008, people can be counted in more than one ethnic group (total response). Caution should be used when comparing the two ethnic series over time.
Asian rates are suppressed in 1986 because of small numbers.
Regional differences
Northland had the highest unemployment rate at 8.4 percent for the year ended December 2014, while Canterbury had the lowest at 3.2 percent. Auckland had the highest number of unemployed at 52,500, while Southland had the lowest at 2,000.
International comparison
In 2014, the harmonised New Zealand unemployment rate of 5.8 percent was ranked 8th lowest out of 33 OECD countries. This was lower than the OECD median of 6.9 percent and compares with a rate of 6.1 percent in Australia, and 6.2 percent in the United Kingdom and United States. Korea had the lowest unemployment rate at 3.5 percent, while Greece had the highest rate at 26.6 percent.
Over the last 10 years, New Zealand's best performance across the OECD was a 3rd ranking in 2007 when the harmonised unemployment rate was 3.7 percent.
Data for this section can be found at:www.socialreport.msd.govt.nz/documents/2016/pw1.xlsx
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Employment
Definition
The proportion of the population aged 15–64 years who were employed for at least one hour per week.
Relevance
The employment rate is the best available indicator of the prevalence of paid employment. Like the unemployment rate, it is affected by a number of factors including economic conditions and the availability of work, migration flows, skill levels, family responsibilities, and personal decisions such as undertaking full-time study.
Current level and trends
In the year ended December 2014, 74.2 percent of 15–64 year olds (or 2,175,600 people) were employed, an increase from 72.8 percent (or 2,105,600 people) in the year ended December 2013.
Over the period of the survey, the employment rate reached a peak of 75.1 percent in 2007 (2,098,300 employed people). The lowest employment rate recorded was 64.9 percent in 1992. The employment rate decreased from 2007 to a low of 72.0 percent in 2012 but has since improved. The impact of the 2008 Global Financial Crisis is evident in the time series.
There has been a shift over the period of the Household Labour Force Survey (HLFS) in terms of full-time (30 hours or more per week) and part-time employment. The ratio between full-time and part-time work moved from 5.1 in 1986 to 3.7 in 2014, reflecting reducing proportions of full-time employed and increasing proportions of part-time employed. This change was most pronounced between 1986 and 1992, but has since fluctuated. In 2014, the proportion of people seeking full-time employment was 58.6 percent of the working-age population, and the proportion of people seeking part-time employment (less than 30 hours per week) was 15.7 percent.
Figure PW2.1 – Employment rate, 1986–2014
Age and sex differences
Those aged 45–54 years consistently had the highest employment rate (84.1 percent in 2014), followed by 35–44 year olds (82.8 percent) and 25–34 year olds (78.1 percent).
The employment rate for those aged 15–24 years and 55–64 years has remained consistently low over the period of the survey (the rates in 2014 were 51.7 and 76.2 percent respectively). The employment rate for 15–24 year olds has generally been on the decline since 1986 and was impacted the most by the Global Financial Crisis, dropping 9.4 percentage points between 2007 and 2012. In comparison, the decline between 2007 and 2012 for 15–64 year olds was 3.1 percentage points, dropping from 75.1 to 72.0 percent. While 55–64 year olds have the next lowest employment rate, their rates have increased since 1986, rising from 49.0 percent to 76.2 percent in 2014. This reflects the rise in the age of eligibility for New Zealand Superannuation during this period and changing labour market patterns. The
employment rate for those aged 65–74 has also shown a steady increase, moving from 11.6 percent in 1986 to 31.1 percent in 2014.
Males have consistently had a higher employment rate than females over the period of the survey. In 2014, males again had the higher rate (79.7 percent, compared with 69.1 percent for females). This is mainly because women spend more time on childcare and other unpaid household work, and are more likely than men to undertake some form of study or training. However, the sex difference in the
employment rate more than halved between 1986 and 2014, from 24.5 percentage points to 10.6 percentage points. Over the period of the survey and ignoring the impact of economic fluctuations, male employment rates have been declining, while female rates have increased.
Table PW2.1 – Employment rate, by age group and sex, selected years 1986–2014
Year 15–24 25–34 35–44 45–54 55–64 Male
15–64
1986 68.5 75.2 84.0 79.3 49.0 84.5 60.0 72.2 11.6
1991 54.4 69.0 78.9 77.0 41.5 73.5 57.2 65.3 8.3
1996 58.8 74.2 79.4 81.0 53.6 78.5 62.9 70.6 9.6
2001 55.3 74.5 80.1 82.1 60.3 78.6 64.4 71.4 13.3
2006 58.0 78.2 82.0 84.7 70.0 81.9 68.0 74.8 20.7
2007 58.0 79.1 81.9 84.3 71.8 82.0 68.6 75.1 22.8
2008 55.8 79.0 81.8 84.3 71.6 80.9 68.6 74.6 24.5
2009 51.1 76.7 81.0 83.3 72.0 78.6 67.3 72.8 25.3
2010 49.4 75.0 80.8 83.2 73.2 78.2 66.5 72.2 26.5
2011 49.2 77.0 80.1 83.7 73.6 78.3 67.1 72.5 29.0
2012 48.6 75.9 80.0 82.7 73.8 77.4 66.8 72.0 30.2
2013 49.2 77.5 80.8 83.8 74.3 78.3 67.7 72.8 31.1
2014 51.7 78.1 82.8 84.1 76.2 79.7 69.1 74.2 31.1
Source: Statistics New Zealand, Household Labour Force Survey Note: Average for December years.
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In terms of full-time and part-time employment and changes over time, there are marked differences by sex. The male full-time employment rate in 2014 was 71.3 percent and the part-time rate was 8.4 percent. The female full-time employment rate was much lower at 46.5 percent and the part-time rate higher at 22.6 percent. In 1986, the ratio between full-time and part-time employment for males was 17.8 but declined significantly to 8.5 in 2014, reflecting a shift by males to part-time work. In contrast, the ratio for females remained the same at 2.1 in 1986 and 2014, reflecting that the rise in the female employment rate has impacted on both full-time and part-time employment.
Ethnic differences
There are marked differences in employment rate by ethnicity. In 2014, the European/Other
employment rate was highest at 78.5 percent, followed by the Asian ethnic group (68.1 percent), Māori (62.7 percent) and Pacific peoples (58.3 percent).
The Māori employment rate peaked at 65.6 percent in 2008 and reached a low of 46.4 percent in 1992.
The Māori employment rate in 2014 was 62.7 percent, an increase from 60.1 percent at the same time the previous year. The Pacific peoples’ employment rate peaked at 68.5 percent in 1986 and reached a low of 45.9 percent in 1991. The Pacific peoples’ employment rate in 2014 was 58.3 percent, an increase from 55.0 percent at the same time the previous year.
The European/Other employment rate peaked at 78.5 percent in 2014 and reached a low of 68.2 percent in 1992. The European/Other employment rate in 2014 was 78.5 percent, an increase from 77.5 percent at the same time the previous year. The Asian employment rate peaked at 76.3 percent in 1987; it reached a low of 49.1 percent in 1998. The Asian employment rate in 2014 was 68.1 percent, an increase from 65.9 percent at the same time the previous year.
As noted, youth experience lower employment rates. This is a particular concern for Māori and Pacific peoples who have relatively youthful populations. In 2014, for those aged 15–24 years, Pacific peoples, Māori, people in the Asian group and European/Others had employment rates of 34.6, 45.5, 44.0 and 57.7 percent respectively.
Figure PW2.2 – Employment rate, by ethnic group, 1986–2014
Source: Statistics New Zealand, Household Labour Force Survey
Notes: Average for December years. For 2007 and earlier people are counted in only one ethnic group (ethnicities are prioritised). From 2008 people can be counted in more than one ethnic group (total response). Caution should be used when comparing the two ethnic series over time.
Regional differences
Canterbury had the highest employment rate at 80.1 percent for the year ended December 2014, while Northland had the lowest employment rate at 69.5 percent.
International comparison
In 2014, the New Zealand employment rate of 74.2 percent was ranked 5th highest out of 34 OECD countries. This was higher than the OECD median of 68.0 percent and compares with a rate of 71.6 percent in Australia, 71.9 percent in the United Kingdom, and 68.1 percent in the United States. Iceland had the highest employment rate at 81.6 percent, while Greece had the lowest at 49.4 percent.
Data for this section can be found at:www.socialreport.msd.govt.nz/documents/2016/pw2.xlsx
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