Labour market situation - September 2011

Which industries are growing, and which are shrinking?

While the unemployment rate for the year to June 2011 has improved, some industries are doing better than others.

Mining – up 19%

Mining makes up only a small part of the country’s workforce, but new mines and the extension of some existing sites have created strong demand for labour, especially in regions like the central North Island, Otago, and the West Coast.

• Read more about mining jobs

Information and communication technology (ICT) – up 8%

ICT is experiencing considerable growth, and demand for staff is likely to continue to be strong. Many businesses have resumed technology projects they put on hold during the 2008-2009 recession, and the Government’s ultra-fast broadband roll-out is also pushing up demand.

• Read more about ICT jobs

Agriculture and forestry – up 7%

The prices farmers are getting for their goods have increased, and they are expected to hire more staff to catch up on work they have put on hold in recent years.

Forestry is booming because of rising exports to China, and the timber industry is expected to benefit from the Christchurch and Japan rebuilds.

• Read more about agriculture jobs
• Read more about forestry jobs 

Manufacturing – up 2.5%

Manufacturing has rebounded since the recession, but the rapid rise in the exchange rate in 2011 has reduced sales for many exporters.

Employment growth is likely to be modest for the rest of 2011.

Accommodation and hospitality services – down 0.75%

The combined effects of the Christchurch earthquakes, a late start to the ski season, and the tsunami in Japan have halted job growth in accommodation and hospitality.

While the Rugby World Cup will provide a short-term boost in September and October 2011, any growth in accommodation and hospitality employment will be minimal in 2012.

Retail trade – down 1%

The retail sector continues to struggle but should start improving from late 2011, boosted by spending during the Rugby World Cup, higher farm incomes, and population growth.

Construction – down 6.5%

Construction activity has slowed considerably since 2009, but the Christchurch earthquake rebuild, and some large Auckland and national projects should see employment grow.

However, it may be late 2012 before opportunities increase significantly.

New Zealand’s labour market is expected to continue improving gradually in the next few years, with the Department of Labour predicting unemployment will fall to below 6% by 2013.

Overall, rising wage growth, and continued growth in online job advertisements point to a gradual strengthening in the demand for labour.

Other factors expected to contribute to this trend include:

• higher farm incomes, which mean farmers spend more on goods and services
• low interest rates, which encourage spending
• the Rugby World Cup, which should boost retail and tourism businesses
• the Christchurch rebuild, which will increase demand for construction workers.