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Mature workers in New Zealand

Mature workers – those aged between 45 and 64 – are expected to play an increasingly key role in the economy as the number of young people entering the workforce falls.

Mature workers play an increasingly important role in NZ workforce

District nurse Jo Brown working with a patient.
Mature workers make up more than a third of the workforce

By international standards New Zealand’s mature worker employment rates are high.

People are staying in the workforce for longer than previous generations. In 1991, mature workers made up 27% of total workers in New Zealand. This rose to 36% in 2006.

The growing number of mature workers is partly due to changes in New Zealand Superannuation. The age of entitlement rose from 60 to 65 in 2001, and compulsory retirement was removed.

More mature workers in certain occupations

In 2006, the two biggest occupation groups for mature workers were:

  • corporate managers
  • other associate professionals.
Vic Hodgson checking his train.
Almost half the people working in rail transport are mature workers

Some industries are characterised by having a large proportion of workers in the mature age group. Mature workers, as with younger workers, have gravitated towards employment in the growing services industries, such as business services, which includes finance and insurance, and tourism, hospitality and retail.

But there are still significant numbers of mature workers employed in traditional industries such as agriculture, fishing and trades.

In 2006, the three industries with the highest proportion of workers in the 45-year-old to 64-year-old age group were:

  • residential care services (55%)
  • private households employing staff (53%)
  • rail transport (49%).

Education makes a big difference to employment rate

Education as a way of updating employment skills is seen as a lifelong process. However, in 2006 only 5% of mature workers were doing formal education or training. Those who had obtained a qualification had higher employment rates.

Education qualifications make a difference to the probability of employment for both male and female workers, but the impact is more significant for females. Women with a qualification at degree level or higher are much more likely to be working than those with no qualification, and this trend becomes more pronounced among mature female workers.

Though mature workers usually have developed job skills, some workers may need retraining to bring their skills up to date. This is particularly likely if their role has been affected by technological change.

Number of mature workers varies by ethnicity

Mature worker employment in New Zealand varies by ethnicity, with European workers having the highest employment rate, at 80.9%, in 2006. Mature workers in the Middle Eastern/Latin American/African (MELAA) group had the lowest employment rate, at 58.5%.

This bar graph shows employment rates for people aged between 45 and 64 by ethnic group. Data from 1991 and 2006 is compared.

Most mature workers work full time

Most mature workers work full time, with 92% of mature males and 68% of mature females working full time in 2006.

A significant number of mature workers favour self-employment. This is because it gives them the flexibility to choose their own hours and working conditions. In 2006, 39% of men and 21% of women aged 60-64 were self-employed.

Regional differences in employment of mature workers

Lower numbers of mature workers work in big cities. For example, while Auckland has the lowest proportion of mature workers (33%), Tasman has the highest (43%). Other significant regions for mature workers include:

  • Northland
  • Marlborough
  • the West Coast.

Sources

  • Statistics New Zealand, ‘Article 2: Mature Workers Aged 45-64 Years’, 2007, (www.stats.govt.nz).