Outcome Two: People are skilled and engaged in safe and fulfilling work

People need work that provides fair pay. But work is more than simply income; it can also give people a sense of purpose and allow them to develop skills, experience and social connections.

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Skilled people do better socially and economically and are more resilient to change. They also help businesses to drive innovation and productivity, growth and global competitiveness.

Work must be healthy and safe, and provide fair employment conditions, and MBIE has a key role to play in this.

The gender wage gap slipped back a little in the latest employment survey, though remains on a narrowing trend. Recent wage settlements and pay equity decisions will help to alleviate some of the difference.

Unemployment remained steady across the year, which could be viewed as a positive result given the expected impact of COVID-19, although many people worked little or no hours at their jobs during the high alert levels. This result does underscore the apparent resilience in New Zealand’s labour market as well as the success of the wage subsidy programme.

Relative to many comparable countries, New Zealand is performing admirably, although it is uncertain whether this will continue once the wage subsidy scheme runs its course.

What we're working towards

Performance measure Indicator Current trend Desired trend Commentary
Increase skilled workforce (part one) Qualification attainment rate: Percentage of 25–34-year-olds with New Zealand Qualifications Framework (NZQF) level 4 qualifications or above Decrease Increase The qualification attainment rate for young adults (measured by the percentage of 25–34-year-olds with NZQF level 4 qualifications or above) was 57.8% in the quarter to June 2020, 0.95 percentage points lower than in the quarter to June 2019. This decrease comes after a consistent upward trend since 2015.

Labour market statistics were collected throughout the June quarter, and so represent the average state of the labour market across all four alert levels. Also, the COVID-19 Wage Subsidy mitigated some of the effects of the lockdown, which can be seen in some of the common indicators.
Increase skilled workforce (part two) Skilled occupation rate Increase Increase The skilled occupation rate is the proportion of people employed in an occupation assessed as ‘skilled or higher’ by the Australian and New Zealand Standard Classification of Occupations (ANZSCO). In the quarter to June 2020 it was 63.4%, 0.2 percentage points higher than in the quarter to June 2019. This rate has been increasing steadily since 2004. Labour market statistics were collected throughout the June quarter, and so represent the average state of the labour market across all four alert levels. Also, the COVID-19 Wage Subsidy mitigated some of the effects of the lockdown, which can be seen in some of the common indicators.
Increase skill matching of migrants Proportion of employed principal migrants whose occupations in New Zealand match their skills and NZ-ready qualifications Steady Increase The proportion of employed principal migrants whose occupations in New Zealand match their skills and New Zealand-ready qualifications remained steady compared to the year before. The proportion in the year to December 2019 was 89%, very similar to the result of 88% in the year to December 2018.
Increase employment Total employment rate Decrease Increase The seasonally adjusted employment rate in the quarter to June 2020 was 66.9%, compared to 67.5% in the quarter to June 2019. Despite this small decrease, the employment rate is still near its highest level in over 20 years. Labour market statistics were collected throughout the June quarter, and so represent the average state of the labour market across all four alert levels. Also, the COVID-19 Wage Subsidy mitigated some of the effects of the lockdown, which can be seen in some of the common indicators.
Reduce underutilisation Total underutilisation rate Increase Decrease The seasonally adjusted underutilisation rate in the quarter to June 2020 was 12.0%, an increase compared to the quarter to June 2019, when it was 11.1%. Labour market statistics were collected throughout the June quarter, and so represent the average state of the labour market across all four alert levels. Also, the COVID-19 Wage Subsidy mitigated some of the effects of the lockdown, which can be seen in some of the common indicators.
Reduce unemployment Total unemployment rate Steady Decrease The unemployment rate remained steady. The seasonally adjusted unemployment rate was 4.0% in the quarter to June 2020, the same as in the quarter to June 2019. Labour market statistics were collected throughout the June quarter, and so represent the average state of the labour market across all four alert levels. Also, the COVID-19 Wage Subsidy mitigated some of the effects of the lockdown, which can be seen in some of the common indicators.
Reduce proportion of people not in employment, education or training (NEET) NEET rate (15–24 years) Increase Decrease The seasonally adjusted proportion of youth (aged 15–24 years old) not in employment, education or training (NEET rate) increased to 12.5% in the quarter to June 2020, from a decade low of 10.5% in the quarter to June 2019. Labour market statistics were collected throughout the June quarter, and so represent the average state of the labour market across all four alert levels. Also, the COVID-19 Wage Subsidy mitigated some of the effects of the lockdown, which can be seen in some of the common indicators.
Increase pay equity Difference in median hourly earnings for men and women Steady Decrease The gender pay gap (measured by the percentage difference between men’s and women’s median hourly earnings) was 9.5% in the year to June 2020. This is similar to 2019 when it was 9.3%. Labour market statistics were collected throughout the June quarter, and so represent the average state of the labour market across all four alert levels. Also, the COVID-19 Wage Subsidy mitigated some of the effects of the lockdown, which can be seen in some of the common indicators.
Reduce fatal and serious work-related injury (part one) Fatal injury rate (age standardised rate per 100,000 FTE workers) Steady Decrease The three-year average fatal injury rate (age standardised rate per 100,000 full-time equivalent (FTE) workers) remained at 2.1 for the period 2016–2018 (provisional figures), the same as it was in the previous three-year period (2014–2016).
Reduce fatal and serious work-related injury (part two) Serious non-fatal injury rate (age standardised rate per 100,000 FTE workers) Increase Decrease In 2018, the serious non-fatal injury rate (age standardised rate per 100,000 FTE workers) increased to 17.3 from 16.9 in the previous year.