May 2010

This factsheet reports key labour market information for youth for the year to March 2010. All data is sourced from the Household Labour Force Survey released quarterly by Statistics New Zealand. Data is annualised to address sampling error and seasonal variation concerns.

Youth occupy a distinct place in the labour market because significantly more are either studying or raising children and thus not in the labour force. These characteristics help explain why youth rates in many of the labour market indicators outlined in this report differ considerably than those for the total population.

In March 2010, there were 625,800 young people (aged 15 to 24), of whom 61.3% were in the labour force while 38.7% were not in the labour force. Those employed and unemployed are discussed in further detail below.

Summary of the youth labour market for the year to March 2010

Long description for Youth Labour Market Summary

Labour force participation

The labour force participation rate for youth stood at 61.3% for the year to March 2010, which represents a 2.0 percentage point decrease over the past year and a 0.9 percentage point decrease over the past five years. Compared with the participation rate for all people, which was 68.1% in March 2010, the youth rate is significantly lower.

Labour force participation rates, 2005-2010

Data Table for Figure 2

Unemployment

The unemployment rate for youth was 17.2% in the year to March 2010, which was 5.0 percentage points above its 2009 level, and 7.1 percentage points higher than its 2005 level. Compared with the unemployment rate for all people, which was 6.4% in March 2010, the youth rate is noticeably higher.

Unemployment rates, 2005-2010

Data Table for Figure 3

NEET

The rate of those Not in Education, Employment or Training (or NEET) is a key measure of youth disengagement. Among 15-24 year olds, as at March 2010, Maori youth (17.6%) had the highest NEET rate, ahead of Pacific (14.3%) and European youth (9.3%).

NEET rates by ethnic group, 2006-2010

Data Table for Figure 4

In the 15-19 age group, 10.5% of males and 8.9% of females were NEET in the year to March 2010. In the 20-24 year age group, 12.9% of males and 10.8% of females were NEET. In both age groups, the male NEET rates were greater than the respective female rates.

NEET rates by age-group and gender, 2006-2010

Data Table for Figure 5

Employment

In March 2010, 318,000 youth were in employment. The employment pattern of youth differs from that of older workers as significantly more people aged 15–24 years work part-time, often around their tertiary studies.

Over the last five years, the employment rate of youth decreased 5.2 percentage points from 56.0% in March 2005 to 50.8% in March 2010. The rate is below that for the total population, which stood at 63.8% in March 2010.

Employment rates, 2005-2010

Data Table for Figure 6

In the year to March 2010, the leading industries in which youth worked were Retail Trade (79,500 workers) and Accommodation, Cafes and Restaurants (40,700 workers). Over the last five years, Mining and Electricity, Gas and Water Supply experienced the largest gain in youth employment (up 100%), while Transport and Storage had the largest loss (down 30%). Over the last year, Health and Community Services had the largest gain in youth employment (up 15%), while Communication Services had the largest loss in youth employment (down 28%).

Youth employment by industry

	Mar-05	Mar-09	Mar-10	Change 2009-2010	Change 2005-2010
Industry	(000)	(000)	(000)	%	%
Agriculture, Forestry and Fishing	18.4	19.6	21.2	8.4	15.1
Mining and Electricity, Gas and Water Supply	0.6	1.3	1.2	-7.7	100.0
Manufacturing	39.8	33.8	30.5	-9.8	-23.3
Construction	26.8	30.9	24.7	-20.1	-8.0
Wholesale Trade	13.8	12.4	10.7	-13.8	-23.0
Retail Trade	79.0	93.6	79.5	-15.0	0.6
Accommodation, Cafes and Restaurants	41.0	39.5	40.7	2.9	-0.7
Transport and Storage	10.5	7.2	7.4	2.8	-29.8
Communication Services	6.3	7.4	5.4	-27.7	-15.4
Finance and Insurance	6.5	6.9	7.5	9.9	16.2
Property and Business Services	27.1	26.5	23.4	-11.8	-13.5
Government Administration and Defence	5.6	5.0	4.7	-6.1	-17.3
Education	12.3	12.3	13.9	13.2	13.0
Health and Community Services	14.2	17.2	19.8	15.3	39.3
Cultural and Recreational Services	10.9	12.5	12.3	-1.6	13.1
Personal and other Services	13.0	14.8	13.9	-6.2	6.9
Total All Industries	326.6	342.8	318.0	-7.2	-2.6

In the year to March 2010, the most common occupational groups for youth were service & sales workers (105,700 workers) and clerks (42,400 workers). Over the last five years, legislators, administrators & managers experienced the largest gain in youth employment (up 50%), while elementary occupations had the largest loss (down 21%). Over the last year, agriculture & fisheries workers had the largest gain in youth employment (up 11%), while technicians & associate professionals had the largest loss (down 20%).

	Mar-05	Mar-09	Mar-10	Change 2009-2010	Change 2005-2010
Occupation	(000)	(000)	(000)	%	%
Legislators, Administrators & Managers	7.8	12.7	11.7	-7.7	49.8
Professionals	18.5	23.4	24.1	3.0	30.2
Technicians & Associate Professionals	24.8	34.0	27.2	-20.1	9.7
Clerks	38.7	46.6	42.4	-9.1	9.5
Service & Sales Workers	117.8	117.2	105.7	-9.8	-10.3
Agriculture & Fisheries Workers	21.2	19.6	21.8	11.0	3.0
Trade Workers	32.0	34.0	28.9	-15.0	-9.6
Plant & Machine Operators and Assemblers	27.0	23.8	24.1	1.3	-10.8
Elementary Occupations	38.6	30.2	30.5	0.9	-21.1
Total Employed (including Not Specified)	326.6	342.8	318.0	-7.2	-2.6

Labour market terms explained

Employment:

The number of people in work for one hour or more per week.

Employment rate:

The proportion of the working–age population that is employed.

Labour force:

The labour force consists of members of the working–age population who are classified as employed or unemployed (people in the labour force).

Labour force participation rate:

The proportion of the working–age population who are either employed or unemployed.

Not in the labour force:

Any person in the working–age population who is neither employed nor unemployed. This includes, for example, retired people, students and people at home with children.

NEET:

This measure refers to youth not engaged in education, employment and training. Youth who are not engaged in these activities are at risk of poor labour market outcomes. In this report, caregiving is deemed to be engagement and so is excluded from the way NEET is measured.

Unemployment:

The number of people in the working–age population who are without a paid job, are available for work and have actively sought work in the past four weeks or have a new job to start within the next four weeks.

Unemployment rate:

The proportion of the labour force that is unemployed.

Working–age population:

Usually resident population aged 15 years and over.

For more information contact analysis@dol.govt.nz

Next release: 5 August 2010