First annual decline in job numbers in a decade

Otago, Canterbury, and Auckland posted large falls in employment in November, with female and youth job losses becoming more pronounced

11th Jan 21, 2:20pm by Brad Olsen

This is a repost from an Infometrics release.

Job numbers declined for the first time in a decade in November 2020, down -0.1% pa according to the latest monthly employment figures from Statistics New Zealand.

Although employment in service industries fell -0.5% pa, employment in primary and goods producing industries remained more robust.

The largest number of job losses were in accommodation and food services (-8,250), transport, postal and warehousing (-7,678), administrative and support services (-5,108), and manufacturing (-3,365). However, public administration and safety (+9,595), health (+7,607), and construction (+7,224) were still going strong.

Hawke’s Bay showed the greatest strength regionally, with filled jobs sitting +3.0% pa higher. Job losses were more concentrated around Otago (-2.3%pa), Southland (-1.2%), Canterbury (-0.8%), and Auckland (-0.6%).

Of concern is the sustained deterioration in youth employment, particularly for females, with a -4.3% pa drop in filled jobs for females aged below 30, and a 3.9%pa drop for males aged below 30.

An uneven hit across New Zealand
Annual change in filled jobs, November 2020

...and our reaction

The hit to New Zealand’s tourism sector is becoming more pronounced heading into the peak summer months, with the first annual decline in employment reflecting this trend.

Although many areas have been boosted by higher levels of domestic tourism, the hit from our closed borders will still be brutal – spending data shows annual declines throughout November and December, and today’s job numbers reinforce that hit.

Substantial regional differences remain, with areas with a greater tourism focus hit harder but areas with historically less international tourism and stronger primary activity doing better.

The continued deterioration in the number of young people and women employment is worrying, with more work needed to specifically address this issue and support these groups back into employment.

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36 Comments

by waymad | 11th Jan 21, 2:30pm 1610328624

"...with more work needed to specifically address this issue and support these groups back into employment". Well, on 1st April, the Gubmint is here to help with that - by raising the minimum wage......

by Advisor | 11th Jan 21, 3:11pm 1610331106

Businesses in the worst-performing sectors (food services, admin and logistics) are also going to be among the worst-hit by minimum wage hike in April.

A better suited motto for Labour's election campaign should've been - Kick 'em when they're down!

by Hook | 11th Jan 21, 3:17pm 1610331446

The rise in the minimum wage is unlikely to increase job opportunities for those who have lost employment.. as you well know (or should do) The small (0.1%) drop isn't a showstopper yet - when it moves to 10% it may well be
Notice the increase in "Public administration and safety" - Labour at it's usual best, pumping the only industry it can - Admin. Be kind, be safe, but most of all start a committee for advice

by Theoracle | 11th Jan 21, 4:42pm 1610336529

As I always say, have a meeting about a meeting in which you plan another meeting. Happy days!

by Simon | 11th Jan 21, 3:37pm 1610332676

Yup lots of cafes etc gone more to go thanks to labour. 40k min wage not sustainable for large number of businesses - even more stupid as willing workers who would love 35k cant even match with a willing employer wanting to pay them 35k as it becomes illegal

by Theoracle | 11th Jan 21, 4:43pm 1610336584

Agree, total height of stupidity but then Labour didn't get in based on smartz. Feelz yep.

by GV 27 | 11th Jan 21, 2:31pm 1610328719

Plenty of work in Wellington, it seems...

by Squishy | 11th Jan 21, 2:48pm 1610329721

That paper won't shuffle itself. Also it may be difficult to attract employees to Wellington given the relative expense of housing in comparison to wages.

by Advisor | 11th Jan 21, 3:55pm 1610333718

Let's see what happens when the COVID emergency funding well dries up and all those fixed-term workers are let go.

Too bad the skills most of these workers acquire (bureaucracy and attending scores of team meetings) are highly sought-after in Wellington CBD but not worth much elsewhere in the real economy.

by Theoracle | 11th Jan 21, 4:43pm 1610336622

TG will fix that once Levin becomes a commute dormitory suburb.

by Pusheen | 11th Jan 21, 3:08pm 1610330930

Raising the min wages is important to support the housing cost in the short & medium term.
For future long term certainty of rising cost to service housing, govt must increase and extend the flexi-wages subsidy into more permanent fixture. The cost of not doing it will be dire to the 'economic stability' - RBNZ will provide the extra numbers needed.

by Advisor | 11th Jan 21, 3:32pm 1610332335

So employers in the tourism and hospitality sectors already struggling to survive are supposed to shell out more per hour of labour because of the government's ineptitude to rein in house prices?

As if our tax system wasn't rewarding speculators enough at the expense of productive enterprises; bring on higher minimum wages to finish those poor sods off.

by Hook | 11th Jan 21, 4:19pm 1610335156

Advisor, having been an owner in the Hospo industry and trying to fend off the competition one thing I've noticed - any man and his mutt can start a Cafe. That the new ones are going bellyup may actually be a good thing

by CourtJester | 11th Jan 21, 3:26pm 1610331987

Why run a business and deal with employees when you can invest all that money in real estate and make 15% p.a. tax-free?

by Hook | 11th Jan 21, 4:25pm 1610335533

Haha CJ - the constant misconception.. Most Hospo's are poorly capitalised, and right on the limit. If they sold up (who to??) there wouldn't be much to reinvest - 15% of SFA is still SFA

by Davo3636 | 12th Jan 21, 8:32am 1610393575

If you want to get into the country, you can set up a business. Any business, it doesn't have to make money or anything. But you do it for a year or 2 and hey presto, you are now a permanent resident of a first world country where you and your family get free healthcare, education and a house.

by Zack Brando | 11th Jan 21, 4:21pm 1610335269

Wait until all my fellow young workers work out what's happening with social housing, LMFAO. They don't fully realize it yet, but this Labour government are redirecting their housing opportunities to unemployed drug addicts.

Accuse me of stereotyping (I'm kool with that), but it looks to me that young students and working people are living in overpriced, rundown hovels .. while unemployed, anti-social drug addicts are being gifted brand new statehouses FOR LIFE.. which they trash, light on fire, etc. They pay rent of what, $100 - if that?

This government is focused on providing more social housing.. who's paying for it? Young workers living in hovels who choose to be responsible (often sadly) not having children they can't afford.

New Zealand is fast reaching a socialist inflection point where these productive citizens are forced, and I mean FORCED to choose between poverty and leaving NZ. I find Labour absolutely disgusting!

Call me a nut-job, but I think social housing should NOT be a HOUSE FOR LIFE and such properties should go to struggling/homeless workers and the disabled (whom actually often work!) before unemployed people and drug addicts. Thank you.

by Hook | 11th Jan 21, 4:33pm 1610336035

WOW.. I've always suspected you were an unaffected, cloistered and privileged troll but that post cements it. I'll take you up on your offer and call you out as nut job.

by Zack Brando | 11th Jan 21, 5:19pm 1610338787

I know and have known lots of people whom live in state housing - people who trash and smoke drugs in them. If that makes me a; "cloistered and privileged troll" so be it.

I think people should be free to use drugs if they want. I think cannabis should be legal. I support social housing. BUT, WORKERS SHOULD BE HOUSED FIRST~!!! Statehouses should NOT be for life, except in rare circumstances!

I welcomed you calling me a nut-job, that's fine. But I think you're extremely naïve about what's going on.

You don't improve society by rewarding bad behavior, you produce "cloistered and privileged trolls" living in $700,000 state-houses, while the down-to-earth working poor live in their cars.

by Hook | 11th Jan 21, 7:15pm 1610345730

Brando you have no idea and absolutely no exposure to reality. The best i can say to you is "you're a fool" with no exposure to reality... You're a misinformed muppet at best

by Zack Brando | 11th Jan 21, 7:26pm 1610346369

@Hook, I don't need the personal attacks, you know nothing about me. Please stop commenting on my posts - both in this article and others. Thank you.

by youngdumbandbroke | 12th Jan 21, 8:30am 1610393429

I agree Zack. It's happening here in my neck of the woods. New apartment block going in for "social housing". Call me cynical, but I'm picking it'll be anti-social housing after 12 months and its on the main street of town as well.

by mikekirk29 | 12th Jan 21, 11:04am 1610402656

This site, Mr editor is getting more sad white old person, Aussie shock syndrome, by the day.
Trump is out but his ilk is alive and unfortunately v vocal.
yes, Mr T pretended to be pro-little guy but reality was there at Capitol Hill on video.

by KH | 12th Jan 21, 3:58pm 1610420286

Zach. Great post at 4.21.

by Poldark | 11th Jan 21, 4:24pm 1610335490

All those "unemployed" young people are probably out practicing to become an Auckland House - that's how you make real money!

by Zack Brando | 11th Jan 21, 5:24pm 1610339071

lol classic, AAA+

https://youtu.be/oMmsQGnkd9U

by Rosenstein | 11th Jan 21, 4:37pm 1610336220

Yea..... nah, not the closed borders. Good try though. Minimum wage industries culling before the rise. (Don't worry the extra 7,000 PR jobs will obfuscate the truth for them) Remember kids, the government cares so much for you, they need you unemployed and poor so you never get out of their care. You might vote elsewhere if you manage to escape their clutches!

by Hook | 11th Jan 21, 4:39pm 1610336372

Grow up FFS

by K.W. | 11th Jan 21, 5:49pm 1610340597

Fortunately the Australian border is still open to Kiwi's, and judging by the big increase in numbers leaving the country in December, it looks like many are making the most of the opportunity.

by Ezy | 11th Jan 21, 8:19pm 1610349563

We all get the government we deserve.

by nktokyo | 11th Jan 21, 10:47pm 1610358421

It's good to see such an effort by the government to expand our quarantine facilities and bring in more people.

by WellingtonInvestor | 12th Jan 21, 12:48am 1610365683

There seems to be plenty of work in the residential construction sector. Try getting a trades person to do a job is almost impossible.

by ikimpaul | 12th Jan 21, 1:55pm 1610412927

I keep hearing this but can verify its not necessarily true. We are currently renovating our rental in Tauranga after having long term tenants move out and have managed to get all trades available to quote up with a week notice and no problems getting them to complete the work in 6 weeks. Having more trouble getting materials (kitchen and carpets) than tradies .

by mikekirk29 | 12th Jan 21, 11:01am 1610402502

Lots of folk in Auckland need 2 earners to pay mortgage
How many lost that second earner in last 2 months?
We shall see.
NZ will take greatest hit Feb-May as many have already forecast.
By the way, preliminary indicator is that Auckland sales rose 35% in Dec compared to 2019.
Contrast to previous 3m where rise was over 45% pcm.

by AKLCrusader | 12th Jan 21, 1:05pm 1610409950

Wellington doing OK, I guess all those new government jobs being created by the government "investment" (spending)

by Pusheen | 14th Jan 21, 1:46am 1610541995

Govt learnt the past history mistakes, started from Titanic sinking moment, it is incorrect to put women & children into lifeboat first, should put the rich gentlemen first. As they have the funds which can re-build a new unsinkable cruise liners. So, yes they've heard about women, children, youth out of the job now. But, c'mon which is no brainer? saving them? or give stimulus into those stagnate industries; airlines, hotel/motel chain, tourism, Universities, asked them to reduce workers, subsidy the wages (then report profit).. NZ need to project this to the world. But it's just that, there's a saying 'rough seas made a good sailor' at the moment OZ, UK, Canada, EU, USA were all in battered seas.. NZ is sailing in calm wind seas.. for the auld mug, charm.