It will be no surprise that the dynamics of New Zealand’s workforce has been undergoing significant shifts over the past several years. The most recent survey that sheds some light on these trends was conducted by Infometrics in 2023. While we are a year on from the survey release date, the information is still timely and relevant, especially in today’s workforce environment.
1. Aging Workforce and Extended Employment
One notable trend unveiled by the survey is the increasing number of individuals opting to work later in life. This is part of a broader global trend where populations are aging, prompting discussions on future workforce sustainability. Over the last 36 years, from 1987 to 2023, New Zealand has witnessed a notable uptick in the labour force participation rate (LFPR). The LFPR, a metric that captures the level of workforce engagement, has risen by approximately five percentage points, reflecting a shift towards extended employment among diverse age groups.
2. Gender Dynamics in the Workforce
When examining gender-specific trends the survey reveals some interesting patterns. While male workforce participation experienced a slight decline over the years, female participation surged significantly. Factors such as increased opportunities in traditionally male-dominated sectors, enhanced childcare support systems, and economic pressures driving dual-income households have contributed to this surge. The data highlights a 12.5% increase in female participation from 1987 to 2023, showcasing a substantial shift in the makeup of the workforce.
3. Rise of Older Workers
The survey also underscores a strong increase in labour market engagement among older demographics. Age groups beyond 50 years old have witnessed double-digit percentage point increases in participation rates, challenging conventional retirement age assumptions. Notably, the 60-64 and 65-69 age brackets have seen substantial rises, indicating a significant segment of older adults remaining active in the labour market.
4. Youth Participation
Conversely, youth participation rates have experienced fluctuations over the surveyed period. While there was a sustained decline from 1987 to 2023, recent years have witnessed a sharp reversal in this trend. Factors such as tightened education policies, economic conditions, and evolving job market dynamics have influenced youth decisions regarding workforce engagement. The surge in participation rates among 15-19 year olds in the last two years underscores these shifting dynamics.
5. Implications for Policy and Economy
Understanding these workforce dynamics is crucial for policymakers, businesses, and society at large. It necessitates proactive measures to accommodate diverse age groups in the workforce, address evolving gender dynamics, and support youth transitions from education to employment. The data signals a balance between demographic shifts, economic conditions, and societal expectations, emphasising the need for adaptive recruitment strategies to harness the full potential of New Zealand’s workforce.
Refer to the original, more detailed survey here.