Labour force participation at an all-time high

Household Labour Force Survey: June 2007 quarter – Media Release

Labour force participation at an all-time high

In seasonally adjusted terms, the labour force participation rate was at an all-time high in the June 2007 quarter, Statistics New Zealand said today. The survey also recorded the highest number of people in employment and in the labour force, as well as the lowest equal unemployment rate. This showed labour market conditions continued to remain tight over the June 2007 quarter.

The number of people in the labour force increased by 12,000 (0.5 percent) in the June 2007 quarter to 2,239,000, greater than the 7,100 (0.2 percent) increase in the working-age population. This resulted in a 0.2 of a percentage point increase in the labour force participation rate to 68.8 percent, the highest recorded since the survey began in 1986. The number of people not in the labour force decreased by 4,000 (0.4 percent) in the June 2007 quarter.

Employment increased by 14,000 (0.7 percent), to reach 2,158,000 in the June 2007 quarter, the highest level recorded since the survey began in 1986. Over this period, part-time employment grew by 8,000 (1.8 percent), and full-time employment grew by 7,000 (0.4 percent). There was growth in both female and male employment over the quarter, with increases of 0.9 percent and 0.5 percent, respectively.

The unemployment rate dropped 0.1 of a percentage point over the June 2007 quarter to 3.6 percent. This is equal to the lowest rate ever recorded by the survey. The number of people unemployed decreased by 2,000 (2.9 percent), wholly driven by a drop in male unemployment, while female unemployment remained constant.

Unadjusted unemployment rates decreased for all ethnic groups over the quarter. There were no significant movements in the unemployment rate for any ethnic group on an annual basis. The unemployment rates for the June 2007 quarter were: 7.8 percent for Pacific peoples, 7.0 percent for Māori, 4.7 percent for the 'Other' ethnic group, and 2.6 percent for European.

Geoff Bascand
Government Statistician 9 August 2007

ENDS

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