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Home / Business / Companies / Construction

Growth sparks Auckland job surge

Anne Gibson
By Anne Gibson
Property Editor·NZ Herald·
15 Oct, 2014 04:00 PM3 mins to read

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Strong employment levels in Auckland reflect the city's growth. Picture / Jason Oxenham

Strong employment levels in Auckland reflect the city's growth. Picture / Jason Oxenham

Construction industry and wholesale trade main contributors to lift in employment

Auckland's job numbers are growing, with 21,000 added in the past year.

The latest Auckland Economic Quarterly for the three months to June showed Auckland had 749,000 people employed, up on the 728,000 employed at the same time last year.

Rachael Logie, Auckland Council acting chief economist, said strong employment levels reflected the city's growth.

"The labour market continued to strengthen in the June quarter," she said in a commentary released with the latest analysis.

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Statistics NZ data showed 2,328,000 people employed in the June quarter, 1,247,000 men and 1,081,000 women.

"In the June 2014 quarter compared with the March 2014 quarter, the number of people employed increased by 10,000 people," Statistics NZ said.

See the latest Auckland Economic Quarterly report here:

"The main contributors to the annual growth in employment were the construction industry (up 29,600 people - 17 per cent) and the wholesale trade industry (up 16,800 people - 20 per cent). A significant increase was also seen in the electricity, gas, water, and waste services industry," said Statistics NZ.

"Employment in the public administration and safety industry grew by 11,000 people (9.1 per cent)."

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The quarterly says real Auckland average wages are $1149/week, ahead of the national average $1058/week but Auckland's youth unemployment at 23.4 per cent is higher than the rest of New Zealand at 19.1 per cent.

More Aucklanders are also available for work. Logie said decade-high net migration levels and rising participation levels drove a 4.5 per cent rise in the labour supply throughout the year and net departures to Australia had continued to slow.

Kim Campbell, the Employers and Manufacturers Association chief executive, said factory closures and staff layoffs usually dominated headlines and the media did not pay enough attention to job growth.

Employment growth was strongest in skilled sectors such as trades, with high demand for builders, electricians and plumbers, "but there's a chronic skills shortage in IT.

"Anyone with a science qualification can get work, like lab and food technicians, even at the lower end of skills like a fork-lift driver. There's lots around but now they need a first-aid certificate, fork-lift licence and mostly in the warehouse they need to run computers so they can check the inventory."

Logie said construction remained one of Auckland's biggest growth drivers but manufacturing, finance and insurance, rental, hiring, real estate and retail trade were growing.

Aucklanders' household incomes were growing but other indicators for Auckland showed mixed signals.

"Unlike many places elsewhere in the country, house price growth in Auckland has weakened in recent months but remained solid," she said.

"However the sharp downturn in sales activity highlights that the Auckland market has been affected by the same negative factors affecting sales elsewhere, namely the LVR restrictions and rising interest rates."

Auckland scorecard
• 3 months to June 2013: 728,000 people employed

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• 3 months to June 2014: 749,000 people employed
Source: Auckland Economic Quarterly

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