Outcome Two: People are skilled and engaged in safe and fulfilling work
Jobs are continuing to change as the economy transforms. MBIE supports a responsive labour market where people make the best use of their skills and contribute towards Aotearoa New Zealand’s success. MBIE also influences the market to make sure people and businesses have access to the skills they need.
On this page
Text version of outcome two – progress
To lift the capability and capacity of the construction workforce, our work ranged from managing the development of the Government’s Construction Skills Strategy, brokering the Contruction Sector Accord between the Government and industry, and strengthening occupational regulation of licensed building practitioners to collaborating with Site Safe and training provider Education Unlimited to use diversity approaches to deliver training that caters to individuals’ different needs. In other industries, initiatives to boost skills are directed at specific groups, such as youth not in employment, education or training. Additionally, Kānoa – Regional Economic Development and Investment Unit, administers a number of skills and training initiatives. Regional Skills Leadership Groups, which provide a line of sight into our regional labour markets, have helped maximise the benefits of these skills and training initiatives by ensuring that regional workforce planning bodies are aware of these offerings.
In support of our strategic goals to foster skills for the future and grow our data culture and talent, MBIE welcomed 12 Analytics and Research in Government summer interns – the largest cohort in the public service.
Safe and fulfilling work opportunities pay fairly, provide satisfaction, and support physical and mental wellbeing. MBIE is responsible for ensuring the labour market functions well to provide people with this safe and fair working environment. Accidents at work and poor employment relations damage workers, businesses and society. This year has seen MBIE working hard to support the Government in many employment areas such as designing the Fair Pay Agreement (a set of specific minimum employment standards, covering topics such as wages, redundancy, and overtime), developing recommendations on a social unemployment insurance scheme to better support workers and communities facing job losses, passing of the Holidays (Increasing Sick Leave) Amendment Bill, and obtaining approval for raising minimum wage to $20 per hour and changes to the Equal Pay Act, which established a practical and accessible process to raise and consider pay equity claims. MBIE also partnered with businesses, government and NGOs to work towards ending modern day slavery and worker exploitation in Aotearoa New Zealand.
In 2020/21, MBIE’s advice on overseas skills for Aotearoa New Zealand extended to immigration policy changes to help fill labour shortages in the horticulture and viticulture industries while ensuring New Zealanders, who have lost jobs due to COVID-19, have the chance to find new employment. In addition, the Immigration (COVID-19 Response) Amendment Act 2021 was passed in May 2021 thanks to the hard work of many MBIE staff. The Act extended temporary immigration powers originally granted for 12 months, which meant continued flexibility to support migrants, manage the border, and help industries facing labour shortages as a result of COVID-19.
What we're working towards
| Performance measure | Indicator | Current trend | Desired trend | Commentary |
|---|---|---|---|---|
| Increase skilled workforce (part one) | Qualification attainment rate: Percentage of 25–34-year-olds with New Zealand Qualifications Framework level 4 qualifications or above | Increase |
Increase |
The qualification attainment rate for young adults was 59.9% in the quarter to June 2021, 2.3 percentage points higher than in the quarter to June 2020. This increase continues an upward trend since 2015, apart from a decrease seen in the quarter to June 2020 due to COVID-19. |
| Increase skilled workforce (part two) | Skilled occupation rate: Proportion of people employed in an occupation assessed as “skilled or higher” by the Australian and New Zealand Standard Classification of Occupations | Increase |
Increase |
The skilled occupation rate was 65.3% in the quarter to June 2021, 1 percentage point higher than in the quarter to June 2020. |
| Increase skill matching of migrants | Proportion of employed principal migrants whose occupations in New Zealand match their skills and New Zealand-ready qualifications | Steady |
Increase |
The proportion of employed principal skilled migrants whose occupations in New Zealand match their skills and New Zealand-ready qualifications was 87% in 2020, a change from 89% in 2019. |
| Increase employment | Total employment rate | Steady |
Increase |
The seasonally adjusted employment rate was 67.6% in the quarter to June 2021, similar to pre-COVID-19 levels and a small increase from 67% in the quarter to June 2020. With this increase, the employment rate is once again near the highest it has been in 20 years.2 |
| Reduce underutilisation | Total underutilisation rate | Decrease |
Decrease |
The seasonally adjusted underutilisation rate was 10.5% in the quarter to June 2021, decreasing from 12.1% in the quarter to June 2020. While the underutilisation rate reduced for both men and women (down by 1.1% and 2.0% respectively), it still remains higher for women at 13.0% (compared with 8.3% for men).2 |
| Reduce unemployment | Total unemployment rate | Steady |
Decrease |
The seasonally adjusted unemployment rate was 4.0% in the quarter to June 2021, similar to 4.1% in the quarters to June in both 2020 and 2019.2 |
| Reduce proportion of people not in employment, education or training (NEET) | NEET rate: Proportion of youth 15 to 24 years old not in employment, education or training | Decrease |
Decrease |
The seasonally adjusted NEET rate decreased to 12.3% in the quarter to June 2021, from a decade high of 13.2% in the quarter to June 2020 when it was influenced by COVID-19. In June 2019, it was 11.1%.2 |
| Increase pay equity | Difference in median hourly earnings for men and women | Steady |
Decrease |
The gender pay gap (measured by the percentage difference between men’s and women’s median hourly earnings) was 9.1% in the year to June 2021. The gender pay gap has remained flat over the last five years.2 |
| Reduce fatal and serious work-related injury (part one) | Fatal injury rate (age standardised rate per 100,000 FTE workers) | Increase |
Decrease |
The three-year average fatal injury rate (age standardised rate per 100,000 FTE workers) was 2.3 for the period 2017–2019 (provisional figures), higher than it was in the previous three-year period (2014–2016), when it was 2.0.3 |
| Reduce fatal and serious work-related injury (part two) | Serious non-fatal injury rate (age standardised rate per 100,000 FTE workers) | Increase |
Decrease |
The serious non-fatal injury rate (age standardised rate per 100,000 FTE workers) was 18.3 (provisional figures) in 2019, increasing from a low of 14.2 in 2016.3 |
2 Sub-population level labour market indicators are only reported here where data is currently available at a suitable level of quality, and where there is a statistically significant difference in the result between the sub-populations.
3 The latest available data for this indicator is 'provisional'. Statistics New Zealand notes that 'Confirmed data on fatal injuries is only available up to 2017, to allow for the coroner’s verification process for cause of death. However, provisional serious non-fatal data is available to 2019.