Jobs up in December, but annual growth slows

Filled job numbers rose nearly 38,000 in the December month, but annual growth remains below pre-COVID-19 levels, Stats NZ said today.

There were 2.3 million filled jobs in December 2020, up 1.7 percent (37,693 jobs) from November 2020.

"However, when compared with the same time last year, jobs were up by only 0.6 percent, an increase of just under 13,000 jobs," business insights manager Sue Chapman said.

"Before the COVID-19 pandemic, we usually experienced annual increases of between 2 and 4 percent."

COVID-19 had unequal impact across industries

Accommodation and food services had the biggest fall in jobs from December last year - down 7,772 jobs, a 5.0 percent decrease. The fall was mostly due to a large decrease in accommodation jobs since last year.

"Accommodation providers have suffered from the reduction in the number of international tourists since the COVID-19 pandemic began," Sue Chapman said.

Administration and support services jobs also fell by 5,340 (5.2 percent) from the end of last year.

In contrast, the healthcare and social assistance industry has risen by 8,816 jobs (3.7 percent).

Construction was the second-fastest growing industry, with 8,563 (4.9 percent) more filled jobs than last year. This increase coincides with a record level of new homes consented in the North Island in November 2020. Read more about building consent statistics here.

Public administration and safety had an increase of 7,630 jobs (5.5 percent) in the year ended December 2020.

"This increase corresponds with the government enacting COVID-19 response measures," Ms Chapman said.

"The figures reflect the uneven effect of COVID-19 on employment. While some industries are struggling, others are less affected or even expanding to tackle the challenges of the pandemic."

Primary industries are steady, while other industries' earnings growth is sluggish

Total pre-tax earnings for 2020 were $138 billion, up $3.6 billion (2.7 percent). This follows an annual increase of $7.0 billion (5.5 percent) in 2019 and an $8.0 billion (6.7 percent) increase in 2018.

The change in total earnings from 2019 to 2020 for the high-level industry breakdowns are:

• primary industries - up 3.8 percent ($209 million)
• goods-producing industries - up 1.7 percent ($468 million)
• service industries - up 2.9 percent ($2,929 million).

In 2020, primary industries experienced growth in earnings similar to 2019 levels, while goods-producing and service industries did not grow as much as recent years.

These earnings include the COVID-19 wage subsidies, equivalent to approximately $14 billion.