This report examines broad changes that have occurred in the level and composition of employment for those aged 50 to 64 over the past 15 years, (1991 to 2005). It is based primarily on data from the Statistics New Zealand Household Labour Force Survey (HLFS). The report is divided into six parts and looks at trends that have occurred among the older workforce in the following areas:
1. labour force participation
2. unemployment rate
3. types of employment (hours worked, fulltime versus parttime)
4. trends by industry and occupation
5. occupations with a high age profile
6. income from employment.
The study also outlines reasons and issues associated with these changes, and topics that could require further investigation.
Key Results
· Since the beginning of the 1990s there has been extremely strong growth in the number of older people aged 50-64 in employment.
· This growth reflects not only an increase in the older population but also the strong upturn in the proportion of older people who are working (labour force participation rate).
· The labour force participation rate among older workers in New Zealand is noticeably higher than in most OECD countries.
· High labour force participation rates have been accompanied by very low and declining unemployment rates.
· The biggest participation rate increase over the past 15 years has occurred in the 60-64 years age band. This highlights the impact of the implementation of a higher age threshold for New Zealand Superannuation (between 1992 and 2002). However, a continuing increase in participation rates for this age group after raising the age threshold suggests other factors are involved.
· In all three age bands (50-54;55-59;60-64) the female participation rate grew faster than the male rate between 1991 and 2005.
· While participation rates have remained relatively steady for males aged 5054, they grew strongly for males aged 55-64.
· Participation rates among older Pacific and Asian females are lower than for other population groups.
· There has been no increase in the proportion of older workers working parttime or in those who are selfemployed, despite a commonly reported preference among older people for shorter hours and selfemployment.
· Strong growth in the size of the older workforce has occurred across all major industries between 1997 and 2005. However, the strongest percentage growth has occurred in the following industry groups; accommodation, cafes & restaurants, government administration & defence, education, health & community services, cultural & recreation services and personal & other services.
· Employment of older workers has grown across all major occupational groups. The strongest percentage growth by occupation between 1997 and 2005 has been among the relatively highly skilled white collar professionals followed by service and sales workers.
· Older workers are overrepresented in industries with a reducing workforce such as manufacturing and agriculture but underrepresented in some faster growing industries such as construction and utilities.
· Since 1997, hourly pay rates for older wage and salary earners have remained at a level similar to or slightly above average pay rates, although they are not increasing as quickly as pay increases for younger aged workers. An increase in the amount of hours worked has also helped raise income levels for this age group.
· Older workers have made an important contribution to New Zealand’s strongly performing labour market. However, the reasons for older workers staying in work or retiring are complex and still not well understood. More research is required in this area to better understand recent trends and whether these trends can be sustained.