The 2006 Census showed that Asians comprised the fourth largest major group of ethnicities in New Zealand after European, Māori and Other, comprising 9.2 percent of our population. This proportion is expected to increase to approximately 15 percent by 2026. The Asian population is substantial and is growing fast - there has been a 104 percent increase between 1996 and 2006.
There is a high level of diversity within the Asian ethnic groups. Asians in New Zealand differ widely in areas such as language, culture and settlement history. All of these factors can impact on labour market outcomes and there are serious limitations in using the term ‘Asian’ as a blanket ethnic descriptor. In particular, smaller ethnic minorities may be lost by averaging within such a large grouping, and as a result, their specific labour market outcomes may be rendered invisible. Therefore, this report attempts to minimise this by analysing four Asian subgroups separately: North Asian, South Asian, Southeast Asian and Other Asian.
Purpose
The two main objectives associated with this report are:
- to examine the skill level and qualifications of the Asian workforce in New Zealand
- to gain an understanding of the occupations and industries in which the Asian workforce is employed.
Key Results
1: The Asian workforce is a critical part of New Zealand’s current and future labour market
In 1996, Asians comprised 5 percent of the total working-age population. This share increased to 7 percent in 2001 and 9 percent in 2006. In 2016, the Asian working-age population is projected to make up 13 percent of the total workingage population and 15 percent in 2026. The Asian workforce has become a critical part of New Zealand’s current and future labour market. Some other observations from the 2006 Census of Population and Dwellings:
- 80 percent of the Asian population were born overseas.
- 91 percent of New Zealand’s Asian working-age population were born overseas.
- The Asian workforce was over-represented in the Retail Trade sector (22 percent compared to 13 percent of the total working-age population).
- The Asian workforce was over-represented in Professional occupations (18 percent compared to 16 percent in the total population). Across all subgroups, a large proportion of the Asian workforce was employed as Business Professionals.
- Within the Health and Community Services sector, 49 percent of Asians were employed as Professionals compared to 37 percent of the total population, reflecting the highly qualified and skilled nature of the Asian workforce in New Zealand.
- The Asian workforce was over-represented in Service and Sales Worker occupations (20 percent compared to 14 percent of the national average).
- Asians with a bachelor’s degree were three times more likely to be working as Clerks than the national average (33 percent versus 11 percent). This suggests that the skills of some Asians are not fully utilised and that some Asians are over-qualified for the types of jobs they are employed in.
- The Asian workforce is youthful. Half of the Asian working-age population were aged between 15-34 years compared to a third in this age group in the total population.
- The Asian workforce is highly qualified and is more likely to have tertiary qualifications especially in the younger age groups.
- At the 2006 Census the unemployment rate for Asians was 5.3 percent. Since the economic downturn, the unemployment rate for Asians increased to 9.2 percent.
2: The Asian workforce is not homogenous: migrants from different parts of Asia occupy distinct parts of our labour market
North Asians
- A third of North Asians were aged between 15-24 years, reflecting the presence of international students, particularly from China and Korea in this group.
- 18 percent of North Asians in the workforce were employed as Computing Professionals (compared to 15 percent of South Asians and 14 percent of Southeast Asians), reflecting growth in the IT sector.
- 52 percent of North Asians were employed as Housekeeping and Restaurant Workers (compared to 48 percent of Southeast Asian and 30 percent of South Asians). This was almost double the national average (27 percent).
South Asians
- 33 percent of South Asians had a bachelor’s degree or higher (compared to the 27 percent of North Asians and Southeast Asians).
- 12 percent of South Asians were employed as Health Professionals (compared to 10 percent of North Asian and 7 percent of Southeast Asians), reflecting the global demand for medical professionals. This was double the national average (12 percent versus 6 percent).
- 45 percent of South Asians were employed as Salespersons and Demonstrators (compared to 32 percent of North Asians and 30 percent of Southeast Asians).
Southeast Asians
- 57 percent of Southeast Asians were employed in semi-skilled/elementary occupations (compared to 49 percent of North Asian and 46 percent of South Asians).
- 28 percent of Southeast Asians were employed as Nursing and Midwifery professionals (compared to 11 percent of South Asians and 5 percent of North Asians), reflecting the growth and demand in this occupation. This was more than double of the national average (12 percent).
Future opportunities and challenges
Asians are a growing part of the New Zealand population. Understanding their contribution to the future workforce and the skills they will bring will help support the government’s economic growth agenda, by ensuring New Zealand has the skills it needs.
Similar to other developed countries, New Zealand’s population is ageing. The Asian workforce, with over half aged under 35 years, is an important source of young workers. In the future they will be as large as the Māori workforce, forming an important source of skilled labour and adding diversity to our workplaces.
As the proportion of New Zealand-born Asians increase, future employers need to develop a recruitment culture that is not based on assumptions. Second generation Asians might not face the same barriers being born and bred New Zealanders, educated in English, and for many English would be their first language. Therefore employers need to be agile to respond and capitalise on this future change.