1. WELLINGTON labour market snapshot

2. Employment 269,000 people employed end Dec 2012 (rate 65.6%) Wellington tanked post recession. Slow since March 2010. Canterbury and Auckland tanked earlier, but recovered more rapidly, until February 2011. Now Auckland has weakened but still growing, and Canterbury is stepping up.

3. Incomes Wellington has high average annual household incomes But employment growth in filled jobs has been below average (and below other urban regions)

4. Vacancies Canterbury vacancies have been higher, esp. since the Feb 11 quake Auckland and Wellington vacancy levels are similar (flat)

5. Participation High participation – 70.3% vs 68.2% nationally (only Southland higher) Larger proportion of population in the working ages (15-64)

6. Unemployment Wellington now matches the national rate (6.9%) Has generally been more resilient during recessions

7. Industry Strongest in professional, scientific and technical services, and in public administration and safety Weaker in manufacturing, and agriculture, forestry and fishing. 2012

8. Skills Wellington and Auckland both highly skilled, with less emphasis on skilled and elementary occupations, but also with a higher than average share of semi-skilled Highly skilled: managers and professional occupations Skilled: technicians and trades workers Semi-skilled: clerks, services and sales workers, agriculture and forestry workers Elementary: machinery operators and assemblers, general labourers

9. Forecasts Annual average percentage change 2013*20142015 GDP Growth (Treasury)3.03.43.1 Labour Productivity1.21.31.5 Employment growth1.82.11.6 Source: MBIE Short-term Employment Prospects: December 2012 (March years) Forecasts vary continuously, but can be usefully examined to see the basic trends and how the various components relate 2013 employment growth to March is now forecast to be -0.7%, GDP 2.3%* Labour productivity has been growing, as GDP does quite well, while employment growth has been slow

10. Employment growth by industry forecast Industry201320142015 Primary sector1,8001.13,6002.22,7001.6 Primary processing1,7001.81,5001.52,1002.1 Other manufacturing2,9001.81,7001.02,3001.4 Construction & utilities15,8008.618,6009.34,2001.9 Private services*14,2001.513,7001.414,9001.5 Core government-700-0.7-200-0.24000.4 Health & education4,2001.06,0001.47,2001.7 Other public7000.51,1000.82,2001.4 Total40,7001.846,1002.136,0001.6 Source: MBIE Short-term Employment Prospects: December 2012 (March years) * incl. Communication Services; Finance and Insurance; Property and Business Services; Professional, Scientific and Technical Services;

11. Employment growth by skills forecast Skill level201320142015 Highly skilled15,3002.117,1002.316,5002.2 Skilled12,1002.513,3002.77,2001.4 Semi-skilled6,1000.97,8001.17,4001.1 Elementary7,2002.27,9002.44,9001.4 Total40,7001.846,1002.136,0001.6 Source: MBIE Short-term Employment Prospects: December 2012 (March years) Strongest growth in skilled, highly skilled, and elementary level occupations, reflecting the Canterbury rebuild and the strong growth in construction Both skilled and elementary play a smaller than national average role in Wellington’s labour market

12. Employment growth by region forecast Region2012-142012-15 Northland1,1000.9%3,2001.6% Auckland23,6001.8%35,3001.7% Waikato4,3001.3%8,2001.7% Taranaki2,3001.1%6,1002.0% Bay of Plenty5,2001.7%8,7001.9% East Coast3,2001.6%5,6001.8% Central3,4001.5%6,6001.9% Wellington1,6000.3%8,9001.2% Nelson3,7002.0%5,7002.0% Canterbury26,5004.2%22,1002.4% Southern11,8002.7%12,0001.8% Total86,8002.0%122,8001.8%

13. Employment growth by industry forecast - WN Industry201320142015 Primary sector253.0354.030.0 Primary processing65-2.0692.01726.0 Other manufacturing92490.04164.0 Construction & utilities8865.06543.01,5428.0 Private services*5490.01,6371.01,7962.0 Core government-1,469-5.0-1,235-5.01,9357.0 Health & education930.03361.01,0242.0 Other public190.01671.04482.0 Total930.01,7131.07,3313.0 Source: MBIE Short-term Employment Prospects: December 2012 (March years) * incl. Communication Services; Finance and Insurance; Property and Business Services; Professional, Scientific and Technical Services;

14. Challenges/Opportunities Diversifying Wellington’s industry mix Internationalising Wellington’s professional business service firms (which are currently focussed on government) Continuing to improve tourism takings and better leveraging visitor attractions to attract talent and investment Commercialising science and research development