Wellington CBD
1
Wellington CBD Annual Economic Profile 2015
TABLE OF CONTENTS
ECONOMY
How fast has Wellington CBD's economy grown?
What is the industrial structure of Wellington CBD's economy?
Which broad industries made the largest contribution to economic growth?
Which detailed industries made the largest contribution to economic growth?
In which industries does Wellington CBD have a comparative advantage?
How diversified is Wellington CBD's economy?
EMPLOYMENT
How fast has employment grown in Wellington CBD?
What is the industrial structure of employment in Wellington CBD?
Which are the largest employing industries in Wellington CBD?
Which industries have created the most jobs?
PRODUCTIVITY
What are the most productive industries in Wellington CBD
BUSINESS GROWTH
How fast did the number of business units grow in Wellington CBD?
WORKFORCE AND SKILLS
How do skill levels in Wellington CBD compare with New Zealand?
What is the occupational structure of employment in Wellington CBD?
Employment in knowledge intensive industries in Wellington CBD
What are the top knowledge intensive industries in Wellington CBD?
Which qualifications are in demand in Wellington CBD?
TECHNICAL NOTES
2
2
3
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8
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12
13
13
15
16
18
21
23
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27
29
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31
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Wellington CBD Annual Economic Profile 2015
ECONOMY
The New Zealand economy grew by 3.6% over the year to March 2015. This rate of growth was the fastest
in a decade, although there were signs by early 2015 that growth was starting to slow.
The construction industry made the biggest contribution to growth, with value-added lifting by 10.9% in the
March 2015 year. Growth was underpinned by rebuilding activity in Christchurch and increasing residential
construction in Auckland, but many other regions also recorded a lift in activity.
The agriculture, forestry, and fishing industry expanded by 8.1% despite a decline in forestry and logging
activity. Agriculture’s growth partly reflected the tail end of the dairy price boom in 2013/14, although other
areas of agriculture such as sheep and beef farming and horticulture also performed strongly.
Many service-based industries recorded healthy growth in the March 2015 year, reflecting good business
and consumer confidence conditions. The fastest growth was recorded by accommodation and food
services (8.0%) and retail trade (5.1%), with activity in both industries also boosted by increased tourist
numbers and spending.
How fast has Wellington CBD's economy grown?
This section measures economic performance in Wellington CBD during the year to March 2015 and
previous years. All GDP estimates are measured in constant 2010 prices.
GDP in Wellington CBD measured $14,112m in the year to March 2015, up 3.8% from a year earlier.
New Zealand's GDP increased by 3.6% over the same period.
Economic growth in Wellington CBD averaged 2.2%pa over the last 10 years compared with an average
of 1.9%pa in the national economy.
Growth in Wellington CBD reached a high of 6.0% in 2007 and a low of -0.8% in 2012.
Wellington CBD accounted for 6.4% of national GDP in 2015.
Figure 1: GDP growth (year to Mar 2015)
4%
3.8%
3.6%
3%
2%
1%
0%
Wellington CBD
New Zealand
Wellington CBD Annual Economic Profile 2015
Figure 2: Annual average GDP growth (2000-2015)
Wellington CBD
New Zealand
7.5%
5%
2.5%
0%
2009
Wellington CBD 1.6%
4.0%
2.6%
0.3%
2.5%
1.7%
6.0%
5.2%
New Zealand
3.5%
4.8%
4.6%
3.5%
3.4%
2.8%
2.5%
2.7%
20
15
2008
20
14
20
10
2007
20
13
20
09
2006
20
12
20
08
2005
20
06
2004
20
05
2003
20
04
2002
20
03
2001
Change
20
02
20
07
20
11
-2.5%
20
01
3
2010
2011
2012
2013
2014
2015
1.3%
0.7%
0.2%
-0.8%
0.9%
3.5%
3.8%
-1.6%
-0.5%
1.4%
2.3%
2.3%
2.8%
3.6%
Figure 3: GDP growth over various time periods
Wellington CBD
New Zealand
4%
3.8%
3.6%
3%
3.6%
3.2%
2.2%
2%
1.9%
2.2%
2.5%
1%
0%
2014-2015
2013-2015
2005-2015
2000-2015
What is the industrial structure of Wellington CBD's economy?
This section describes the structure of the economy in terms of the broad sectors: primary, secondary,
tertiary and quaternary. The primary sector makes direct use of natural resources. It extracts or harvests
products from the earth. The secondary sector produces manufactured and other processed goods. The
tertiary sector includes the lower value-adding service industries while the quaternary sector includes the
higher value-adding, knowledge-based service industries. A full definition of the sectors is given in the
technical appendix.
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Wellington CBD Annual Economic Profile 2015
Figure 4: Share of total GDP (2015)
Wellington CBD
Primary
Secondary
0.8%
7.8%
7.8%
Tertiary
19.1%
16.0%
Quarternary
New Zealand
28.3%
63.4%
31.3%
0%
10%
20%
30%
40%
50%
60%
70%
Primary industries accounted for the smallest proportion in Wellington CBD: 0.8% compared with 7.8% in
the national economy.
Secondary industries accounted for 7.8% compared with 19.1% in the national economy.
Tertiary industries accounted for 16.0% compared with 28.3% in the national economy.
Quarternary industries accounted for the largest proportion of GDP (63.4%) in Wellington CBD, which is
higher than in the national economy (31.3%).
Table 1: GDP by 1-digit industry (2015)
Wellington CBD
Industry
Agriculture, Forestry and Fishing
Mining
Manufacturing
Electricity, Gas, Water and Waste Services
Construction
Wholesale Trade
Retail Trade
Accommodation and Food Services
Transport, Postal and Warehousing
Information Media and Telecommunications
Financial and Insurance Services
Rental, Hiring and Real Estate Services
Professional, Scientific and Technical Services
Administrative and Support Services
Public Administration and Safety
Education and Training
Health Care and Social Assistance
Arts and Recreation Services
Other Services
Owner-Occupied Property Operation
Unallocated
Total
New Zealand
Level
Share of total
Level
Share of total
$7.01m
$99.3m
$484m
0.0%
0.7%
3.4%
$13,391m
$3,766m
$22,360m
6.1%
1.7%
10.2%
$568m
$42.7m
$242m
$208m
$210m
$282m
$1,321m
$2,309m
$456m
$2,146m
$322m
$2,688m
$205m
$271m
$297m
$244m
$674m
$1,036m
$14,112m
4.0%
0.3%
1.7%
1.5%
1.5%
2.0%
9.4%
16.4%
3.2%
15.2%
2.3%
19.0%
1.5%
1.9%
2.1%
1.7%
4.8%
7.3%
100%
$6,436m
$13,239m
$11,551m
$10,056m
$4,503m
$8,993m
$6,891m
$12,887m
$15,641m
$16,858m
$4,503m
$9,410m
$9,338m
$13,433m
$3,065m
$3,884m
$13,200m
$16,124m
$219,529m
2.9%
6.0%
5.3%
4.6%
2.1%
4.1%
3.1%
5.9%
7.1%
7.7%
2.1%
4.3%
4.3%
6.1%
1.4%
1.8%
6.0%
7.3%
100%
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Wellington CBD Annual Economic Profile 2015
Among broad industries Public Administration and Safety was the largest in Wellington CBD in 2015
accounting for 19.0% of total.
The second largest was Financial and Insurance Services (16.4%) followed by Professional, Scientific
and Technical Services (15.2%)
Figure 5: Share of total GDP (2015)
17.2%
Public Administration and Saf ety
Financial and Insurance Serv ices
Prof essional, Scientif ic and Technical Serv ices
Inf ormation Media and Telecommunications
Unallocated
Owner-Occupied Property Operation
Electricity , Gas, Water and Waste Serv ices
Manuf acturing
Rental, Hiring and Real Estate Serv ices
All others
19%
4%
16.4%
4.8%
7.3%
9.4%
15.2%
The table on the following page shows 54 industries ranked according to their contribution to GDP. These
industry categories are used by Statistics New Zealand in the national accounts. They are a mix of various
levels of industries on the ANZSIC-06 classification. Further information about the industrial classification is
given in the Technical Notes at the end of the document.
Among detailed industries Central Gov Admin, Defence & Safety was the largest in Wellington CBD in
2015 accounting for 18.6% of total.
The second largest was Professional, Scientific & Tech Services (15.2%) followed by Finance (11.9%)
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Wellington CBD Annual Economic Profile 2015
Table 2: GDP by 54 industries (2015)
Wellington CBD
Industry
Horticulture & Fruit Growing
Sheep, Beef Cattle & Grain Farming
Dairy Cattle Farming
Poultry, Deer & Other Livestock Farming
Forestry & Logging
Fishing & Aquaculture
Agric Support Services & Hunting
Mining
Meat & Meat Product Manufacturing
Seafood Processing
Dairy Product Manufacturing
Fruit, Cereal & Other Food Product Manu
Beverage & Tobacco Product Manu
Textile, Leather, Clothing, Footwear Manu
Wood Product Manufacturing
Pulp & Paper Product Manufacturing
Printing
Petroleum & Coal Product Manufacturing
Basic Chemical & Chemical Product Manu
Polymer Product & Rubber Product Manu
Non-Metallic Mineral Product Manu
Primary Metal & Metal Product Manu
Fabricated Metal Product Manufacturing
Transport Equipment Manufacturing
Machinery & Other Equipment Manu
Furniture & Other Manufacturing
Electricity & Gas Supply
Water, Sewerage & Waste Services
Building Construction
Heavy & Civil Engineering Construction
Construction Services
Wholesale Trade
Motor Vehicle, Parts & Fuel Retailing
Supermarket & Specialised Food Retailing
Other Store & Non Store Retailing
Accommodation & Food Services
Road Transport
Rail, Water, Air & Other Transport
Postal, Courier & Warehousing Services
Information Media Services
Telecomms, Internet & Library Services
Finance
Insurance & Superannuation Funds
Auxiliary Finance & Insurance Services
Rental & Hiring Services
Property Operators & Real Estate Services
Professional, Scientific & Tech Services
Administrative & Support Services
Local Government Administration
Central Gov Admin, Defence & Safety
Education & Training
Health Care & Social Assistance
Arts & Recreation Services
Other Services
Owner-Occupied Property Operation
Unallocated
Total
Level
$0.00m
$0.00m
$0.00m
$0.00m
$0.00m
$6.55m
$0.46m
$99.3m
$0.00m
$0.00m
$0.24m
$36.4m
$11.0m
$3.80m
$5.00m
$0.00m
$31.4m
$359m
$7.41m
$1.14m
$1.65m
$0.86m
$0.46m
$12.9m
$5.56m
$6.91m
$568m
$0.00m
$16.1m
$2.38m
$24.2m
$242m
$15.5m
$49.9m
$142m
$210m
$12.1m
$140m
$130m
$265m
$1,056m
$1,675m
$395m
$239m
$36.5m
$420m
$2,146m
$322m
$69.3m
$2,619m
$205m
$271m
$297m
$244m
$674m
$1,036m
$14,112m
Share of total
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.7%
0.0%
0.0%
0.0%
0.3%
0.1%
0.0%
0.0%
0.0%
0.2%
2.5%
0.1%
0.0%
0.0%
0.0%
0.0%
0.1%
0.0%
0.0%
4.0%
0.0%
0.1%
0.0%
0.2%
1.7%
0.1%
0.4%
1.0%
1.5%
0.1%
1.0%
0.9%
1.9%
7.5%
11.9%
2.8%
1.7%
0.3%
3.0%
15.2%
2.3%
0.5%
18.6%
1.5%
1.9%
2.1%
1.7%
4.8%
7.3%
100%
New Zealand
Level
$1,199m
$2,901m
$5,756m
$334m
$1,430m
$316m
$1,455m
$3,766m
$1,767m
$415m
$1,228m
$1,991m
$1,924m
$611m
$1,341m
$689m
$649m
$1,079m
$1,285m
$1,299m
$1,068m
$621m
$1,885m
$1,071m
$2,804m
$632m
$5,390m
$1,046m
$2,656m
$3,926m
$6,657m
$11,551m
$1,438m
$2,909m
$5,709m
$4,503m
$3,087m
$1,888m
$4,018m
$1,925m
$4,966m
$8,480m
$2,441m
$1,966m
$2,531m
$13,110m
$16,858m
$4,503m
$1,121m
$8,289m
$9,338m
$13,433m
$3,065m
$3,884m
$13,200m
$16,124m
$219,529m
Share of total
0.5%
1.3%
2.6%
0.2%
0.7%
0.1%
0.7%
1.7%
0.8%
0.2%
0.6%
0.9%
0.9%
0.3%
0.6%
0.3%
0.3%
0.5%
0.6%
0.6%
0.5%
0.3%
0.9%
0.5%
1.3%
0.3%
2.5%
0.5%
1.2%
1.8%
3.0%
5.3%
0.7%
1.3%
2.6%
2.1%
1.4%
0.9%
1.8%
0.9%
2.3%
3.9%
1.1%
0.9%
1.2%
6.0%
7.7%
2.1%
0.5%
3.8%
4.3%
6.1%
1.4%
1.8%
6.0%
7.3%
100%
7
Wellington CBD Annual Economic Profile 2015
Which broad industries made the largest contribution to economic growth?
Although an industry may be growing rapidly, if it is small relative to a region's total economy its
contribution to overall GDP growth may also be small. This section therefore investigates which broad
industries made the largest contribution to the overall growth of Wellington CBD's economy taking into
account their relative sizes.
Financial and Insurance Services made the largest contribution to overall growth in Wellington CBD
between 2014 and 2015. The industry grew by 6.2% over the year and contributed 0.99 percentage
points to the district's total growth of 3.8%.
The next largest contributor was public administration and safety (0.80 percentage points) followed by
electricity, gas, water and waste services (0.70 percentage points).
The largest detractor from growth over the year was Manufacturing which declined by 4.2% and
contributed -0.15 percentage points to the total growth of 3.8%. Transport, Postal and Warehousing (0.13 percentage points) was the next largest detractor.
Table 3: 1-digit industries ranked by % point contribution to GDP growth
2014
2015
% point
contribution
to growth
Annual
Growth
Financial and Insurance Services
Public Administration and Safety
Electricity, Gas, Water and Waste Services
2,174.6
2,579.8
473.1
2,308.9
2,688.3
568.2
1.0%
0.8%
0.7%
6.2%
4.2%
20.1%
Professional, Scientific and Technical Services
Rental, Hiring and Real Estate Services
Mining
Administrative and Support Services
2,092.2
426.6
70.2
298.9
2,145.8
456.3
99.3
321.7
0.4%
0.2%
0.2%
0.2%
2.6%
7.0%
41.6%
7.6%
Health Care and Social Assistance
Accommodation and Food Services
Information Media and Telecommunications
Construction
249.6
190.9
1,318.5
41.3
271.5
210.2
1,320.6
42.7
0.2%
0.1%
0.0%
0.0%
8.8%
10.1%
0.2%
3.2%
Education and Training
Agriculture, Forestry and Fishing
Retail Trade
Arts and Recreation Services
Other Services
Wholesale Trade
Transport, Postal and Warehousing
Manufacturing
Owner-Occupied Property Operation
Unallocated
Total
204.7
7.3
208.0
297.2
247.0
248.7
300.3
504.7
670.6
996.5
13,601
205.4
7.0
207.7
296.8
244.5
241.5
282.0
483.7
673.5
1,036.4
14,112
0.0%
0.0%
0.0%
0.0%
0.0%
-0.1%
-0.1%
-0.2%
0.0%
0.3%
3.8%
0.3%
-3.4%
-0.2%
-0.2%
-1.0%
-2.9%
-6.1%
-4.2%
0.4%
4.0%
3.8%
Industry
8
Wellington CBD Annual Economic Profile 2015
Which detailed industries made the largest contribution to economic growth?
The following table shows a ranking of the detailed industries by their contribution to economic growth over
the past year.
Finance made the largest contribution to overall growth in Wellington CBD between 2014 and 2015. The
industry grew by 9.4% over the year and contributed 1.05 percentage points to the district's total growth
of 3.8%.
The next largest contributor was central gov admin, defence & safety (0.78 percentage points) followed by
electricity & gas supply (0.70 percentage points).
The largest detractor from growth over the year was Petroleum & Coal Product Manufacturing which
declined by 7.1% and contributed -0.20 percentage points to the total growth of 3.8%. Rail, Water, Air &
Other Transport (-0.06 percentage points) was the next largest detractor.
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Wellington CBD Annual Economic Profile 2015
Table 4: 54 industries ranked by percentage point contribution to growth
Industry
Finance
Central Gov Admin, Defence & Safety
Electricity & Gas Supply
Professional, Scientific & Tech Services
Property Operators & Real Estate Services
Mining
Administrative & Support Services
Health Care & Social Assistance
Accommodation & Food Services
Information Media Services
Beverage & Tobacco Product Manu
Transport Equipment Manufacturing
Supermarket & Specialised Food Retailing
Local Government Administration
Printing
Education & Training
Heavy & Civil Engineering Construction
Fabricated Metal Product Manufacturing
Motor Vehicle, Parts & Fuel Retailing
Construction Services
Fishing & Aquaculture
Building Construction
Primary Metal & Metal Product Manu
Fruit, Cereal & Other Food Product Manu
Non-Metallic Mineral Product Manu
Polymer Product & Rubber Product Manu
Textile, Leather, Clothing, Footwear Manu
Wood Product Manufacturing
Horticulture & Fruit Growing
Sheep, Beef Cattle & Grain Farming
Dairy Cattle Farming
Poultry, Deer & Other Livestock Farming
Forestry & Logging
Meat & Meat Product Manufacturing
Seafood Processing
Pulp & Paper Product Manufacturing
Dairy Product Manufacturing
Machinery & Other Equipment Manu
Arts & Recreation Services
Basic Chemical & Chemical Product Manu
Agric Support Services & Hunting
Water, Sewerage & Waste Services
Other Services
Auxiliary Finance & Insurance Services
Furniture & Other Manufacturing
Other Store & Non Store Retailing
Rental & Hiring Services
Postal, Courier & Warehousing Services
Road Transport
Telecomms, Internet & Library Services
Insurance & Superannuation Funds
Wholesale Trade
Rail, Water, Air & Other Transport
Petroleum & Coal Product Manufacturing
Owner-Occupied Property Operation
Unallocated
Total
2014
2015
1,531.3
2,512.3
472.4
2,092.2
386.8
70.2
298.9
249.6
190.9
256.4
6.8
9.6
47.4
67.5
29.8
204.7
1.7
0.0
15.0
23.8
6.2
15.8
0.6
36.2
1.5
1.1
3.7
4.9
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.2
5.8
297.2
7.9
1.0
0.7
247.0
241.5
10.0
145.5
39.8
134.4
18.4
1,062.1
401.8
248.7
147.5
386.5
670.6
996.5
13,601
1,674.8
2,618.9
568.2
2,145.8
419.8
99.3
321.7
271.5
210.2
264.8
11.0
12.9
49.9
69.3
31.4
205.4
2.4
0.5
15.5
24.2
6.5
16.1
0.9
36.4
1.6
1.1
3.8
5.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.2
5.6
296.8
7.4
0.5
0.0
244.5
238.9
6.9
142.4
36.5
129.9
12.1
1,055.8
395.2
241.5
140.0
359.0
673.5
1,036.4
14,112
% point
contribution to Annual Growth
growth
1.1%
9.4%
0.8%
4.2%
0.7%
20.3%
0.4%
2.6%
0.2%
8.5%
0.2%
41.6%
0.2%
7.6%
0.2%
8.8%
0.1%
10.1%
0.1%
3.3%
0.0%
60.8%
0.0%
33.9%
0.0%
5.1%
0.0%
2.7%
0.0%
5.3%
0.0%
0.3%
0.0%
39.7%
0.0%
0.0%
2.8%
0.0%
1.6%
0.0%
5.5%
0.0%
1.7%
0.0%
43.5%
0.0%
0.6%
0.0%
6.5%
0.0%
7.0%
0.0%
1.7%
0.0%
1.2%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
-0.5%
0.0%
-3.3%
0.0%
-0.2%
0.0%
-6.2%
0.0%
-56.3%
0.0%
-100.0%
0.0%
-1.0%
0.0%
-1.1%
0.0%
-31.0%
0.0%
-2.2%
0.0%
-8.3%
0.0%
-3.3%
0.0%
-33.9%
0.0%
-0.6%
0.0%
-1.6%
-0.1%
-2.9%
-0.1%
-5.1%
-0.2%
-7.1%
0.0%
0.4%
0.3%
4.0%
3.8%
3.8%
10
Wellington CBD Annual Economic Profile 2015
In which industries does Wellington CBD have a comparative advantage?
A high concentration of certain industries in a region may be indicative of that region having a comparative
advantage in those industries. This may be due to its natural endowments, location, skills of its labour force
or other reasons. The location quotient indicates in which industries a region has comparative advantage.
A region has a location quotient larger (smaller) than one when the share of that industry in the regional
economy is greater (less) than the share of the same industry in the national economy.
The following table shows a ranking of 54 industries by their location quotients.
The industries in which Wellington CBD has the largest comparative advantages are Petroleum & Coal Product
Manufacturing (location quotient = 5.2), Central Gov Admin, Defence & Safety (4.9), and Telecomms, Internet &
Library Services (3.3).
11
Wellington CBD Annual Economic Profile 2015
Table 5: Location Quotient 2015
Industry
Petroleum & Coal Product Manufacturing
Central Gov Admin, Defence & Safety
Telecomms, Internet & Library Services
Finance
Insurance & Superannuation Funds
Information Media Services
Professional, Scientific & Tech Services
Auxiliary Finance & Insurance Services
Electricity & Gas Supply
Arts & Recreation Services
Rail, Water, Air & Other Transport
Administrative & Support Services
Other Services
Local Government Administration
Printing
Accommodation & Food Services
Postal, Courier & Warehousing Services
Property Operators & Real Estate Services
Mining
Other Store & Non Store Retailing
Education & Training
Wholesale Trade
Fishing & Aquaculture
Health Care & Social Assistance
Fruit, Cereal & Other Food Product Manu
Supermarket & Specialised Food Retailing
Rental & Hiring Services
Transport Equipment Manufacturing
Furniture & Other Manufacturing
Motor Vehicle, Parts & Fuel Retailing
Textile, Leather, Clothing, Footwear Manu
Building Construction
Basic Chemical & Chemical Product Manu
Beverage & Tobacco Product Manu
Road Transport
Wood Product Manufacturing
Construction Services
Machinery & Other Equipment Manu
Non-Metallic Mineral Product Manu
Primary Metal & Metal Product Manu
Polymer Product & Rubber Product Manu
Heavy & Civil Engineering Construction
Agric Support Services & Hunting
Fabricated Metal Product Manufacturing
Dairy Product Manufacturing
Horticulture & Fruit Growing
Sheep, Beef Cattle & Grain Farming
Dairy Cattle Farming
Poultry, Deer & Other Livestock Farming
Forestry & Logging
Meat & Meat Product Manufacturing
Seafood Processing
Pulp & Paper Product Manufacturing
Water, Sewerage & Waste Services
Wellington CBD
Location Quotient
5.2
4.9
3.3
3.1
2.5
2.1
2.0
1.9
1.6
1.5
1.2
1.1
1.0
1.0
0.8
0.7
0.5
0.5
0.4
0.4
0.3
0.3
0.3
0.3
0.3
0.3
0.2
0.2
0.2
0.2
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Share of total GDP
2.5%
18.6%
7.5%
11.9%
2.8%
1.9%
15.2%
1.7%
4.0%
2.1%
1.0%
2.3%
1.7%
0.5%
0.2%
1.5%
0.9%
3.0%
0.7%
1.0%
1.5%
1.7%
0.0%
1.9%
0.3%
0.4%
0.3%
0.1%
0.0%
0.1%
0.0%
0.1%
0.1%
0.1%
0.1%
0.0%
0.2%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
New Zealand
Share of total GDP
0.5%
3.8%
2.3%
3.9%
1.1%
0.9%
7.7%
0.9%
2.5%
1.4%
0.9%
2.1%
1.8%
0.5%
0.3%
2.1%
1.8%
6.0%
1.7%
2.6%
4.3%
5.3%
0.1%
6.1%
0.9%
1.3%
1.2%
0.5%
0.3%
0.7%
0.3%
1.2%
0.6%
0.9%
1.4%
0.6%
3.0%
1.3%
0.5%
0.3%
0.6%
1.8%
0.7%
0.9%
0.6%
0.5%
1.3%
2.6%
0.2%
0.7%
0.8%
0.2%
0.3%
0.5%
Wellington CBD Annual Economic Profile 2015
How diversified is Wellington CBD's economy?
The more concentrated a region's economy is in a few industries the more vulnerable it is to adverse events
such as climatic conditions and commodity price fluctuations. This section presents the HerfindahlHirschman Index (HHI) which measures the level of diversification of Wellington CBD's economy. An index
of 0 represents a diversified economy with economic activity evenly spread across all industries. The higher
the index the more concentrated economic activity is in a few industries.
The HHI Index for New Zealand is measured as the average HHI across all 66 territorial authorities.
Wellington CBD had a standardised HHI of 92.7 in 2015.
Since 2000 Wellington CBD's HHI has increased from 68.3 indicating a decrease in industrial diversity.
During the same period New Zealand's economy has become more diversified with the HHI decreasing
from 60.5 to 56.1.
Figure 6: HHI Index in Wellington CBD and New Zealand (2000 - 2015)
Wellington CBD
New Zealand
100
80
60
20
15
20
14
20
13
20
12
20
11
20
10
20
09
20
08
20
07
20
06
20
05
20
04
20
03
20
02
20
01
40
20
00
12
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Wellington CBD 68.3
New Zealand
60.5
67.6
61.4
65.4
57.8
66.3
57.0
64.9
57.1
67.6
55.4
73.0
55.6
76.6
53.4
77.5
50.9
85.8
55.5
85.0
58.3
85.1
56.5
83.3
57.5
88.8
56.7
91.9
57.2
92.7
56.1
13
Wellington CBD Annual Economic Profile 2015
EMPLOYMENT
How fast has employment grown in Wellington CBD?
Employment growth provides new opportunities for the region's population to earn income and contribute
to the region's economy. This section contrasts Wellington CBD's recent performance in creating jobs with
other regions in the country.
Figure 7: Employment growth (year to Mar 2015)
3%
2.4%
2%
2.1%
1%
0%
Wellington CBD
New Zealand
Total employment in Wellington CBD averaged 107,223 in the year to March 2015, up 2.1% from a year
earlier. Employment in New Zealand increased by 2.4% over the same period.
Employment growth in Wellington CBD averaged 1.5%pa over the last 10 years compared with 1.1%pa
in the national economy.
Employment growth in Wellington CBD reached a high of 4.1% in 2005 and a low of -1.7% in 2011.
Wellington CBD Annual Economic Profile 2015
Figure 8: Annual average employment growth
Wellington CBD
New Zealand
5%
2.5%
0%
-2.5%
20
13
20
12
2008
2009
2010
2011
2012
2013
2014
2015
Wellington CBD 1.0%
2.5%
1.2%
-1.0%
4.1%
3.1%
2.1%
3.7%
1.1%
-0.5%
-1.7%
1.5%
1.3%
2.5%
2.1%
New Zealand
3.0%
2.6%
3.5%
3.4%
2.3%
2.2%
2.0%
0.6%
-2.4%
0.4%
1.1%
1.1%
1.7%
2.4%
2.3%
20
06
20
15
2007
20
14
20
10
2006
20
08
2005
20
07
2004
20
05
2003
20
04
2002
20
03
2001
Change
20
02
20
09
20
11
-5%
20
01
14
Figure 9: Employment growth over various time periods
Wellington CBD
New Zealand
3%
2%
2.1%
2.4%
2.3%
2.0%
1.5%
1.5%
1.7%
1.1%
1%
0%
2014-2015
2013-2015
2005-2015
2000-2015
15
Wellington CBD Annual Economic Profile 2015
What is the industrial structure of employment in Wellington CBD?
This section describes the structure of the labour market in terms of the primary, secondary, tertiary and
quaternary categories and the industries that fall within these categories. The primary sector makes direct
use of natural resources. It extracts or harvests products from the earth. The secondary sector produces
manufactured and other processed goods. The tertiary sector produces manufactured and other processed
goods. The tertiary sector includes the lower value-adding service industries while the quaternary sector
includes the higher value-adding, knowledge-based service industries. A list of industries making up the
quaternary sector is given in the technical appendix.
Figure 10: Employment by broad sector (2015)
Wellington CBD
Primary
Secondary
0.3%
6.5%
2.6%
New Zealand
19.1%
29.7%
Tertiary
Quarternary
37.7%
67.4%
36.7%
0%
10%
20%
30%
40%
50%
60%
70%
Primary accounted for 0.3% in Wellington CBD compared with 6.5% in New Zealand.
Secondary accounted for 2.6% in Wellington CBD compared with 19.1% in New Zealand.
Tertiary accounted for 29.7% in Wellington CBD compared with 37.7% in New Zealand.
Quarternary industries accounted for the largest proportion of employment (67.4%) in Wellington CBD,
which is higher than in New Zealand (36.7%).
16
Wellington CBD Annual Economic Profile 2015
Which are the largest employing industries in Wellington CBD?
This section identifies the broad industries that make the largest contribution to employment in Wellington
CBD.
Table 6: 1-digit industries ranked by size of employment (2015)
Wellington CBD
Industry
New Zealand
Level
Share of total
Level
Share of total
51.8
0.0%
142,316.8
6.2%
Mining
Manufacturing
304.9
1,217.2
0.3%
1.1%
6,038.8
226,233.8
0.3%
9.9%
Electricity, Gas, Water and Waste Services
Construction
Wholesale Trade
733.8
807.7
2,251.3
0.7%
0.8%
2.1%
14,639.8
196,429.3
116,251.8
0.6%
8.6%
5.1%
Retail Trade
Accommodation and Food Services
4,694.4
6,785.5
4.4%
6.3%
211,917.8
144,228.3
9.3%
6.3%
Transport, Postal and Warehousing
2,669.0
2.5%
95,694.0
4.2%
Information Media and Telecommunications
5,926.2
5.5%
41,521.3
1.8%
Financial and Insurance Services
Rental, Hiring and Real Estate Services
10,024.2
1,336.9
9.3%
1.2%
63,154.3
53,429.5
2.8%
2.3%
Professional, Scientific and Technical Services
Administrative and Support Services
Public Administration and Safety
24,489.8
7,037.0
23,591.7
22.8%
6.6%
22.0%
215,311.5
111,813.8
109,860.3
9.4%
4.9%
4.8%
4,161.9
4,045.8
3,007.4
4,086.3
3.9%
3.8%
2.8%
3.8%
181,387.5
227,549.3
42,518.8
86,670.8
7.9%
9.9%
1.9%
3.8%
107,222.9
100%
2,286,966.8
100%
Agriculture, Forestry and Fishing
Education and Training
Health Care and Social Assistance
Arts and Recreation Services
Other Services
Total
Among broad industries Professional, Scientific and Technical Services was the largest in Wellington
CBD in 2015 accounting for 22.8% of total.
The second largest was Public Administration and Safety (22.0%) followed by Financial and Insurance
Services (9.3%)
The table on the following page shows the 50 detailed industries among the approximately 500 7-digit
ANZSIC industry categories which employ the highest number of people in Wellington CBD.
Professional, Scientific and Technical Services was the largest 7-digit industry in Wellington CBD in 2015
employing 24,490 persons and accounting for 22.8% of total employment in the district. By contrast this
industry accounted for 9.4% of total employment in New Zealand.
The second largest employing industries were public administration and safety (23,592) followed by
financial and insurance services (10,024).
17
Wellington CBD Annual Economic Profile 2015
Table 7: 50 largest employing 7-digit ANZSIC industries (2015)
Wellington CBD
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
Industry
Scientific Research Services
Central Government Administration
Employment Placement and Recruitment Services
Accommodation
Central Banking
Preschool Education
Automotive Electrical Services
Hospitals (except Psychiatric Hospitals)
Wired Telecommunications Network Operation
Furniture Retailing
Museum Operation
Newspaper Publishing
Wool Wholesaling
Financial Asset Broking Services
Life Insurance
Rail Freight Transport
Supermarket and Grocery Stores
Residential Property Operators
Postal Services
State Government Administration
Fossil Fuel Electricity Generation
Land Development and Subdivision
House Construction
Fruit and Vegetable Processing
Printing
Coal Mining
Car Retailing
Petroleum Refining and Petroleum Fuels Manufacturing
Passenger Car Rental and Hiring
Road Freight Transport
Motor Vehicle Manufacturing
Wooden Furniture and Upholstered Seat Manufacturing
Wool Scouring
Log Sawmilling
Longline and Rack (Offshore) Aquaculture
Photographic, Optical and Ophthalmic Equipment Manufacturing
Industrial Gases Manufacturing
Soft Drink, Cordial and Syrup Manufacturing
Road and Bridge Construction
Hunting and Trapping
Glass and Glass Product Manufacturing
Polymer Film and Sheet Packaging Material Manufacturing
Iron Smelting and Steel Manufacturing
Iron and Steel Forging
Milk and Cream Processing
Nursery Production (Under Cover)
Nursery Production (Outdoors)
Turf Growing
Floriculture Production (Under Cover)
Floriculture Production (Outdoors)
All other industries total
Total
Jobs
24,490
22,647
7,037
6,785
6,431
4,162
4,086
4,046
3,239
3,179
3,007
2,688
2,251
1,930
1,663
1,359
1,224
1,161
1,148
945
734
439
347
331
319
305
291
178
176
162
106
74
48
42
42
40
29
25
22
10
9
7
4
4
2
0
0
0
0
0
0
107,223
% of total
22.8%
21.1%
6.6%
6.3%
6.0%
3.9%
3.8%
3.8%
3.0%
3.0%
2.8%
2.5%
2.1%
1.8%
1.6%
1.3%
1.1%
1.1%
1.1%
0.9%
0.7%
0.4%
0.3%
0.3%
0.3%
0.3%
0.3%
0.2%
0.2%
0.2%
0.1%
0.1%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
100%
New Zealand
% of total
0.4%
1.3%
0.5%
1.3%
0.0%
1.1%
0.1%
2.9%
0.3%
0.1%
0.1%
0.2%
0.0%
0.0%
0.1%
0.0%
2.4%
0.2%
0.4%
0.0%
0.0%
0.0%
1.6%
0.2%
0.4%
0.0%
0.5%
0.0%
0.1%
1.3%
0.0%
0.2%
0.0%
0.2%
0.0%
0.0%
0.0%
0.1%
0.6%
0.0%
0.1%
0.1%
0.1%
0.0%
0.0%
0.1%
0.1%
0.0%
0.0%
0.0%
82.5%
100%
18
Wellington CBD Annual Economic Profile 2015
Which industries have created the most jobs?
The section investigates which industries have created and lost the most number of jobs in Wellington
CBD. The employment numbers differ from those published in Business Demography by Statistics New
Zealand. The reasons for these differences are explained in the technical appendix.
Table 8: 1-digit industries ranked by number of jobs created
Change
Annual Growth
23,592
785
3.4%
7,037
24,490
466
427
7.1%
1.8%
6,422
9,667
6,785
10,024
364
357
5.7%
3.7%
3,762
4,046
284
7.6%
593
238
734
305
141
67
23.7%
28.1%
Rental, Hiring and Real Estate Services
Education and Training
1,273
4,108
1,337
4,162
64
54
5.0%
1.3%
Manufacturing
Agriculture, Forestry and Fishing
1,206
61
1,217
52
11
-9
0.9%
-15.0%
Construction
Arts and Recreation Services
828
3,040
808
3,007
-20
-33
-2.4%
-1.1%
Other Services
Wholesale Trade
4,120
2,335
4,086
2,251
-34
-83
-0.8%
-3.6%
4,841
2,860
6,218
105,012
4,694
2,669
5,926
107,223
-146
-191
-291
2,211
-3.0%
-6.7%
-4.7%
2.1%
Industry
2014
2015
Public Administration and Safety
22,806
Administrative and Support Services
Professional, Scientific and Technical Services
6,572
24,063
Accommodation and Food Services
Financial and Insurance Services
Health Care and Social Assistance
Electricity, Gas, Water and Waste Services
Mining
Retail Trade
Transport, Postal and Warehousing
Information Media and Telecommunications
Total
Public Administration and Safety made the largest contribution to employment growth in Wellington CBD
between 2014 and 2015 with the industry adding 785 jobs.
The next largest contributor was Administrative and Support Services (466 jobs) followed by Professional,
Scientific and Technical Services (427 jobs).
The largest detractor from growth over the year was Information Media and Telecommunications in which
employment declined by 291.
The table on the next page shows the 50 industries (out of a total of approximately 500 industries of the
ANZSIC 2006 industry classification1) that created the most number of jobs over the past year. Table 15
shows the 50 detailed industries that made the lowest contribution to job creation over the same period.
Central Government Administration was the largest creator of jobs in Wellington CBD between 2014 and
2015 generating an additional 792 positions.
This was followed by Central Banking, which added 469 jobs over the same period.
Wired Telecommunications Network Operation was the largest detractor of jobs in Wellington CBD
between 2014 and 2015 losting 199 positions.
This was followed by Furniture Retailing, which lost 168 jobs over the same period.
19
Wellington CBD Annual Economic Profile 2015
Table 9: The 50 seven-digit industries that created the most jobs between 2014 and 2015
Jobs
Rank Industry
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
Central Government Administration
Central Banking
Employment Placement and Recruitment Services
Scientific Research Services
Accommodation
Hospitals (except Psychiatric Hospitals)
Fossil Fuel Electricity Generation
Residential Property Operators
Coal Mining
Preschool Education
Motor Vehicle Manufacturing
Supermarket and Grocery Stores
Printing
Fruit and Vegetable Processing
Soft Drink, Cordial and Syrup Manufacturing
Road and Bridge Construction
Longline and Rack (Offshore) Aquaculture
Iron and Steel Forging
Wool Scouring
Iron Smelting and Steel Manufacturing
Polymer Film and Sheet Packaging Material Manufacturing
Milk and Cream Processing
Glass and Glass Product Manufacturing
Log Sawmilling
Car Retailing
Industrial Gases Manufacturing
Photographic, Optical and Ophthalmic Equipment Manufacturing
State Government Administration
House Construction
Hunting and Trapping
Land Development and Subdivision
Passenger Car Rental and Hiring
Petroleum Refining and Petroleum Fuels Manufacturing
Museum Operation
Automotive Electrical Services
Wooden Furniture and Upholstered Seat Manufacturing
Postal Services
Financial Asset Broking Services
Life Insurance
Rail Freight Transport
Road Freight Transport
Wool Wholesaling
Newspaper Publishing
Furniture Retailing
Wired Telecommunications Network Operation
All other industries
Total
2014
2015
21,854
5,962
6,572
24,063
6,422
3,762
590
1,080
238
4,108
79
1,201
304
319
14
16
37
0
47
3
6
1
9
42
292
31
42
952
358
24
453
193
202
3,040
4,120
108
1,182
1,985
1,720
1,434
244
2,335
2,780
3,348
3,438
3
105,012
22,647
6,431
7,037
24,490
6,785
4,046
734
1,161
305
4,162
106
1,224
319
331
25
22
42
4
48
4
7
2
9
42
291
29
40
945
347
10
439
176
178
3,007
4,086
74
1,148
1,930
1,663
1,359
162
2,251
2,688
3,179
3,239
0
107,223
Change
2014 2015
792
469
466
427
364
284
144
81
67
54
27
22
16
13
10
5
5
4
2
1
0
0
0
0
0
-2
-2
-7
-11
-14
-14
-18
-24
-33
-34
-34
-34
-55
-57
-75
-82
-83
-92
-168
-199
-3
2,211
% of total 2015
21.1%
6.0%
6.6%
22.8%
6.3%
3.8%
0.7%
1.1%
0.3%
3.9%
0.1%
1.1%
0.3%
0.3%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.3%
0.0%
0.0%
0.9%
0.3%
0.0%
0.4%
0.2%
0.2%
2.8%
3.8%
0.1%
1.1%
1.8%
1.6%
1.3%
0.2%
2.1%
2.5%
3.0%
3.0%
0.0%
100%
20
Wellington CBD Annual Economic Profile 2015
Table 10: The 50 seven-digit industries that lost the most jobs between 2014 and 2015
Jobs
Rank Industry
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
Wired Telecommunications Network Operation
Furniture Retailing
Newspaper Publishing
Wool Wholesaling
Road Freight Transport
Rail Freight Transport
Life Insurance
Financial Asset Broking Services
Postal Services
Wooden Furniture and Upholstered Seat Manufacturing
Automotive Electrical Services
Museum Operation
Petroleum Refining and Petroleum Fuels Manufacturing
Passenger Car Rental and Hiring
Land Development and Subdivision
Hunting and Trapping
House Construction
State Government Administration
Photographic, Optical and Ophthalmic Equipment Manufacturing
Industrial Gases Manufacturing
Car Retailing
Log Sawmilling
Glass and Glass Product Manufacturing
Milk and Cream Processing
Polymer Film and Sheet Packaging Material Manufacturing
Iron Smelting and Steel Manufacturing
Wool Scouring
Iron and Steel Forging
Longline and Rack (Offshore) Aquaculture
Road and Bridge Construction
Soft Drink, Cordial and Syrup Manufacturing
Fruit and Vegetable Processing
Printing
Supermarket and Grocery Stores
Motor Vehicle Manufacturing
Preschool Education
Coal Mining
Residential Property Operators
Fossil Fuel Electricity Generation
Hospitals (except Psychiatric Hospitals)
Accommodation
Scientific Research Services
Employment Placement and Recruitment Services
Central Banking
Central Government Administration
All other industries
Total
2014
2015
3,438
3,348
2,780
2,335
244
1,434
1,720
1,985
1,182
108
4,120
3,040
202
193
453
24
358
952
42
31
292
42
9
1
6
3
47
0
37
16
14
319
304
1,201
79
4,108
238
1,080
590
3,762
6,422
24,063
6,572
5,962
21,854
3
105,012
3,239
3,179
2,688
2,251
162
1,359
1,663
1,930
1,148
74
4,086
3,007
178
176
439
10
347
945
40
29
291
42
9
2
7
4
48
4
42
22
25
331
319
1,224
106
4,162
305
1,161
734
4,046
6,785
24,490
7,037
6,431
22,647
0
107,223
Change
2014 2015
-199
-168
-92
-83
-82
-75
-57
-55
-34
-34
-34
-33
-24
-18
-14
-14
-11
-7
-2
-2
0
0
0
0
0
1
2
4
5
5
10
13
16
22
27
54
67
81
144
284
364
427
466
469
792
-3
2,211
% of total 2015
3.0%
3.0%
2.5%
2.1%
0.2%
1.3%
1.6%
1.8%
1.1%
0.1%
3.8%
2.8%
0.2%
0.2%
0.4%
0.0%
0.3%
0.9%
0.0%
0.0%
0.3%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.3%
0.3%
1.1%
0.1%
3.9%
0.3%
1.1%
0.7%
3.8%
6.3%
22.8%
6.6%
6.0%
21.1%
0.0%
100%
21
Wellington CBD Annual Economic Profile 2015
PRODUCTIVITY
Productivity is a way of describing the efficiency of production. In this section, we investigate GDP per
employee to determine how much economic activity is generated on average by each employee. When
looking at this indicator, one needs to consider that labour is only one input into production. As a result, a
comparison of a region's labour productivity growth to its own history or to other districts, implicitly assumes
that each worker has the same access to machinery, technology, and land.
This section describes Wellington CBD's productivity level during the year to March 2015 and previous
years. Productivity is measured by GDP per employee (in constant 2010 prices).
Figure 11: Productivity 2015
150k
$131,612
100k
$95,991
50k
0k
Wellington CBD
New Zealand
GDP per employee in Wellington CBD measured $131,612 in the year to March 2015, which was 37%
higher than in New Zealand.
Productivity in Wellington CBD increased by 1.6% from a year earlier compared with an increase of 1.2%
in New Zealand).
Productivity growth in Wellington CBD averaged 0.7%pa over the last ten years compared with an
average of 0.8%pa in New Zealand.
Wellington CBD Annual Economic Profile 2015
Figure 12: Productivity growth
Wellington CBD
New Zealand
5%
2.5%
0%
-2.5%
1.2%
-1.5%
-1.3%
3.9%
2.1%
1.1%
0.2%
1.1%
0.6%
2009
2010
2011
2012
2013
2014
2015
1.5%
0.2%
1.3%
2.0%
-2.3%
-0.4%
1.0%
1.6%
0.5%
-2.2%
1.9%
0.9%
1.2%
1.2%
1.0%
1.2%
20
15
1.4%
0.5%
0.4%
2008
20
14
1.5%
New Zealand
20
13
Wellington CBD 0.5%
20
12
2007
20
11
2006
20
10
2005
20
09
20
08
2004
20
07
20
06
2003
20
04
2002
20
03
2001
Change
20
02
20
05
-5%
20
01
22
23
Wellington CBD Annual Economic Profile 2015
What are the most productive industries in Wellington CBD
This section ranks industries according to their level of GDP per employee in Wellington CBD. The level of
GDP per employee may differ between industries because of the skill levels of workers and their inherent
efficiency, as well as due to different amounts of machinery, technology, and land being used as production
inputs. Table 17 below ranks broad industries by GDP per employee in Wellington CBD and shows the
corresponding GDP per employee in the national economy. Since the capital intensity of industries is often
a significant explainer of productivity we also show the capital intensity of each industry in the table. Capital
intensity is measured as the share of GDP which is attributable to capital. Industries with a high proportion
are thus highly capital intensive.
Table 11: 1-digit industries ranked by productivity (2015)
Productivity
Industry
Capital intensity
Wellington CBD
New Zealand
New Zealand
Electricity, Gas, Water and Waste Services
774,307
439,625
0.81
Manufacturing
Rental, Hiring and Real Estate Services
397,375
341,295
98,836
292,741
0.38
0.83
Mining
Financial and Insurance Services
325,828
230,333
623,639
204,056
0.81
0.48
Information Media and Telecommunications
Agriculture, Forestry and Fishing
Public Administration and Safety
Wholesale Trade
Transport, Postal and Warehousing
222,840
135,200
113,950
107,283
105,657
165,963
94,093
85,654
99,362
93,977
0.56
0.58
0.18
0.38
0.42
Arts and Recreation Services
Professional, Scientific and Technical Services
98,680
87,620
72,086
78,296
0.45
0.20
Health Care and Social Assistance
Other Services
Construction
Education and Training
Administrative and Support Services
67,102
59,831
52,825
49,343
45,709
59,033
44,813
67,398
51,481
40,272
0.12
0.26
0.22
0.24
0.18
Retail Trade
Accommodation and Food Services
44,243
30,980
47,452
31,221
0.26
0.33
131,612
95,991
Total
24
Wellington CBD Annual Economic Profile 2015
BUSINESS GROWTH
How fast did the number of business units grow in Wellington CBD?
Growth in the number of business units is an indicator of entrepreneurial activity. It indicates an
environment in which entrepreneurs are prepared to take risks to start new ventures. This section contrasts
Wellington CBD's recent performance in business unit growth with other regions in the country.
Figure 13: Business unit growth (year to Mar 2015)
2%
1.8%
1%
0%
-0.8%
-1%
Wellington CBD
New Zealand
A total of 8,641 business units were recorded in Wellington CBD in 2015, down 0.8% from a year earlier.
The number of business units in New Zealand increased by 1.8% over the same period.
Growth in the number of business units in Wellington CBD averaged -0.3%pa over the past 10 years
compared with 1.2%pa in the national economy.
Business unit growth in Wellington CBD varied from a high of 1.9% in 2006 to a low of -2.8% in 2001.
Wellington CBD Annual Economic Profile 2015
Figure 14: Annual average business unit growth
Wellington CBD
New Zealand
10%
5%
0%
2015
-0.6%
1.2%
1.4%
1.4%
1.9%
-0.7%
1.7%
-0.4%
-2.1%
-1.4%
-1.0%
-0.7%
0.6%
-0.8%
1.4%
3.6%
6.8%
4.6%
3.4%
2.1%
2.1%
0.6%
-1.4%
-0.1%
0.1%
0.1%
3.3%
1.8%
20
15
2013 2014
20
09
2012
20
08
2011
20
07
2010
20
06
2009
20
05
2007 2008
20
04
2002 2003 2004 2005 2006
20
03
20
14
-0.5%
20
13
New Zealand
20
12
Wellington CBD -2.8%
20
11
2001
20
10
Change
20
02
-5%
20
01
25
26
Wellington CBD Annual Economic Profile 2015
WORKFORCE AND SKILLS
How do skill levels in Wellington CBD compare with New Zealand?
A region that can offer high skilled jobs can generally offer a higher standard of living to its residents. It is
also has a better chance of retaining its residents and attracting new skills. This section contrasts the skill
levels required by jobs in Wellington CBD with those required in the national economy. The broad skill
categories used are defined in the technical section at the end of the report.
Table 12: Employment by broad skill level 2015
Wellington CBD
Skill level
New Zealand
Jobs
% of total
Jobs
% of total
High
52,796
49.2%
867,660
37.9%
MediumHigh
Medium
12,787
8,705
11.9%
8.1%
249,854
288,208
10.9%
12.6%
31,989
107,223
29.8%
100%
881,245
2,286,967
38.5%
100%
Low
Total
Approximately 49% of Wellington CBD's workforce was employed in highly skilled occupations in 2015.
This is higher than in New Zealand (38%).
Approximately 30% of Wellington CBD's workforce was employed in low-skilled occupations in 2015. This
is lower than in New Zealand 39%.
Figure 15: Employment by broad skill level, 2015
Wellington CBD
New Zealand
High
49.2%
37.9%
11.9%
10.9%
8.1%
12.6%
MediumHigh
Medium
29.8%
Low
0%
5%
10%
15%
20%
25%
30%
38.5%
35%
40%
45%
50%
27
Wellington CBD Annual Economic Profile 2015
What is the occupational structure of employment in Wellington CBD?
This section describes the types of occupations that are employed in Wellington CBD. The following graph
shows the distribution of employment across broad occupational categories (1-digit occupations).
Professionals accounted for the largest share of employment (38%) in Wellington CBD, which is higher
than New Zealand (23%).
Clerical and administrative workers accounted for the second largest share of employment (19%) in
Wellington CBD, which is higher than New Zealand (12%).
Machinery operators and drivers accounted for the lowest share of employment (19%) in Wellington CBD,
which is higher than New Zealand (12%).
Figure 16: Employment by broad occupation, 2015
Wellington CBD
New Zealand
Managers
Prof essionals
Technicians and trades workers
Community and personal serv ice workers
Clerical and administrativ e workers
Sales workers
Machinery operators and driv ers
Labourers
0%
5%
10%
15%
20%
25%
30%
35%
40%
28
Wellington CBD Annual Economic Profile 2015
Table 13: Employment by 2-digit occupation (2015)
Wellington CBD
Occupation
New Zealand
Employment
% of total
Employment
% of total
12,834
12.0%
114,021
5.0%
Specialist Managers
8,798
8.2%
190,475
8.3%
Legal, Social & Welfare Professionals
6,997
6.5%
48,968
2.1%
Design, Engineering, Science Professionals
General Clerical Workers
6,285
5,306
5.9%
4.9%
71,967
52,443
3.1%
2.3%
Education Professionals
Hospitality, Retail & Service Managers
Health Professionals
5,263
4,052
3,889
4.9%
3.8%
3.6%
134,298
82,840
89,989
5.9%
3.6%
3.9%
Chief Execs, General Managers, Legislators
Engineering, ICT & Science Technicians
3,848
3,827
3.6%
3.6%
86,178
42,616
3.8%
1.9%
Numerical Clerks
ICT Professionals
3,773
3,675
3.5%
3.4%
44,156
49,585
1.9%
2.2%
Sales Representatives & Agents
Office Managers & Program Administrators
Other Clerical & Administrative Workers
3,476
3,331
2,713
3.2%
3.1%
2.5%
69,207
63,342
38,553
3.0%
2.8%
1.7%
Automotive & Engineering Trades Workers
2,574
2.4%
57,955
2.5%
Sales Assistants & Salespersons
Carers & Aides
Inquiry Clerks & Receptionists
2,395
2,084
2,043
2.2%
1.9%
1.9%
114,161
75,131
35,262
5.0%
3.3%
1.5%
Cleaners & Laundry Workers
Other Labourers
Personal Assistants & Secretaries
Clerical & Office Support Workers
Arts & Media Professionals
2,017
1,946
1,729
1,610
1,377
1.9%
1.8%
1.6%
1.5%
1.3%
48,032
61,971
21,539
17,954
20,282
2.1%
2.7%
0.9%
0.8%
0.9%
Sales Support Workers
Hospitality Workers
Road & Rail Drivers
Sports & Personal Service Workers
986
936
896
879
0.9%
0.9%
0.8%
0.8%
26,136
43,707
49,340
34,871
1.1%
1.9%
2.2%
1.5%
Other Technicians & Trades Workers
Food Trades Workers
Machine & Stationary Plant Operators
Storepersons
Farm, Forestry & Garden Workers
Factory Process Workers
Health & Welfare Support Workers
Electrotech & Telecoms Trades Workers
Construction & Mining Labourers
Construction Trades Workers
Skilled Animal & Horticultural Workers
Protective Service Workers
Farmers & Farm Managers
761
601
581
559
527
512
484
426
410
399
359
339
292
0.7%
0.6%
0.5%
0.5%
0.5%
0.5%
0.5%
0.4%
0.4%
0.4%
0.3%
0.3%
0.3%
34,370
36,078
32,069
21,072
51,025
45,106
21,911
27,140
21,565
51,880
23,435
31,034
67,024
1.5%
1.6%
1.4%
0.9%
2.2%
2.0%
1.0%
1.2%
0.9%
2.3%
1.0%
1.4%
2.9%
250
241
107,223
0.2%
0.2%
100%
20,585
17,690
2,286,967
0.9%
0.8%
100%
Business, HR & Marketing Professionals
Mobile Plant Operators
Food Preparation Assistants
Total employment
Wellington CBD Annual Economic Profile 2015
Employment in knowledge intensive industries in Wellington CBD
Knowledge intensive industries are those in which the generation and exploitation of knowledge play the
predominant part in the creation of wealth. These sectors represent an increasing share of the New
Zealand economy's output and employment, and will most likely be the source of the future productivity
growth.
An industry is defined as knowledge-intensive if it meets two criteria: at least 25 per cent of the workforce is
qualified to degree level and at least 30 per cent of the workforce is in professional, managerial and
scientific and technical occupations. Further details of the definition are providing in the technical notes at
the end of the report.
This section describes employment in knowledge intensive industries in Wellington CBD.
Table 14: Employment in knowledge intensive industries (2015)
Employment in KI
industries 2015
KI employment as share of
total employment 2015
Annual growth in KI
employment 2015
Annual average grwoth in KI
employment 2005-2015
74,667
729,001
70%
32%
2.8%
2.3%
2.2%
1.7%
Wellington CBD
New Zealand
During 2015, there were 74,667 jobs in Wellington CBD's knowledge intensive industries. At 70% of total
employment, this was higher than in New Zealand (32%).
During the year March 2015, growth in employment in knowledge intensive industries was 2.8%,
compared with a change of 2.3% in New Zealand.
Figure 17: Employment in knowledge intensive industries
Wellington CBD
New Zealand (RHS)
20
15
20
14
20
13
20
12
20
11
20
10
20
09
20
08
500k
20
07
50k
20
06
600k
20
05
60k
20
04
700k
20
03
70k
20
02
800k
20
01
80k
20
00
29
30
Wellington CBD Annual Economic Profile 2015
What are the top knowledge intensive industries in Wellington CBD?
Table 15: Top 30 knowledge intensive industries in Wellington CBD, 2015
Wellington CBD
Rank
1
2
Industry
New Zealand
Employment
% of total
employment
Employment
% of total
employment
24,490
22,647
23%
21%
8,191
29,832
0.4%
1.3%
7,037
6.6%
12,449
0.5%
6,431
4,046
6.0%
3.8%
325
67,127
0.01%
2.9%
4
5
Scientific Research Services
Central Government Administration
Employment Placement and Recruitment
Services
Central Banking
Hospitals (except Psychiatric Hospitals)
6
7
Wired Telecommunications Network Operation
Museum Operation
3,239
3,007
3.0%
2.8%
7,077
2,490
0.3%
0.1%
8
9
Financial Asset Broking Services
Life Insurance
Petroleum Refining and Petroleum Fuels
Manufacturing
1,930
1,663
1.8%
1.6%
1,053
2,803
0.05%
0.1%
178
0.2%
623
0.03%
3
10
31
Wellington CBD Annual Economic Profile 2015
Which qualifications are in demand in Wellington CBD?
This section examines the types of qualifications, in terms of NZQA level and field of study, that are in
demand in Wellington CBD. The demand for qualifications is derived from our estimates of the demand for
occupations by using assumptions about the types of qualifications which are ideally required for each
occupation. Thus our estimates do not describe the educational profile of the region’s workforce but rather
the type of qualifications that are ideally required in the region. Further details are provided in the technical
notes at the end.
Table 16: Employment by level of qualification and field of study in Wellington CBD
Certificate
(level 1-3)
Certificate
(level 4)
Diploma
(level 5-6)
Degree
(level 7+)
Number
Natural and Physical Sciences
1,618
194
1,691
6,394
9,896
Information Technology
Engineering and Related Technologies
1,323
3,959
132
3,940
520
2,023
2,533
5,234
4,507
15,156
Architecture and Building
Agriculture, Environmental and Related Studies
1,233
1,314
869
364
551
454
1,143
1,475
3,796
3,606
2,285
1,799
8,818
4,827
2,222
1,965
31,362
362
222
1,526
889
340
583
9,422
956
536
2,998
1,559
620
551
12,458
5,900
5,255
11,548
10,206
2,741
606
53,036
9,503
7,813
24,889
17,481
5,924
3,705
106,278
% of total
Natural and Physical Sciences
1.5%
0.2%
1.6%
6.0%
9.3%
Information Technology
Engineering and Related Technologies
Architecture and Building
1.2%
3.7%
1.2%
0.1%
3.7%
0.8%
0.5%
1.9%
0.5%
2.4%
4.9%
1.1%
4.2%
14.3%
3.6%
Agriculture, Environmental and Related Studies
Health
Education
Management and Commerce
1.2%
2.1%
1.7%
8.3%
0.3%
0.3%
0.2%
1.4%
0.4%
0.9%
0.5%
2.8%
1.4%
5.6%
4.9%
10.9%
3.4%
8.9%
7.4%
23.4%
4.5%
2.1%
1.8%
29.5%
0.8%
0.3%
0.5%
8.9%
1.5%
0.6%
0.5%
11.7%
9.6%
2.6%
0.6%
49.9%
16.4%
5.6%
3.5%
100%
Field of study
Health
Education
Management and Commerce
Society and Culture
Creative Arts
Food, Hospitality and Personal Services
Totals
Society and Culture
Creative Arts
Food, Hospitality and Personal Services
Totals
Total
The greatest demand in Wellington CBD in 2015 was for qualifications at the level of Degree (level 7+).
Approximately 50% of all positions in Wellington CBD required this level of qualification.
By field of study, the highest demand was for Management and Commerce. Approximately 23% of all
positions in Wellington CBD required this field of study.
32
Wellington CBD Annual Economic Profile 2015
Table 17: Change in employment by level of qualification and field of study in Wellington CBD 2005 2015
Field of study
Absolute change
Natural and Physical Sciences
Certificate
(level 1-3)
Certificate
(level 4)
Diploma
(level 5-6)
Degree
(level 7+)
Total
-7
-14
-123
1,252
1,108
-41
40
-7
-352
71
97
963
1,570
986
1,355
Architecture and Building
Agriculture, Environmental and Related Studies
25
-105
-190
-79
128
19
303
163
266
-2
Health
Education
Management and Commerce
-104
49
-252
-38
-10
26
155
125
689
1,584
1,576
3,031
1,597
1,739
3,495
Information Technology
Engineering and Related Technologies
Society and Culture
Creative Arts
Food, Hospitality and Personal Services
Totals
annual average % change
Natural and Physical Sciences
10
32
336
3,081
3,459
-29
-86
-500
-8
17
-624
90
48
1,636
613
157
14,294
666
137
14,805
0.0%
-0.7%
-0.7%
2.2%
1.2%
Information Technology
Engineering and Related Technologies
Architecture and Building
-0.3%
0.1%
0.2%
-0.5%
-0.9%
-2.0%
1.5%
0.5%
2.7%
4.9%
3.6%
3.1%
2.5%
0.9%
0.7%
Agriculture, Environmental and Related Studies
Health
Education
Management and Commerce
-0.8%
-0.4%
0.3%
-0.3%
-2.0%
-1.0%
-0.5%
0.2%
0.4%
1.8%
2.7%
2.6%
1.2%
3.2%
3.6%
3.1%
0.0%
1.9%
2.5%
1.5%
Society and Culture
Creative Arts
Food, Hospitality and Personal Services
Totals
0.0%
-0.1%
-0.4%
-0.2%
0.4%
-0.2%
0.3%
-0.6%
2.5%
1.6%
0.9%
1.4%
3.7%
2.6%
3.1%
3.2%
2.2%
1.2%
0.4%
100%
The number of positions in Wellington CBD requring a Degree (level 7+) increased by 14,294 between
2005 and 2015, ranking it as the qualification level with the largest absolute increase in demand.
By field of study, Management and Commerce experienced the highest increase in demand between
2005 and 2015. The number of positions requiring this field of study increased by 3,495 over the 10 year
period.
33
Wellington CBD Annual Economic Profile 2015
TECHNICAL NOTES
Time period
This economic profile reports on March years (eg. 2015 refers to the 12 months to March 2015) for all
indicators except population (June year), dairy sector statistics (May year), and government social service
expenditure and beneficiary data (June years).
Gross Domestic Product
Gross Domestic Product (GDP) measures the value economic units add to their inputs. It should not be
confused with revenue or turnover. A company’s value adding is broadly equivalent to its sales revenue
less the cost of materials (eg steel for making motor cars) and services (eg telecommunications) purchased
from other firms.
Total GDP is calculated by summing the value added to all goods and services for final consumption – i.e.
it does not include the value added to goods and services used as intermediate inputs for the production of
other goods as this would result in double counting. As a result, GDP estimates should not be confused
with revenue/turnover/gross output.
In this profile Gross Domestic Product for each region and territorial authority (TA) is estimated by
Infometrics. A top down approach breaks national production-based GDP (published by Statistics New
Zealand) down to territorial authority level by applying TA shares to the national total. Each TA’s share of
industry output is based on the share of earnings measured in the Linked Employer Employee Data
(LEED), which is, in turn, based on taxation data. This approach captures differences in productivity
between TAs and changes in productivity over time. Our estimates are benchmarked on regional GDP
published by Statistics New Zealand for the period 2007-2010.
GDP is measured in constant 2010 prices .
Prices
In this profile, we present all GDP estimates in constant 2010 prices. GDP presented in constant prices is
sometimes referred to as real GDP. By using constant prices we remove the distractionary effect of
inflation. It enables us to meaningfully compare GDP from one year to the next.
Industrial classification
This profile uses industry categories from the 2006 Australia New Zealand Standard Industrial
Classification (ANZSIC). The ANZSIC is a hierarchical classification with four levels, namely divisions (the
broadest level also referred to as 1-digit categories), subdivisions (3-digit), groups (4-digit) and classes (7digit).There are approximately 500 7-digit industries.
This profile also uses a grouping of 54 industries. These are the industries used by Statistics New Zealand
in the national accounts.
34
Wellington CBD Annual Economic Profile 2015
Unallocated
Unallocated items include taxes levied on the purchaser rather than the producing industry (such as GST,
import duties, and taxes on capital transactions), and items that cannot easily be allocated to a specific
industry (such as the seasonal adjustment balancing item). A seasonal adjustment balancing item is
necessary to ensure that the sum of all seasonally adjusted industries can be reconciled with total GDP.
Broad economic sectors
The primary sector extracts or harvests products from the earth and includes agriculture, forestry, fishing,
and mining. The secondary sector produces manufactured and other processed goods and includes
manufacturing, electricity, gas and water, and construction. The tertiary sector includes all service
industries that are not knowledge intensive, such as retail trade, and food and accommodation services.
The quaternary sector includes knowledge intensive service industries. ‘Other’ includes owner occupied
property operation and unallocated activity.
HHI Index
Economic diversity is measured using the Herfindahl–Hirschman Index. It is calculated by squaring the
share of each industry (at 54 industry level), and then summing the resulting numbers. The HHI number
can theoretically range from close to zero (diversified economy) to 10,000 (concentrated economy).The HHI
for New Zealand is calculated as the average for the 66 territorial authorities.
Employment by industry
Employment is measured as an average of the four quarters making up each year. The unit of
measurement is filled jobs.
Regional employment numbers are from Infometrics’ Regional Industry Employment Model (RIEM). The
model draws heavily on quarterly and annual Linked Employer Employee Data (LEED) published by
Statistics New Zealand. RIEM differs from data from Business Demography in that it is a quarterly series
(BD is annual) and it includes both employees and self-employed, whereas BD only includes employees.
Self-employment
Self-employment rates are from Annual Linked Employer Employee Data (LEED).
Employment by occupation
Employment in each industry is converted to occupational employment using the relationship between
industry and occupational employment observed in various Population Censuses. The Population Census
measures the occupational composition of employment in each industry and how this changes over time.
Occupations confirm to the categories used in the Australian New Zealand Standard Classification of
Occupations (ANZSCO).
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Wellington CBD Annual Economic Profile 2015
Productivity
Productivity measures the efficiency of production. In this profile, we measure productivity as GDP per
employed person (ie. The amount of economic activity generated on average by each employee). One
needs to be aware that labour is only one input into production. The output of each employee may differ
across industries in a region due to differing access to machinery, technology, and land. Therefore,
productivity comparisons should only be made in circumstances where it is reasonable to assume that
capital intensity will be broadly the same – for example, when looking at productivity within an industry over
a limited-time period, or when comparing productivity of a particular industry with that same industry in
another region.
Earnings
Earnings data comes from the quarterly Linked Employer Employee Data published by Statistics New
Zealand. LEED publishes the mean earnings of full quarter jobs for each quarter. Full quarter jobs may
include full time and part time jobs. Earnings include overtime and lump sum payments. We sum the
mean earnings for the four quarters making up the year to arrive at an estimate of average annual
earnings.
House prices
House price levels (dollar value) are sourced from QVNZ. The house price levels used are average current
values. An average current value is the average (mean) value of all developed residential properties in the
area based on the latest house price index from QVNZ. It is not an average or median sales price, as both
of those figures only measure what happens to have sold in the period. These average current values are
affected by the underlying value of houses (including those not on the market) and are quality adjusted
based on the growth in each house’s price between sales.
Population
The estimated resident population ois an estimate of all people who usually live in that area at a given date.
Visitors from elsewhere in New Zealand or from overseas are excluded.
The estimated resident population at 30 June 2013–14 is based on the 2013 census usually resident
population count, updated for:
net census undercount (based on the 2013 Post-enumeration Survey)
residents temporarily overseas on census night
births, deaths, and net migration between census night and the date of the estimate
reconciliation with demographic estimates at ages 0–9 years.
The estimated resident population is not directly comparable with the census usually resident population
count because of these adjustments.
The estimated resident population is sourced from Statistics New Zealand.
Dependency ratio
The dependency ratio is the number of under 15 year olds and over 65 year olds as a ratio of the rest of the
population (working age).
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Wellington CBD Annual Economic Profile 2015
Business Units
Data on the number of businesses is sourced from the Business Demography statistics from Statistics New
Zealand. Data published by Statistics New Zealand is confidentialised. Infometrics use a Bayesian
imputation method to estimate values for confidentialised cells. Businesses are measured by geographic
units, which represent a business location engaged in one, or predominantly one, kind of economic activity
at a single physical site or base (eg. a factory, a farm, a shop, an office, etc). All non-trading or dormant
enterprises, as well as enterprises outside of New Zealand, are excluded from business demography
statistics.
A significant number of enterprises are recorded as having zero employment. Enterprises in the zero
employee count size category may have:
working owners who don’t draw a wage from their business
labour provided by other businesses or contractors
business activity that requires no labour (eg. holding company).
Only business units that are economically significant enterprises are included. To be regarded as
economically significant they must meet at least one of the following criteria:
annual expenses or sales subject to GST of more than $30,000
12-month rolling mean employee count of greater than three
part of a group of enterprises
registered for GST and involved in agriculture or forestry
over $40,000 of income recorded in the IR10 annual tax return (this includes some units in residential
property leasing and rental).