Education and the Labour Market
New Zealand's labour market is considerably more dynamic than in the past, and is likely to remain so as New Zealand's economy becomes further integrated with the global economy. Education can moderate the negative effects from labour market fluctuations. There is a substantial body of evidence that shows that those with higher levels of education are more likely to participate in the labour market, face lower risks of unemployment, have greater access to further training and receive higher earnings on average.
This report considers some of the relationships between education and the labour market, and provides access to a number of relevant resources relating to New Zealand's labour market.
Education is closely entwined with the labour market. This report considers some of the relationships between education and the labour market, and provides access to a number of relevant resources relating to New Zealand's labour market.
Education Sector Indicators
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A formal school qualification is a measure of the extent to which young adults have completed a basic prerequisite for higher education and training, and many entry-level jobs. School achievement in literacy and numeracy improves employment opportunities and earnings. |
Reading literacy achievement: senior secondary schooling Mathematics literacy achievement: senior secondary schooling Science literacy achievement: senior secondary schooling |
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Conversely, people with no formal school qualifications have unemployment rates far exceeding those with qualifications, and have the lowest median incomes. Furthermore, these young people leaving school without qualifications may have difficulty performing in the workforce and may face difficulties in terms of life-long learning, or returning to formal study in later years. |
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A considerable number of research studies also show that there is a strong correlation between early school leavers and unemployment and/or lower incomes, which are in turn generally related to poverty and dependence on income support. |
Retention of students in senior secondary schools |
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Attainment at senior secondary level contributes to preparation for successful participation in tertiary education, and the ability to contribute to, and participate in, a changing labour market and an increasingly knowledge-based society. Attainment level is also related to individual well being. |
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There is a substantial body of evidence that shows that those with higher levels of education are more likely to participate in the labour market, face lower risks of unemployment, have greater access to further training and receive higher earnings on average. |
What is the value of sub-degree study?
There has been a rapid growth in sub-degree study in recent years. Accompanying this has been media coverage suggesting sub-degree study is all of low value and of low quality. This has lead to the question:
What is the value of sub-degree study?
Publications
The Ministry of Education has published a number of research reports that are pertinent to education and the New Zealand labour market.
This report provides new information on the impacts of the Student Loan Scheme by looking at the income of those who used the Scheme between 1997 and 2000. One of two analytical reports (see also Living with a student loan) published using previously unavailable information from Statistics New Zealand's Integrated Dataset on Student Loan Scheme Borrowers. Author: Jamie Hyatt, Paul Gini, Roger SmythPublished: March 2005 |
What factors impact on graduates' earnings three years post-study?
Trends in the Contribution of Tertiary Education to the Accumulation of Educational Capital in New Zealand: 1981-2001
Outcomes of the New Zealand tertiary education system - a synthesis of the evidence
How do graduates' earnings change over time?
Income of Student Loan Scheme Borrowers|
This report profiles student loan debt and repayment, post-study income and going overseas. One of two analytical reports (see also Income of student loan scheme borrowers) published using previously unavailable information from Statistics New Zealand's Integrated Dataset on Student Loan Scheme Borrowers. Author: Fiona Griffin, David Scott, Roger SmythPublished: March 2005 |
Living with a student loan|
This is the home page for New Zealand's Tertiary Education Sector Report - Profile & Trends publication series. Of particular relevance to the labour market are chapters on Skills for a knowledge economy; and Tertiary education outcomes. |
New Zealand's Tertiary Education Sector Report - Profile & Trends Home Page|
Human Capital Statistics (2003) This Statistics New Zealand publication is a collation of data relating to New Zealand's stock of human capital. The publication brings together for the first time, data on this area from a number of sources, including the Ministry of Education, the OECD and Statistics New Zealand. |
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Review of the Statistical Measurement of Human Capital This Statistics New Zealand publication is a review of the statistical measurement of human capital in New Zealand. The review was commissioned to help Statistics New Zealand:
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New Zealand Government Sites of Interest
Many of New Zealand's government departments have a major role in the Labour Market, from assisting people to partake in it, through to monitoring and regulating different aspects of it. The following links are to government departments that have a specific interest in the New Zealand labour market.
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The Department of Labour is the government's principal labour market agency. The website provides information on almost every aspect of work. A large volume of information on the labour market, including quarterly reports, can be found on this site here.
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Education enables people to gain knowledge, skills, and attitudes so they can participate fully, socially and economically, in the community. The Ministry of Education is responsible for major operational functions as well as the provision of a wide range of advice on education issues, and support to children with special needs. Its operational functions include management of a $4 billion school property portfolio, monitoring the performance of Tertiary Education Institutions, and the implementation of a wide range of financing and regulatory services to the education sector. http://www.minedu.govt.nz/
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Government's lead adviser on economic and financial policy. In that role Treasury manage the public purse, and advise on how governments can get the best quality and value out of public spending. Treasury also take a broad and long view of the New Zealand economy, developing strategic advice for Treasury Ministers and Cabinet on its future shape and direction. Of particular interest for labour markets is Treasury's working paper series
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Immigration New Zealand is part of the Department of Labour. It identifies, attracts and approves the entry of highly skilled and family sponsored migrants. http://www.immigration.govt.nz/
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The Ministry of Economic Development facilitates, leads and implements the Government's vision for economic development. The Ministry leads the production and co-ordination of policy advice related to economic, regional and industry development, as well as being the Government's primary advisor on the operation and regulation of specific markets and industries, including energy and telecommunications. http://www.med.govt.nz/index.html
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The Ministry of Social Development provides government with advice on strategic social policy, sectoral policy and social research and evaluation in the areas of income support, child, youth and family as well as community. It is also responsible for the implementation of income support and employment services as well as providing leadership and coordination of services and programmes that support families. http://www.msd.govt.nz/index.html
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Statistics New Zealand is a government department and New Zealand's national statistical office. It is the country's major source of official statistics. A large volume of information on the labour market can be found on this site here.
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The Accident Compensation Corporation administers New Zealand's accident compensation scheme, which provides personal injury cover for all New Zealand citizens, residents and temporary visitors to New Zealand. In return people do not have the right to sue for personal injury, other than for exemplary damages. http://www.acc.co.nz/
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Related Education Counts Documents
An outline of Government Priorities.