Canterbury Labour Market: A snapshot after the 22 February 2011 earthquake

This article discusses the Canterbury labour market after the 22 February 2011 Canterbury earthquake. It combines information from the Household Labour Force Survey (HLFS) and the Quarterly Employment Survey (QES).¹ The earthquake had a large effect on the labour market in the Canterbury region with employment, the number of hours worked and hours paid falling over the June 2011 year.

Background information on the Canterbury region

The Canterbury regional council area is geographically the largest in New Zealand, stretching from Kaikoura to Timaru. The region has an approximate working-age population of 500,000 people. It also makes up approximately 15 percent of New Zealand’s total labour force.

Due to Christchurch’s close proximity to the earthquake’s epicentre, and the earthquake’s severity, Christchurch city was the worst affected territorial authority (TA) in Canterbury. With about 360,000 people, Christchurch city has the highest working-age population of all 10 TAs that make up the Canterbury regional council area.²  

All data in this article was calculated for the year ended June 2011. Annual changes are the best way to analyse HLFS and QES regional data because this data is not seasonally adjusted.

Employment falls after the earthquake

Both the HLFS and QES showed that employment dropped in Canterbury over the year to June 2011. This was driven by large decreases in part-time employment, youth employment, female employment, and people employed in the retail trade and accommodation industry group.

Part-time employment fell almost 10 percent, far more than full-time employment. Some of this fall in part-time employment can be attributed to the fall in the number of people employed in the retail trade and accommodation industry group. This industry group has a very high proportion of part-time employees; in the Canterbury region they make up approximately 40 percent of all employees in the retail trade and accommodation industry group.

Employment for youth (people aged 15–24 years) also fell. In the Canterbury region, almost 40 percent of youth who are employed are in the retail trade and accommodation industry group.

The retail trade and accommodation industry group was heavily affected by the earthquake. This decrease was driven by the accommodation industry. The Accommodation Survey: June 2011 states that guest nights fell in the Canterbury region due to the ongoing impact of the Canterbury earthquakes.

Employment rose nationally in both the HLFS and QES despite the drop in Canterbury.

Hours drop over the year

The HLFS and QES also showed that the number of hours worked and hours paid fell in the Canterbury region. However nationally both hours worked and hours paid rose.

In the Canterbury region, 11 percent of people not working their usual hours said that this was due to the earthquake. In addition, 13 percent of people who wanted more hours of work said they were unable to work more hours because of the earthquake, while 5 percent of people stated the earthquake was the reason when asked why they had left their job. 

Labour force shrinks with fewer females taking part

In the year ended June 2011, the Canterbury labour force participation rate had its largest annual decrease since the year ended March 2006. The labour force also decreased, while the number of people who were not in the labour force increased, a change largely driven by females.

The number of unemployed women also increased, while the number of unemployed men decreased. Both the HLFS and QES saw female employment decrease by more than male employment.

The number of usual hours worked by women fell, while men's usual hours rose over the year. More women than men said they were not working their usual hours, not working more hours, or had left their job because of the earthquake. 

Taken together, these numbers suggest that female employment was more affected by the earthquake than male employment. 

Earthquake affects internal migration  

In the June 2011 quarter, the HLFS added extra questions related to the earthquake. These questions were designed to capture information about individuals’ movement due to the earthquake.³

Of the people interviewed in the Canterbury region who were at the same address as on 22 February, 24 percent had moved for a night or more as a result of the earthquake.

Of the 16,600 people who had moved to a new residence, due to the earthquake, 64 percent still lived in the Canterbury region. And of those who left the region due to the earthquake, 38 percent intend to move back to their previous address in the future.

Conclusion

The 22 February 2011 earthquake had a noticeable effect on the labour market in Canterbury. The earthquake negatively affected part-time employment , youth employment, female employment, and people employed in the retail trade and accommodation industry group. As more data becomes available the effects of the earthquake may become clearer.  

Endnotes

Published: 18 October 2011