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4.2  Patterns of participation

In the 2001 Census, a total of 352,000 women and 195,000 men aged 15 to 64 years were not participating in the labour force. Table 1 shows how many women in different age groups were, and were not, participating.

Table 1– Women’s participation and non-participation in the labour force, by age group
Age group (years) Participating Not participating Participation rate
15-19 73,310 53,880 58
20-24 84,020 33,080 72
25-29 91,230 33,430 73
30-34 100,410 41,890 71
35-39 111,120 38,920 74
40-44 114,020 28,560 80
45-49 102,070 22,200 82
50-54 90,280 25,250 78
55-59 58,650 30,560 66
60-64 32,100 44,150 42
Total 15-64 857,200 351,910 71

Source: 2001 Census.

The participation rate is the number of people participating as a proportion of the total population (participating and not participating).

Women have a markedly different pattern of labour force participation from men (Figure 2). Except in the 15-19 year age group, participation rates for women are lower than those for men at all ages. Participation rates for women by age exhibit a characteristic dip, or m-shaped curve, which is not evident for men. Participation profiles for women and men are, however, similar in some ways. Both show relatively low participation rates amongst young people and declining participation amongst older age groups.

Figure 2 – Participation of men and women by age
Figure 2 – Participation of men and women by age.
Source: 2001 Census.

Figure 3 expands on the simple participation rates in Figure 2 to show the proportion of people who are full-time workers, part-time workers, and unemployed. At all ages, women undertake much more part-time work than men. Three-quarters of the part-time workers in New Zealand are women.

Figure 3 – Employment status by age
a. women
Figure 3 – Employment status by age, a.women.
b. men
Figure 3 – Employment status by age, b.men.
Source: 2001 Census.

For both men and women, the relatively low participation of young people is largely explained by the high proportion of students in this age group. Declining participation rates among older people are likely to be the result of a number of factors, for example worsening health and increasing prevalence of disability; lower consumption when children have left home and the mortgage is paid off; and increased levels of non-labour income from investments and pensions.[11]

Amongst 25-54 year olds (the so-called “prime ages” for labour force participation) it is clear that many women, and some men, are not participating because of childcare and other household responsibilities. The participation of mothers is discussed in detail in Section 4.4. Other non-participants might be notional job seekers, sick or disabled, full-time students, or voluntary workers.[12]

At all ages, women’s participation in the labour force is stratified by qualifications and by ethnicity (Figure 4). As the economic model of labour supply predicts, more-educated women—who can typically earn higher wages—have greater participation rates than less-educated women. At all ages, European women have greater participation rates than women in any other ethnic group. As discussed in Section 4.1, however, this may largely be because of differences in other measurable characteristics.

Notably, women with no qualifications, and Maori women, show little sign of a dip in participation. At least partly, this may be because of higher fertility and younger parenthood in these groups (Statistics New Zealand 2004a, Dharmalingam, Pool, Sceats and Mackay 2004), so that these women do not establish themselves in the labour force before they begin to have children.

Figure 4 – Women’s participation
a. by highest qualification
Figure 4 – Women’s participation, a.by highest qualification, a.by highest qualification.
b. by ethnicity
Figure 4 – Women’s participation, b.by ethnicity.
Source: 2001 Census.
Note that ethnicity is defined here using the total responses definition: if a person reported more than one ethnic group they have been counted in each applicable group.

Notes

  • [11]Jensen, Sathiyandra, Rochford, Jones, Krishnan and Mcleod (forthcoming) show that people with disabilities in New Zealand have lower participation rates. The prevalence of disability increases markedly with age (Maskill, Hodges, Burns and Carroll 2004). There is a significant international literature on the influence of health and disability status on labour force participation. The issues in this literature are discussed, for example, in Bound, Schoenbaum, Stinebrickner and Waidmann (1998) and Stern (1989).
  • [12]People who are not in the labour force might still be looking for work, but not as actively as the official definition of unemployment requires. Some of these notional job seekers will be receiving the Unemployment Benefit and some will not. Likewise, some of the people who are sick or disabled might be receiving a benefit or ACC compensation, and some will not. Dixon (1999) categorises prime-age men who are not in the labour force into these sorts of categories.
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