TABLE OF CONTENTS. 1 Ashburton District Annual Economic Profile 2016

Transcription

1

2 1 Annual Economic Profile 2016 TABLE OF CONTENTS ECONOMY 2 How fast has 's economy grown? 2 What is the industrial structure of 's economy? 3 Which broad industries made the largest contribution to economic growth? 7 Which detailed industries made the largest contribution to economic growth? 8 In which industries does have a comparative advantage? 10 EMPLOYMENT 12 How fast has employment grown in? 12 What is the industrial structure of employment in? 14 Which are the largest employing industries in? 15 Which industries have created the most jobs? 17 What proportion of the workforce is self-employed in? 20 PRODUCTIVITY 21 What are the most productive industries in 23 BUSINESS GROWTH 24 How fast did the number of business units grow in? 24 POPULATION GROWTH 26 How fast has 's population grown? 26 What is the source of 's population growth? 28 What is the age structure of 's population? 28 STANDARD OF LIVING 29 What are the mean earnings in? 29 How do house prices in compare? 31 How affordable is housing in? 32 WORKFORCE AND SKILLS 33 How do skill levels in compare with? 33 What is the occupational structure of employment in? 34 Employment in knowledge intensive industries in 36 What are the top knowledge intensive industries in? 37 Which qualifications are in demand in? 38 TOURISM 40 Tourism GDP 40 Tourism Employment 41 TECHNICAL NOTES 42

3 2 Annual Economic Profile 2016 ECONOMY The economy grew by 2.5% over the year to March 2016, following rapid growth of 3.4% the previous year. Rental, hiring and Real Estate Services was the biggest contributor to growth, with value-added lifting 4.4%. The sector has benefited not only from higher levels of property sales, but population growth and better conditions for businesses have also pushed up property and machinery rentals. In a similar vein, GDP for the construction sector rose 3.6% lift over the March 2016 year. A range of service-based industries experienced strong growth over the past year. An expanding population, coupled with better job prospects, pushed up value-added by retail trade by 5.6%. Professional, scientific and technical services (3.0%) and finance and insurance series (3.1%) also experienced rapid growth. Another record-breaking year for domestic and international visitor spending saw GDP for accommodation and food services increase 5.2%. Valued-added from agriculture, forestry and fishing climbed 2.8%, despite challenging conditions for dairy farmers. The standout performer in the primary sector was agriculture and fruit growing (6.8%), while sheep, beef cattle and grain farming (3.6%) also grew strongly. Some of this additional activity flowed through to rural contractors, with value-added from agricultural support services and hunting climbing 7.5%. How fast has 's economy grown? This section measures economic performance in during the year to March 2016 and previous years. All GDP estimates are measured in constant 2010 prices. GDP in measured $1,845m in the year to March 2016, up 4.0% from a year earlier. 's GDP increased by 2.5% over the same period. Economic growth in averaged 2.4%pa over the last 10 years compared with an average of 1.8%pa in the national economy. Growth in reached a high of 9.4% in 2004 and a low of -2.5% in accounted for 0.8% of national GDP in Figure 1: GDP growth (year to Mar 2016) 4% 4.0% 3% 2% 2.5% 1% 0%

4 3 Annual Economic Profile 2016 Figure 2: Annual average GDP growth ( ) 10% 5% 0% -5% Change Ashburton District -0.3% 0.4% 3.8% 9.4% 1.1% 5.1% 2.1% -1.7% 3.2% 0.8% -2.5% 7.3% 5.7% 0.4% 4.7% 4.0% 2.8% 3.5% 4.5% 4.6% 3.7% 3.3% 2.7% 2.5% -1.3% -0.3% 1.5% 2.1% 2.2% 2.5% 3.4% 2.5% Figure 3: GDP growth over various time periods 6% 4% 4.0% 4.4% 2% 2.5% 2.9% 2.4% 1.8% 2.9% 2.5% 0% What is the industrial structure of '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.

5 4 Annual Economic Profile 2016 Figure 4: Share of total GDP (2016) Primary Secondary Tertiary Quarternary 7.3% 13.8% 21.8% 18.7% 22.0% 28.9% 28.4% 31.9% 0% 5% 10% 15% 20% 25% 30% 35% Primary industries accounted for the largest proportion of GDP (28.9%) in, which is higher than in the national economy (7.3%). Secondary industries accounted for 21.8% compared with 18.7% in the national economy. Tertiary industries accounted for 22.0% compared with 28.4% in the national economy. Quarternary industries accounted for the smallest proportion in : 13.8% compared with 31.9% in the national economy. Table 1: GDP by 1-digit industry (2016) Industry Level Share of total Level Share of total Agriculture, Forestry and Fishing $531m 28.8% $12,811m 5.7% Mining $2.78m 0.2% $3,522m 1.6% Manufacturing $208m 11.3% $22,521m 10.1% Electricity, Gas, Water and Waste Services $76.8m 4.2% $6,471m 2.9% Construction $118m 6.4% $12,808m 5.7% Wholesale Trade $74.0m 4.0% $11,488m 5.1% Retail Trade $84.0m 4.6% $10,630m 4.8% Accommodation and Food Services $29.9m 1.6% $4,736m 2.1% Transport, Postal and Warehousing $40.5m 2.2% $9,397m 4.2% Information Media and Telecommunications $24.0m 1.3% $7,904m 3.5% Financial and Insurance Services $48.0m 2.6% $13,220m 5.9% Rental, Hiring and Real Estate Services $114m 6.2% $15,991m 7.2% Professional, Scientific and Technical Services $61.2m 3.3% $18,018m 8.1% Administrative and Support Services $22.5m 1.2% $4,564m 2.0% Public Administration and Safety $22.8m 1.2% $9,612m 4.3% Education and Training $43.5m 2.4% $9,365m 4.2% Health Care and Social Assistance $55.8m 3.0% $13,259m 5.9% Arts and Recreation Services $18.9m 1.0% $2,918m 1.3% Other Services $21.6m 1.2% $3,794m 1.7% Owner-Occupied Property Operation $109m 5.9% $13,628m 6.1% Unallocated $139m 7.5% $16,826m 7.5% Total $1,845m 100% $223,483m 100%

6 5 Annual Economic Profile 2016 Among broad industries Agriculture, Forestry and Fishing was the largest in in 2016 accounting for 28.8% of total. The second largest was Manufacturing (11.3%) followed by Construction (6.4%) Figure 5: Share of total GDP (2016) 4% 21.2% 28.8% Agriculture, Forestry and Fishing Manuf acturing Unallocated Construction Rental, Hiring and Real Estate Serv ices Owner-Occupied Property Operation Retail Trade Electricity, Gas, Water and Waste Serv ices Wholesale Trade All others 4.2% 4.6% 5.9% 11.3% 6.2% 6.4% 7.5% The table on the following page shows 54 industries ranked according to their contribution to GDP. These industry categories are used by Statistics 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 Dairy Cattle Farming was the largest in in 2016 accounting for 16.1% of total. The second largest was Sheep, Beef Cattle & Grain Farming (7.3%) followed by Property Operators & Real Estate Services (5.7%)

7 6 Annual Economic Profile 2016 Table 2: GDP by 54 industries (2016) Industry Level Share of total Level Share of total Horticulture & Fruit Growing $16.8m 0.9% $1,141m 0.5% Sheep, Beef Cattle & Grain Farming $134m 7.3% $2,709m 1.2% Dairy Cattle Farming $297m 16.1% $5,230m 2.3% Poultry, Deer & Other Livestock Farming $8.52m 0.5% $316m 0.1% Forestry & Logging $7.28m 0.4% $1,391m 0.6% Fishing & Aquaculture $0.73m 0.0% $345m 0.2% Agric Support Services & Hunting $66.9m 3.6% $1,679m 0.8% Mining $2.78m 0.2% $3,522m 1.6% Meat & Meat Product Manufacturing $87.2m 4.7% $1,786m 0.8% Seafood Processing $0.25m 0.0% $408m 0.2% Dairy Product Manufacturing $0.05m 0.0% $1,304m 0.6% Fruit, Cereal & Other Food Product Manu $25.7m 1.4% $1,994m 0.9% Beverage & Tobacco Product Manu $0.00m 0.0% $1,904m 0.9% Textile, Leather, Clothing, Footwear Manu $5.76m 0.3% $672m 0.3% Wood Product Manufacturing $8.68m 0.5% $1,321m 0.6% Pulp & Paper Product Manufacturing $0.78m 0.0% $689m 0.3% Printing $1.79m 0.1% $565m 0.3% Petroleum & Coal Product Manufacturing $0.55m 0.0% $1,067m 0.5% Basic Chemical & Chemical Product Manu $4.73m 0.3% $1,387m 0.6% Polymer Product & Rubber Product Manu $12.1m 0.7% $1,346m 0.6% Non-Metallic Mineral Product Manu $12.4m 0.7% $1,142m 0.5% Primary Metal & Metal Product Manu $0.38m 0.0% $586m 0.3% Fabricated Metal Product Manufacturing $7.19m 0.4% $1,861m 0.8% Transport Equipment Manufacturing $4.38m 0.2% $1,067m 0.5% Machinery & Other Equipment Manu $35.0m 1.9% $2,805m 1.3% Furniture & Other Manufacturing $1.40m 0.1% $617m 0.3% Electricity & Gas Supply $71.6m 3.9% $5,373m 2.4% Water, Sewerage & Waste Services $5.12m 0.3% $1,098m 0.5% Building Construction $29.2m 1.6% $2,636m 1.2% Heavy & Civil Engineering Construction $31.3m 1.7% $3,639m 1.6% Construction Services $57.2m 3.1% $6,533m 2.9% Wholesale Trade $74.0m 4.0% $11,488m 5.1% Motor Vehicle, Parts & Fuel Retailing $19.1m 1.0% $1,526m 0.7% Supermarket & Specialised Food Retailing $24.9m 1.3% $3,102m 1.4% Other Store & Non Store Retailing $40.0m 2.2% $6,002m 2.7% Accommodation & Food Services $29.9m 1.6% $4,736m 2.1% Road Transport $27.6m 1.5% $3,281m 1.5% Rail, Water, Air & Other Transport $1.32m 0.1% $1,930m 0.9% Postal, Courier & Warehousing Services $11.6m 0.6% $4,186m 1.9% Information Media Services $17.5m 0.9% $2,197m 1.0% Telecomms, Internet & Library Services $6.50m 0.4% $5,707m 2.6% Finance $39.1m 2.1% $8,733m 3.9% Insurance & Superannuation Funds $1.24m 0.1% $2,466m 1.1% Auxiliary Finance & Insurance Services $7.61m 0.4% $2,020m 0.9% Rental & Hiring Services $8.05m 0.4% $2,533m 1.1% Property Operators & Real Estate Services $106m 5.7% $13,458m 6.0% Professional, Scientific & Tech Services $61.2m 3.3% $18,018m 8.1% Administrative & Support Services $22.5m 1.2% $4,564m 2.0% Local Government Administration $7.04m 0.4% $1,146m 0.5% Central Gov Admin, Defence & Safety $15.7m 0.9% $8,466m 3.8% Education & Training $43.5m 2.4% $9,365m 4.2% Health Care & Social Assistance $55.8m 3.0% $13,259m 5.9% Arts & Recreation Services $18.9m 1.0% $2,918m 1.3% Other Services $21.6m 1.2% $3,794m 1.7% Owner-Occupied Property Operation $109m 5.9% $13,628m 6.1% Unallocated $139m 7.5% $16,826m 7.5% Total $1,845m 100% $223,483m 100%

8 7 Annual Economic Profile 2016 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 's economy taking into account their relative sizes. Agriculture, Forestry and Fishing made the largest contribution to overall growth in between 2015 and The industry grew by 4.3% over the year and contributed 1.23 percentage points to the district's total growth of 4.0%. The next largest contributor was rental, hiring and real estate services (0.37 percentage points) followed by electricity, gas, water and waste services (0.29 percentage points). The largest detractor from growth over the year was Health Care and Social Assistance which declined by 1.3% and contributed percentage points to the total growth of 4.0%. Other Services (-0.01 percentage points) was the next largest detractor. Table 3: 1-digit industries ranked by % point contribution to GDP growth Industry % point contribution to growth Annual Growth Agriculture, Forestry and Fishing % 4.3% Rental, Hiring and Real Estate Services % 6.0% Electricity, Gas, Water and Waste Services % 7.1% Construction % 4.3% Financial and Insurance Services % 9.4% Professional, Scientific and Technical Services % 5.7% Retail Trade % 3.8% Information Media and Telecommunications % 13.7% Administrative and Support Services % 13.2% Public Administration and Safety % 10.6% Accommodation and Food Services % 7.5% Transport, Postal and Warehousing % 4.4% Mining % 83.1% Education and Training % 1.8% Manufacturing % 0.2% Arts and Recreation Services % 1.7% Wholesale Trade % 0.2% Other Services % -0.6% Health Care and Social Assistance % -1.3% Owner-Occupied Property Operation % 1.4% Unallocated % 5.6% Total 1,774 1, % 4.0%

9 8 Annual Economic Profile 2016 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. Sheep, Beef Cattle & Grain Farming made the largest contribution to overall growth in between 2015 and The industry grew by 7.6% over the year and contributed 0.53 percentage points to the district's total growth of 4.0%. The next largest contributor was property operators & real estate services (0.44 percentage points) followed by agric support services & hunting (0.37 percentage points). The largest detractor from growth over the year was Rental & Hiring Services which declined by 14% and contributed percentage points to the total growth of 4.0%. Fruit, Cereal & Other Food Product Manu (-0.06 percentage points) was the next largest detractor.

10 9 Annual Economic Profile 2016 Table 4: 54 industries ranked by percentage point contribution to growth Industry % point contribution to growth Annual Growth Sheep, Beef Cattle & Grain Farming % 7.6% Property Operators & Real Estate Services % 7.9% Agric Support Services & Hunting % 11.0% Electricity & Gas Supply % 7.0% Dairy Cattle Farming % 1.2% Professional, Scientific & Tech Services % 5.7% Heavy & Civil Engineering Construction % 11.7% Finance % 8.1% Administrative & Support Services % 13.2% Accommodation & Food Services % 7.5% Information Media Services % 12.4% Central Gov Admin, Defence & Safety % 12.0% Poultry, Deer & Other Livestock Farming % 20.2% Road Transport % 5.4% Other Store & Non Store Retailing % 3.3% Mining % 83.1% Auxiliary Finance & Insurance Services % 16.6% Building Construction % 3.6% Supermarket & Specialised Food Retailing % 4.0% Telecomms, Internet & Library Services % 17.2% Horticulture & Fruit Growing % 5.5% Motor Vehicle, Parts & Fuel Retailing % 4.6% Education & Training % 1.8% Postal, Courier & Warehousing Services % 5.0% Construction Services % 0.9% Local Government Administration % 7.5% Polymer Product & Rubber Product Manu % 4.1% Textile, Leather, Clothing, Footwear Manu % 8.4% Water, Sewerage & Waste Services % 8.6% Fabricated Metal Product Manufacturing % 5.1% Arts & Recreation Services % 1.7% Non-Metallic Mineral Product Manu % 2.1% Pulp & Paper Product Manufacturing % 42.6% Meat & Meat Product Manufacturing % 0.3% Wood Product Manufacturing % 2.5% Wholesale Trade % 0.2% Insurance & Superannuation Funds % 7.0% Dairy Product Manufacturing % - Petroleum & Coal Product Manufacturing % 8.5% Printing % 2.4% Fishing & Aquaculture % 2.0% Seafood Processing % 0.5% Primary Metal & Metal Product Manu % 0.1% Beverage & Tobacco Product Manu % - Basic Chemical & Chemical Product Manu % -2.5% Other Services % -0.6% Forestry & Logging % -1.9% Transport Equipment Manufacturing % -3.4% Machinery & Other Equipment Manu % -0.5% Rail, Water, Air & Other Transport % -16.3% Furniture & Other Manufacturing % -22.4% Health Care & Social Assistance % -1.3% Fruit, Cereal & Other Food Product Manu % -4.0% Rental & Hiring Services % -13.8% Owner-Occupied Property Operation % 1.4% Unallocated % 5.6% Total 1,774 1, % 4.0%

11 10 Annual Economic Profile 2016 In which industries does 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 has the largest comparative advantages are Dairy Cattle Farming (location quotient = 6.9), Sheep, Beef Cattle & Grain Farming (6.0), and Meat & Meat Product Manufacturing (5.9).

12 11 Annual Economic Profile 2016 Table 5: Location Quotient 2016 Industry Location Quotient Share of total GDP Share of total GDP Dairy Cattle Farming % 2.3% Sheep, Beef Cattle & Grain Farming % 1.2% Meat & Meat Product Manufacturing % 0.8% Agric Support Services & Hunting % 0.8% Poultry, Deer & Other Livestock Farming % 0.1% Horticulture & Fruit Growing % 0.5% Electricity & Gas Supply % 2.4% Fruit, Cereal & Other Food Product Manu % 0.9% Motor Vehicle, Parts & Fuel Retailing % 0.7% Machinery & Other Equipment Manu % 1.3% Building Construction % 1.2% Non-Metallic Mineral Product Manu % 0.5% Polymer Product & Rubber Product Manu % 0.6% Construction Services % 2.9% Heavy & Civil Engineering Construction % 1.6% Textile, Leather, Clothing, Footwear Manu % 0.3% Road Transport % 1.5% Supermarket & Specialised Food Retailing % 1.4% Information Media Services % 1.0% Property Operators & Real Estate Services % 6.0% Other Store & Non Store Retailing % 2.7% Wood Product Manufacturing % 0.6% Arts & Recreation Services % 1.3% Wholesale Trade % 5.1% Accommodation & Food Services % 2.1% Local Government Administration % 0.5% Other Services % 1.7% Forestry & Logging % 0.6% Administrative & Support Services % 2.0% Water, Sewerage & Waste Services % 0.5% Education & Training % 4.2% Finance % 3.9% Health Care & Social Assistance % 5.9% Transport Equipment Manufacturing % 0.5% Fabricated Metal Product Manufacturing % 0.8% Auxiliary Finance & Insurance Services % 0.9% Basic Chemical & Chemical Product Manu % 0.6% Professional, Scientific & Tech Services % 8.1% Rental & Hiring Services % 1.1% Printing % 0.3% Postal, Courier & Warehousing Services % 1.9% Furniture & Other Manufacturing % 0.3% Fishing & Aquaculture % 0.2% Central Gov Admin, Defence & Safety % 3.8% Telecomms, Internet & Library Services % 2.6% Pulp & Paper Product Manufacturing % 0.3% Mining % 1.6% Rail, Water, Air & Other Transport % 0.9% Primary Metal & Metal Product Manu % 0.3% Seafood Processing % 0.2% Petroleum & Coal Product Manufacturing % 0.5% Insurance & Superannuation Funds % 1.1% Dairy Product Manufacturing % 0.6% Beverage & Tobacco Product Manu % 0.9%

13 12 Annual Economic Profile 2016 EMPLOYMENT How fast has employment grown in? Employment growth provides new opportunities for the region's population to earn income and contribute to the region's economy. This section contrasts 's recent performance in creating jobs with other regions in the country. Figure 6: Employment growth (year to Mar 2016) 4% 3% 2% 3.1% 2.7% 1% 0% Total employment in averaged 19,076 in the year to March 2016, up 3.1% from a year earlier. Employment in increased by 2.7% over the same period. Employment growth in averaged 2.2%pa over the last 10 years compared with 1.2%pa in the national economy. Employment growth in reached a high of 3.8% in 2009 and a low of -1.2% in 2010.

14 13 Annual Economic Profile 2016 Figure 7: Annual average employment growth 5% 2.5% 0% -2.5% -5% Change Ashburton District 1.7% 0.5% -0.1% 3.5% 1.9% 1.6% 0.9% 3.8% 3.8% -1.2% -0.4% 3.2% 3.6% 1.8% 3.2% 3.1% 2.3% 3.0% 2.6% 3.5% 3.3% 2.2% 2.2% 2.0% 0.6% -2.4% 0.4% 1.0% 1.0% 1.9% 2.7% 2.7% Figure 8: Employment growth over various time periods 4% 3% 2% 1% 3.1% 3.2% 2.7% 2.7% 2.2% 1.2% 1.9% 1.8% 0%

15 14 Annual Economic Profile 2016 What is the industrial structure of employment in? 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 9: Employment by broad sector (2016) Primary Secondary Tertiary Quarternary 6.5% 19.5% 18.5% 25.7% 24.8% 31.1% 37.8% 36.3% 0% 5% 10% 15% 20% 25% 30% 35% 40% Primary accounted for 25.7% in compared with 6.5% in. Secondary accounted for 24.8% in compared with 19.5% in. Tertiary industries accounted for the largest proportion of employment (31.1%) in, which is lower than in (37.8%). Quarternary accounted for 18.5% in compared with 36.3% in.

16 15 Annual Economic Profile 2016 Which are the largest employing industries in? This section identifies the broad industries that make the largest contribution to employment in Ashburton District. Table 6: 1-digit industries ranked by size of employment (2016) Industry Level Share of total Level Share of total Agriculture, Forestry and Fishing 4, % 147, % Mining % 5, % Manufacturing 2, % 232, % Electricity, Gas, Water and Waste Services % 15, % Construction 1, % 211, % Wholesale Trade % 117, % Retail Trade 1, % 216, % Accommodation and Food Services % 151, % Transport, Postal and Warehousing % 98, % Information Media and Telecommunications % 40, % Financial and Insurance Services % 65, % Rental, Hiring and Real Estate Services % 55, % Professional, Scientific and Technical Services % 223, % Administrative and Support Services % 118, % Public Administration and Safety % 111, % Education and Training % 184, % Health Care and Social Assistance 1, % 233, % Arts and Recreation Services % 44, % Other Services % 88, % Total 19, % 2,363, % Among broad industries Agriculture, Forestry and Fishing was the largest in in 2016 accounting for 25.5% of total. The second largest was Manufacturing (14.9%) followed by Retail Trade (9.2%) The table on the following page shows the 50 detailed industries among the approximately digit ANZSIC industry categories which employ the highest number of people in. Agriculture, Forestry and Fishing was the largest 7-digit industry in in 2016 employing 4,872 persons and accounting for 25.5% of total employment in the district. By contrast this industry accounted for 6.2% of total employment in. The second largest employing industries were manufacturing (2,843) followed by retail trade (1,764).

17 16 Annual Economic Profile 2016 Table 7: 50 largest employing 7-digit ANZSIC industries (2016) Rank Industry Jobs % of total % of total 1 Dairy Cattle Farming 2, % 1.7% 2 Meat Processing 1, % 0.8% 3 Other Agriculture and Fishing Support Services % 0.9% 4 Supermarket and Grocery Stores % 2.4% 5 Primary Education % 2.2% 6 Grain-Sheep and Grain-Beef Cattle Farming % 0.1% 7 House Construction % 1.7% 8 Hospitals (except Psychiatric Hospitals) % 2.9% 9 Cafes and Restaurants % 2.8% 10 Other Grain Growing % 0.1% 11 Other Agricultural Product Wholesaling % 0.2% 12 Beef Cattle Farming (Specialised) % 0.4% 13 Road Freight Transport % 1.3% 14 Aged Care Residential Services % 1.4% 15 Agricultural and Construction Machinery Wholesaling % 0.2% 16 Non-Residential Property Operators % 0.6% 17 Employment Placement and Recruitment Services % 0.6% 18 Fruit and Vegetable Processing % 0.2% 19 Pubs, Taverns and Bars % 0.6% 20 Hardware and Building Supplies Retailing % 0.8% 21 Sheep Farming (Specialised) % 0.4% 22 Site Preparation Services % 0.5% 23 Accounting Services % 1.0% 24 Secondary Education % 1.5% 25 Preschool Education % 1.1% 26 Other Machinery and Equipment Manufacturing n.e.c % 0.5% 27 Takeaway Food Services % 1.1% 28 Road and Bridge Construction % 0.6% 29 Painting and Decorating Services % 0.6% 30 Agricultural Machinery and Equipment Manufacturing % 0.1% 31 Newspaper Publishing % 0.2% 32 Vegetable Growing (Outdoors) % 0.2% 33 Accommodation % 1.3% 34 Department Stores % 0.7% 35 Local Government Administration % 1.0% 36 Electrical Services % 0.9% 37 Car Retailing % 0.5% 38 Other Polymer Product Manufacturing % 0.1% 39 Non-Residential Building Construction % 0.5% 40 Sports and Physical Recreation Venues, Grounds and Facilities Operation % 0.3% 41 Banking % 1.0% 42 Sheep-Beef Cattle Farming % 0.5% 43 Veterinary Services % 0.2% 44 General Practice Medical Services % 0.7% 45 Hairdressing and Beauty Services % 0.6% 46 Electricity Distribution % 0.1% 47 Labour Supply Services % 1.2% 48 Other Automotive Repair and Maintenance % 0.7% 49 Other Crop Growing n.e.c % 0.1% 50 Plumbing Services % 0.5% All other industries total 4, % 59.6% Total 19, % 100%

18 17 Annual Economic Profile 2016 Which industries have created the most jobs? The section investigates which industries have created and lost the most number of jobs in Ashburton District. 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 Industry Change Annual Growth Agriculture, Forestry and Fishing 4,753 4, % Construction 1,648 1, % Administrative and Support Services % Accommodation and Food Services % Professional, Scientific and Technical Services % Public Administration and Safety % Financial and Insurance Services % Manufacturing 2,819 2, % Transport, Postal and Warehousing % Arts and Recreation Services % Education and Training % Rental, Hiring and Real Estate Services % Electricity, Gas, Water and Waste Services % Wholesale Trade % Information Media and Telecommunications % Mining % Retail Trade 1,757 1, % Other Services % Health Care and Social Assistance 1,053 1, % Total 18,502 19, % Agriculture, Forestry and Fishing made the largest contribution to employment growth in Ashburton District between 2015 and 2016 with the industry adding 119 jobs. The next largest contributor was Construction (80 jobs) followed by Administrative and Support Services (68 jobs). The largest detractor from growth over the year was Health Care and Social Assistance in which employment declined by 3. 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. Other Agriculture and Fishing Support Services was the largest creator of jobs in between 2015 and 2016 generating an additional 51 positions. This was followed by Grain-Sheep and Grain-Beef Cattle Farming, which added 48 jobs over the same period. Dairy Cattle Farming was the largest detractor of jobs in between 2015 and 2016 losting 27 positions. This was followed by Sheep Farming (Specialised), which lost 18 jobs over the same period.

19 18 Annual Economic Profile 2016 Table 9: The 50 seven-digit industries that created the most jobs between 2015 and 2016 Jobs Rank Industry Change % of total Other Agriculture and Fishing Support Services % 2 Grain-Sheep and Grain-Beef Cattle Farming % 3 Primary Education % 4 Cafes and Restaurants % 5 Agricultural and Construction Machinery Wholesaling % 6 Other Heavy and Civil Engineering Construction % 7 Sports and Physical Recreation Venues, Grounds and Facilities Operation % 8 Veterinary Services % 9 Meat Processing 1,295 1, % 10 Labour Supply Services % 11 Beef Cattle Farming (Specialised) % 12 Beekeeping % 13 Non-Residential Property Operators % 14 Employment Placement and Recruitment Services % 15 Other Crop Growing n.e.c % 16 Site Preparation Services % 17 Financial Asset Investing % 18 Takeaway Food Services % 19 Sheep-Beef Cattle Farming % 20 Non-Residential Building Construction % 21 Engineering Design and Engineering Consulting Services % 22 Central Government Administration % 23 House Construction % 24 Road Freight Transport % 25 Roofing Services % 26 Auxiliary Insurance Services % 27 Local Government Administration % 28 Buildings Cleaning Services % 29 Electricity Distribution % 30 Other Machinery and Equipment Manufacturing n.e.c % 31 Shearing Services % 32 Knitted Product Manufacturing % 33 Other Personal Services n.e.c % 34 Tyre Retailing % 35 Buildings Pest Control Services % 36 Scientific Research Services % 37 Newspaper Publishing % 38 Interurban and Rural Bus Transport % 39 Manchester and Other Textile Goods Retailing % 40 Automotive Body, Paint and Interior Repair % 41 Residential Property Operators % 42 Pharmaceutical, Cosmetic and Toiletry Goods Retailing % 43 Hospitals (except Psychiatric Hospitals) % 44 Electrical, Electronic and Gas Appliance Retailing % 45 Office Administrative Services % 46 Health and Fitness Centres and Gymnasia Operation % 47 Pig Farming % 48 Travel Agency and Tour Arrangement Services % 49 Other Construction Material Mining % 50 Other Social Assistance Services % All other industries 10,983 10, % Total 18,502 19, %

20 19 Annual Economic Profile 2016 Table 10: The 50 seven-digit industries that lost the most jobs between 2015 and 2016 Rank Industry Jobs Change % of total Dairy Cattle Farming 2,126 2, % 2 Sheep Farming (Specialised) % 3 Other Allied Health Services % 4 Secondary Education % 5 Accounting Services % 6 Business and Professional Association Services % 7 Concreting Services % 8 Department Stores % 9 Other Agricultural Product Wholesaling % 10 Agricultural Machinery and Equipment Manufacturing % 11 Aged Care Residential Services % 12 Fuel Retailing % 13 Commission Based Wholesaling % 14 Horse and Dog Racing Administration and Track Operation % 15 Other Furniture Manufacturing % 16 Prepared Animal and Bird Feed Manufacturing % 17 Nursery Production (Outdoors) % 18 Other Administrative Services n.e.c % 19 Automotive Electrical Services % 20 Vegetable Growing (Outdoors) % 21 Clothing Retailing % 22 Religious Services % 23 Video and Other Electronic Media Rental % 24 Sport and Physical Recreation Administrative Service % 25 Other Goods and Equipment Rental and Hiring n.e.c % 26 Scenic and Sightseeing Transport % 27 Air Conditioning and Heating Services % 28 Preschool Education % 29 Plastering and Ceiling Services % 30 Footwear Retailing % 31 Newspaper and Book Retailing % 32 Other Transport n.e.c % 33 Computer Systems Design and Related Services % 34 Electronic (except Domestic Appliance) and Precision Equipment Repair and Maintenance % 35 Deer Farming % 36 Wool Wholesaling % 37 Grain Mill Product Manufacturing % 38 Logging % 39 Motor Vehicle Body and Trailer Manufacturing % 40 Farm Animals and Bloodstock Leasing % 41 Cereal Grain Wholesaling % 42 Motor Vehicle Dismantling and Used Part Wholesaling % 43 Ambulance Services % 44 Watch and Jewellery Retailing % 45 Toy, Sporting and Recreational Product Manufacturing % 46 Horse Farming % 47 Synthetic Resin and Synthetic Rubber Manufacturing % 48 Other Structural Metal Product Manufacturing % 49 Timber Wholesaling % 50 Other Electrical and Electronic Goods Wholesaling % All other industries 13,266 14, % Total 18,502 19, %

21 20 Annual Economic Profile 2016 What proportion of the workforce is self-employed in? Self-employment makes up a sizeable proportion of total employment in although it declined through the economic boom years and stabilised since the recession. This section contrasts selfemployment in with the national economy. Figure 10: Self employment rate, % 15% 19.7% 18.0% 10% 5% 0% Self-employed workers accounted for 19.7% of the workforce in in 2016, which was a higher rate than in the national economy (18.0%) A total of 3,755.7 workers were self-employed in in Figure 11: Self employment rate 30% 25% 20% 15% Level Ashburton 26.8% 26.9% 26.2% 24.7% 23.9% 23.2% 23.0% 22.7% 22.2% 21.8% 21.2% 20.8% 19.8% 19.3% 19.6% 19 District New 20.4% 19.9% 19.3% 18.9% 18.5% 18.2% 18.0% 17.9% 17.8% 17.9% 17.9% 17.9% 17.9% 17.7% 17.7% 18 Zealand

22 21 Annual Economic Profile 2016 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 's productivity level during the year to March 2016 and previous years. Productivity is measured by GDP per employee (in constant 2010 prices). Figure 12: Productivity k $96,739 $94,559 75k 50k 25k 0k GDP per employee in measured $96,739 in the year to March 2016, which was 2.3% higher than in. Productivity in increased by 0.9% from a year earlier compared with an decrease of 0.2% in ). Productivity growth in averaged 0.2%pa over the last ten years compared with an average of 0.6%pa in.

23 22 Annual Economic Profile 2016 Figure 13: Productivity growth 10% 5% 0% -5% -10% Change Ashburton District -1.9% 0.0% 3.9% 5.7% -0.7% 3.5% 1.2% -5.3% -0.6% 2.1% -2.2% 4.0% 2.1% -1.4% 1.5% 0.9% 0.5% 0.5% 1.9% 1.1% 0.3% 1.1% 0.5% 0.5% -2.0% 2.1% 1.1% 1.1% 1.2% 0.6% 0.6% -0.2%

24 23 Annual Economic Profile 2016 What are the most productive industries in This section ranks industries according to their level of GDP per employee in. 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 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 (2016) Productivity Capital intensity Industry Electricity, Gas, Water and Waste Services 493, ,993 - Rental, Hiring and Real Estate Services 278, ,960 - Financial and Insurance Services 166, ,093 - Mining 119, ,003 - Agriculture, Forestry and Fishing 109,024 86,859 - Information Media and Telecommunications 104, ,114 - Wholesale Trade 92,092 97,377 - Professional, Scientific and Technical Services 82,068 80,455 - Transport, Postal and Warehousing 79,509 95,231 - Manufacturing 73,303 96,717 - Public Administration and Safety 68,480 86,564 - Construction 68,110 60,490 - Arts and Recreation Services 60,911 65,545 - Health Care and Social Assistance 53,197 56,859 - Education and Training 49,327 50,863 - Retail Trade 47,620 49,065 - Other Services 39,203 42,923 - Administrative and Support Services 36,538 38,440 - Accommodation and Food Services 31,029 31,198 - Total 96,739 94,559

25 24 Annual Economic Profile 2016 BUSINESS GROWTH How fast did the number of business units grow in? 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 's recent performance in business unit growth with other regions in the country. Figure 14: Business unit growth (year to Mar 2016) 2% 1% 1.6% 0% -1% -0.9% A total of 5,271 business units were recorded in in 2016, down 0.8% from a year earlier. The number of business units in increased by 1.6% over the same period. Growth in the number of business units in averaged 1.6%pa over the past 10 years compared with 1.1%pa in the national economy. Business unit growth in varied from a high of 6.1% in 2014 to a low of -0.8% in 2016.

26 25 Annual Economic Profile 2016 Figure 15: Annual average business unit growth 10% 5% 0% -5% Change Ashburton District 2.0% 2.4% 1.5% 5.6% 2.9% 4.0% 3.3% 3.2% 0.6% 0.9% 0.1% 0.2% 0.4% 6.1% 2.3% -0.8% -0.7% 1.1% 3.5% 8.3% 4.3% 3.6% 2.2% 2.1% 0.6% -1.4% -0.1% -0.2% 0.6% 3.4% 2.2% 1.6%

27 26 Annual Economic Profile 2016 POPULATION GROWTH How fast has 's population grown? Population growth is an indicator of a region's attractiveness as a place to live and work. A strong regional economy with plentiful job opportunities will help a region retain its population and attract new residents from other regions and abroad. This section contrasts 's recent population growth with other districts and the country as a whole. Figure 16: Population growth (year to Jun 2016) 2.5% 2% 2.1% 1.5% 1.5% 1% 0.5% 0% 's population was 33,700 in 2016, up 1.5% from a year earlier. 's total population grew by 2.1% over the same period. Population growth in averaged 1.7%pa over the last 5 years compared with 1.4%pa in. Since 2000 growth in reached a high of 3.0%pa in 2011 and a low of 0.4%pa in 2001.

28 27 Annual Economic Profile 2016 Figure 17: Annual population growth 3% 2% 1% 0% Change Ashburton District 0.4% 1.2% 1.9% 1.5% 1.5% 1.4% 2.1% 1.7% 1.7% 1.7% 3.0% 2.3% 1.9% 1.5% 1.2% 1.5% 0.6% 1.8% 2.0% 1.5% 1.1% 1.2% 0.9% 0.9% 1.0% 1.1% 0.8% 0.5% 0.8% 1.5% 1.9% 2.1% Figure 18: Population growth last 1,2,3 and 5 years 3% 2% 1% 2.1% 2.0% 1.5% 1.4% 1.4% 1.8% 1.7% 1.4% 0%

29 28 Annual Economic Profile 2016 What is the source of 's population growth? A region's population can grow through natural growth (births less deaths) and net migration (arrivals less departures). This section describes the relative contributions of these two sources to pupulation growth in. 's population increased by 500 people in the year to June This net increase was made up of net migration of 300 and natural increase of 200. Figure 19: Source of population growth (year to June 2016) Natural increase Net migration Total change What is the age structure of 's population? In 2016, 62.6% of 's population was of working age (15-64). This was significantly lower than the proportion of the national population (65.5%). had a slightly higher proportion (20.3%) of young people (0-14) than the country as a whole (19.6%) and a significantly higher proportion (17.1%) of people 65 years and older compared with (14.9%). Overall the dependency ratio in (59.6%) was higher than in the national economy (52.7%). The dependency ratio expresses the number of persons outside of the working age as a proportion of the number of persons of working age (15 to 64 years). Figure 20: Age composition of the population (year to June 2016) 75% 50% 62.6% 65.5% 25% 0% 20.3% 19.6% 17.1% %

30 29 Annual Economic Profile 2016 STANDARD OF LIVING This section describes a few indicators of economic standard of living. It investigates average earnings, house prices and housing affordability. Note that due to data constraints earnings data are provided for the year to March What are the mean earnings in? Income earned in the labour market is an important source of household income. This section contrasts 's mean annual earnings with the country as a whole. Figure 21: Earnings, k 40k $49,700 $56,030 20k 0k Mean annual earnings in was $49,700 in the year to March 2015, which was lower than the mean of $56,030. Mean earnings in increased by 3.8% over the year to March 2015 compared with an increase of 3.1% in. Over the last ten years earnings growth in reached a maximum of 8.9% in 2002 and a minimum of 0.7% in 2010.

31 30 Annual Economic Profile 2016 Figure 22: Annual earnings growth 10% 7.5% 5% 2.5% 0% Change % 8.9% 3.9% 4.0% 3.8% 5.3% 4.6% 7.6% 6.3% 0.7% 3.6% 4.6% 4.3% 1.1% 3.8% 2.3% 3.5% 3.3% 4.4% 4.1% 4.9% 4.1% 5.4% 4.7% 1.9% 3.3% 3.3% 2.9% 2.4% 3.1% Mean annual earnings in was $49,700 in the year to March 2015, which was lower than the mean of $56,030. Mean earnings in increased by 3.8% over the year to March 2015 compared with an increase of 3.1% in. Over the last ten years earnings growth in reached a maximum of 8.9% in 2002 and a minimum of 0.7% in 2010.

32 31 Annual Economic Profile 2016 How do house prices in compare? The cost of housing is a major component of household spending.this section describes the cost of housing in relative to the rest of the country. Figure 23: Average current house value, k $557, k $336, k 0k The Average current house value in was $336,006 in 2016, which was lower than the median of $557,143. House price growth in was 3.5% for the year to March Growth was weaker that in (12%). Figure 24: Annual Average current house value growth 30% 20% 10% 0% -10% Change % 13.3% -4.1% -1.7% -2.2% 5.6% 8.6% 7.8% 5.4% 3.5% 10.5% 8.8% -7.3% 2.3% 0.1% 2.3% 5.9% 9.1% 6.8% 12.2%

33 32 Annual Economic Profile 2016 How affordable is housing in? This section investigates the affordability of housing by comparing Average current house values with average earnings. We have estimated a housing affordability index which is the ratio of the Average current house value to annual average earnings measured in the Linked Employer Employee Data. A higher ratio therefore indicates lower housing affordability. Figure 25: Housing affordibility index The housing affordability index in was 6.5 in the year to March 2015, which was lower than 's index of 8.9. This means that housing is more affordable in than in. Figure 26: Housing affordibility Level

34 33 Annual Economic Profile 2016 WORKFORCE AND SKILLS How do skill levels in compare with? 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 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 2016 Skill level Jobs % of total Jobs % of total High 3, % 790, % MediumHigh 1, % 267, % Medium 4, % 409, % Low 8, % 896, % Total 19, % 2,363, % Approximately 21% of 's workforce was employed in highly skilled occupations in This is lower than in (33%). Approximately 44% of 's workforce was employed in low-skilled occupations in This is higher than in 38%. Figure 27: Employment by broad skill level, 2016 High MediumHigh Medium Low 9.2% 11.3% 17.3% 20.7% 25.8% 33.5% 37.9% 44.3% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

35 34 Annual Economic Profile 2016 What is the occupational structure of employment in? This section describes the types of occupations that are employed in. The following graph shows the distribution of employment across broad occupational categories (1-digit occupations). Managers accounted for the largest share of employment (24%) in, which is higher than (19%). Labourers accounted for the second largest share of employment (20%) in, which is higher than (11%). Community and personal service workers accounted for the lowest share of employment (20%) in, which is higher than (11%). Figure 28: Employment by broad occupation, 2016 Managers Prof essionals Technicians and trades workers ommunity and personal serv ice workers Clerical and administrativ e workers Sales workers Machinery operators and driv ers Labourers 0% 5% 10% 15% 20% 25%

36 35 Annual Economic Profile 2016 Table 13: Employment by 2-digit occupation (2016) Occupation Employment % of total Employment % of total Farmers & Farm Managers 2, % 68, % Farm, Forestry & Garden Workers 1, % 52, % Specialist Managers 1, % 200, % Factory Process Workers % 46, % Sales Assistants & Salespersons % 115, % Education Professionals % 137, % Other Labourers % 63, % Chief Execs, General Managers, Legislators % 89, % Business, HR & Marketing Professionals % 119, % Automotive & Engineering Trades Workers % 58, % Hospitality, Retail & Service Managers % 85, % Construction Trades Workers % 55, % Office Managers & Program Administrators % 70, % Design, Engineering, Science Professionals % 76, % Road & Rail Drivers % 50, % Health Professionals % 93, % Mobile Plant Operators % 21, % Sales Representatives & Agents % 71, % Carers & Aides % 76, % General Clerical Workers % 48, % Hospitality Workers % 45, % Food Trades Workers % 38, % Cleaners & Laundry Workers % 49, % Machine & Stationary Plant Operators % 32, % Numerical Clerks % 43, % Engineering, ICT & Science Technicians % 44, % Skilled Animal & Horticultural Workers % 24, % Other Clerical & Administrative Workers % 39, % Sports & Personal Service Workers % 36, % Construction & Mining Labourers % 23, % Other Technicians & Trades Workers % 35, % Inquiry Clerks & Receptionists % 35, % Sales Support Workers % 26, % Electrotech & Telecoms Trades Workers % 28, % Storepersons % 21, % Legal, Social & Welfare Professionals % 50, % ICT Professionals % 54, % Personal Assistants & Secretaries % 20, % Food Preparation Assistants % 18, % Clerical & Office Support Workers % 18, % Arts & Media Professionals % 21, % Protective Service Workers % 30, % Health & Welfare Support Workers % 22, % Total employment 19, % 2,363, %