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Improving labour market benefiting people with school and sub-degree qualifications

The recent improvements in the labour market have resulted in reduced unemployment levels for everyone. However, those who have had the greatest income increase are those with school qualifications only and tertiary qualifications below degree level. This reflects increased demand for low to middle skilled workers. It also reflects the resilience of people with higher qualifications as the economic cycles fluctuate.

The graph below shows the relationship between increasing levels of qualifications and income and unemployment. The general pattern shown is that gaining school or low-level tertiary qualifications results in significantly improved chances of employment and moderate gains in income. Gaining higher-level tertiary qualifications results in greater income, but not such high gains in terms of employment. The change from 2002 to 2005 has been in increased gains in both income and employment for those with qualifications below degree level, while those with degree-level qualifications or above have gained mostly in employment prospects.

Comparison of real median income (2005 dollars) with unemployment rate by level of highest qualification 2002 and 2005

Source: Statistics New Zealand, Household Labour Force Survey and New Zealand Income Survey

A completed qualification is worth more than a partial qualification, but in some cases a higher-level qualification can be better

Information from the Student Loans Integrated Dataset shows the distinct economic advantages to the completion of qualifications three years out from the end of study. These advantages are particularly marked for bachelors and masters degrees.

Comparison of average incomes in 2002 for those who last studied in 1999, by completed or non-completed qualifications

Source: Statistics New Zealand, Student Loans Integrated Dataset

However, this analysis also shows that at certain levels, having an incomplete higher-level qualification has more economic advantage than a completed lower-level qualification. For example, the average income for people with incompleted diplomas is higher than that for people with completed certificates. There is a similar effect for an incompleted honours or masters degree compared with a completed bachelors degree.

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• Table of Contents

• The State of Play

• Cross Strategy Indicators

• Raise foundation skills

• Skills for our knowledge society

• Strengthen research and knowledge creation

• Te rautaki mātauranga Māori

• Pacific people’s development and success

• Capability and quality

• Technical and Data Definitions