Auckland city business and economy report 2008

Economic structure

Auckland city's economy is dominated by non-government services.

The city's largest sector is property and business services.

Auckland city's economy is dominated by non-government services, which account for 71 per cent of the city's GDP, compared with 58 per cent at the national level. Auckland city contributes approximately a third of the nation's total output in each of the high value-adding industries of property and business services, communication services, and finance and insurance.

Auckland city has a sizeable manufacturing industry, contributing 15 per cent of the nation's manufacturing output. The industry is well diversified across the various manufacturing sub-industries. However, together with agriculture, cultural and recreational services and government services, manufacturing is underrepresented in Auckland city relative to the rest of the country.

Industry share of economy (GDP)

Measured for the year to March 2008

Source: Infometrics and Statistics New Zealand.

Almost 350,000 people were employed in Auckland city in March 2008, which accounts for 16 per cent of total employment in New Zealand. More than a quarter of the city's workers are employed in property and business services. Together, the wholesale and retail trade industries employ about 17 per cent of the workforce while the manufacturing sub-industries collectively employ another 10 per cent.

The creative, ICT and biotech sectors have been identified as key enablers of future economic growth in Auckland city. There are over 14,000 people employed in the creative sector, comprising nearly 5 per cent of the city's employment and nearly 19,000 employees in ICT, amounting to over 6 per cent of the city's employment.⁶

Estimates show there are 410 people employed in core biotech activities within the Auckland region.⁷ Employment in these sectors is spread over a variety of specific activities within the sectors in the table below.

Between 2003 and 2008, there was strong employment growth in government administration and defence (4.7 per cent per year), construction (5.1 per cent), and finance and insurance (4.1 per cent). In absolute terms, property and business services was by far the largest contributor to jobs between 2003 and 2008, followed by construction, and finance and insurance.

Employment by industry

Industry⁸	Employment March 2008⁹	Share of Auckland city total March 2008	Growth (%) 2003-2008¹⁰	Growth (number) 2003-2008
Manufacturing	35,500	10.1%	-1.4%	-2,600
Electricity, gas and water supply	1,000	0.2%	2.1%	100
Construction	20,600	6.2%	5.1%	4,700
Wholesale trade	33,400	9.3%	0.5%	800
Retail trade	27,600	8.1%	-0.6%	-800
Accommodation, cafes and restaurants	16,300	4.9%	1.8%	1,500
Transport and storage	13,300	3.6%	0.5%	300
Communication services	8,000	2.3%	2.0%	800
Finance and insurance	18,400	5.3%	4.1%	3,300
Property and business services	94,900	27.2%	3.4%	14,400
Government administration and defence	6,800	1.8%	4.7%	1,400
Education	21,400	6.1%	1.3%	1,500
Health and community services	25,500	7.3%	0.5%	600
Cultural and recreational services	13,300	3.6%	0.8%	500
Personal and other services	11,800	3.4%	0.2%	100
Total	348,500	100.0%	1.6%	26,700

Source: Infometrics estimates.

⁶ Based on Statistics New Zealand Business Demographic data as at February 2007, which differs to Infometrics data used in the Employment by industry table.
⁷ Based on 2005 figures in L.E.K. Consulting Ltd, 2006 New Zealand Biotechnology Industry Growth Report.
⁸ Industries with fewer than 1000 employees are excluded.
⁹ Data is sourced from the Infometrics Regional Industry Employment Model which draws on the Linked Employer Employee Data, Business Demographic and Quarterly Employment Survey. The employment count includes both employees and self employed.
¹⁰ Growth is measured on an annual average basis.

Published August 2008