4. IT Industry Employment
4.1 People Working in IT Occupations
The data in used in this section is taken from the 1991 and 1996 Censuses of Dwellings carried out by Statistics New Zealand (Statistics New Zealand 1997).
The IT Industry comprises those industry sectors whose business is IT related such as software companies. IT occupations are defined here as those jobs whose focus is on IT, for example, a programmer. However, there are non-IT occupations within the IT industry (an accountant in a computer company), and IT occupations in non-IT industries (a programmer in a bank).
Table 4.1.1 shows the number of people working in IT occupations in the IT industry and in the working population as a whole for 1991 and 1996. The table shows the number of people working in an IT occupation in the IT industry increased from 8,826 in 1991 to 10,695 in 1996. The number of people working in the IT industry has also increased by 4% to 41,823. However, as a proportion of the working population, the percentage of people working in the IT industry decreased to 2.6% (as shown in Table 4.1.2).
Table 4.1.1: Numbers Working in IT Occupations
| | IT Occupations | All Occupations |
|---|
| | 1991 | 1996 | 1991 | 1996 |
| IT Industry | 8,826 | 10,695 | 40,200 | 41,823 |
| All Industry | 27,717 | 33,642 | 1,400,376 | 1,630,809 |
In addition to those in the IT industry, there are also people working in IT occupations outside of the IT industry. Combining those in IT occupations in the IT industry and in other industries gives the number of people in IT occupations as 33,642 in 1996, a 21% increase between the two Censuses.
Table 4.1.2 shows that at the 1996 Census, 4% of the working population in New Zealand was in an IT occupation and/or working for an IT industry company. This is the virtually the same proportion as at the 1991 Census, despite an increase of 9.6% from 59,091 to 64,770 in the number of people employed in IT occupations and IT companies. The proportion has remained the same due to the increase in the working population over the same period.
The right hand column of the table shows the change in each category adjusted for the change in the working population. It shows the overall proportion of people in an IT occupation and/or working for an IT company (IT Employed) fell by 5.9% between the two Censuses, despite the rise in people working in an IT occupation. This indicates that the number of people supporting the work of each person employed in an IT occupation has fallen.
Table 4.1.2: Proportion of Workforce in IT Occupations
| | No. Employed | % Change of Working Pop. |
|---|
| | 1991 | | 1996 | | |
| Working Pop. | 1,400,376 | | 1,630,809 | | |
| IT Occ. IT Ind. | 8,826 | (0.6%) | 10,695 | (0.7%) | 4.1% |
| IT Occ. All Ind. | 27,717 | (2.1%) | 33,642 | (2.1%) | 4.2% |
| All Occ. IT Ind | 40,200 | (2.9%) | 41,823 | (2.6%) | -10.7% |
| IT Employed* | 59,091 | (4.2%) | 64,770 | (4%) | -5.9% |
* The IT Employed category is the number of people working in an IT occupation and/or in the IT industry and is derived as the sum of IT occupations in all industry and all occupations in the IT industry minus the IT occupations in the IT industry, (already counted in the all occupations in the IT Industry category).
While there has been a decline in the proportion of people in the IT Employed category - those people in actual IT jobs and/or working in the IT industry - there appears to be no fewer computers in use in the economy. This suggests that the IT industry is becoming more efficient as fewer people in relative terms provide IT goods and services to a larger working population.
4.2 IT Industry (Updated)
Digital convergence is increasingly tying computer technology to telecommunications and broadcasting. For this reason the definition of IT industry used in this paper is broad, encompassing telecommunications and electronic media. It could be argued that some of the industry sectors chosen do not deal exclusively with IT even under this broad definition. However, these figures are based on the standard industrial codes in use in New Zealand at the time this data was collected.
The information for Figures 4.2.1 and 4.2.2 on employment in the IT industry is based on a target population of all "activity units" with more than two full-time equivalents (FTEs) engaged in IT activity in New Zealand. Industries in the designated categories are chosen as shown in Table 4.2.1.
Table 4.2: Industry ANZSIC Classifications (Statistics New Zealand 1996)
| ANZSIC Code | Industry Group |
|---|
| C284100 | Computer and Business Machine Manufacturing |
| C284200 | Telecommunication, Broadcasting and Transceiving Equipment Manufacturing |
| C284900 | Electronic Equipment Manufacturing |
| F461300 | Computer Wholesaling |
| J712000 | Telecommunication Services |
| L783100 | Data Processing Services |
| L783200 | Information Storage and Retrieval Services |
| L783300 | Computer Maintenance Services |
| L783400 | Computer Consultancy Services |
| P912100 | Radio Services |
| P912200 | Television Services |
Figure 4.2.1: Employment in IT Industries 1990-1999 by ANZSIC Classification
Following a slump in employment in 1993 to 29,282, employment in all the IT occupations has grown steadily to reach 42,011 in 2000, increasing by 2.9% overall since 1999. Note that the Information Storage and Retrieval Services category is not included prior to 1998. Overall, there has been an increase in employment in this area of 8,896 since 1990 (26.9%) and 12,729 since the low point of 1993 (43.5%).
Most categories have expanded steadily over the period with Computer Consultancy Services now the single largest employment area, having risen from 4,475 in 1993 to 15,635 in 2000 (251%). On the other hand, the period since 1990 has seen a steady decline in numbers employed in Telecommunication Services from 17,267 in 1990 to 9,413 in 2000 (a decrease of 45.5%).
Figure 4.2.2 shows the same data as Figure 4.2.1 but excludes those employed in Telecommunications Services. It follows much the same trend as Figure 4.2.1. Flat or very limited growth through the 1991-93 period is followed by substantial increases from 1994 to 2000. This gives an overall percentage increase in employment in IT industries (excluding Telecommunications Services) of 104% since 1993.
Figure 4.2.2: Employment in IT Industries 1990-98 by ANZSIC Classification (Excluding Telecommunications Services)
4.3 IT Occupations
The information in this section is taken from the 1991 and 1996 Censuses (Statistics New Zealand 1997).
Occupations are categorised according to the occupation classification codes used by Statistics New Zealand. For the purpose of this paper, the following codes are deemed to be IT occupations. The only change to these classifications in 1996 was a change to the occupation previously classified as Computer Systems Engineer (code 21312) to a new classification of Computer Application Engineer.
| Code | Description | Category |
| 12271 | Computing Services Manager | Managerial |
| 21311 | Systems Analyst | Highly Skilled |
| 21312 | Computer Application Engineer | Highly Skilled |
| 31142 | Computer Systems Technician | Skilled |
| 31211 | Computer Programmer | Skilled |
| 31212 | Computer Operator | Skilled |
| 33152 | Technical Representative | Skilled |
| 41121 | Data Entry Operator | Unskilled |
The category column is used as an indication of skill level.
The age and sex breakdown for those working at various skill levels in IT occupations for 1991 and 1996 is shown in Figures 4.3.1 and 4.3.2.
Figure 4.3.1: Employment of the Working Population by Age and Sex in IT Occupations at Various Levels (1996)
Each bar in Figure 4.3.1 represents the numbers employed in IT occupations as a percentage of the numbers working in all occupations for a given age/sex group. These percentages are known as participation rates.
The figure indicates the IT industry remains a youthful industry, with 81.4% of men working in IT occupations being in the 35-44 or younger age groups and 80.9% of female IT workers in the 35-44 or younger age groups. It also shows that men had higher participation rates than women in IT occupations in all age groups in 1996.
Men also had higher participation rates than women in managerial IT positions and in the more highly skilled non-managerial occupations such as Systems Analysis and Computer Applications Engineer. By contrast, women still dominate the Data Entry occupation with significantly higher participation in this occupation than men.
A comparison with the same data from the 1991 Census in Figure 4.2.2, shows a relatively similar pattern to that in 1996. However, it also reveals a slight "maturing" of the industry between 1991 and 1996. In 1991 85.2% of men in IT occupations were 44 or younger, while 86.4% of women in IT occupations were 44 or younger.
Figure 4.3.2: Employment of the Working Population by Age and Sex in IT Occupations at Various Levels (1991)
Figure 4.3.3 shows the breakdown by ethnic origin of those in IT occupations for 1991 and 1996, excluding data entry operators. The only changes of note between the two surveys is a large decrease in the proportion of people classifying themselves as Other and an increase in the New Zealand European category.
Figure 4.3.3: Breakdown of Those Employed in IT Occupations by Ethnic Origin Excluding Data Entry (1991 and 1996)
Figure 4.3.4 shows the numbers working in skilled IT occupations as a percentage of the working population in each ethnic group. While the participation of men and women identifying themselves as New Zealand European is higher than those of Maori and Pacific Islanders, the outstanding feature of the chart is the very high rates of participation among those of Asian descent. Men have higher participation rates than women in all of the ethnic origin categories considered.
Figure 4.3.4: Percentage of Working Population in IT Occupations by Ethnic Origin Excluding Data Entry (1996)
Figure 4.3.5 shows the participation rate of each ethnic group in IT occupations at each level of skill. The graph answers the question: what would be the ethnic breakdown of each level of IT occupation if the working populations of each ethnic group were the same.
Figure 4.3.5: IT Occupations at Various Levels as a Percentage of Total Numbers in IT Occupations for Each Ethnic Group (1996)
People categorising themselves as New Zealand European have high participation rates across all four levels of IT occupations. The Other group also shows relatively high participation rates, except at the managerial level. This is reflected by the significantly higher participation rate of people of Asian descent at the managerial level than at other levels. What is also clear from the graph is that Maori and Pacific Islanders have low participation rates across all IT occupations.
Comparing the 1996 data in Figure 4.3.5 with the same data from 1991 in Figure 4.3.6, gives a quite different picture. In 1991, those classifying themselves as New Zealand European had much lower participation rates across all IT occupations, while people of Asian descent had much higher participation rates at the highly skilled and skilled levels. There was also a much more even distribution of people at the unskilled level in 1991 and a higher participation rate by people in the Other category at the managerial level.
Although it is not clear why this change has occurred, there was at the same time a significant change in numbers of people in each ethnic group in the working population, which is likely to have at least partly affected the ethnic composition of those in IT occupations. Overall the working population grew by 16% between 1991 and 1996. However, the number of people classified in the Other grouping fell during this time by 75%, being compensated by rises in the working population of Maori by 52%, Pacific Islanders by 40%, Asians by 65% and New Zealand Europeans by 18%.
Figure 4.3.6: IT Occupations at Various Levels as a Percentage of Total Numbers in IT Occupations for Each Ethnic Group (1991)
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