SMEs' Contribution to Employment
The number of workers employed by SMEs increased.
SMEs accounted for 29.6 percent of total employment at February 2006. The number of people employed by SMEs increased by 1.8 percent between 2005 and 2006 to 522,180.
Figure 3. Total Employment by Enterprise Size, at February 2006
→ Full size version of Figure 3 [16 kB GIF]
A comparison of government and private employment demonstrates the significance of the government sector for total employment. The government sector accounts for 18 percent of employment and the private sector, 82 percent.
Figure 4. Total Private and Government Sector Employment by Enterprise Size, at February 2006
→ Full size version of Figure 4 [19 kB GIF]
Table 3. Annual Percentage Change in Employment by Enterprise Size, at February 2006
| EC Size Group |
2001 |
2002 |
2003 |
2004 |
2005 |
2006 |
| 0 |
- |
- |
- |
- |
- |
- |
| 1-5 |
1.33% |
3.45% |
3.99% |
1.90% |
7.79% |
2.87% |
| 6-9 |
2.38% |
3.35% |
8.34% |
2.08% |
5.69% |
0.85% |
| 10-19 |
4.01% |
3.27% |
9.57% |
2.58% |
7.18% |
1.48% |
| 20-49 |
1.85% |
1.21% |
7.64% |
3.09% |
3.05% |
-0.03% |
| 50-99 |
1.77% |
2.74% |
6.57% |
4.50% |
4.26% |
-1.18% |
| 100-499 |
3.72% |
-0.23% |
2.11% |
4.12% |
5.17% |
3.27% |
| 500+ |
6.65% |
3.56% |
3.79% |
4.19% |
4.82% |
3.96% |
| Total |
3.77% |
2.38% |
5.26% |
3.46% |
5.22% |
2.17% |
Businesses with 1–5 employees created the greatest number of new jobs…
Table 4 illustrates the contribution of firms to job creation in the economy between February 2001 and 2006. The largest single contributing group was new businesses with 1–5 employees, which created 95,320 new jobs, 1,460 more than during the February 2000 to 2005 period. Of continuing businesses, the most new jobs came from firms with 500 or more employees, which created 74,610 new positions.
… but are also the second greatest contributors to employment reduction.
Between February 2001 and 2006, firms with 500 + employees were the greatest contributor to employment reduction (a reduction of 93,500 jobs) followed by firms with 1-5 employees (a reduction of 81,690 jobs). Firms of these sizes were the greatest contributors to employment reduction between 2000 and 2005 also.
Firms with 1-5 employees created the greatest net employment change, accounting for 21 percent of net employment change.
From 2001 to 2006 SMEs accounted for 59 percent of all net new jobs in the economy.
Table 4. Employment Creation and Reduction by Enterprise Size, February 2001 to February 20062
|
EC Size Group |
| 0 |
1-5 |
6-9 |
10-19 |
20-49 |
50-99 |
100-499 |
500+ |
Total |
| EC |
| Employment Creation |
| Continuing business |
43,590 |
48,100 |
23,990 |
30,900 |
38,520 |
28,980 |
60,880 |
74,610 |
349,570 |
| New business |
0 |
95,320 |
53,850 |
71,230 |
64,170 |
31,680 |
51,520 |
50,710 |
418,470 |
| Total |
43,590 |
143,410 |
77,830 |
102,130 |
102,690 |
60,660 |
112,400 |
125,320 |
768,030 |
| Employment Reduction |
| Ceased business |
. |
-22,830 |
-12,970 |
-19,220 |
-28,540 |
-16,530 |
-27,480 |
-35,450 |
-163,010 |
| Continuing business |
0 |
-58,860 |
-35,490 |
-46,080 |
-47,810 |
-25,370 |
-42,980 |
-58,060 |
-314,640 |
| Total |
0 |
-81,690 |
-48,450 |
-65,300 |
-76,350 |
-41,900 |
-70,450 |
-93,500 |
-477,650 |
| No Change |
| Continuing business |
0 |
0 |
0 |
-35 |
-60 |
-60 |
640 |
1,570 |
2,060 |
| Net Employment Change |
43,590 |
61,720 |
29,380 |
36,830 |
26,340 |
18,760 |
41,950 |
31,820 |
290,380 |
The average size of New Zealand firms decreased slightly.
The average number of employees per enterprise at February 2006 decreased slightly to 5.1, down from 5.2 in 2005. When non-employing firms are removed, the average number of employees per enterprise in 2006 was 14.0, the same as in 2005.
Figure 5. Average EC per Enterprise, at February 2006
→ Full size version of Figure 5 [12 kB GIF]
Figure 6. Average EC per Enterprise, less Non-Employing Enterprises, at February 2006
→ Full size version of Figure 6 [15 kB GIF]
Most New Zealanders in the labour force are paid employees.
Data from the 2007 Household Labour Force Survey show that over 80 percent of people in the workforce are paid employees.
Figure 7. Employed Labour Force by Type of Employment, year ended March 2007
SMEs utilise the greatest proportion of part-time employees of all firm types.
The March 2006 Quarterly Employment Survey shows that SMEs are generally more likely to have part-time employees than larger firms. Firms with 1-5 employees employed the greatest proportion of part-time staff (33.6 percent). However, as Figure 8 indicates, the majority of employees across all firm sizes are full-time.
Figure 8. Full/Part-Time Employees by EC Size Group, at March 2006
→ Full size version of Figure 8 [19 kB GIF]
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