4. IT Employment
4.1 Information Technology Industry Employment
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 even under this broad definition, some of the industry sectors chosen do not deal exclusively with IT.
The information for Figures 4.1.1 and 4.1.2, which show 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 of the Australian and New Zealand Standard Industrial Classification (ANZSIC) are chosen as shown below.
| 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 4.1.1 shows employment in IT industries based on information supplied by Statistics New Zealand (Statistics NZ 2003c). Following a slump in employment in 1993 to 29,277, employment grew steadily to reach 45,460 in 2002. Overall, there has been an increase in employment in this area of 10,758 since 1988.
Most categories have expanded steadily over the period with Computer Consultancy Services now the single largest employment area, having risen from 2,409 in 1988 to 18,000 in 2002. On the other hand, the period since 1989 has seen a steady decline in numbers employed in Telecommunication Services, from 19,028 in 1989 to 9,020 in 2002.
Figure 4.1.1 Employment in IT Industries by ANZSIC Classification
→ Figure 4.1.1 Employment in IT Industries by ANZSIC Classification - Table
Figure 4.1.2 shows the same data as Figure 4.1.1 but only shows the total figure and excludes those employed in Telecommunications Services. Flat or very limited growth through the 1988-1993 period is followed by substantial increases from 1994 to 2002. Employment in IT industries (excluding Telecommunications Services) has more than doubled since 1988 reaching 36,440 in 2002.
Figure 4.1.2: Employment in IT Industries by ANZSIC Classification Excluding Telecommunications Services
→ Figure 4.1.2: Employment in IT Industries by ANZSIC Classification Excluding Telecommunications Services - Table
4.2 People Working in Information Technology Occupations
The information used in this section is taken from the 1991, 1996 and 2001 Censuses of Dwellings carried out by Statistics New Zealand (Statistics NZ 2003d).
Occupations are categorised according to the occupation classification codes used by Statistics New Zealand. For the purpose of this paper, the codes below are deemed to be IT occupations. The category column is used as an indication of skill level.
The only change to these classifications between 1991 and 1996 was a change to the occupation previously classified as Computer Systems Engineer (code 21312) to a new classification of Computer Application Engineer.
Between 1996 and 2001 there were a number of changes. The following codes were added: Desktop Publisher (code 73318), Systems Manager (code 21313), and Computer Support Technician (code 31213). In addition code 12271 changed from Computing Services Manager to Information Technology Manager.
| Code | Description | Category |
| 12271 | Information Technology Manager | Managerial |
| 21311 | Systems Analyst | Highly Skilled |
| 21312 | Computer Application Engineer | Highly Skilled |
| 21313 | Systems Manager | Highly Skilled |
| 31142 | Computer Systems Technician | Skilled |
| 31211 | Computer Programmer | Skilled |
| 31212 | Computer Operator | Skilled |
| 31213 | Computer Support Technician | Skilled |
| 33152 | Technical Representative | Skilled |
| 73318 | Desktop Publisher | Skilled |
| 41121 | Data Entry Operator | Unskilled |
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 4.2 shows the number of people working in IT occupations in the IT industry and in the working population as a whole for 1991, 1996 and 2001. The number of people working in an IT occupation and in the IT industry increased from 8,826 in 1991 to 16,277 in 2001. In contrast the number of people working in the IT industry (from all occupations) decreased slightly between 1996 and 2001 and is only slightly higher than it was in 1991.
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 57,249 in 2001, a 70% increase since the 1996 Census.
In 2001 4.7% (up from 4.0% in 1996) of the working population in New Zealand was in an IT occupation and/or working for an IT industry company.
Table 4.2: Working Population in IT Occupations
| | Number Employed |
| | 1991 | 1996 | 2001 |
| Working Pop. | 1,400,376 | 1,630,809 | 1,727,721 |
| ITOcc.ITInd. | 8,826 (0.6%) | 10,695 (0.7%) | 16,277 (0.9%) |
| ITOcc. All Ind. | 27,717 (2.1%) | 33,642 (2.1%) | 57,249 (3.3%) |
| All Occ.ITInd. | 40,200 (2.9%) | 41,823 (2.6%) | 40,941 (2.4%) |
| IT Employed1 | 59,091 (4.2%) | 64,770 (4.0%) | 81,943 (4.7%) |
The age and sex breakdown for those working at various skill levels in IT occupations in 2001 is shown in Figure 4.2.1. Each bar represents the numbers employed in IT occupations as a percentage of the numbers working in all occupations for a given age/sex group.
Figure 4.2.1 indicates that the IT industry was a youthful industry in 2001 with 78.9% of men working in IT occupations being 44 or younger and 78.4% of women being 44 or younger. In 1996 the comparable figure for men was 81.4% and for women 80.9% and in 1991 it was 85.2% for men and 86.4% for women. These figures show that whilst the IT industry remains a youthful industry it has matured since 1991.
Figure 4.2.1: Employment of the Working Population by Age and Sex in IT Occupations at Various Skill Levels (2001)
→ Figure 4.2.1: Employment of the Working Population by Age and Sex in IT Occupations at Various Skill Levels (2001) - Table
Figure 4.2.2 shows the breakdown by ethnic origin of those employed in IT occupations, excluding data entry operators, for 2001.
Figure 4.2.2: Percentage of Those Employed in IT Occupations by Ethnic Origin Excluding Data Entry (2001)
→ Figure 4.2.2: Percentage of Those Employed in IT Occupations by Ethnic Origin Excluding Data Entry (2001) - Table
Figure 4.2.3 shows the numbers working in IT occupations, excluding data entry operators, as a percentage of the working population in each ethnic group for 2001.
Figure 4.2.3: Percentage of Working Population in IT Occupations by Ethnic Origin Excluding Data Entry (2001)
→ Figure 4.2.3: Percentage of Working Population in IT Occupations by Ethnic Origin Excluding Data Entry (2001) - Table
Figure 4.2.4 shows the participation rate of each ethnic group in IT occupations at each level of skill. It 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 4.2.4: IT Occupations at Various Skill Levels as a Percentage of Total Numbers in IT Occupations for Each Ethnic Group (2001)
→ Figure 4.2.4: IT Occupations at Various Skill Levels as a Percentage of Total Numbers in IT Occupations for Each Ethnic Group (2001) - Table
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