Marginally Attached to the Labour Force

Abstract

Since the beginning of the decade, the numbers of unemployed- who are usually regarded as a reserve labour force - have reached historically low levels, with a strong concomitant demand for labour. This has resulted in an increasing interest in issues pertaining to labour force participation.

Using data from Statistics New Zealand's Household Labour Force Survey, this article explores the characteristics of those who are not in the labour force, but still have a marginal attachment to it. In times of low unemployment, this group may serve as an alternative source of potential labour supply, while in the longer run it may be drawn upon to increase the working-age population's participation in the labour force.