Self-Employment and Labour Market Transitions in New Zealand

Abstract

Self-employment in New Zealand has been trending up in the past two years, following subdued growth between 2000 and 2010. Self-employed people made up 11.3% of total employed in the year to March 2012 (251,800 workers), compared with 10.1% in the year to March 2010. Self-employment is defined in this paper as those people operating their own business without employees. The paper explores time series trends in self-employment, in particular across three post-recession periods. Characteristics of self-employed workers are also identified. This paper also investigates movements in and out of self-employment in order to understand the recent growth in this type of employment. The analysis uses longitudinal Household Labour Force Survey (HLFS) data. The HLFS provides official measures of a range of labour market indicators, including the number of people employed, unemployed and not in the labour force.