Peak job growth in the construction industry is closely mapping the boom in house prices since 2002 – having now declined for the second consecutive year according to a Statistics New Zealand release today.
Acting government statistician Dallas Welch said today that construction industry jobs experienced elevated and sustained growth in the first half of the decade, growing between 7.6 and 12.6% between 2002 and 2005, before slowing to 6.8% in 2006 and 5.1% in 2007.
However even with the slowdown construction has the second highest growth of all industries for the year, after mining.
The only industry to experience a decline in filled jobs for two years in a row was New Zealand’s beleaguered manufacturers, with decreases of 2.4 and 1.2% during 2006 and 2007 – although manufacturing remains our largest industry.
While overall job growth was healthy between 2002 and 2005 at 3.4 to 4.1%, it is now slowing, having dropped to 1.7 and 1.8% over the 2006 and 2007 years respectively.
The average mean quarterly earnings for all jobs was up 4.8% to $11,170 in the December 2007 year from 2006, and while the construction industry had slower growth in filled jobs, it was still one of the key industry drivers in this increase.