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Annual measures of job creation and destruction in New Zealand

Job creation and destruction statistics at the aggregate level reflect the net result of the thousands of businesses in the New Zealand economy changing their specific employment levels from one reference period to the next. This can be due to many reasons, such as the growth or decline of markets, the introduction of new products or processes, competition from domestic or offshore businesses, or adjustments due to changing economic conditions. The analysis of job creation and destruction statistics by dimension (for example, industry) can help explain what causes changes in aggregate labour market movements.

The official job creation and destruction statistics currently published from the Linked Employer-Employee Data (LEED) are produced on a quarterly basis. The calculation of these statistics includes seasonal and temporary variations in employment as job levels are compared at three-month intervals. The variation can be caused by the likes of production cycles, weather patterns, school years, and processing procedures associated with the source data.

Annual Measures of Job Creation and Destruction in New Zealand aims to present experimental annual job creation and destruction statistics from LEED and to examine how these statistics can be applied to complement the existing quarterly measures. The annual statistics are designed to remove seasonal and temporary variations in employment to provide a better indication of permanent job reallocation activity.

The authors welcome comments and feedback on the report (email to Mathew.Page@stats.govt.nz).

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