Construction activity boosts economy

Recent economic data shows that the construction industry is continuing to play an important role in driving New Zealand’s economic growth

Statistics New Zealand’s latest data shows that national GDP increased by 0.9% in the June 2016 quarter, on top of a 0.9% increase in the March quarter.

Those figures were boosted by continued growth in the construction industry, which was up 5.1% in the June quarter.

Compared to the June quarter, construction was up by 10.8%. All construction sub-industries continued to grow, reflecting the increasing value of building activity in New Zealand.

Residential building drives investment growth

Overall investment in fixed assets was up 3.1% in the June 2016 quarter.

Residential building was the main driver, up $222 million from the previous quarter. All other asset types also recorded an increase in investment.

Builders in demand

SEEK NZ’s latest figures shows that job advertisements were up 9.9% in August compared to the same time last year, with ‘Trades and Services’ the second largest contributor (up 27% year-on-year) to the increase behind ‘Information and Communications Technology (ICT)’.

“With our expanding population through natural growth and net migration, ‘Trades and Service’ roles have increased across New Zealand to accommodate our rising personal, residential and commercial needs,” said SEEK NZ general manager Janet Faulding.

Candidate availability

At a national level, the data shows that there has been a slight year-on-year increase in the SEEK Employment Index, which points to favourable conditions for job seekers with less competition for each role advertised. However, there is a big difference at a regional level.

For job seekers in Auckland and Wellington, there is a reasonable balance between jobs advertised and candidates applying. In Canterbury, it remains a hirer’s market – for each job advertised, there is a higher than average number of candidates applying.