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Employer intelligence
Introduction

To gain a better understanding of the trades sector workforce, it is useful to understand more about the businesses that employ that workforce in terms of both business maturity and size as measured by number of employees, along with regional variations.

The proportion of mature trades sector businesses – those that have been in operation for at least nine of the last ten years – has been steadily increasing in recent years, growing from less than 36% in 2011 to around 45% in 2018. Regionally, there are relatively fewer mature businesses and more young ones in more populous areas such as Auckland and Canterbury compared to more rural regions like the West Coast.

The majority of employers in the trades sector (68%) are quite small, employing one to five people. There has been some growth in the proportion of medium sized employers though, as firms with six to 20 staff and 21 to 100 staff have both increased as a share of all employers between 2011 and 2018. Auckland and Canterbury are the only regions with significant numbers of very large employers (101 employees or more), but the majority of employers in every region are small.

[Maybe add comment that while most businesses are small (1 - 5 employees) in terms of number of employees employed medium sized businesses (21 - 100 employees) hire the most employees]

Businesses by number of employees

Figure 52 shows all employers in the sector by the number of employees they have over time. We can see that the majority of employers in the sector are relatively small, with 68% in 2018 having one to five employees, down slightly from 73% in 2011 (although this corresponds to an increase in the absolute number of small firms of 2,800 from 12,500 to 15,300).

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Methodology

We identify business from IRD records and calculate the number of employees each business employees based on individual IRD taxs records attached to each business.

Employees are required to earn at least 3 months of wages above a minimum wage equivalent of working 40 hours a week in each month.

The proportion of employers with six to 20 employees has grown slightly over the same period, going from 21% to 23%, while employers with 21 to 100 employees have gone from 5.8% to 7.6%. Large firms of 101 or more have remained steady at around 1% of the total, although have increased in absolute terms from 120 to 170.

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Methodology

We identify business from IRD records and calculate the number of employees each business employees based on individual IRD taxs records attached to each business.

Employees are required to earn at least 3 months of wages above a minimum wage equivalent of working 40 hours a week in each month.

Businesses by maturity

Figure 50 shows all trades sector businesses with employees (i.e. excluding sole traders and contractors) grouped by how long they have been in operation over the preceding ten-year period. This gives us an overview of business maturity among employers in the trades sector. This shows that the proportion of very mature trades sector businesses – those that have been in operation for at least nine of the last ten years – has been steadily increasing in recent years, growing from less than 36% in 2011 to around 45% in 2018.

At the other end of the maturity scale, there has also been an increase in the number of relatively young businesses, with the proportion who have only been in operation for one to two years growing from 16.5% in 2011 to 19.9% in 2018. There has been a corresponding reduction in the proportion of firms in the middle groupings, with those that are between three and eight years old reducing over this period both as a proportion of the total number of firms, and in absolute terms as well.

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Methodology

Maturity is calculated as the number of years in business in the ten years prior to the specific year.

We identify business from IRD records and calculate the number of employees each business employees based on individual IRD taxs records attached to each business.

Employees are required to earn at least 3 months of wages above a minimum wage equivalent of working 40 hours a week in each month.

The proportion of mature trades sector businesses – those that have been in operation for at least nine of the last ten years – has been steadily increasing in recent years, growing from less than 36% in 2011 to around 45% in 2018. Regionally, there are relatively fewer mature businesses and more young ones in more populous areas such as Auckland and Canterbury compared to more rural regions like the West Coast.

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Methodology

Maturity is calculated as the number of years in business in the ten years prior to the specific year.

We identify business from IRD records and calculate the number of employees each business employees based on individual IRD taxs records attached to each business.

Employees are required to earn at least 3 months of wages above a minimum wage equivalent of working 40 hours a week in each month.

Regional map

[Most trades are concentrated in auckland]

[Forestry is distributed more evenly across the country. Not surprising since got to work where the trees are.]

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Methodology

Maturity is calculated as the number of years in business in the ten years prior to the specific year.

We identify business from IRD records and calculate the number of employees each business employees based on individual IRD taxs records attached to each business.

Employees are required to earn at least 3 months of wages above a minimum wage equivalent of working 40 hours a week in each month.

Employees by business size

[While we found earlier that small businesses made up the majority of employers. In terms of number of employees hired, medium sized businesses employ the majority of the workforce]

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Methodology

We identify business from IRD records and calculate the number of employees each business employees based on individual IRD taxs records attached to each business.

Employees are required to earn at least 3 months of wages above a minimum wage equivalent of working 40 hours a week in each month.

[While we saw a small increase in the proportion of larger businesses the number of employees has not reflected that, suggesting that employees in each range are being spread across more businesses]

Download data

Methodology

We identify business from IRD records and calculate the number of employees each business employees based on individual IRD taxs records attached to each business.

Employees are required to earn at least 3 months of wages above a minimum wage equivalent of working 40 hours a week in each month.