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Outcomes of new entrants in food and fibre sectors
Introduction

We broke down where food and fibre sectors sources its talent here. This report extends this by tacking the outcomes of each of these source of talents within the sector.

Outcomes are defined in three different measures; retention, income and self-employment.

Retention

Of new entrants starting work 2006 to 2009 we track how long they remain in their sector over the following five years.

In this study we defined immigrants as all workers on work visas which includes working-holiday visas. Since this study we have learned that this visa steam should be treated separately. Retention rates of immigrants is thus lower than reality due to short-term working-holiday workers.

The retention rates between different talent pools does not vary greatly, with the exception of beneficiaries which have low retention rates.

Methodology

New entrants are taken from years 2006 - 2009 and retention is calculated as the number of years working in the sector until 2017.

New entrants are categorised into the following groups based on any education enrolments in the year leading up to starting work, or work experience in the past five years. They are categorised in a ranked hierarchy of:

  1. Secondary school leaver (enrolled within one year of starting work)
  2. Tertiary graduate (enrolled within one year of starting work)
  3. Career changer (at least one year of work experience within any other sector)
  4. Immigrant (first arrived in New Zealand within one year)
  5. Beneficiary (history of beneficiary income)
  6. Returning Kiwi (return date to New Zealand within one year)
  7. Others and unknowns

Such that a new entrant recently enrolled in tertiary education with more than one year of work experience is classified as a tertiary graduate as opposed to a career changer.

Income

There appears to be a strong relation between age and starting income. Secondary school leavers and tertiary graduates start off on lower incomes than career changers, returning kiwis and immigrants however show signs of closing the gap after 10 years of working in the sector.

Methodology

Average yearly income is calculated from new entrants in 2006 - 2009 for each year after entering the sector.

New entrants are categorised into the following groups based on any education enrolments in the year leading up to starting work, or work experience in the past five years. They are categorised in a ranked hierarchy of:

  1. Secondary school leaver (enrolled within one year of starting work)
  2. Tertiary graduate (enrolled within one year of starting work)
  3. Career changer (at least one year of work experience within any other sector)
  4. Immigrant (first arrived in New Zealand within one year)
  5. Beneficiary (history of beneficiary income)
  6. Returning Kiwi (return date to New Zealand within one year)
  7. Others and unknowns

Such that a new entrant recently enrolled in tertiary education with more than one year of work experience is classified as a tertiary graduate as opposed to a career changer.

Self-employment

While career changers start with the highest rates of self-employment returning kiwis have the quickest progression into self-employment.

It takes a few years for secondary school leavers to start progressing into self-employment but show similar progression rates as other sources after four years.

Methodology

Self-employment is tracked of workers retain in the sector. Note that progression rates into self-employment may not be truly representative as self-employed workers have higher retention rates and the increases may be due to wage and salary workers leaving the sector rather than an increase in self-employed workers.

New entrants are defined as persons who first work at least three months above a minimum wage threshold of 120 hours (30 hours across 4 weeks). Of these new entrants we define their primary activity in the year leading up to starting work order of:

  1. Secondary school enrollments
  2. Tertiary enrollments
  3. Work in other sectors (career changers)
  4. Visa status (immigrants)
  5. Overseas spells (returning kiwis)
  6. Beneficiaries
  7. Other

Such that a person with a tertiary enrollment and who is working in another sector in the year leading up to starting work in carpentry will be recorded once only as a tertiary student.

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Correlated factors to the retention of new entrants

In this report we test the correlation of various characteristics with retention rates

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Where do food and fibre sectors source their talent?

Investigate where select New Zealand sectors have sourced their new entrants from

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Demographics of new entrants

Investigate the demographic breakdown of new talent into select New Zealand sectors