Employment in forestry and wood processing activities as at February 2007

Employment data are sourced from New Zealand Business Demographic Statistics produced by Statistics New Zealand unless otherwise stated.

Overview

There were 20 389 people engaged in forestry and first-stage processing as at February 2007. This is a decrease of 883 people, or 4.2 percent, over the same period in 2006. Total New Zealand industry contrasted the forestry sector, increasing 42 380 people (2.3 percent) over the same period. This contrast reflects the challenges currently facing the forestry sector, such as unfavourable exporting conditions (high bulk shipping rates, the high New Zealand dollar and the high US dollar exchange rate).

Employment in forestry and first-stage processing decreased in every wood supply region between February 2002 and 2007.

Forestry and logging

Employment associated with logging activities increased by 110 people on February 2006. The increase reflects harvesting which rose from 18.8 million cubic metres to 20 million cubic metres from March 2006 to March 2007. The increase seen in harvesting was most likely in response to the government signalling its intention for the deforestation (conversion of forest land to non-forest land) of pre-1990 forests to be subject to obligations under the emissions trading scheme from 1 January 2008.

Sawmills, planing and other wood mills

Employment in sawmills dropped from 6970 people in February 2006 to 6750 people in February 2007 (down 3.2 percent). The decline was most likely caused by mill restructure as production over this period does not follow the same trend. Timber re-sawing and dressing activities engaged 2200 people at February 2007 (230 more people than the previous year). Employment in fabricated wood manufacture (including particleboard and fibreboard) was down by 90 people on February 2006. This can be partially explained by a decline in fibreboard production from March 2006 to March 2007.

Paper and paper products

Employment in pulp, paper and paperboard manufacturing dropped 270 people on 2006. The permanent closure of Norske Skog’s number one paper machine mid 2006 is responsible for the decline of 127 people. The remaining reduction may be explained by some processing activities either closing down or moving offshore.

Other activities associated with the use of wood

People engaged in construction increased by 1450 persons on 2006. This reflects the strong domestic housing market over this period.

Regional employment

There was a decline in people employed in forestry and first-stage processing in every wood supply region over the last five years. The largest decrease was seen in the Central North Island where there were 2609 less people employed in the year ended February 2007 compared to year ended February 2002. Much of this decline was related to the restructure of some companies in the region. These companies restructured to rationalise sawmilling capacity and gain efficiencies in manufacturing and harvesting.

Technical notes

  1. The statistics presented in this release are sourced from the New Zealand Business Demographic Statistics produced annually by Statistics New Zealand.
  2. The Full Time Employee (FTE) count was discontinued in 2003 and was replaced with the “Employee Count” in 2004. Employee count is a head-count of all salary and wage earners for the February month.
  3. Year to year changes in the employee counts for specific Australian and New Zealand Standard Industrial Classification (ANZSIC) codes may occur for reasons other than employment changes within the activity units making up the code.
  4. The Ministry of Agriculture and Forestry intends to use Statistics New Zealand’s Business Demographic Statistics for employment statistics with regard to forestry and related activities using wood. It does not intend to promote employment statistics for the “forestry sector” as a whole because of definitional problems, but will list those activities which users wish to include.
  5. Further details are available on Statistics New Zealand’s website
  6. All employment data have been rounded and the sum of components in the tables provided may not add precisely to the total shown. Percentage changes are calculated from the rounded figures.

Contact for Enquiries

Innovation and Research
MAF Policy
Ministry of Agriculture and Forestry
PO Box 2526
Wellington
NEW ZEALAND

Phone: +64 4 894 0100
Fax: +64 4 894 0741
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