Māori make up 14.1% of New Zealand’s population and 10.1% of the country’s working-age population.[i] In 2001, the median age for Māori was 22 years, compared with the median age of 35 for the whole population. Therefore, with time, Māori will come to comprise a greater proportion of the working-age population.

Across the whole working-age population, the labour force participation rate is 66.3%. This represents the proportion of people of working age who are able and willing to work. For Māori, the rate is 66.1%; very close to the national rate. For Māori men, the participation rate is 75.2%, compared with 75.3% for European/Pakeha men, and 74.1% for men as a whole. For Māori women, the participation rate is 58.1%, compared with 60.8% for European/Pakeha women, and 59.0% for all women.[ii] Looking back to the early 1990s, the participation rate for Māori tended to be considerably less than the national rate and the rate for Europeans/Pakeha. For example, in June 1990, the Māori labour force participation rate was 58.8%, compared with 64.0% of Europeans/Pakeha.[iii] Therefore, over the past decade or so, Māori participation in the labour force has increased quite markedly. Viewed in terms of ability and willingness to work, Māori of working age currently differ little from the whole working-age population. Māori participation rates do not differ much either from those of New Zealand’s European/Pakeha majority. The proportions of Māori in full-time and part-time employment are also very similar to those for the whole working-age population.[iv]

Comparative levels of unemployment offer an initial insight into the dramatic difference between Māori and Europeans/Pakeha in the New Zealand work force. Māori experience much higher unemployment than do other groups. In June 2003, the unemployment rate across the whole working-age population stood at 5.0%. For Europeans/Pakeha, the rate was even lower, at 3.7%. But for Māori, the unemployment rate stood at 11.2%; more than twice the national rate and over three times the rate for Europeans/Pakeha. While the June 2003 unemployment rate for Māori was high compared with other groups, viewed historically the rate represented a major improvement on the recent past. In June 1992, the rate for Māori stood at 25.9%. At that time, the rate for Māori men was even higher, at 27.4%. In contrast, the rate for the whole country at that time was 10.6% and for European/Pakeha men it was 8.6%. The figures for Māori in 1992 were worse than for any subsequent year to the present. Yet, even now, unemployment represents a significant and sustained problem for Māori in New Zealand, although fortunately the present good economic conditions have reduced the severity of the problem. Māori appear more susceptible than other groups to adverse economic conditions because of their over-representation within low-skilled occupations.[v] Since people with lower skills are more likely to be laid off when an industry experiences a down-turn in demand for its products, Māori often bear the burden of retrenchment more heavily than Europeans/Pakeha.

Participation by Industry

An industry-level analysis provides insights into the location of Māori workers in the New Zealand economy. Information collected in the 2001 Census indicates that, at that time, Māori made up 10.9 percent of people in employment. Figure 4.14 shows the representation of Māori in different industrial sectors of the economy. In 2001, Māori were over-represented in government administration and defence (13.7% of the workforce), transport and storage (13.6%), manufacturing (13.1%), accommodation, cafes, and restaurants (12.9%), communication services (12.9%) construction (12.1%), and personal services (12.6%).[vi] Much of the over-representation in government administration and defence can be explained by the representation of Māori in the defence force (22.5%).[vii] Therefore, aside from aspects of government administration, most of the sectors included here are associated with manual work and, therefore, work that is less well compensated than work of a more professional nature. Māori were under-represented in finance and insurance (6.0%), property and business services (7.5%), wholesale trade (7.9%), and retail trade (8.6%). These sectors – especially the first two – tend to place an emphasis on numeracy and other thinking and interpersonal skills. Therefore, based on an assessment of the sectors of the economy where Māori are over- and under-represented, it might be said that there is a tendency for Māori to be found in lower-skilled, lower-paid areas of the economy. In its report on Māori economic development, the New Zealand Institute of Economic Research (2003) noted that, “Māori employment in New Zealand’s knowledge-based industries remains relatively low. The term ‘knowledge-based’ refers to those businesses that rely on intellectual property and innovation as their primary means of competitive advantage” (p.27). An analysis of occupations and earnings allows us to explore this issue further.


Figure 4.14: Māori Proportion of Labour Force by Industry, 2001

Data Source: Authors’ calculations based on Statistics New Zealand 2001 Census, Table 27.

Occupations and Earnings

Information contained in the 2001 Census has been used to construct Figure 4.15, which shows levels of Māori representation in different occupational groupings. Māori are significantly over-represented among plant and machine operators and assemblers (19.6%) and elementary occupations (19.4%). In terms of remuneration, both of these occupational groups are relatively low paid, when judged on the average hourly earnings within them. In contrast, Māori are significantly under-represented in four occupational groupings. These are legislators, administrators and managers (6.1%), professionals (7.0%), technicians and associate professionals (8.9%), and trade workers (9.0%).[viii] With the exception of trade workers, members of these occupational groups receive average hourly earnings that are higher than those for any other occupational groupings. All four of these occupational groups in which Māori are under-represented also tend to require workers to have acquired at least a secondary school qualification. Typically, they require considerable tertiary training as well.

Figure 4.15: Māori Representation in Occupational Classes, 2001

Data Source: Authors’ calculations based on Statistics New Zealand 2001 Census, Table 19.


Looking back to 1991, similar patterns can be found in the representation of Māori across these occupational groupings. However, as the presence of Māori in the labour force has increased, positive change has occurred in the distribution of Māori across occupations. For example, in the ten years from 1991 to 2001, the presence of Māori in the category of legislators, administrators, and managers increased from 4.0% to 6.1%, a gain in representation of 52.5%. Among professionals, the gain was 38.7%, among technical and associate professionals it was 57.1%, and for trade workers it was 28.0%.[ix] These are major increases, but we must remember that they are increases upon very low base rates of representation in these occupational classes.

In June 2003, the average hourly earnings of Māori in paid employment was $15.44 an hour. This compares with the average for all earners of $17.82 an hour, and the average for European/Pakeha workers of $18.44 an hour. From these figures, we can deduce that, in the paid workforce, the average Māori currently earns 84 cents for every dollar earned by the average European/Pakeha. This is an improvement on the June 1997 figure of 79 cents for every dollar earned by the average European/Pakeha[x]. Since Māori experience higher unemployment than Europeans/Pakeha, there is greater contrast in figures for personal income. In June 2003, the average weekly income of Māori in the labour force (which includes both people who are employed and those who are unemployed) was 77% of the average weekly income of Europeans/Pakeha in the labour force. The same difference existed in June 1997.[xi]


Educational Attainment and Its Labour Market Implications

Historically, Māori have not performed as well in New Zealand’s education system of schools and tertiary institutions as have Europeans/Pakeha. Figure 4.16 presents information from the 2001 Census regarding the highest educational qualifications people hold. In 2001, 37.1% of Māori reported having no educational qualifications, 30.0% had at least one high school qualification, 14.0% held a vocational qualification, 3.1% held a bachelor degree as their highest educational qualification, and 1.0% held a higher degree.[xii] In contrast, among Europeans/Pakeha, 23.7% reported having no educational qualifications – a proportionately much smaller group than the group of Māori who fell into this category. Among Europeans/Pakeha, 35.7% reported having at least one high school qualification, 20.0% held vocational qualifications, 7.3% reported a bachelor degree as their highest educational qualification, and 3.7% reported holding a higher degree.[xiii]

Differences in educational attainment help us to make sense of the pay gap that exists between Māori and Europeans/Pakeha. In June 2003, the average hourly earnings of people with no educational qualification were $13.32 an hour. For those holding a school qualification, the equivalent sum was around $15.00 an hour. For those with vocational or trade qualifications, average hourly earnings were $18.68. For holders of a bachelor or higher degree, the average hourly earnings were $25.63 per hour. These figures clearly indicate the significant marginal returns from attaining the additional knowledge and skills associated with earning higher educational qualifications. This analysis suggests that differences in relative educational performance are a major cause of the gaps found between Māori and Europeans/Pakeha in terms of relative position in the work force and remuneration for the work being done.


Figure 4.16: Comparative Educational Attainment of Māori, 2001

Data Source: Statistics New Zealand 2001 Census, Table 14b.

The poor levels of educational attainment by Māori, and the associated labour market outcomes, appear set to continue. In 2002, relative to European/Pakeha students, overall Māori in secondary schools did not perform well. Results from the New Zealand Qualifications Authority show that, in that year, while 71.6% of European/Pakeha students achieved the qualifications they sought, just 58.4% of Māori students did so. At the tertiary level, a more mixed picture emerges. In 2001, Māori made up 16.1% of students at public tertiary institutions.[xiv] While they were somewhat under-represented among those completing university degrees – for example, Māori comprised 8.5% of those obtaining bachelor degrees or advanced diplomas – they appeared well-represented among those receiving diplomas and certificates, comprising 20.7% and 18.8% of recipients respectively.[xv] These relatively high levels of attainment of diplomas and certificates may be driven by enrolments at the whare wananga – institutions designed primarily to deliver tertiary education to Māori. In 2002, enrolments at wananga comprised 8.6% of all enrolments in public tertiary institutions in New Zealand. At that time, enrolments at the biggest wananga, Te Wananga O Aotearoa stood at 25,233, rivalling those of the University of Auckland, which reported 27,429 students.[xvi]

Māori in Management

So far we have noted a tendency for Māori to be over-represented in low skill occupations. Evidence suggests that even when Māori are over-represented in particular industries, this does not necessarily translate into representation among higher occupational groups within those industries. For example, while Māori make up 13.6% of the transport and storage workforce, only 6.1% of transport managers are Māori and, among electronic and telecommunications engineers, just 3.0% are Māori. Similarly, although Māori make up 12.1% of workers in the construction industry, only 6.5% of construction managers are Māori. Across the whole economy, Māori make up just 3.9% of chief executives or managing directors of companies. Māori women make up just 1.1% of the people holding these positions.

In the education sector, Māori make up 11.5% of the work force. Therefore, numerically, their level of representation here is similar to their representation in the work force as a whole. Figure 4.17 shows that in 2001, at the management level, Māori were fairly well represented in the education sector. Māori comprised 8.8% of senior education managers and 11.1% of education advisers. However, Māori tended to be under-represented among teachers, comprising 9.6% of primary school teachers, and 7.2% of secondary school teachers. Unsurprisingly, Māori comprised 83.2% of Köhanga Reo teachers at that time, but they comprised only 7.9% of other early education teachers.

Similar patterns can be found in the health sector. Māori comprise 9.7% of workers in the area of health and community services. They are well-represented among health service managers, making up 10.4% of the people in these positions. However, as with education, Māori tend to be under-represented within core activities associated with health care. A selection of figures illustrate the broader patterns. Māori comprise 5.8% of registered nurses and 6.7% of public health and district nurses. Māori make up just 1.9% of general practitioners and 1.6% of surgeons.


Figure 4.17: Māori Representation in the Education Sector, 2001



Data Source: Statistics New Zealand 2001 Census, 5-digit Occupation Table.


The Health Workforce Advisory Committee (2003) has noted the basic problem of poor representation of Māori among health professionals. In response, it has recommended a series of actions that the government could take to improve the situation. The recommendations include reviewing the ways that tertiary education and other clinical training programmes contribute to the development of Māori as members of the health and disability workforce. The Advisory Committee also called for the Ministry of Education to explicitly market health and science as career options for Māori and to provide “accessible, positive” health career guidance to Māori students at all levels in secondary schools. In addition, the Advisory Committee recommended that district health boards build into their workforce development plans strategies to increase the number of Māori staff, that they provide ongoing education and development for existing Māori health practitioners, and that they consider introducing “second-chance” health education initiatives, that might include work experience and internships for Māori.

 

The Public Service

When aggregated statistics are used, Māori appear to be over-represented within the public service. As at June 2002, Māori made up approximately 18.0% of the public service. Since consistent figures began being collected annually in the early 1990s, there has been a steady increase in the number of Māori working for the public service.[xvii] In addition, since the mid-1980s, various government departments have offered scholarships to help Māori to complete university qualifications before joining their staffs. Many departments have also supported active Māori networks among their staffs. However, several points need to be made about the place of Māori in the public service. First, Māori tend to be concentrated in several large government departments, such as the Ministry for Social Development, Child, Youth, and Family Services, and Corrections.[xviii] Second, Māori mostly perform frontline functions in these departments, such as social workers, probation workers, and prison officers. Third, Māori are under-represented among senior staff and chief executives within the public service. In 2001, about 10.0% of senior managers in the public service were Māori. This is an improvement on previous years. For example, in 1998, Māori comprised just over 8.0% of senior managers.[xix] However, Māori senior managers are heavily concentrated in just one department, Te Puni Kokiri, where, in 1998, 41.0% of all the Māori senior managers in the public service could be found.[xx] Finally, there is a pay gap between Māori and Europeans/Pakeha in the public service. In June 2002, the median salary of Māori staff was 91.0% of that for non-Māori staff. This reflects the tendency for Māori to be concentrated in frontline functions, the relative youth of Māori public servants compared with non-Māori, and the lack of Māori in senior positions. The pay gap is biggest among managers, where the Māori median salary was 87.0% of that for non-Māori staff.[xxi]

The Government’s EEO Policy to 2010, published in 1997, placed a particular emphasis on achievements for Māori, with specific objectives to establish a “critical mass” of Māori in each department. The stated goal was to build public service managerial, policy and service delivery capability.[xxii] The policy called for departments to set their own numerical targets for the employment of EEO groups, including Māori. The State Services Commision’s EEO Progress in the Public Service 2003 Report notes progress on recognising the aims, aspirations, and employment of Māori. In 2003, of the 40 participating departments, 12 (30.0%) had already reached or passed their 2005 milestones and ten (25.0%) had already exceeded their 2010 target. These efforts are positive. However, on the negative side, three departments had not set a 2010 target figure for the overall representation of Māori as a percentage of staff. A further three reported having made little progress and one reported no progress. If setting targets is an important lever for progress, then this failure to set or meet targets is problematic.

Under the EEO Policy to 2010, government departments are also required to set targets for the proportion of senior managers who are Māori. By 2003, 11 departments (27.5%) had reached their 2005 milestones. However, five departments were yet to set such targets, five reported no progress on meeting the targets they had set, and nine reported little progress. Therefore, almost half of the government departments were failing to respond adequately to government EEO policy with respect to raising the number of Māori in senior management positions.[xxiii] Yet Māori continue to be significantly under-represented among senior management. Since a disproportionate number of Māori senior managers are concentrated in Te Puni Kokiri, the aggregate figures typically presented by the State Services Commission mask the generally poor representation of Māori senior managers within public service departments. The lack of progress in achieving targets associated with the EEO Policy to 2010 is disturbing. It offers an opportunity and presents a significant challenge for leadership within the public service to promote and develop EEO for Māori. This is a matter that, given the Government’s obligations under the Treaty of Waitangi, and the provisions of section 56 of the State Sector Act 1988, should be accorded high priority.[xxiv] In 2004, the Controller and Auditor General reported on the capability of the State Services Commission to recognise and address issues for Māori and made a number of recommendations.

 

The Defence Force

As of 2002, Māori comprised 23.6% of the New Zealand Defence Force. Māori are represented differently across the services, being most concentrated in the Army (29.9% of personnel), followed by the Navy (20.1%), and the Air Force (10.3%). Among the ranks of the Army’s regular force soldiers, the proportion comprised of Māori was 32.0%. However, Māori tend to be concentrated among the lower ranks in the services. In 2002, they made up just 1.8% of senior officers in the Army, 0.5% of those at the Lieutenant Commander rank and above in the Navy, and no Māori were included in the senior officer ranks of the Air Force. Analysis over the years from 2000 to 2002 suggests that there has been some progress for Māori up the ranks in all of the services, but the changes have been minor. Overall, the picture for Māori in the Defence Force is similar to that in other sectors of employment. That is to say, even when well-represented numerically, in terms of placement in positions of decision-making, Māori tend to be significantly under-represented.[xxv]

 

Summary

Some progress has been achieved in the employment position of Māori since 1990. Māori labour force participation rates have increased and their unemployment rate has decreased substantially. However, the Māori unemployment rate is still double that of European/Pakeha New Zealanders. Māori are over-represented in low-skilled, lower-paid sectors of the economy although the last decade has seen significant change in the representation of Māori across occupational classes, including professional and associate-professional classes. The pay gap between Māori and Europeans/Pakeha has decreased by more than 5% over the past 5 years, and Māori increasingly number among those in the management ranks in the public service, education and health sectors. Beyond the health and education sectors though, very few Māori are present in management positions. Further, Māori have had less success in the educational system which would equip them for higher-skilled, higher-paid jobs in the labour force. There is still a long way to go before we can say that Māori have equal employment opportunities in New Zealand.

 

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