EconPapers    
Economics at your fingertips  
 

Employment and hours worked adjustment in New Zealand's labour market

Jamie Culling and Finn Robinson

No AN2020/03, Reserve Bank of New Zealand Analytical Notes series from Reserve Bank of New Zealand

Abstract: When economic growth slows or declines, firms often need to reduce the amount of labour that they utilise. Firms can make this adjustment either by reducing the number of people they employ, or by reducing the number of hours that their employees work. The same process also takes place when growth is strong, and firms need to increase the amount of labour they use in order to meet strong demand. In this Note we explore how important the adjustments to average hours worked and number employed are for New Zealand’s labour market. Our results show that for New Zealand, adjustment in the labour market over the long-term is largely driven by changes in the number of people firms employ. However, this result largely reflects structural trends, such as population growth and the substantial increase in labour force participation since the 1990s. We find that hours worked per employee are an important contributor to the cyclical adjustment of the labour market. We find that during a downturn, businesses tend to adjust hours worked by their employees, before they resort to letting them go. In an upturn, firms increase hours worked by current staff before hiring new employees.

Pages: 14 p.
Date: 2020-02
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.rbnz.govt.nz/-/media/ReserveBank/Files ... 46-b291-7ecdf5d59760
Our link check indicates that this URL is bad, the error code is: 503 Service Temporarily Unavailable

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nzb:nzbans:2020/03

Access Statistics for this paper

More papers in Reserve Bank of New Zealand Analytical Notes series from Reserve Bank of New Zealand Contact information at EDIRC.
Bibliographic data for series maintained by Reserve Bank of New Zealand Knowledge Centre ().

 
Page updated 2021-10-20
Handle: RePEc:nzb:nzbans:2020/03