Occupational Net Replacement Demand in New Zealand from 1991 to 2006

Abstract

Net replacement demand is defined as the number of job openings that arise from individuals leaving an occupation, net of jobs taken by individuals re-entering an occupation. This gives us a measure of the demand for labour required to replace the current workforce and may be used for resource allocation planning/or education and training. This may also be used as an additional diagnostic measure for occupations experiencing recruitment and retention difficulties. The average net replacement rate estimated across all occupations in New Zealand was in the order of 1. 4% for 3-digit and 1.7% for 5-digit occupations during 2001-06. The 5-digit rates varied considerably between 0.1 (e.g. microbiologists) and 10 (e.g. checkout operators). Average net replacement demand rates for occupations in New Zealand when compared with those derived in the US (2.4%), Australia (2.0%) and the Netherlands (3.8%) suggest somewhat lower domestic rates. Variations in estimates between countries could be explained by differences in the level of occupational mobility as well as the age and gender structure of the workforce. Social and economic policies and differences in each country's retirement schemes and social assistance policies also give rise to differing net replacement demand rates.