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New Zealand is known for its strong economy and welcoming culture. It consists of two main islands, which hold the majority of its population, while 700 smaller islands surround the rest of the country. It is known for its mild weather — it rarely drops below 50 degrees Fahrenheit in most locations, while summers are warm but not overly hot.
The country has a high level of English fluency and has strong economic ties to Australia, China, and the United States. Here are some of the facts you should know about human capital in New Zealand.
New Zealand’s economy is based on agriculture, horticulture, mining, and services. The country promotes education in IT and computer science fields and has a number of tech graduates and startup companies.
- Growing Emphasis on Tech: New Zealand has a number of tech companies, and capital investment in the tech sector grew by 111% between 2019 and 2021.
- High Tech Salaries: The average salary for a tech position was $100,000, according to a recent survey.
- Industry Growth: The tech industry continues to grow and currently makes up 5% of the New Zealand workforce.
While the country experienced several recessions over the past few decades, it continues to offer a solid quality of life with relatively high wages. Its bucolic setting makes it a prime destination for people seeking an escape from North America.
While New Zealand’s tech sector continues to grow, it’s only one of the key factors driving the economy. Some of the other important elements of local economic activity include:
- Agriculture: Agriculture remains one of the most significant sectors of the New Zealand economy. Beef is one of the country’s top exports, as well as dairy items such as milk and cheese.
- Horticulture: New Zealand has a strong horticultural economy that produces cherries, kiwis, peaches, plums, and nectarines.
- Services: The largest part of New Zealand’s economy works in services, including health care, financial services, and IT.
Outsourcing does not make up a significant piece of the New Zealand economy, as the country’s relatively high wages don’t offer a significant advantage to those companies seeking outsourced back-office operations to other countries. However, New Zealand companies often outsource their own needs, such as accounting and IT operations.
Ninety-six percent of the population of New Zealand speaks English — one of the highest levels of fluency in the world. Maori is the native language of New Zealand, but very few people speak it fluently. People who speak Maori are most often found in the Cook Islands.
The average wage in New Zealand is approximately NZD 97,300, the equivalent of USD $64,340. Wages vary significantly depending on the position held, location, experience, and education. A survey of some of the highest-paying positions included the following:
- Accounting Manager: NZD 145,000
- Financial Manager: NZD 197,000
- Pilot: NZD 157,000
- Construction Project Manager: NZD 166,000
- Dentist: NZD 221,000
- Attorney: NZD 181,000
The lowest-paid positions are primarily in administrative services, tourism, and hospitality.
New Zealand is not a large country in terms of either area or population. It is home to approximately 5 million individuals.
- Auckland: New Zealand’s largest city is home to most of the important companies in the country, including banks, insurance companies, and other goods and services providers.
- Christchurch: Christchurch has a much smaller population than Auckland but is the nation’s second-most populous city. It is home to a number of farming and manufacturing companies.
- Wellington: Wellington is known for its tourist attractions, beautiful landscape, and excellent food. It is similar in size to Christchurch. It offers a mix of beaches and mountains, surrounded by businesses and a burgeoning art scene.
Employee turnover is relatively low in New Zealand but does vary by industry. Administrative services tend to see the highest level of turnover, while individuals working in the healthcare sector stay the longest.
SERVIAP is a leading Professional Employer Organization (PEO) ready to help your business expand operations throughout the Western Hemisphere. PEO is a model of co-employment, where we assume total responsibility for your talent, allowing you to focus on the strategic activities of your organization.
Contact us today to learn more about how you can expand your business in New Zealand.