According to the latest Infometrics quarterly economic monitor, for the three months to December, Otago was the only region in the country not to experience an overall decline in employment in the past year — recording a 0.1% rise in the number of estimated filled jobs.
Southland and Canterbury fell 2.3% and 0.5% respectively, while the hardest hit were Nelson with a drop of 3.1% and Gisborne with a 3% decrease.
Both Wellington and Auckland fell 2.1%.
Infometrics chief executive and principal economist Brad Olsen said it was a “limited gain”, but a noticeable one.
Otago’s tourism recovery had experienced a bit more momentum at the end of the year, international tourist arrivals returning to 89% of pre-pandemic levels in December, and the primary sector had seen better returns for dairy, meat and horticulture.
“It certainly feels better with job numbers up, but I think reality on the ground for a lot of people is that jobs growth has slowed from a much better position.
“There’s a lot of pain that has gone on in the economy out there, but I think as well we are starting to see some of those early tentative signs of a bit more of an economic turnaround.”
Starting out with slightly stronger employment activity than other regions boded well for Otago “unlocking the economy” as the year continued.
It was in a stronger position, but trends around tourism could change “quite quickly” depending on how the economy evolved throughout the year, he said.
The average employment decline nationally was 1.6% per annum.
Meanwhile, economic activity was 0.5% per annum lower over the 2024 calendar year compared with 2023.
Metropolitan areas were hardest hit with a 0.6% decline over the previous calendar year.
Provincial areas had a 0.3% fall, but rural areas had rallied with a 0.1% expansion as stronger primary sector activity started to unlock more growth, he said.
