Demographic Challenges and Opportunities in the Waikato Region: An A-B-C Approach to Population Ageing HAMILTON in Context Natalie Jackson © Professor of Demography Director, Population Studies Centre 2010 1 NZ: Will grow, but.. Actual and Projected Past Projected Stats NZ (2009 base) 2 Hamilton City – also projected to grow, but.. 250,000 200,000 High Number Medium Low 150,000 100,000 50,000 Stats NZ (Projected TA, 2006 Base, Table 2) 2031 2026 2021 2016 2011 2006 0 Does NZ need 8 million? …. A debate we don’t need to have • he tangata he tangata he tangata • Demographic interpretation: tis composition tis composition tis composition 4 As elsewhere, New Zealand is ‘ageing’ 1966 (8.3% 65+) 2009 (12.8% 65+) 37 26 Percentage at each age 5 What does it mean to ‘age’? Population Ageing in four dimensions • Numerical Ageing – Increase in numbers of elderly (primarily caused by increased life expectancy) • Structural ageing – Increase in proportions of elderly (primarily caused by low/falling birth rates)** • Natural decline – More elderly than children more deaths than births • Absolute decline – Inability of ‘replacement migration’ to replace the ‘lost’ births and increased deaths 6 NZ Elderly: Children 1,600,000 0-14 years 1,400,000 65+ years 1,200,000 Number Projected 1,000,000 800,000 Crossover 2023 600,000 400,000 200,000 Projections: Stats NZ (2009) Medium Variant Series 5 (ANM 10,000; TFR 1.9) 2056 2046 2036 2026 2016 2009 2001 1991 1981 1971 1961 1951 1936 1921 1911 1901 0 7 Projected Change by Broad Age Group Series 5 NZ 65+ Years All other age groups combined 2009-2016 (7.3%) 26.4% 4.5% 2009-2026 (15.7%) 70.8% 7.6% Stats NZ (2009) Series 5 = TFR 1.9; ANM 10,000 8 8 NZ Labour Market Entrants : Exits 700,000 15-24 years 600,000 55-64 years 500,000 Number Projected Crossover 2021-2051? 400,000 300,000 200,000 100,000 Projections: Stats NZ (2009) Medium Variant Series 5 (ANM 10,000; TFR 1.9) 2056 2046 2036 2026 2016 2009 2001 1991 1981 1971 1961 1951 1936 1921 1911 1901 0 9 Enter: a demographically tight labour market Australia 2007-200910 NZ: TA’s with negative entry/exit ratios 30 Percentage 29 39% 29 28 28 27 27 36% 26 2006 2007 2008 2009 11 Waikato Regions Labour Market Entry/Exit Ratios Stats NZ TableBuilder Estimated Subnational Populations 12 13 The A-B-C of Population Ageing • Accept – Population ageing has been unfolding for a long time – it is coming to a town near you • Buffer – Revisit /revise current policies, practices, plans (UN 2001) • Celebrate – We ‘know’ a lot about this future; we can strategise for it positively; it will contain many opportunities 14 Challenges and Opportunities for the Waikato A story in age structures 15 The growth forecast (Annual growth rates) Waikato grows under all scenarios Stats NZ (2006) Series 5 (TFR 1.9; ANM 10,000; medium mortality) 16 But the Waikato is also ageing -just a little slower than total NZ 1996 (11% 65+) 2006 (12.5% 65+) Percentage at each age 17 Almost all the growth is at older ages Projected Waikato Region 2011-2021 and 2011-2031 (Medium Series 5) 120 2011-2021 (+7.1%) Percentage Change 100 80 2011-2031 (+12.4%) 60 40 20 0 85+ 80-84 75-79 70-74 65-69 60-64 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 10-14 5-9 0-4 -20 age Stats NZ (2006) Series 5 = National TFR 1.9; ANM 10,000; medium mortality 18 Hamilton City – growth and ageing 16,000 14,000 Numbers 12,000 2011-2021 (+13%) 2011-2031 (+25%) 10,000 8,000 6,000 4,000 2,000 0 0–14 Stats NZ (Projected TA, 2006 Base, Table 4) 15–39 40–64 65+ The ageing forecast: Broad Age Groups Series MEDIUM 65+ Years Hamilton City Waikato All other age groups combined 2011-2021 (13%) (7.1%) 41.3% 38.3% 9.5% 2.2% 2011-2031 (25%) (12.4%) 88.4% 79.4% 17.3% 1.8% Stats NZ (2006) Series 5 = National TFR 1.9; ANM 10,000; medium mortality 20 20 .. some of Waikato’s regions are ageing faster than others: Thames-Coromandel (23% 65+) Percentage at each age 2009 (2006 unshaded) Hauraki (19% 65+) 21 Also faster than Waikato average: Matamata-Piako (16.5% 65+) Percentage at each age 2009 (2006 unshaded) Waipa (15.0% 65+) 22 Te Awamutu faster than Waipa.. Te Awamutu (19.7% 65+) Percentage at each age 2009 (2006 unshaded) Waipa (15.0% 65+) 23 Some are ageing slower: Franklin (11.5% 65+) Otorohanga (11.4% 65+) Percentage at each age 2009 (2006 unshaded) 24 And somewhat slower again: Hamilton City (10.4% 65+) Waikato District (10.7% 65+) Percentage at each age 2009 (2006 unshaded) 25 26 So.. what would the ‘Tight 5’ and ‘Big 11’ look like?: Tight Five (12.0% 65+) Percentage at each age 2009 (2006 unshaded) Big 11 (13.1% 65+) 27 How well would such amalgamations serve the underlying demographic constituencies? Competition for workers End of unemployment? Workers: who you ‘gonna call? Males Females Demographic Dividend Stats NZ Estimated Resident Population 2009, Waikato and NZ (unshaded) 30 A challenge.. and an opportunity 31 Who will be the workers? 2006 Census: Waikato, European and Maori percentage by age European/NZ (14.2% 65+) Maori (4.2% 65+) 38 23 Percentage at each age Census 2006 33 Waikato Region by Ethnicity* 2006 Male Female *Stats NZ Multiple Count Ethnicity 34 Hamilton City by Ethnicity* 2006 Male Female *Stats NZ Multiple Count Ethnicity 35 And what will be the industry? Waikato’s Grain, Sheep and Beef Farmers (5,000) Self-Employed and Employers 65+ Male Female All grain, sheep, beef 65+ 60-64 60-64 55-59 55-59 50-54 Self-Employed, Without Employees 45-49 40-44 Employer 35-39 Male Female SelfEmployed, Without Employees Employer 50-54 45-49 Paid Employee 40-44 35-39 30-34 30-34 25-29 25-29 20-24 20-24 15-19 15-19 600 500 400 300 200 100 0 100 200 300 400 500 Unpaid Family Worker Not Elsewhere Included 600 500 400 300 200 100 Number at each age Stats NZ Customised Database 0 100 200 300 400 500 Number at each age Waikato’s Dairy Farmers (11,000) All dairy workers Self-Employed and Employers Female 65+ Male Female 65+ 60-64 60-64 55-59 55-59 50-54 50-54 45-49 45-49 40-44 40-44 35-39 35-39 30-34 SelfEmployed, Without Employees Employer 25-29 20-24 15-19 1,000 800 600 400 200 0 200 Number at each age 400 Male SelfEmployed, Without Employees Employer Paid Employee Unpaid Family Worker 30-34 25-29 Not Elsewhere Included 20-24 15-19 1,00 0 800 Stats NZ Customised Database 600 400 200 0 200 400 Number at each age 600 800 Waikato’s Medical and Dental (1,695) All medical and dental 65+ Male Female SelfEmployed, Without Employees Employer 60-64 55-59 50-54 45-49 Paid Employee 40-44 35-39 Unpaid Family Worker 30-34 25-29 Not Elsewhere Included 20-24 15-19 200 150 100 50 0 50 100 Number at each age Stats NZ Customised Database 150 200 Watch this space.. Accept Buffer (revisit those policies) Celebrate (advance warning) 40 There is more to population ageing than meets the eye 41 Thankyou • Population Studies Centre • will become NIDEA – The National Institute for Demographic and Economic Analysis – on November 24th 2010 • natalie.jackson@waikato.ac.nz 42