2011-2012 Annual Report - Full Version - PDF - Palmerston North ...

Economic TrendsPalmerston North has experienced strongeconomic growth over the last 10 years, withthe incomes in the City increasing at faster ratesthan those recorded nationally. Total incomes in2010 were 75% higher than in 2000 while nationalincome growth was 65% over this period.The biggest national economic trend last yearwas the stalling in economic growth in late2010 in response to weak domestic householdspending and a difficult production season forthe agricultural sector. Positive factors currentlyboosting the local economy include high dairyand meat prices and strong population growth.One issue for the City is that the positive trendsoutlined do not always flow through into a strongsense of community spirit and pride. Surveysshow residents and visitors see Palmerston Northas a great city for education and research, as a citywith good parks and recreational facilities, as a citythat is attractive to walk around, and as a likeablefriendly city.A strong retail sector also helped protect the localeconomy. Retail sales growth in Palmerston Northis strongly ahead of national figures – annualaverage growth in retail sales in Palmerston Northover the last four years was 4.4%, compared with2.9% for New Zealand. Part of this growth hascome from strong international visitor spendingand improved agricultural incomes.An encouraging aspect of the employment growthin Palmerston North has been the breadth ofgrowth across a range of sectors. Tertiary educationremains very important to the City but the level ofgrowth which has been occurring in other sectors(especially transport and warehousing jobs whichhave increased in number by over 50% since2000 and health and social assistance, which hasincreased by nearly 40%) reduces the vulnerabilityof the City to an economic downturn in one or twosectors. There has been a more recent contributionto growth from the transfer of defence personnelto Palmerston North. A new Defence base wasestablished on the Massey University Hokowhitucampus in August 2011 (officer training for the AirForce, Army and Navy) and expansion of personnelnumbers at Linton Military Camp.Overview What's Happening in the City?At the end of June 2012 6,056 Palmerston Northresidents were receiving a benefit (unemployment,domestic purposes, sickness, invalids, independentyouth or widows) from the Ministry of SocialDevelopment. This is a decline of 5% since June2011. Declines were recorded across most benefittypes, but the most significant change was an 18%decline in the number of people registered for theunemployment benefit.It is important that these strengths in our localeconomy – such as education, retailing, transportand warehousing - continue.Palmerston North City Council Annual Report 2011/1217