The $25.8 billion sector hiding in plain sight
This month, JBWere has released a brand new report that reassesses and remeasures the economic value of the for-purpose sector.
The for-purpose sector plays an important role in Aotearoa New Zealand's society. It touches each of our lives, from the services that we regularly access to the communities that we are part of. So when it comes to measuring the value of the sector, the social and environmental impact is well-documented. Yet, the sector's economic and employment contributions are often not explored.
JBWere's newest report The Economic Value of the Sector: Measuring Aotearoa New Zealand’s for-purpose ecosystem explores the scale of impact that the sector has on our local economy and how it is essential to the future of New Zealand as it is “the $25.8 billion sector hiding in plain sight."
The research has found that New Zealand’s for-purpose sector:
- Employs one in 13 workers and contributes as much to GDP as financial and insurance services
- Contributes an estimated $25.8 billion to the economy when volunteer labour is included - on par with financial and insurance services and ahead of agriculture, forestry and fishing
- Directly contributes $19.1 billion to GDP, equivalent to 4.2% of GDP
- When the value of volunteer labour is included, its contribution rises to $25.8 billion, or equivalent to 5.7% of GDP
- Nearly 120,000 organisations generate $40.5 billion in annual revenue and support around 231,000 paid workers and 930,000 volunteers
“The findings challenge the idea that the sector should be understood only through need and funding - it is also a significant employer and contributor to the national economy.”
The report also examines the challenges that the sector faces as many organisations see increased demand with reduced resources.
“The sector’s financial scale is growing while its foundations become more vulnerable. Stable hours carried by fewer volunteers raise questions about sustainability, particularly for smaller community organisations. Seeing the sector too narrowly means missing the economic, social, cultural and environmental outcomes it produces”.
“This research gives leaders, funders and policymakers a stronger evidence base. The sector is too large and important to remain only partially measured” says Dr William McInerney who contributed to the study, which was led by Professor Frank Scrimgeour from the University of Waikato.
Having up-to-date data is crucial as it allows us to see the true extent of the for-purpose sector and the ways in which it is shaping New Zealand.
This report is incredibly valuable as it provides changemakers, community leaders, donors and the public with information that deepens understanding of the sector. Through this research, we can see how the for-purpose sector strengthens communities, creates major economic activity and employment and ultimately contributes to a thriving Aotearoa New Zealand.
