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 report highlights the impact of the sector 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."
JBWere's research has found that the 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 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.
This report is incredibly valuable as it showcases the scale of impact that the for-purpose and community sector has on our country and the communities across all regions.
