NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Business / Economy

Brian Fallow: Will work keep working

Brian Fallow
By Brian Fallow
Columnist·NZ Herald·
4 Dec, 2014 08:30 PM5 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Illustration / Anna Crichton

Illustration / Anna Crichton

Brian Fallow
Opinion by Brian Fallow
Brian Fallow is a former economics editor of The New Zealand Herald
Learn more

New tech and globalisation are destroying jobs that once seemed secure

Andrew Little's speech on Monday on the future of work was encouraging.

The new leader of the party whose brand is to represent the interests of working people recognises that it needs to update its understanding of who, in the modern world, working people are.

It isn't just about being there for those who work 9-to-5 on a salary, or on a shift for an hourly wage, Little said.

He had a message "to people working hard to get a small business off the ground, to people choosing to work on contract, people who are their own bosses, and are thinking about maybe being able to take on someone else: we get it."

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

Never mind if this is a pitch for much of what the National Party would consider its natural constituency. It simply recognises that a concept of a worker that is rooted in the factory floor or lifetime employment is hopelessly out of date.

We live in an economy where three out of four employees earn their living by providing services to one another, rather than producing something you can hold in your hand.

And one where young businesses - which tend to be small and financially precarious - provide a disproportionate share of the new jobs.

Research conducted as part of an OECD study found that between 2001 and 2009 in New Zealand, young firms (those five years old or less) employed about one in every five workers.

Between them they generated 53 per cent of the new jobs in that period. They also accounted for 29 per cent of the jobs lost, reflecting the high attrition rate of fledgling enterprises, but even so their net contribution of 24 per cent to job creation was disproportionately positive.

So it is essential that the two-year process Little announced this week to consult and craft policy for creating more and better jobs is open to taking on board advice about what is needed to nurture that dynamic entrepreneurial culture.

Discover more

Opinion

Brian Fallow: NZ ducking the climate question

20 Nov 08:30 PM
Opinion

Brian Fallow: State's social role under scrutiny

27 Nov 08:30 PM
Economy

NZ's 'rock-star' economy has more in store

02 Dec 04:00 PM
New Zealand

Global economy's state dissected

02 Dec 05:36 PM

It might, for instance, require swallowing some dead rats like accepting the 90-day rule - the trial period when new employees can be fired without the normal recourse against unjustified dismissal.

The international context is challenging.

Advertisement
Advertise with NZME.

Real wages have been stagnant across much of the developed world for years.

Globalisation over the past 25 years has added billions of people to the world economy and trading system, mainly in Asia, who otherwise would have been part of some little village economy of no importance to anyone else, and who are willing to work for a fraction of what people in the West need to be paid.

This makes a difference to where stuff gets manufactured and increasingly to where services that can be delivered from a distance are provided from.

Digital technology is transforming work practices and challenging, sometimes lethally, traditional business models in any number of industries.

The technology, combined with value chains which criss-cross borders, cuts costs by replacing expensive labour with cheap labour at a remote location. Or sometimes by replacing it with a machine.

American economist James Galbraith, in The End of Normal, describes the mixed blessing of the digital revolution in these terms: "At one level living standards do rise ... Music, film, reading, writing, talking and flirting - around the world, instantly - have been rendered universally available and practically free of marginal cost." But for large numbers of people once sustained by the now displaced activities - like checkout clerks, TV repairmen, booksellers, photo lab technicians and reporters - living standards decline when they lose their jobs and their incomes, he says.

Advertisement
Advertise with NZME.

Galbraith challenges his fellow economists' fundamental assumption that there is an underlying trend of rising output and incomes, which the cycle will wobble around but revert to when nudged with the appropriate policy adjustments.

That conviction, he argues, embeds the particular experience of the post-World War II decades, when the pent-up demand from years wasted in depression and carnage met the great enabling technologies of the internal combustion engine and electrification, and apparently unlimited natural resources.

After that had run its course, rising living standards rested on the brittle foundation of ever-mounting debt, until the days of reckoning in 2008-09.

That may be too bleak and Luddite a view.

But six years since the global financial crisis began and despite massive monetary and (in some countries) fiscal stimulus, global unemployment has risen by 30 million people to around 200 million, including 74 million young people. The average jobless rate in developed economies stands at 8.5 per cent, compared with 5.8 per cent before the crisis.

That monetary stimulus - also known as really cheap credit - has seen asset prices soar to gravity-defying heights. The Auckland housing market is part of that trend.

Advertisement
Advertise with NZME.

Meanwhile, as Little said, "It is becoming harder to find secure, well-paid jobs. It is becoming harder to buy a home, harder to afford to start a family or retire ... People are feeling the squeeze, even though they are working their guts out."

His speech - appropriately when launching an open-minded process of consultation - contained no clues to what he thinks can be done to remedy that.

He did say too much investment capital is going into speculation instead of into supporting the next great business that is going to create jobs.

But he also wants Labour to face up to the fact that the electorate, in his experience, has taken to the policy of a capital gains tax like a cat to water.

So what other changes to the tax system would address that debilitating distortion?

We will have to watch this space, I guess.

Advertisement
Advertise with NZME.

5.8%

Average jobless rate in developed economies before the crisis

8.5%

Average jobless rate now

Save

    Share this article

Latest from Economy

Premium
Economy

Liam Dann: 'Brick wall' – why tomorrow’s GDP data won’t tell the real story

18 Jun 05:17 AM
Premium
Currency

Kiwi dollar rises 7.5% as US dollar wanes under global shifts

18 Jun 03:59 AM
Business|economy

Back-pocket boost: Households could receive hundreds of dollars in extra disposable income

17 Jun 11:35 PM

Jono and Ben brew up a tea-fuelled adventure in Sri Lanka

sponsored
Advertisement
Advertise with NZME.

Latest from Economy

Premium
Liam Dann: 'Brick wall' – why tomorrow’s GDP data won’t tell the real story

Liam Dann: 'Brick wall' – why tomorrow’s GDP data won’t tell the real story

18 Jun 05:17 AM

ANALYSIS: Is the economy getting better or worse? It should be a simple question.

Premium
Kiwi dollar rises 7.5% as US dollar wanes under global shifts

Kiwi dollar rises 7.5% as US dollar wanes under global shifts

18 Jun 03:59 AM
Back-pocket boost: Households could receive hundreds of dollars in extra disposable income

Back-pocket boost: Households could receive hundreds of dollars in extra disposable income

17 Jun 11:35 PM
Premium
Richard Prebble: How Labour can revive its fortunes with fresh leadership

Richard Prebble: How Labour can revive its fortunes with fresh leadership

17 Jun 05:00 PM
Help for those helping hardest-hit
sponsored

Help for those helping hardest-hit

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP