An expanding New Zealand economy has kept labour demand solid, with employment increasing 0.7% to 2.4m over the quarter ending March 2015, or 3.2% over the year.

This is according to the country’s Ministry of Business, Innovation and Employment’s ‘May 2015 Quarterly Labour Market Report’, released today.

Most of the increase was from full-time employment, with 60,000 more people employed full-time in the March quarter than a year ago.

Around a third of annual growth in employment came from the construction industry (up 23,300, or 12.3%). Growth in the construction industry was concentrated in Canterbury (up 8,600) and Auckland (up 6,700).

Growth was also strong in arts, recreation and other services (up 17,700 or 12.6%), manufacturing (up 15,900 or 6.6%), and retail trade and accommodation (up 13,900 or 3.9%).

Around half of national employment growth in the year to March was in Auckland, with an additional 36,800 people employed (up 4.8%). Canterbury was up 11,900 (3.7%) over the year. This accounts for 16% of total annual growth; down from the one third Canterbury was contributing in the year to September.

According to the ministry, the strengthened economy encouraged more people to enter the labour force, both domestically and from abroad. Migration was at record levels, with New Zealand gaining a net 56,300 permanent and long-term migrants in the year ending March.

The labour force participation rate stands at 69.6%, an all time high, while the unemployment rate stands at 5.8%. 

The ministry is forecasting employment growth to remain strong but for growth rates to slow over the next three years.