Northland has more registered businesses in Aotearoa; however, the region is grappling with the highest unemployment rate in the country, showcasing a widening gap between enterprise growth and job creation.
The Northland Regional Council’s latest economic quarterly update shows the number of registered businesses reached 24,351 as of February, up 1% on last year and well above the post–Global Financial Crisis low of 19,700 in 2013. Northland recorded the second-fastest business growth nationwide, behind Otago, over the past five years.
The council said the figures pointed to “long-term resilience.” Business growth was strongest in Kaipara and weakest in the Far North, with nearly half of all businesses based in Whangārei.
Construction has been the dominant growth sector over the past decade, while finance and technology businesses have also expanded. Primary industries remain central to the regional economy, while mining and wholesale trade have continued to contract, in line with national trends. The council said dairy and horticulture were driving growth, underpinned by strong productivity gains.
“Across the board, producers dealt with changing markets, variable weather, and shifting consumer demand – highlighting resilience as well as ongoing structural issues,” the report said.
Dairy production climbed to 77 million kilograms of milk solids in the 2024/25 season, up 10% year-on-year. Kiwifruit growers delivered a record 6.75 million trays, a 57% increase following a weather-affected season. Avocado exports surged to 1.44 million trays, driven by higher yields rather than land expansion.
Forestry, however, remains under strain. Harvest volumes were 40% below the 2015/16 peak, while lower prices cut forest owners’ earnings to about $340 million.
Unemployment rose from 5.4% to 6%, giving Northland the highest jobless rate in the country as of June.
“… Many industries are losing workers even as businesses grow. This could be because of technology and changes in how work is done,” the council said. Employment fell by about 2,200 people, while Jobseeker numbers increased.
About 41% of residents are under 15 or over 65, giving Northland the country’s highest dependency ratio.
NorthChamber chief executive Leah McKerrow said the past two years had been difficult.
“It has been a tough couple of years … But there is optimism that it is starting to change.”
She pointed to a 55% rise in entries to the Northland Business Awards, suggesting confidence may be edging back. Still, most local businesses remain small, and only 15 employ more than 50 staff.
“When we feel more confident, we’re then likely to make plans for growth and act on them,” McKerrow said.