Palmerston North City plays a significant role in national
economic activity, a fact that may be overlooked when population
data is used to compare major urban centres. While 1.9
percent of New Zealand's population lives within the city boundary,
2.4 percent of New Zealand's workforce is employed in the city.
The tertiary education, health services, research and central
government (including defence forces) sectors play a big part in
the city's economy. However, businesses that support both the rural
sector and nationwide wholesale and retail operations, coupled with
industry-leading distribution & logistics businesses also make
a significant contribution to the local economy.
The city also has a major role as a service centre in the lower
half of the North Island. This is reflected in its 2.7
percent share of national retail sales.
The largest employer in the city is the health care and social
assistance sector, with 14.9 percent of all employees in the
city. The sector accounts for just 10.8 percent of
national employment.
The tertiary education sector provides around NZ$500 million
dollars a year to the local economy while the total education and
training sector accounts for 12.0 percent of the Palmerston
North workforce. The city is home to major educational and research
institutions, including Massey University, UCOL - Universal College
of Learning, Te Wānanga O Aotearoa and the International Pacific
College (IPC). Significant research institutions based in the
city in addition to Massey University include Plant
and Food Research, Ag Research, Landcare Research, the
Fonterra Research Centre, the Riddett Institue, the Hopkirk
Research Institute and the Leather & Shoe Research
Association.