Economy of Palmerston North

The tertiary education, research and central government sectors play a big part in the city's economy.

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 2.6 percent share of national retail sales.

The largest employer in the city is the health care and social assistance sector, with 14.2 percent of all employees in the city.  The sector accounts for just 9.7 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).  Other significant research institutions based in the city include Crop & Food Research, HortResearch, Ag Research, Landcare Research, Fonterra and the Leather & Shoe Research Association.