Although Palmerston North has 1.9% of the population of New Zealand, 2.5% of the nation's employees work in the city. The important sectors are tertiary education, research and central government (Defence force).
The largest industry in terms of employees is the health and community services industry, which employs 14.9% of employees in the city.
The retail trade industry employs 13.3% of employees in the city. This reflects the city's role as an important retail service centre in the Lower North Island.
The tertiary education sector provides NZ$500 million a year to the local economy and the education sector accounted for 11.3% of the Palmerston North workforce in February 2006.
Palmerston North has economic strengths in research, especially in the bio-industry, defence, distribution and smart business sectors. The city is home to more than 70 major educational and research institutions, including New Zealand's fastest expanding university, Massey University; the Massey University Sport and Recreation Institute at the Massey University campus, Turitea; Universal College of Learning (UCOL) and Linton Army Camp
