Unemployment drops

February 5th, 2014 at 11:03 am by David Farrar

Stats NZ reports:

The labour market continues to grow and has fallen to 6.0 percent, Statistics New Zealand said today. There were 24,000 more people employed in the December 2013 quarter, following an additional 28,000 in the September quarter.

Over the December 2013 year, the number of people employed rose 3.0 percent in the Household Labour Force Survey (). Demand for workers from established businesses rose 1.9 percent in the Quarterly Employment Survey (QES).

“We’re seeing strength across the labour market, particularly in the industries that provide services,” industry and labour statistics manager Diane Ramsay said. “The unemployment rate has been falling and employment rising for the last 18 months, with both now at levels last seen in early 2009.”

The global financial crisis and recession devastated the NZ economy in 2008 and 2009. It’s great to see unemployment tracking down. NZ now has the 12th lowest unemployment rate out of 34 OECD countries, which is one place better than last quarter.

Some stats:

  • 24,000 more people in employment in the last quarter
  • Unemployment drops from 6.2% to 6.0%
  • The under 20 unemployment rate remains high at 24% (they’re priced out of the market) but the percentage of under 20s not in employment, education or training is 8.3%
  • The manufactured manufacturing crisis continues with an extra 6,100 jobs in the manufacturing sector
  • Average ordinary-time weekly earnings (by FTE) rose 2.8 percent from a year ago

 

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31 Responses to “Unemployment drops”

  1. dave_c_ (214 comments) says:

    Great stuff ! I propose firing every Green party MP to bolster the unemployment numbers again ! That pack of negative thinkers dont deserve being employed at my expense !

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  2. mandk (819 comments) says:

    The HLFS has some more alarming evidence about our manufacturing crisis.
    Employment in the sector increased by 14,400 in the year to Dec 2013!

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  3. David Garrett (6,403 comments) says:

    This is no surprise…as I go about my daily business, I am starting to notice “XXX wanted” notices in many different kinds of workplaces…supermarkets, shops, construction firms…The last time I noticed significant numbers of such ads was the last couple of years of the clark government…before the GFC.

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  4. wikiriwhis business (3,883 comments) says:

    Yet Kiwibloggers willl always complain about bludgers until the welfare system is completely axed but the fourth tier of the invisible will fill the streets while the Reserve Bank keeps housing away from Kiwi’s and J Key keeps selling the country to foreiigners and making us tenants in our own nation.

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  5. southtop (262 comments) says:

    6.0% unemployed?

    Assuming this is correct and also assume that 2% are effectively unemployable then we still have 4% unemployed – so why the hell do we have to import thousands (NB thousands) of workers for the orchards in Hawke Bay, Bay of Plenty, Nelson/Tasman and for the vineyards in Marlbrough etc???????????????

    I can accept some skilled imported labour for the Chch rebuilt however unskilled labour – hell no – not while my exorbitant taxes are paying for some to sit on their date!

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  6. anonymouse (695 comments) says:

    NZ 6.0 and falling, OZ 5.8 and rising, can’t wait for the lines to cross during the election year, the opposition will be spewing

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  7. lazza (358 comments) says:

    Given that 5% unemployed is the now accepted definition of “Full” employment these days, (allows for transitioning/retraining and relocations etc) … NZed’s 6% is not far off “Full”.

    Eat that Cunners/Wussell et al!

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  8. peterwn (3,159 comments) says:

    wikiriwhis business – too right until the only beneficiaries are those so incapacitated (by circumstances beyond their control) that they are unable to employed. In general as long as there are beneficiaries there are bludgers or lifestyle beneficiaries. And Labour’s ‘baby bonus’ plays into their hands – which is what Labour / Greens (aka Communists) want – a significant pool of beneficiaries dependent on a Labour / Green (aka Communist) government to be left alone.

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  9. Ross12 (1,149 comments) says:

    Norman manages to twist it all again ;

    http://nz.news.yahoo.com/a/-/top-stories/21273712/wages-go-backwards-under-national-green-party/

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  10. Sir Cullen's Sidekick (786 comments) says:

    Labour and Greens have great plans to bring the unemployment down to 2% by creating Green jobs and people are trusting them….so go and stuff this statistics somewhere the sun doesn’t shine. Go Labour.

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  11. srylands (386 comments) says:

    ” so why the hell do we have to import thousands (NB thousands) of workers for the orchards in Hawke Bay, Bay of Plenty, Nelson/Tasman and for the vineyards ”

    Sadly because to get the dole you need to be available for “work that is suited to a person taking into account their circumstances”. That means that if your “circumstances” include hapu connections in Otaki you don’t need to go picking apples in Nelson.

    I would (for a start) change this rule for anyone without dependent children to a requirement to accept any work in New Zealand if available. Hell, WINZ could even pay for a bus fare to Nelson and the first two weeks in a backpackers. If they say no, then no more welfare.

    But.. to look at this from an employer’s perspective, would you rather have an enthusiastic Danish 19 year old working in your orchard, or a sullen guy from Otaki? Yeah, me too.

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  12. srylands (386 comments) says:

    “Labour and Greens have great plans to bring the unemployment down to 2% by creating Green jobs”

    Can we have some examples of Green jobs and how that process of Government “creation” will work exactly? Because if it is what I think it is, there will be two jobs (at least) destroyed for every “green” job created.

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  13. srylands (386 comments) says:

    “Wages and salaries are going backwards in real terms under National leaving people worse off,” said Green Party Co-leader Dr Russel Norman…. With interest rates set to start rising next month, all families with a mortgage are about to be squeezed even further.”

    The absolute gall. The Greens want to gut the Reserve Bank Act, with resultant higher inflation and interest rates.

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  14. Grizz (500 comments) says:

    @srylands, I cannot speak for areas you have mentioned. However I have heard about WINZ trying to work with orchards and growers in Northland about using the local unemployed to help with harvests and various seasonal labour jobs. Sadly in spite of bending over backwards to get people to work on time, the outcome was poor. Lets just say that due to issues arising from punctuality and work ethic, it was just simpler to hire backpackers on work holiday visas and other imported indentured labour.

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  15. smttc (692 comments) says:

    srylands is right. Here in Hastings there are many, many happy Melanesian faces in the supermarkets at this time of year as they await the commencement of the apple pick. The orchardists would rather use imported labour from the islands and PNG than have their apple crop compromised by reluctant NZ workers.

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  16. big bruv (13,279 comments) says:

    The solution to the need for orchard workers in the bay is bloody simple. All those who are on the dole or dpb must report for work at the orchards. If you don’t turn up your dole is stopped immediately.

    If you must go to Otaki for ‘hapu’ business then that is fine, you go with the knowledge that your dole/dpb has been stopped.

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  17. alloytoo (432 comments) says:

    Once again proving that Russel is an economic illiterate.

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  18. southtop (262 comments) says:

    Agree with smttc and srylands to a point – the comment: “But.. to look at this from an employer’s perspective, would you rather have an enthusiastic Danish 19 year old working in your orchard, or a sullen guy from Otaki? Yeah, me too.”

    The issue here is it is very difficult for the ‘european worker’ to get work due to the organised government sanctioned schemes and the orchardists may not want them ….. with the Melanesian and Polynesian workers an orchard can buy a cheap house (say $300k), put over ten workers in per week, charge them say $50/week and pay off the mortgage – big win with orchards. At the same time the traditonal boost that smaller town centres got from workers is gone as these workers only buy cheap food in bulk and some second hand items to take back to the islands.

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  19. stigie (908 comments) says:

    Correct Srylands, orchardists would rather employ overseas people rather than kiwis. Here in Nelson some overseas people want to work 7 days a week, start at daybreak and finish in the dark if they could.
    Can you see this attitude from young kiwis ? Hell no !~

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  20. srylands (386 comments) says:

    “”Ka Kite Anadarko and don’t come back””

    I know I know I should ignore it…. But “The Standard” today is crowing about the failure of the drilling to find commercial quantities of oil or gas. They just don’t get the connection between wealth and their welfare cheques. They seriously say this:

    “Our country['s] sovereign ability to create money and to levy taxes ensure that we have enough to do whatever we want with our own resources.”

    It is almost worst than Zimbawean policy rhetoric.

    http://tinyurl.com/mr5ld3h

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  21. radvad (665 comments) says:

    Could some journo please please ask Aussie Russell and Cunners if they are pleased to see unemployment dropping and who they think should be commended for this achievement.

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  22. wreck1080 (3,730 comments) says:

    i wonder why anyone would vote labour/greens when the economy is finally going in the right direction.

    When Key took over, he was given a hospital pass. Having to deal with cullens purchase of kiwirail, a 1 billion dollar coverup in the ACC books, the GFC which caused a massive drop in tax take, and structurally high government operational costs. All in all, it looked like the economy had been shattered by labour.

    But, Key/English slowly turned things around for the better.

    Now, labour/green want to take the fruits of Keys effort and flush them down the toilet.

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  23. srylands (386 comments) says:

    I like this story on the anti-drilling Hikoi

    “The group, who travelled by foot, horse and electric car from Cape Reinga said it was dedicated to finding alternatives to fossil fuels. ”

    http://tinyurl.com/ktsjg8k

    All three methods are already well understood, especialy the first two :-)

    This clean energy/green jobs mantra does my head in, as though the Hikoi has anything to contribute to energy policy. Alternatives to petroleum powered vehicles will come when driven by technology and then markets (or not in which case some day we will be back to horses).

    But little old New Zealand, and especially the Hikoi, can do not a single thing to influence that course of events. However we can certainly screw ourselves badly by believing we can through adopting “green economy” policies.

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  24. Ross12 (1,149 comments) says:

    Well done Steven Joyce , in pulling up Labour/Greens on their twisting of the facts

    http://nz.news.yahoo.com/a/-/top-stories/21278631/greens-making-stuff-up-about-wages-and-jobs-joyce/

    Joyce and co are going to need to do more of this ALL this year. But they should have been doing for the past 2 years as well.

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  25. SPC (5,392 comments) says:

    Newcomers to a market are not priced out of it, they are surplus to market requirements.

    An increase in market demand for labour solves the problem, whereas enabling employers to lay off existing workers to taker on cheaper replacements would cost the government money – in higher AS, and higher tax credits.

    If 24% are unemployed and “those not in employment, education or training is 8.3%” then … .

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  26. OneTrack (2,601 comments) says:

    “Can we have some examples of Green jobs … ”

    Can we start with just ONE example ( that isn’t Beneficiary )?

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  27. Paul Marsden (986 comments) says:

    The problem that NZ now faces with the unemployment problem, is that it has x 2 generations of welfare recipients, who have the entrenched view that welfare benefits are a passage of right. You can’t blame them for that mind-set. To change that generational mind-set, the government (any government will do), needs to inflict some short term pain for long term gain, by a radical over haul of the welfare state to rid itself of this parasitic problem on our economy. This will have to be a long term, multi-prong approach in which the education system will need to play a major roll in changing attitudes.

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  28. Paul Marsden (986 comments) says:

    Also wanted to add, that immigrants have never had it so good with the benefits of our welfare state, that many now don’t want to work either. I know, I’ve tried employing a few of them and it leaves me very angry that they are now becoming parasites on our economy too.

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  29. Samuel Smith (276 comments) says:

    Good news, but aren’t you Neolibs taliking out of both side of your mouths?

    Higher unemployment keeps wages down and disempowers workers.

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  30. itstricky (1,562 comments) says:

    But little old New Zealand, and especially the Hikoi, can do not a single thing to influence that course of events. However we can certainly screw ourselves badly by believing we can through adopting “green economy” policies.

    I believe they said the same thing about this little ole’ thing called The Internet.

    But this University, in Hamilton, of all places, bucked the trend.

    Wow. Look now. Who would have thought.

    Conversatives and blind free market thinkers, a? Dragging the world down by it’s heels for centuries.

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  31. Fairfacts Media (371 comments) says:

    Don’t forget, Liarbour took New Zealand into recession long before the GFC struck.
    here’s what the Treasury says.
    http://www.treasury.govt.nz/economy/overview/2010/04.htm

    The New Zealand economy entered recession in early 2008, before the effects of the global financial crisis set in later in the year. A drought over the 2007/08 summer led to lower production of dairy products in the first half of 2008. Domestic activity slowed sharply over 2008 as high fuel and food prices dampened domestic consumption while high interest rates and falling house prices drove a rapid decline in residential investment.

    The outlook for the New Zealand economy deteriorated sharply following the intensification of the global financial crisis in September 2008.

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