Source: Council of Trade Unions – CTU
Data released today by Statistics NZ shows that unemployment rose to 5.1%, with 33,000 more people out of work than last year said NZCTU Te Kauae Kaimahi Economist Craig Renney. “The latest data shows that employment fell in Aotearoa at its fastest rate since the GFC. Unemployment rose in 8 out 12 regions. 2.5m fewer hours were worked last year. There is a real and growing problem in the labour market.”
This data should be a wakeup call to the Government about the economy. Renney said “Unemployment is a lagging indicator and is forecast to continue to keep increasing. Nothing in this data suggests that these forecasts are going to change. The number of people who want more work and can’t get it is at its highest rate since COVID.
“Ahead of Waitangi Day, we should note that unemployment for Māori is nearly twice the rate of the general population at 9.2%. 5,700 more Māori are out of work than last year. Pacific Peoples unemployment is 9.6%, and unemployment for young people (15-24 year olds) is up 13,800 annually. The NEET (Not in Education, Employment or Training) rate was last this high, on a comparable basis, in 2012 according to Stats NZ.” Renney said.
“Wage increases are slowing, with nearly half (46%) of working people getting a pay rise less than CPI. With the minimum wage rising by only 1.5% in April, this is another trend likely to continue. With part-time work growing, but full-time work declining, maintaining incomes in households is going to be increasingly difficult.
“Right now, there is no plan for the economy. No plan for the labour market. The economy is in sharp recession. Unemployment is rising. It’s time for a plan for New Zealand. We are losing record numbers of people overseas, and without that these numbers would likely have been much worse,” said Renney.