Source: NZCTU
New data released by Statistics New Zealand shows that unemployment has increased to 5.2%, meaning that there are 158,000 people unemployed in New Zealand, and that wages are not keeping up with rising costs.
“Unemployment has increased 28% since the Government took office. They have no plan to bring the numbers down or help unemployed workers, and the data shows even deeper problems ahead,” said NZCTU Te Kauae Kaimahi Economist Craig Renney.
“There were 2.5m fewer hours worked than this time last year, and 8.5m fewer hours worked this year than at change in government. That’s over a million fewer days at work on an average 8-hour day.
“Wages are also stagnating. 51% of workers got a pay rise less than inflation, and 64% of people got a pay rise less than 3%. The majority of workers are now seeing their pay shrink in real terms on their base pay, by at least 0.7%. 43% of workers saw no increase in their wages according to the Labour Cost Index. Average weekly earnings in the public sector fell 0.3%, the largest fall since 2018.
“Underemployment continues to be a real problem in the labour market – 130,000 people want more hours and can’t get them. The number of people who are underutilised – a broader measure of spare capacity in the economy which includes all those wanting work or more hours – broke the 400,000 barrier for the first time in New Zealand’s history.
“The weakness in the labour market is particularly pronounced for young people, with 15,000 fewer 15–24-year-olds in employment than last year. Māori unemployment is 10%, and Pacific Peoples unemployment is 12.1%. The number of people employed fell in 9 out 12 regions, with a fall of 23,100 people employed in Auckland since last year.
“This data, together with anticipated weaker GDP data, suggests that the economy is in a difficult place and now needs support – not cuts. Unemployment is higher in New Zealand than in the UK (4.5%), the USA (4.2%) and Australia (4.2%). It’s higher than the OECD Average (4.9%)”.
“This data shows that New Zealand needs a different economic plan. Workers are paying the price for the Government’s policies, who have the wrong priorities when tax breaks come before employment support. Wages and work aren’t back on track, and working people aren’t getting ahead,” said Renney.
