Source: New Zealand Parliament – Hansard
ORAL QUESTIONS
QUESTIONS TO MINISTERS
Question No. 1—Finance
1. BARBARA EDMONDS (Labour—Mana) to the Minister of Finance: What recent reports has he seen on the New Zealand economy?
Hon GRANT ROBERTSON (Minister of Finance): The resilience of the New Zealand economy has been demonstrated by last week’s Statistics New Zealand job figures for the September 2021 quarter. The data showed the unemployment rate fell from 4 percent in June to a record-equalling low of 3.4 percent in the September quarter, last seen in December 2007. The number of unemployed fell by 18,000 to 98,000. The last time it was under 100,000 was in the September 2008 quarter. The unemployment rate is now 14 percent below where it was in the pre – COVID-19 December 2019 quarter. The data also shows that the economy continued to add jobs, with 54,000 more people in employment than in the June quarter. The number of people in employment is up by 115,000 since the September 2020 quarter, when unemployment peaked at 5.3 percent.
Barbara Edmonds: What else did the report say about the state of the labour market and its impact on the economy?
Hon GRANT ROBERTSON: Statistics New Zealand reports job growth was driven by full-time and permanent employment. On an annual basis, the construction industry remained a strong driver of employment, while quarterly growth in professions such as health, engineering, science, and transport were all strong. With the second half of the September 2021 quarter affected by the lockdown restrictions, actual hours worked dropped 6.6 percent over the quarter as industries such as accommodation and food services and retail trade were less able to operate. The ongoing impact of the pandemic is likely to see unemployment rates move around a bit, but I believe that the balanced approach taken by the Government has supported the strong employment results that we are seeing.
Barbara Edmonds: What reactions has he seen to the employment data as an indicator of the strength of the economy?
Hon GRANT ROBERTSON: Economists had expected the unemployment rate would fall in the September quarter, but the figure of 3.4 percent exceeded all expectations. The result is also well below the Budget 2021 update, which forecast unemployment to be at 5.3 percent in the September 2021 quarter. Westpac’s economists said, “The September quarter labour force surveys marked another stunningly strong data point for the New Zealand economy.” ANZ said the data reinforced that the labour market has been incredibly resilient in the face of higher alert levels, and Kiwibank’s economists said, “Not a single headline metric hit a bum note.” Employment surged, unemployment fell, underemployment dropped, participation rose, and the lion’s share of the gains came from female employees. They said the demand for labour was expected to remain strong. This is a good result, and a testament to the hard work of businesses and workers right across New Zealand.
David Seymour: Has the Minister of Finance seen any reports that in the last year, wage growth went up 2.4 percent, inflation went up 4.9 percent, and does he think that might be why more and more New Zealanders are concerned about the cost of living under this Government?
Hon GRANT ROBERTSON: New Zealanders have always been concerned about the cost of living and the rising prices around New Zealand. I would note the member’s new found support for lifts in the minimum wage, which I’ll note for next time.
SPEAKER: Supplementary question.
David Seymour: I beg your pardon, Mr Speaker, I was rising for question No. 2.
