New data shows the unemployment rate accelerating to 4.6%, and worrying labour market trends that should spur the Government into action, according to the NZCTU Te Kauae Kaimahi.
“Unemployment is now growing across the labour force. There are now 30,000 more people unemployed than a year ago, and communities already facing labour market challenges are bearing the brunt of the impact,” said NZCTU Economist Craig Renney.
“Young people aged between 15 to 24 accounted for around half the increase. Māori unemployment increased by 2% to 9.1% last year, and Pacific unemployment increased by 2% to 8.3%.
“New Zealand has gone from having an unemployment rate among the very best in the world, to now having a higher rate than the UK (4.3%), Australia (4%), the US (4%), and Ireland (4.3%). We are now ranked 18th in the OECD.
“Wages are also going backwards. Nearly one in two Kiwis (45%) saw a pay rise lower than inflation. Average ordinary time wages rose by the same rate as inflation last year – meaning workers aren’t getting ahead.
“The Government should be taking urgent action to get ahead of what could become a much deeper crisis. GDP is likely to fall again. Work in sectors like construction is falling away. Planned cuts to infrastructure and other spending by government will make that grim situation worse. There is an urgent need for an economic plan to tackle these issues,” said Renney.
“Rising unemployment means more and more families struggling just to put food on the table, keep a roof over their heads, and pay the bills,” said NZCTU President Richard Wagstaff.
“This Government is out of touch with the realities of working people. They have no plan to keep people in work and are making life harder for unemployed people by attacking their right to access benefits.
“They also scrapped plans to introduce the social insurance scheme, which would have meant that people who lost their jobs would have a guaranteed income to tide them over as they searched for a new job.
“Everybody deserves good work, work that is secure and pays well, and enables people to support their families. Government needs to step up with a plan to keep New Zealanders in work, and to support those who lose their jobs during these difficult times,” said Wagstaff.
