New labour market data released by Statistics New Zealand today shows a weak labour market and the need for a plan to deliver positive change, said NZCTU Economist Craig Renney.
“Unemployment rose to 4.8% – which is the highest rate it has been since COVID-19. There are 29,000 more people unemployed since this government took office. Yet there is no plan to help workers – that needs to change,” said Renney.
“It’s clear that some communities are increasingly being left behind. Unemployment for young people is now a real concern, with 20% of 15-19-year-olds unemployed and 8.4% of all 20-24-year-olds unemployed. Māori unemployment is 9.2% and Pacific Peoples unemployment is 9.9%. Unemployment in in Auckland is now 5.2%.
“Wages are also reflecting the softer labour market, with 37% of all workers seeing no pay rise, and 50% of workers seeing an annual pay rise less than the 3.8% increase in household costs reported yesterday. With the minimum wage rising by less than inflation this year, its low-income workers who are bearing the brunt of this Government’s policies.
“This was the first time in 37 quarters that the number of people employed in New Zealand fell. A million fewer hours were worked this year. 367,000 people want more work but can’t currently get it. The numbers unemployed for more than 6 months is at its highest level since 1992.
“The headline rate of unemployment didn’t hit 5%, but the underlying data shows that the labour market is as weak as people fear. There have been significant layoffs at sites across New Zealand which won’t have registered yet in this data.
“The Government’s only plan appears to be welfare sanctions which will only increase hardship for unemployed workers. Workers deserve to know what this government is going to do ensure everyone has access to good, sustainable work,” said Renney.
