Official Unemployment Stable & Future Positive

Minister of Employment Peter McCardle said today the 0.1% increase in the September quarter official unemployment rate is a lower than expected outcome and while any increase is undesirable, it should be seen in the context of the softer than projected economic growth earlier this year and the positive future growth projections.

The Household Labour Force Survey for the September 1997 quarter released today shows seasonally adjusted unemployment at 6.8%, up slightly from 6.7% in the June 1997 quarter.

This result places New Zealand 0.5% below the OECD average official unemployment rate of 7.3% and 10th out of 29 OECD countries.

Mr McCardle said given the economic indicators that existed several months ago, it is not surprising that the official unemployment rate rose 0.1% in the September quarter, and the increase should be viewed in the context of Reserve Bank and NZIER forecasts predicting strengthening job growth in the next few years.

"The Government's priorities over this term continue to be to foster stronger economic growth, while particularly focusing employment policy on addressing the stubborn long-term unemployment statistics that have been persistent in New Zealand since the late 1980s." said Mr McCardle.