Solid employment growth continues

  • Steven Joyce
Tertiary Education, Skills and Employment

Latest labour market data shows continuing growth in employment and decrease in unemployment as the economy strengthens, Tertiary Education, Skills and Employment Minister Steven Joyce says.

Today’s Household Labour Force Survey shows employment was up by 1.2 per cent – 27,000 people – in the September quarter and 2.4 per cent in the year to September – 53,000 people.

The unemployment rate fell from 6.4 per cent in the previous quarter to 6.2 per cent.

“While unemployment is still higher than we would like, it has declined from 7.2 per cent a year ago, and the overall trend is of an improving labour market as the economy picks up. The Government is working across a number of fronts to help bring the rate down further,” Mr Joyce says.

“The economy grew at around 2.5 per cent in the year to June 2013, one of the highest rates in the OECD.

“Our participation rate grew to 68.6 per cent, up 0.5 percentage points, and remains significantly higher than Australia’s at 65 per cent.”

Wages continue to rise faster than inflation. Average weekly earnings rose 2.9

per cent in the last year, compared to inflation of 1.4 per cent.

The NEET rate for 15 - 24 year olds - youth not in employment, education or training – continued to fall, to 11.4 per cent over the quarter, the lowest since December 2008. The NEET rate for 20 - 24 year olds fell by 1.8 to 14.1 per cent.

“Momentum in the New Zealand economy is continuing to grow, with September’s trade data confirming the recovery from last summer’s drought is underway, along with the highest increase in permanent and long-term migration in over a decade,” Mr Joyce says.

Business confidence rose to 14 year highs in September’s Quarterly Survey of Business Opinion and in October’s ANZ Business Outlook.The recent Grant Thorndon International Business Report puts New Zealand sixth out of 44 economies in terms of business confidence.

“The Government’s comprehensive Business Growth Agenda is all about creating the conditions for businesses to invest for jobs and growth, and for regions to take advantage of the economic opportunities available to them. It includes around 350 initiatives to create a more productive and competitive economy to create more jobs and higher wages for kiwis around the country,” Mr Joyce says.

“Today’s HLFS underlines a steady improvement in the New Zealand economy guided by the Government’s careful, considered economic reforms.”