Net migration raises employment figures

By Phil Boeyen, ShareChat Business News Editor

Friday 8th February 2002

An increase in the number of people available for work in New Zealand has boosted both employment and unemployment figures.

According to Statistics New Zealand's December quarter Household Labour Force Survey the working age population grew by 0.5% or 14,400 people compared with the previous quarter.

"A major part of this increase can be attributed to a net gain of 9,200 from permanent and long-term migration to the working age population," Statistics NZ says.

"Growth in the labour supply has resulted in a rise in the numbers recorded as employed and unemployed, and in an increase in the seasonally adjusted unemployment rate to 5.4%. This increase in the unemployment rate follows six consecutive quarters of an either unchanged, or declining, unemployment rate."

Seasonally adjusted figures show that the level of employment increased by 16,000 or 0.9% while the level of unemployment rose by 5,000 or 5%.

On an annual basis the unemployment rate fell by 0.2% while the labour force participation rate increased by 0.6% and is at 66.4% - the highest level for nearly 15 years.

Most ethnic groups recorded a decline in unemployment rates over the year with rates for the December quarter at 3.7% for European/Päkehä, 12.9% Mäori, 9.9% for Pacific peoples and 8.4% for the 'Other' ethnic group.

Social Services and Employment Minister Steve Maharey has welcomed the growth in employment and says it shows that "New Zealanders are coming home".

"The New Zealand economy has weathered the international economic slow-down particularly well. Our unemployment rate, while up on the last quarter, is well below the OECD average of 6.9%, and compares favourably with the US at 5.6% and the Australian rate of 6.7%."

Mr Maharey says the challenge is to ensure that the economic growth provides the job opportunities for a growing labour market.

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